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IRS Abuse Reports


IRS Abuse Report #282
Date: Sat Nov 1 6:42:23 1997
To: sue@irs.class-action.com
From: RD

The stories I've read here are all so familiar in regards to IRS abuses of people & small businesses. You wonder, what does it mean to be an American these days?, what do they want from us?, I served my country, spent 20 years in law enforcement, have been a good citizen. I started a small security business in 1991, from the beginning I had troubles with IRS, for 6 years now they claimed I owed money even after I paid my accountant to prove I didn't. It did come to a point where I fell behind due to increasing medical bills for my mother but I made every attempt to catch up, sending them thousands. I finally set up a meeting with an IRS rep. in hopes of an "arrangement"..this was the text of the conversation..I was told "You don't belong in business", The IRS doesn't want you in business", "you need more accounts", "do you have a check on you?", "do you have overdraft checking?",it looks as if you have an $11,000 or $12,000 credit but that takes 3-6 months because only "special" people are allowed to credit you account. The end on 10/25 they took every dime. The next day, on 10/26, my mom died. I now have no business, no job, no income except some savings. Its too late for me, but I strongly suggest to all "Keep fighting", don't commit suicide over these idiots, you only hurt others, don't take "radical" actions or plan overthrows of our government. Instead, "wake" up, we are the people, we are the people, we have the power to force the government to stop the "Gestpo" tactics of the IRS, take a serious look at Nazi Germany and what goes on in the IRS today..The Nazis felt Jews had no right to be in business, so they "took" everything they owned, it's no different here today in America just a different decade and a different flag.


IRS Abuse Report #283
Date: Sun Nov 2 3:51:39 1997
To: sue@irs.class-action.com
From: SB

Hard to believe we live in America, the land of the free, and have an agency with the power to destroy lives.

It began in 1983 when my husband's business was audited because the IRS was conducting audits on "like businesses" in our area. He responded by turning over all records and complying with all requests from the auditor.

After two years, now 1985, and two auditors later, the result was $500,000 owed by him as a individual - all moneys received were considered his income. It was never suggested that he issue 1099's and a penalty be filed against him. His business folded before the completion of the audit and he tried to explain to the auditor that he did not make the income the audit resulted in - the auditor fully agreed but did nothing. My husband begged them to take our home as settlement. That $500,000 eventually became $2.9 million. In 1986, at age 40, my husband suffered a severe aorta aneurysm which resulted in emergency surgery for repair of the aorta and heart valve replacement and another aneurysm was found which could be repaired because of the risk of his death. I was told his condition was a result of severe stress and hypertension and that he may not be able to live a normal life again. I went to work because he could not work - we had no income, no savings, no retirement, - nothing. We received letters monthly demanding payment of the $2.9 million. 1990 a revenue officer was assigned and as a result of our meetings I voluntarily agreed to have $160 weekly garnished from my earnings - I was told the amount I owed was too large to garnish and I would have to volunteer if I wanted to keep the IRS away. The debt would be paid in approximately 257 years. Our "offer in compromise" was rejected because they could take everything we offered - we only had our home. We were again told that they knew we did not make the money suggested by the audit. My husband was able to return to work, however he suffered several TIA strokes which resulted in hospitalizations. I begged the IRS to only deal with me because I was afraid the continuing stress of the situation would result in his death. In Aug'93 I was assigned a new revenue officer - HM and she demanded a new financial statement and no compassion for my situation. She would call and demand a response and threaten further severe action. Because of the fear I had for HM, I desperately searched for help and was finally represented by council, pro bono. We filed bankruptcy on the amount owed - maybe we could now have some peace of mind. Wrong - in May'96 I started receiving demand letters again and a new levy on my earnings. In June'96 my husband suffered a severe heart attack which resulted in his death (at age 49) in Aug.'96. In Nov'96 I started receiving demand letters again and another garnishment. In April'97 my checking and savings was levied and another garnishment on wages. I called and cried, screamed and hollered until they released the levy and assigned a new officer. Guess what, this new officer knew nothing about my history and I had to supply her with my records and information about my case. The last time I spoke with her was 10/31/97 and I became so distraught I could barely speak. She seems to be trying to sort things out but she still says they may seize my home. I am now on medication for irregular heart rhythm and the stress is unbearable. I grieve not only for the loss of my husband but for the feelings of worry he had before he died knowing the mess he would leave me in. He was very alert and aware until two days before his death - even told his doctors' about his concerns with the IRS.


IRS Abuse Report #284
Date: Sun Nov 2 9:38:44 1997
To: sue@irs.class-action.com
From: BB

Thank you for creating this web site. Together we can expose the IRS for what it truly is. A monster out of control!

