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IRS Abuse Reports


IRS Abuse Report #335
Date: Thu Jan 1 14:15:26 1998
To: sue@irs.class-action.com
From: WJ

The IRS unlawfully seized and disposed of my Texas family Homestead, unlawfully seized wages, unlawfully seized Social Security entitlements, unlawfully seized bank accounts and made an attempt to seize loan value of insurance policies. I have a file of communications with the IRS which have been ignored or otherwise neglected. I suspect I am a victim of the quota "scam". I have been unlawfully raped, pillaged and otherwise mistreated by a band of thugs allowed to operate unimpeded in my country. IT IS CRIMINAL WHEN AMERICANS ARE ALLOWED TO ABUSE AMERICANS.


IRS Abuse Report #336
Date: Thu Jan 1 22:35:24 1998
To: sue@irs.class-action.com
From: GM

In Sept., 1993, while in the midst of a divorce proceeding, I decided to modify my withholding exemptions to make for a smaller refund (consequently smaller "gift" to the soon to be ex-) and submitted such, along with proper documentation, to my employer, a major airline where I work as a pilot. Much to my surprise, I came home to a very reduced paycheck, on January 1st. A call to the payroll desk said they had received word from the IRS that I was to be withheld at the maximum single rate, UNTIL THEY DEEMED OTHERWISE!! A call to the IRS office in Detroit yielded little help except for one rather inept female gov't worker. She told me they had mailed me a letter in October and I should have known better. (Interestingly enough, the original letter showed up a week later, postmarked Jan 5th, 1994.) I was somewhat curtly informed that I could fill out some forms, which they agreed to fax me, and I was assured that if I faxed them back, all would be right within days. I got the forms that afternoon and faxed them back. Needless to say, nothing much happened, and for another 2 months I was treated to wages resembling those of a fast food worker, and no way to pay the bills. After repeated phone calls to the woman's supervisor, I was told by him that he hadn't thought it was very important, and that he had given it back to her to "..work on."

As I was on the phone that day, they finally cleaned up my "surprise" withholding adjustment, I was referred to the original lady, and her parting words to me were..."just remember, we can get you anytime, and anyplace we want to." At the time, I was just happy to be rid of them, and I do not fear these people. Loathe them, and feel that they are totally incompetent, but no fear! As luck (?!?) would have it, guess who got an audit notice for 1993, in October of 1996? This was so far out of the ordinary audit sequence, that my accountant (an ex-IRS Criminal enforcement agent himself) went to the director to find out what was going on. Nothing yet, but a coincidence...hardly. The worst part was that I was subjected to an audit (they wanted a field audit of my home, and I refused) far beyond need. Then they realized they were out of time to apply the statutes, and asked me for an VOLUNTARY extension to prosecute me! We gave it to them (much against my feeling) and it was the Keystone Kops in action. The audit is another story all unto itself, and I will provide such fodder if you feel it would be useful. Suffice it to say that it cost me another $10,000 to argue the case, for the Gov't to collect $3200.


IRS Abuse Report #337
Date: Fri Jan 2 1998
To: sue@irs.class-action.com
From: AT

1990 & 1991 my CPA filed my return listing that they owed me money. IRS said the returns were subject to audit (I was now in collection without the right of audit) but that I could not get any money back because it was a closed year. I said fine, wait for the audit. IRS came back and ordered and threatened me with future audits and prison if I did not sign a waiver stating that I owed the assessed amounts. I said no and they told me that they liked to take care of people like me who did not want to play ball. I was ordered to give them employer inf. but I refused fearing harassment. I wrote to my Congressman Shaw whose aid was considerably less than totally unacceptable. The first thing Shaw did was to sent my letter of complaint to problems & resolution with my phone number. P&R gave it to IRS collections who immediately started harassing my employer. The IRS levied 95% of my wages INCLUDING CHILD SUPPORT. IRS told me they were levying wages not child support and some jail time would do me good. Oh, P&R called me and started yelling at me and my room-mate saying that I owed the money and it did not matter what audit said I had to pay. They have threatened me, my accountant, my room-mate, harassed my employer, and a collection agent stalked me at worked, followed me around. Mad as hell, I cut my own wages so the IRS would get nothing and despite me being placed in an uncollectable state, the IRS seized my bank account. My Co. finally got tired of the problem and having IRS parked in front of the office and fired me. I have been out of work for 4 months. I have written to Senator Roth -- no response. I followed up 3 times in the last 3 months and still no response.


IRS Abuse Report #338
Date: Fri Jan 2 1998
To: sue@irs.class-action.com
From: JS

I too am having problems with the IRS. Seems they think I owed them around $1,200 from the years 84, 85 & 86. As of their last letter 12/19/96 they indicate that I now owe them over $19,000.!!!! I do not know how they can turn a simple $1,200 dollar debt into an amount that will put a major financial burden on myself and my family. They have already put a lien on any property I own and are threatening to garnish my wages. I have my own family and obligations to take care of as well as my parents. Garnishing my wages would cause severe consequences to both. I am in a position now to pay off the original amount they "say" I owe, but I do not feel that I should have to pay over $18,000 in penalties and interest!