This will be the second year in a row that I have been audited and the IRS for some unknown reason refuses to acknowledge the existence of my son (age 12). I file my taxes in timely fashion and in both audits (tax years '95 & '96) they deny my eligibility for the "earned income" tax credits available to me as a poverty-level single parent. The IRS has for the second year in a row sent me a letter stating that they have RE-DONE my taxes for me and disallowed my claim for earned income credits and are now charging me , with interest penalty, for unpaid taxes. Citing their reasons that my son does not exist!! and I am not qualified to receive the credits due me. For the tax year of '95 I filed a total income of $6,005. And now they are saying I owe $3,343 in unpaid taxes! more than half of my poverty-level income. I include in my tax forms the form they request for eligibility for the earned income credits wherein I give the appropriate information about my son. Beyond any doubt I do qualify for the credit and they never give reason as to why I do not qualify. It is as though they, the IRS, have lost some paper work and now I have been compelled by them to prove that they are wrong in the form of notarized documents and excessive and expensive mailings to prove my tax status. A status of which I have sent them each and every tax year.

The IRS blindly go about their business of sucking poor hard working taxpayers who don't have the money to defend ourselves. It should be illegal for anyone, IRS or otherwise, to RE-DO someone's taxes without that person's knowledge or input. The whole idea that the IRS can do this is ludicrous and totally outrageous! The stress of all this brought about by a clerical error on their part is overwhelming at the very least, the matter in which they attempt to resolve these problems is unconscionable.


IRS Abuse Report #285
Date: Sun, 2 Nov 1997 7:18:24
To: sue@irs.class-action.com
From: JD

In 1987 I closed down a business. Subsequently, the IRS billed me for 1988 & 1989 taxes. I have requested that they support their claim and was told that they did not have to prove I owed the $, I had to prove I did not owe the $. When I asked where they got their figures from I was told it was off returns I filed. Naturally, I asked them to produce the documents. Guess what? The documents are in archives and can not be located! But none-the-less I owe the $ and must pay.

This nightmare has been going on for 8 years. I can not own anything, every 6 months or so a new agent is assigned to my case and with each new agent I go through the same process. They do not have to support their claim, I must prove they are wrong.

I now pay $550 per month against a bill of over $250,000, the IRS has never produced one document other than a computer printout to support their claim. I can not own any property, my bank accounts are subject to levy, I can not borrow $.10, my entire life is under their control. And they still have not supported their position.

I have hired lawyers to attempt to resolve this matter, the net result is that I have paid lawyers to get the same result. I can not afford to fight them alone.


IRS Abuse Report #286
Date: Sun Nov 2 13:13:14 1997
To: sue@irs.class-action.com
From: DH

Mine is a very long story with many things happening. They closed my business, took my home, auto, business property, all bank accounts, made up a phony $150,000.00 tax claim, caused me to file 5 bankruptcies to keep them away. Fined me $15,000 as punishment for discharging $100,000 in taxes, appeared in court to petition the judge not to give me the discharge, stole my car during the bankruptcy process, garnisheed my wages, and many times emptied by bank accounts of small amounts of 10 to 15 dollars.

All over a 16 year period of ugly harassment. Devastated my credit rating. Many heated and volatile audits. They literally destroyed my life - leaving me now in old age -- ailing -- and living off social security.


IRS Abuse Report #287
Date: Sun Nov 2 23:03:14 1997
To: sue@irs.class-action.com
From: TK

This may or may not qualify as an abuse report but the IRS has certainly cost me years of my life, much of my peace, and a substantial chunk of money over the years.

I've had liens and garnishments and collections pending since 1990. Not one day of peace. This, despite my most scrupulous efforts to satisfy every request by the IRS, and to file detailed and accurate returns every year. The anger and frustration resulting is enough to drive one to distraction.


IRS Abuse Report #288
Date: Sun, 2 Nov 1997 06:32:28 EST
To: sue@irs.class-action.com
From: QP

The IRS has levied our wages (mine and my spouse), our life insurance policies, our bank accounts. This was done by them without following the laws of the United States.


IRS Abuse Report #289
Date: Fri Nov 7 15:05:56 1997
To: sue@irs.class-action.com
From: Anon

For some reason, the IRS sent my mother in law a check in excess of $80,000 that she didn't have coming to her. A complete and undeniable error on their part. When she gave it back to them, they said "where's our interest?" And they still won't back down! They keep insisting they are required to collect this interest.


IRS Abuse Report #290
Date: Sat Nov 8 19:16:14 1997
To: sue@irs.class-action.com
From: Anon

I work for an owner of a company that had an 'encounter' with the IRS. To make a long story short, the business owner and the IRS had an agreement that the business owner would pay a certain amount of money until the tax bill was paid in full. It was only a short period of time until the IRS walked into his place of business and demanded the full payment. The IRS was reminded about the agreement that both parties had, but that did not seem to matter. They demanded the remainder of the money or they threatened to close down his business. The owner paid the money but it took all his operating funds.


IRS Abuse Report #291
Date: Sat Nov 8 22:40:32 1997
To: sue@irs.class-action.com
From: PB

I went through a nasty divorce. My ex-husband never paid taxes but mine were taken out of my paycheck. In the divorce the judge ordered him to be responsible for his taxes amounting to thousands of dollars. He simply left the state. The IRS didn't know where to find him, but they knew where I was. So they started with my car and my checking account. I had checks bouncing everywhere because they simply took what little I had. Then when I filed my tax returns they kept what they were supposed to return. They did that until they had all the money he owed them. I was raising three children myself. I explained to them what had happened. They said oh that is really too bad, I feel bad for you but we can do this because your name is on the taxes since you had filed a joint return while you were married. My ex-husband never had to pay one dime of his taxes, I had to pay them all.


IRS Abuse Report #292
Date: Mon Nov 10 23:45:26 1997
To: sue@irs.class-action.com
From: PC

I ran into trouble with the IRS because for the first time in my life I actually got some extra income other than my annual salary. The company that I was working for at the time rewarded my performance with some stock options which I took advantage of and used the money to put a down payment on the purchase my first home. Well for the first time in my life when it came to tax season I owed money approximately $4000 which put me in a panic because I did not have the funds to pay this. I was advised to enter into a payment plan which I saw as only fair since I owed the money. I thought I was safe as long as I made my monthly payments which I did!! Well it was a week before Christmas the actual date was 12/17/96 and I had about $1700 in my checking account, I had just sent my mortgage payment, we just had our first child 4 months old at the time and were looking forward to Christmas. On a trip to make a small withdrawal from my account I was denied and I then made the discovery my account was empty, and my mortgage payment bounced!! I called my bank and they informed me that my account had been levied by the IRS! I had no notice and NO reason to suspect it since I made my monthly payments!! I called the IRS and spoke to a woman whom I asked why was this done - " I made my payment?!!" She confirmed that I made my payment and that it I should not have been levied but it was "just" the computer!! She said the funds could not be returned but it would be credited towards my outstanding TAX DEBT, I pleaded with her, trying to get the IRS to put it back - but it was useless!! Well that little random act of kindness from the IRS caused me a black mark with my Mortgage holder who was to remove the PMI off my mortgage which would have saved me almost $200 a month, but because of that bounced payment they would not remove it. But the worst part of it was how depressed I became, and we just let Christmas pass with no celebration. I am still paying every month but I can not catch up - they continue to hit me with penalties and I have pretty much given up hope on ever getting out of the hole!! I am in fear that they will do that again and I feel that there is nothing I can do about it!!


IRS Abuse Report #293
Date: Mon, 10 Nov 1997 17:35:32 -0500 (EST)
To: sue@irs.class-action.com
From: TB

I filed as head of household for the 1996 tax year, rightfully so, and now I have been audited. They have sent me a determination that I currently owe $4190! (All of my 1996 return plus penalties) They never gave me an explanation to this decision, even after I sent them school records, court records, lease agreement, receipts, doctor bills, dental bills, the works.

The IRS is very powerful against a single mother of two with an income of less than $20,000 a year (that includes child support)! I do not have the resource to fight them and have read these horrifying stories similar to mine.

Thank you for your time.


IRS Abuse Report #294
Date: Tue Nov 11 21:14:54 1997
To: sue@irs.class-action.com
From: SS

This is a case of IRS harassment and extortion. I am a 79 year old man, and the IRS is suing in federal court to throw me and my wife out of our home. The suit has no merit. This is a matter of life or death for me and my wife who is also 79. We have no place to go when our home is seized. The IRS wants to throw us into the streets. We have no money to hire a lawyer, because the IRS is levying and seizing our pension, after the legal time for levying has expired. The IRS claims that we owe taxes-based on defective and improper dummy returns which they prepared.


IRS Abuse Report #295
Date: Tue Nov 11 23:10:33 1997
To: sue@irs.class-action.com
From: PM

In 1986, after my father begged me, I went into business with him as his secretary. My father was totally responsible for deciding what bills got paid and what ones didn't. Although I physically wrote the checks, all checks were written under his direction. In May, 1987, I found employment elsewhere and resigned. I have been with the same employer since 1987. In 1988, I received my first visit from the IRS. Apperently, my father did not pay withholding taxes for one quarter of 1987 forhis company. I was told that as a single parent with a disabled daughter, practically on welfare, the debt would be declared uncollectable and that for 7 years, the IRS would seize my tax refunds and hold a lien against me. In 1989, they came after me a second time with threatening notices - at the time I was living on subsidized housing, working 3 jobs to pay my bills and still receiving no support for my daughter from my ex-husband. Since that time, the IRS has come after me and harassed me 3 or 4 times. In 1993, the sent a notice of levy of wages to my employer. The IRS has been attaching my wages taking approx. ($50) per week. They are now demanding payment for nonpayment of withholding taxes for a quarter in 1988 when I wasn't even with my father's company and I can prove it and have told them so - only to be ignored! For the past 9 years, the IRS has seized close to $10,000 in tax refunds, wage levies, etc. from me. They say I owe a total debt of over $50,000 now. last month, still having a levy on my wages, I was contacted by a local rep of the IRS saying it had been turned over to her for collection because the debt was too large and $50 per week wasn't enough money! I am so tired of being harassed and abused at every corner. I cannot own anything, cannot have a bank account! How can we stop this abuse? Signed - a very frustrated, innocent taxpayer.