IRS Abuse Report #339
Date: Fri Jan 2 1998
To: sue@irs.class-action.com
From: AM

The IRS is currently harassing me for an amount they say I'm responsible for. It deals with the Trust Fund Penalty (payroll taxes), they are billing for amounts which are due on Bankrupt co. of which I was just an employee. For one of the periods in question, I wasn't even an employee for the co. The other period in question, I wasn't a signatore at the time the period ended. When I appealed to the IRS agent in Florida and told him my side of the story, his comment was "I don't care if you're innocent or guilty, I'm here to make someone pay". This harassment has been going on since 1993, the bill is for 1990 & 1991. Since that time, the then sole owner of the co. has opened many different business, and the IRS has not gone after him for the money. I am extremely frustrated with this and its ruining my life. I can barely make ends meet with my day to day expenses.


IRS Abuse Report #340
Date: Sat Jan 3 1998
To: sue@irs.class-action.com
From: LP

The IRS has created Hell and Havoc for us for over 2 years now, using trumped up, concocted, evidence as to how we understated our expenses for the years 1993, 1994, 1995, and 1996

In August 1995, we were first audited by the IRS. We were told that we had to have the audit in our home. This, our accountant told us was the first year that they had decided to go into peoples homes to see if they were living lifestyles above what was indicated on their tax returns. The first thing the Lady did was ask questions about how much money my wife withheld from bank deposits in the form of cash. Where did she hide it...wrapped up in the freezer? buried in the back yard? She asked, "if you need any cash money where would you find it in your home? I told her that if I did, I'd have to ask her for it. She asked to use the rest room and cased our home as she went. She demanded that I show her the inside of my garage suggesting that we were hiding inventory or other items for sale. When she looked through our records, which had been stowed away in my garage for over two years (1993), she told me that she didn't like the way that we recorded the information and wanted to take some of it to her office so she could complete the audit. Like an idiot, I allowed her to. She sent several summons' to us via the mail asking for bank records and check copies for the year 1993. Then she increased the audit to include 1994, resulting in more summons for records. Later, she wanted copies of all checks that we wrote from personal accounts. With this information, she was attempting to track movement of all our money. With this, she concluded that we made more money than we really did. She explained to me initially that the IRS has a formula which applies to everybody when used could accurately determine their taxes even if the person didn't have good records. She certainly must have used it. When I was laid off in 1991 from my regular employment, I was unemployed during that year, all of 1992, and most of 1993, and some of 1994. During 1993, and 1994, I was attempting to expand my wife's maintenance (business and homes) to schools, maintaining (cleaning and changing lights, etc.) their basketball and football scoreboards. This required the purchase of lots of specialized equip. and tools that are not normal to a cleaning service. This also required a lot of trial and error (and loss of money) trying to learn how to fix these items. Also, it required a lot of mileage on my aging pickup. She disallowed mileage thinking it was unreasonable and excessive, she disallowed travel and lodging for my wife's Mary Kay business, because on a couple of occasions, she allowed me to travel with her saying that most of the time she probably was with me rather that doing Mary Kay. She basically made up her own mind, what she wanted to use and denying the claims made by us for the write-offs. Our second visit was to be in the home again. She delayed that meeting 3 successive time until the following February, and changed that audit to the IRS office downtown in San Jose, CA. We arrive at the building, there were no nameplates, just a cipher lock on the door. I had to go ask people where I was to go. Somebody finally let us in. We were ushered to a auditor room. During that time, she told us that she needed to make copies of all of our bank records and that she would be gone for some time. We were suspicious that there was a listening device, or a video camera in the room...and sure enough, my wife found a recording device taped to the underside of the table, just above my lap. When she entered the room, I demanded it be removed, and the security manager came and removed it. She later showed up at our house, did not ring the doorbell, walked past it into our entry and up to our kitchen where we were standing. She tells me that she was delivering another summons and that she knew that I was now working a 2nd job. My wife kicked her out. That is when we decided to hire and attorney and keep her from coming to our home and hassling us. To date, we have spent over three thousand dollars and the little black cloud of owing what she said we owed (over $35,000 for 1993 and 1994) is still over our head. During this time, they have refunded money from 1993 (a year they say I underpaid over $9,000, and applied it to 1995 (explain that). They asked for an additional $1600 penalty for 1995 because our Wells Fargo Bookkeeping service apparently had not sent in our W3s and W2s. We paid it, only to have them ask to get it back. I made numerous calls for explanation, and was basically told pay it, don't question it. We do not have to explain before you pay. Pay and then maybe we will explain. Next, I found a garnishment of about $500 from my paycheck. I called and promised to pay the money back that was remaining. I was given a letter from my attorney that while I was trying to work out a payment plan with them on these issues, the IRS would stop all collection activity on me, So I did not pay the remaining...only to have them levy this account out of my wife's personal bank account, causing a whole bunch of checks to not clear. IT aint over yet. Our marriage, because of all this stress is on the rocks.