IRS Abuse Report #296
Date: Wed Nov 12 18:08:07 1997
To: sue@irs.class-action.com
From: TH

My IRS problems began years ago when someone else was given my tax identification number by mistake. With the first piece of IRS mail sent to me with the wrong name but the right social security number and address, I let them know. I also checked with the Social Security Administration to see if they had the error too. No. When I did not get my tax refund for 1988, I called. 'We'll get back to you.' I called back. This time I was asked: Are you sure this is your Tax ID number? Yes. Then I explained again and again the error. 'We'll get back to you.' When I didn't get my refunds for 1989 and 90, I went through the whole song and dance again and again. By now I was owed $1,100 in refunds. I move to the Pacific Northwest in 1991. That December, my employer served me with an IRS wage garnishment Notice of Levy for failure to pay taxes in 1988. What! The notice was from the IRS in Fresno, California. The next day I called IRS Fresno and told the agent I that had filed the 88 return, and had contacted the IRS numerous times about my meager refund. I also asked about my other refund. 'I'll inform out Seattle office.' I faxed the 1988 return to him and within a day, the levy was released. In March 1992, I got another Notice of Levy for failure to pay 1988 taxes. This time the notice was from IRS Seattle. I told the agent I had faxed a copy of the return to Fresno, and could fax one to Seattle. I did. A week later the notice was canceled. I inquired about my 89, 90, and 91 refunds. 'We'll check into it.' In 1994, when the construction cost on my new house was over budget, I went to the bank to borrow $20,000 more. At that time, I learned my property had been liened by the IRS for $8,000 for 1988 taxes! I contacted IRS Seattle, which told me to contact IRS-Vancouver, WA. The agent there told me that there were now new liens against the property, totaling $29,000 for failure to pay taxes for the years 1989, 1990 and 1991. I showed him my tax returns and said I've been trying to get my refunds. The agent said he would not look at any of my returns unless I paid the $8,000 for 1988. I had no choice but to pay the IRS to get the liens released for the bank loan. I gave him copies of my other tax returns and asked to please get my refund. Common sense went out the window. Consequently, they disregarded my returns - except for 1990 where I received refund credit - and made up their own showing that I owed not $29,000 but $14,000 to be paid immediately.


IRS Abuse Report #297
Date: Thu Nov 13 17:30:21 1997
To: sue@irs.class-action.com
From: WM

I just got off the phone with the IRS (13 Nov 97/1615 ET) where I was told I have a new monthly payment to them for just under $500. This is to increase another $300 upon final payment of a garnishment caused by one of their levies emptying my bank account last year. This action, caused checks to bounce and my daughters and I receiving eviction notice. They've done this to me four years in a row now, emptying my bank account without notice. When I call, I was told once, 'We did that to get your attention.' I have been slandered, have suffered defamation of character, and had to file bankruptcy. Ten years ago I noticed a problem with the IRS and called the so called 'Problem Resolution Office'. I was told, 'You have no problem with the IRS.' A couple of years later, I received a letter from them, 'You have a problem with the IRS!' I started a writing and calling campaign to get this straightened out. It took 10 years, plus writing to the White House, the Commissioner of the IRS, and the Speaker of the House before I received a call from the IRS purporting to help. By this time, my bank account had been emptied thrice, 'to get my attention', had been evicted once, had three vehicles repossessed and had my pay levied.

I recently had to resign from my career job as another judgment was levied against me causing a lot of concern with the folks holding my employment. These types of continuing actions and threats cause great pain and heartache to myself and dare I say millions of law abiding citizens of the United States of America. As a friend (they can't take these away, yet), stated a couple of weeks ago, except for the lack of black coats and saucer hats, you'd think we were in 1930's Germany. Because of these actions, I have suffered physical health problems associated with heart and stress levels. I've not reached any self destructive conclusions. However, one of my daughters ended up in the hospital because she thought one less mouth to feed would lighten the burden. I've been able to convince her through Love and hope that the heaviness placed on my heart by losing her would not lighten my burden one iota. Thank you IRS for driving my little girls to ask if we can afford school lunch today, thank you for making me walk for weeks until I could find someone who'd finance a car (at 24%) after losing our only transportation by repossession not once, not twice but three times (so far). Empty my account again and I'll lose the next one too. According to IRS math, I owe in back taxes and penalties a little over $50,000. Not bad for someone who didn't make near that much to begin with.

In the last two years, I have been called a criminal, a burden to society, a deadbeat and just last week I was told by one individual he didn't care about my children or myself and he wasn't only going to take my bank account but my next paycheck as well.


IRS Abuse Report #298
Date: Mon Nov 17 8:29:11 1997
To: sue@irs.class-action.com
From: DD

Began in 1986, was sick for several years. Became unable to file for 2 years, 1986,88. In 1992 realized in my records I had not filed, and filed those two years. Found that for 1986 IRS owed me $2600, for 1988, I owed IRS $1400. They refused to offset debt due to Statue of Limitations. So they owe me nothing! However, I still owe them $1400, plus interest! Things have gotten worse...I get different stories from different IRS agents, no consistency, no help. Threatening phone calls to my employer, stating our bookkeeper would be personally responsible if I didn't pay immediately! Agents telling me not to appeal b/c I'll lose. Once I tried to make arrangements for payment on what I could afford, an agent told me "We don't accept arrangements, it must be paid in full or we'll take you to court" HELP! I can't afford to pay $3000+ plus they have my refund I worked hard for!


IRS Abuse Report #299
Date: Mon Nov 17 11:45:19 1997
To: sue@irs.class-action.com
From: FS

Wrongful levy/seizure of unrelated company income funds to satisfy an unrelated individual's TAXES OWED!!!!!!!. IRS field agent created fictitious company/partnership, i.e. assigned new EI number. caused financial devastation.


IRS Abuse Report #300
Date: Mon Nov 17 11:46:08 1997
To: sue@irs.class-action.com
From: MD

I am a single mother. I claimed my three children on my 1996 tax return and was to get a refund. I received a check from the IRS for only part of my refund, along with a letter stating that I needed to send all kinds of papers and proof that my children were with me during the period stated on my return. I got copies of all the paper work, school papers on my children, immunization records, anything and everything they wanted. I even had letters written to them by friends and family members testifying to the fact that I did have my three children at least 6 months of the year.

Because I did move some during the year, even to a different state to get a better paying job, the IRS told me I did not furnish my children with a stable home. What has that got to do with paying taxes? I did pay taxes and did file a return and did have my children with me. They were not abused and they are loved dearly. the IRS has no right getting involved in that part of a persons life. I was, and am, doing the best I can. I was one of the mothers trying her best to stay off of welfare, and I still got penalized. I finally gave up trying to fight IRS, because I knew I couldn't win. They withheld my earned income credit for that year, plus, I am now having to pay back the refund I received, and all the penalties and interests; so I ended up with nothing and in debt to the IRS! What is the point in even working and trying to make an honest living and raising your kids when you get stabbed in the back by your own government?

I am using my brother's computer, in case you're wondering. I can't afford one of my own. I am now living with him and his wife. I have started a new job, in a new location, I wonder if I will get penalized again this year? My family has supported me through this and my brother has taken me and my two children into his home to help me, but I sure can't get help from a government that is suppose to be "of the people, for the people and by the people". What a joke! Yes, abolish the IRS.


IRS Abuse Report #301
Date: Mon Nov 17 13:30:17 1997
To: sue@irs.class-action.com
From: LH

The IRS keeps levying my check account. Every time there is a levy, I call and they request inf. I send the inf., the levy is lifted, then they levy again and say the inf. sent was not the issue, it is some other type of verification. I send the new material out, the levy is lifted. Many weeks later, they levy again leaving me $159.00 in my check. I had just moved on the Friday they levied my account, I was supposed to give my new landlord the first months rent but was unable to due to the levy. Someone else moved in. Now I have to find a new place to live. I don't get paid for another 2 weeks. The IRS representatives I spoke with were the rudest people I have ever talked to.


IRS Abuse Report #302
Date: Wed Nov 19 2:21:33 1997
To: sue@irs.class-action.com
From: MS

I am currently being audited for 1994 and it is a mess! I have all my receipts and an accountant. The audit has been going on for one year. They write me and ask for info., I send them the information, but they still are not satisfied. They have made me completely restructure my business. You would not believe what a Hell of a mess that made for my payroll reports and everything else . The I R S does not know what the Right hand is doing with the Left hand! Anyway to make a long story short, it looks as if I will have to pay the IRS 10,000 for 1994 and I am so confused as to how they were able arrive at that figure. I believe in paying taxes, but I do not believe in being manipulated into paying them. I am a small struggling business and cannot afford a high priced attorney to fight for my rights and to prove to the IRS that my records where accurate. The IRS is so complicated and has so many laws and regulations they can manipulate anything and get away with it!


IRS Abuse Report #303
Date: Fri, 21 Nov 1997 18:37:07 -0600
To: sue@irs.class-action.com
From: MB

My family and I, have suffered, for well over a decade now, at the hands of the IRS. My husband and I at that time (the early 80's)were young and full of ambition. We were successful at our businesses, marriage, and raising 2 children, until one day the IRS decided to be judge and jury and put us on death row without a fair trial. I am currently still living on IRS's death row. These are some of the things I have had to endure: Watch in horror as the IRS humiliated me and my husband in front of my children, employees, friends, and associates. Watch my bank accounts be levied. Saw my home ripped from under us. Income property seized. How in god's name if you did owe the IRS any money could you pay? There is no way you can keep your businesses or life going. Doesn't the IRS know if they shut down a persons business they won't get any money? Don't they understand that they are ruining America? I no longer am married and have not been for many years. I can never own anything or work anywhere for long periods of time or the IRS will come and take it all. It is impossible to have a career under these circumstances. There are many more events that took place than this, and those of you that have suffered at the hands of the IRS know what I am talking about.


IRS Abuse Report #304
Date: Mon Nov 24 18:35:56 1997
To: sue@irs.class-action.com
From: KE

The IRS has levied my Social Security for eight years; month by month...from an original notice of deficiency of $8,000 they tricked me into an "assessment" from Tax Court of some $135,000 which became $235,000 with their usury and penalties..levied $55,000 and the balance remains about $240,000. Oh yes, I'm 75...World War II Vet. Nothing matters...nobody cares. Land of the FREE and Home of the Brave? sure.


IRS Abuse Report #305
Date: Mon Nov 24 18:35:56 1997
To: sue@irs.class-action.com
From: AK

Why IRS cannot be saved:

It's bad enough that IRS would support a company issuing me a fraudulent 1099 and then do their stonewall act to perfection when challenged to justify this travesty of conduct. But I shouldn't be shocked. It's the standard operating procedure for Internal Revenue, whether Orlando, Jacksonville, Atlanta, Andover, or Covington. Lie, cheat, mess up, and stonewall - it's all IRS knows. This latest absurdity is just to be expected. It's the reason that IRS cannot be reformed - extinction is the only solution. Too many bad eggs to ever fix the people, even if the system could be salvaged.

Long before my son wanted to major in accounting, he filed his first 1040EZ (with Dad's help) while in high school. Two W2's for part-time jobs were all there was to it. The IRS keyed in the wrong withholding amount from his typed 1040, and from that mistake kept his refund. Should have been easy to get corrected. After I made five tries, and after being told that either there was no mistake (obviously there was) or the check was in the mail (it was not), I contacted the regional IRS director in Atlanta. My son got his check 3 months latter. One of the "problem resolution" people who called me had NO information on the case, but was told to call me and convince me that there was no error. IT IS AN EXTREMELY CORRUPT SYSTEM that tells people to go out and con others; I felt more sorry than angry at the woman with the con-job assignment. All the same, people who work in the real world go to jail for crooked things like that.

My favorite aunt on Cape Cod paid her annual tax bill with a check. It didn't get registered in the IRS computer one year, so they yanked one of her savings accounts for the amount. No notification. She only discovered the bank debit via her savings statement. With bank statement and the canceled check in hand, she tried writing and calling the IRS about the double payment enforced upon her. They stonewalled her letters and passed the buck on the telephone. So, this elderly lady (70 years plus) drove almost 100 miles to Andover to get things straight, but IRS refused to talk with her because she failed to make an appointment first. I begged her to let me contact Tip O'Neil's office. (His summer home was two doors down from my aunt.) But as a good New Englander, she wouldn't "impose." This dear old woman - who never cheated anyone, much less the government, simply ate what the IRS did to her. I should have called Tip's people anyhow!

My best friend in Florida had a small business he was starting. Trying to keep it in the black, he took no salary for his work there. (He had other income, and everything was reported honestly.) The IRS decided that he "should" have a salary, and determined the FICA tax and penalty he had to pay based on their imaginary salary. He had to pay it all, including the expensive accountant who filled his original and "corrected" tax statements.

The first time an IRS agent told me: "There is nothing in the rules that says we have to be fair" was when the IRS waited 2 years to arbitrarily determine that 40% of the payout on a defaulted Wickes bond was interest and not capital gains. It was unreasonable to start with, and I had no way of knowing or suspecting they would come up with such an absurd determination; but I had to pay both taxes and "interest" (at a usurious rate) for this arbitrary and delayed decision. It didn't seem worth fighting, at the time. I got the same response ("we don't have to be fair") from the IRS after they were asked about my opening an IRA account and was told - by an IRS agent (a Jacksonville, FL pension plan specialist, no less) that I had until April 15 to open it. When I went to open the account in March, I was told I could add to the account until April 15, but I had to open the account in the year the money was earned! I said it was not fair to penalize me ($600 in extra taxes) because the IRS gave out bad information (in the year the money was earned). The IRS people could care less, even if I had it in writing.

IRS doesn't have to abide by what they say or write. Even so, they prefer to tell it by telephone so they can claim that I "misunderstood" them. The poor guy I played cards with in Florida; a carpenter who worked out at Disney. Thought it was good luck when he and his wife won a new home in Orlando as part of a radio station contest. Then the builder demanded extra payments before he would give up title, and IRS demanded about 1/3 the value of the house as taxes - NOW! Without title, he could not occupy or obtain a loan to payoff IRS - but IRS considered the title just "his problem." He really was afraid of being destroyed by IRS, but finally a local TV station put the spotlight on both the IRS and the builder. That got IRS to hold off long enough for the builder to fork up the title he contractually owed. My friend was then able get a bank loan to pay the IRS' tax and interest, and he and his family could again sleep at night.

Maybe this sounds like small stuff. But the composite adds up to a consistently inept and corrupt organization, called Internal Revenue. They abuse what they do, and should not be called a "service." I cannot imagine any decent person wanting to be part of such an organization. That must be why the good people get out and the Internal Revenue sinks deeper and deeper into the muck every year. Rossotti needs more than luck - help eliminate the IRS, it's un-American.


IRS Abuse Report #306
Date: Mon Nov 24 13:13:19 1997
To: sue@irs.class-action.com
From: MN

The principle that we owed was bad enough, but it was all the interest and penalties that they kept piling on top of us that drove us into bankruptcy! We honestly tried to make payments and keep up, but they just wouldn't let go! When I called to make payment arrangements of $2,000 a month, thinking I could have it paid off in a year or so, she informed me that interest and penalties would amount to $500 PER DAY!! You may as well be dealing with criminals!


IRS Abuse Report #307
Date:Mon 24 Nov 1997 19:17:44 EST
To: sue@irs.class-action.com
From: PS

Report on IRS "PROBLEM SOLVING DAY", Nov. 15, 1997

IRS "Problem solving day" is being held in all 33 IRS districts. This was billed in the press as a "national day of redress" [Chicago Tribune, Nov. 12, 1997]. Many IRS employees attended, all wearing 3-inch buttons proclaiming in colored art-work:

"At the IRS We Work For You Problem Solving Days"

A large colored poster with the same message adorned the waiting room.

SUMMARY

For me, the event was a complete waste of time. Absolutely nothing was accomplished that could be called "problem solving".

The hearing officer was officious, insolent, irritable, pushy, and did not give me a chance to present my case.

She grasped at the fact that the IRS is suing me (for some of the years) to foreclose on my home, taking the position that "we can't handle it" because the Justice Dept. "is controlling the case".

INTERVIEW NOTES

The interview was with Miss G. Reed, IRS Collections (?).

She had a computer printout of my file, and a handwritten memo.

She said that there was mention of a suit (on the memo) but nothing on the computer printout about a suit. She immediately began to question me about the suit. She asked several times if I had brought any documents about the suit. I answered that I did not.

She continued to question me about the suit, repeatedly asking for documents pertaining to the suit. Finally she phoned the US Attorney's office. She said that they confirmed that there was an IRS civil suit against me (to foreclose on my home for taxes in certain years).

She said that since "the case" was in the hands of the Justice Dept., "we can't handle it", because the Justice Dept. "is controlling the case" and "have jurisdiction".

I showed her the substitute return for 1973 prepared by the IRS. She admitted that it contained no financial numbers and no signature.

I asked if she would pass on the information about this procedural irregularity to the Justice Dept. She said no. I tried to show her some documents pertaining to other years beyond 1980. She refused to look at then, declaring the meeting over.

(End of interview.)

COMMENT

This interview illustrates the IRS attitude that the IRS is under no obligation to correct its mistakes.

By refusing to point out to the Justice Dept. the procedural irregularities which might have the effect of rendering the government's case untenable, the IRS compounds the injustice caused by the original filing of the suit based on false "facts" (which the IRS certified to the Justice Dept. as "true"). By refusing to correct the information, the IRS lets stand a lie: "information" that the IRS knows to be false.

By its action, the IRS in effect claims the right to violate the law with impunity, disregarding and trampling on the right of a citizen to fundamental due process, to the facts and to a hearing. By its action, the IRS protects its rear at the expense of the citizen's rights.

If the IRS violates the law in the course of imposing a tax, as in the present case, justice requires that the IRS should be held accountable and should make amends. Instead, it offers the lame excuse that one IRS error (filing suit based on faulty information) makes it "impossible" for the IRS to correct that very error. Catch-22 or cover-up?

Thus it appears to be IRS policy to file suit against the victim of IRS irregularity and lawlessness, in order to cover up that very irregularity and lawlessness.

It appears that there is no mechanism within the IRS for correcting mistakes or information once that false "information" becomes part of an IRS-instigated suit. This puts an intolerable burden on the target of such a suit.

Justice demands that the IRS be required to provide to the Justice Dept. any exculpatory evidence relating to any suit that originated with the IRS.


IRS Abuse Report #308
Date: Fri, 28 Nov 1997 01:38:07 -0700
To: sue@irs.class-action.com
From: HB

I recently filed a FOIA request to get a copy of a imf transcript. I was surprised to learn that I apparently own a gun and pistol manufacturing plant in the Virgin Islands and that I failed to pay some excise taxes and employee pension plan taxes etc. Having been employed at my boring old job forever, I found this bit of information in my file to be very interesting. But when I told the IRS that there must be some kind of error, they ignored me. My many letters have all gone unanswered. To make matters worse, they have begun increased withholding from my paycheck(wages) and they have ordered my employer to Withhold, or else face criminal charges. At this point I barely have enough money left to eat and buy gas. All my bills have fallen delinquent and my credit is now mostly ruined. Thank you IRS for destroying another citizen's life, liberty and pursuit of happiness


IRS Abuse Report #309
Date: Fri Nov 28 10:05:45 1997
To: sue@irs.class-action.com
From: HM

My story takes up too much space for this site. I am an ex-spouse who has been harassed and tortured my the IRS to the point I live with fear from day to day, until my ex-husband pays them off. And I know that he'll die before that happens.


IRS Abuse Report #310
Date: Fri Nov 28 11:11:23 1997
To: sue@irs.class-action.com
From: SS

My IRS abuse story is one that I thought could be avoided. --WRONG-- Back in the early 1980's I had an addiction to cocaine, granted that was my fault. As a result of all this abuse TO MYSELF I did not file taxes for a number of years. Finally after receiving numerous IRS notices and the rest of my life falling apart. I had often heard that there were ways to "straighten up" my act. I was either going to die addicted to cocaine, or pick myself up and try to live. I chose the latter. Now I don't know if I made the right choice. In 1989 I contacted the IRS, and told them I was willing to accept whatever as long as I could get back on my feet. I asked them if there was a way for me to get things worked out, they assured there was. I went to the IRS office with all paperwork needed to have my case handled. We worked out a payment plan and an agreement and I was feeling better about myself for taking this first step. The total bill to me for all back taxes with penalties and interest was over $70,000. Even though I owed all this, I still had paid all my taxes for each year I was delinquent, through regular Payroll deductions. My problem was that I did not file my taxes. Through the years since 1990 I have had to file bankruptcy twice and hire a few attorneys to stave off any collection action to allow me to pay bills and LIVE as was my ultimate goal after my addiction. Well the IRS finally got to me and demands payment of about $45,000. Of course I have no way to pay that amount, so the IRS levied my checking account. So be it, my fault. That was not the worse. In 1994 my mother passed away, leaving my father to care for himself and pay the bills. Dad had never written any checks, and needed my sister and brothers and myself to help him sort things out, which we obviously were ready, willing and able to do. Never knowing I was about to make a big mistake. My sister and I went to my fathers bank, and were put on his checking account to help him pay his bills, until he could manage on his own. Forgetting I was on his account along with my social security number, The IRS searched my SS# and found me on that account and as a result has now levied my fathers account. He is 81 years old. That account he has is only from a small retirement check and a social security check that he receives each month. He has no other income whatsoever. So now I am back where I started. Will I live or die? After all this embarrassment to my family, for my problems, affecting their lives without their knowledge of my IRS problems, why am I trying to fight this? Too many times lately I have considered the ultimate sacrifice, suicide. I want to live but the IRS won't allow me that option. If the IRS would just deal with me, I can accept that, they can have everything I own and I'll go homeless. My father who has always worked hard and been a law abiding American citizen is now being harassed by the IRS, through no fault of his. I can't deal with the IRS hurting the only things in life that I love. They have done nothing. God help us all.


IRS Abuse Report #311
Date: Sat Nov 29 20:21:58 1997
To: sue@irs.class-action.com
From: GG

The year was 1995 when the IRS locked my bank account and withdrew all of my funds leaving me with nothing. Previous to this event, I owed 5000 in back taxes, but had an agreement to pay in installments. After a year had gone bye the debt was half paid off per our agreement and at that time the IRS levied a fine which canceled out everything we had paid for the year. In a panic I borrowed 5000 dollars from my in-laws so I could pay what I owed, that's when they IRS cleaned out my account. What kind of Democracy lets this happen to its people. This agency is out of control.


IRS Abuse Report #312
Date: Sat Nov 29 20:21:58 1997
To: sue@irs.class-action.com
From: EH

To The Joint Committee on Taxation: In re: the hearings on tax abuse, please forward my husband and my testimony as a part of the record of these hearings before the Joint Committee on Taxation. Our problem started in approximately 1984, when we received notices from the IRS stating that they could not 'accept' our 1040 forms because they did not 'contain information' 'required to be given'. We immediately sent them a response requesting that they send us the specific 'information required to be given'. Upon no response from the IRS and upon several status and duplicate requests back to the IRS, we finally received a postcard wherein it stated that there would be a response within '90 days'. We are still waiting. In the meantime, IRS employees have stolen and taken everything we own and put us in jail, broke and entered into our home while we were away and other heinous acts that can be testified to. The thefts started on 10 October 1986 when IRS "agents" and county sheriff deputies and city policeman came out into the county into our yard and took our sweeper truck and a pickup, all being done without a warrant, without our consent, and without a court judgment.

From that point on, these same brutal people have taken the following:

This entire matter has been a nightmare from 10 October 1986 to the present date and has devastated our family life, depriving us time for our children and now our grandchildren for 11 years now. In fact, it has set the mindset of at least 4 of our grandchildren because of the acts of reckless disregard as to our little ones watching their grandma being taken away in handcuffs and leg irons. It is a tyranny that must be stopped. I love my country and I want to keep the basic principles that made it great.

This is an outrage. We could see it if there was an honest mistake, but upon review of the rules and law, the acts by these people (our employees to be serving us) have blatantly ignored the law and their own procedures for over 10 years now. We are like little ants to them. And by the way, who are "them" and "they" and "their"? And by what authority have they done the horrendous acts against my husband and I, and now trying to bring my 78 year old mom and daughters and brother into their scheme of things, all in order to gain "power", I guess. We were merely private people out here in California with a little sweeper truck and a pickup sweeping parking lots and living on a 2 acre place. That was our dream at the time, and we were just raising our family and living the way of life as we were brought up in Iowa. Where did it all go? Just for our standing on what is right, we have been devastated by all the fraudulent acts perpetrated upon us by over zealous employees of government.




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