It seems that these guys know they can damn well do anything they want on the small business person, because they know that they can use taxpayers money to push and push and push and the taxpayer can't afford to hire a high priced lawyer like large corporations. This is bad, really bad. I do not trust them, and in the future, no matter what changes they make, I will not talk to them without a lawyer. I hate living in this country, where congress allows this Mafioso band of guerrillas to rape its citizenry.


IRS Abuse Report #341
Date: Sun Jan 4 1998
To: sue@irs.class-action.com
From: RS

To this day the IRS is seeking to collect business and personal tax for a business that my dad had before and after their separation(which my mother had no part of). Also, they are trying to collect personal income tax from her which my father owed during the time they were separated.. granted they are only looking at about 4,000 dollars but to me and her that is a lot of money! she has since remarried and has to work 2 jobs because the IRS says they can't find my father to collect the debt.....since she doesn't want to go to jail cause she can't pay the debt she is working about 80hrs a week to save money so she can pay the debt(and I am worried that this may have severe effects on her being that she is 45 and having to start her life all over again and now has to worry about paying this before she can start saving for retirement).


IRS Abuse Report #342
Date: Mon Jan 5 4:14:31 1998
To: sue@irs.class-action.com
From: TW

In 1992 my home and home based business was heavily damaged by a drought ending rain and mud slide. The damage was inspected and I applied for, and received a $5000 SBA loan for personal effects, and a $5000 SBA loan for my business, a sole proprietorship making enough to survive on. During the next two years I started to rebuild by applying the SBA loan for its intended purpose. I was making the monthly repayment on the SBA loan. I reconstructed lost records from the mud slide and got up to date with the IRS and was making payments. I had a power of attorney in effect through a CPA but the IRS immediately levied the remaining $4000 from the SBA loan. This was followed with two CONCURRENT audits, including threats of seizing everything. They even contacted my clients and demanded they send the IRS my accounts payable. The bottom line is that I made an effort to get right with the IRS. The result was a levy of money that they loaned to me, (which I was repaying), and two CONCURRENT audits which netted the IRS an additional $800 ($400 per year). Would a sane person volunteer to go through that again? The IRS is a festering sore. I am a U.S. Army veteran and a former Peace Corps volunteer. There is something very wrong.


IRS Abuse Report #343
Date: Mon Jan 5 4:14:31 1998
To: sue@irs.class-action.com
From: LM

The IRS has ruined my credit. They've placed liens against me and are threatening to seize my assets.

Although I was a signatore for a very short period of time during 1991, all checks had to be approved by the owner. All of the facts were presented to the IRS Appeals Officer (Jorge Moral) back in 1993, just before they assessed the taxes against me. The appeals officer refused to hear my side of the story, his comment was "I don't care if you're innocent or Guilty, I'm here to make someone pay", his main concern was that he had to close the case before the end of the year. Even before I went into his office, he had already found me guilty. He told me to agree to pay approx. 75% of the taxes or he'll make me pay for everything (approx. $29,000.). I signed nothing, and the result was a bill for approx. $29,000.

Just recently, I tried reopening the case, but the IRS refused to do so. They claim that I already went through the appeals process and that the only thing for me to do is file suit against them. Also, I received another demand for payment. The new bill comes to approx. $44,000 including interest.

It his hard for me to function on a day to day basis while this is hanging over my head.


IRS Abuse Report #344
Date: Jan 6 1998
To: sue@irs.class-action.com
From: WM

After being told by the IRS agent I was a nuisance and they raised my payments from $200 a month to $498 (as a disciplinary move), I was told they would NOT place another levy on my bank accounts because I was making payments as "directed". Last week I received a certified letter from the IRS, a "Notice of Levy". Oh well, further proof the IRS follows the guidelines of Karl Marx rather than our forgotten Constitution. Right after receipt of the "Notice of Levy", I went to bed. The next morning I was transported via ambulance to our neighborhood hospital for heart attack symptoms. After three nitro pills and two nitro patches and lots of blood letting, it was determined I was under an "UnGodly amount of stress," and it will kill me without relief. My doctor put me on beta-blockers and a new ulcer medicine to help relieve the pain. Thanks IRS for again scaring the blazes out of my family!


IRS Abuse Report #345
Date: Wed Jan 7 14:25:17 1998
To: sue@irs.class-action.com
From: RC

I have been trying to settle with the IRS for several years. Because the issue is a joint return with a divorce in between, because my now ex-wife will not sign anything, the IRS has never acknowledged my attempts to settle, and is now seizing my accounts, selling my stocks, and doing everything else to get it's money. I have never disputed I owe them money, just how much. I am now borrowing from my retirement to settle with them before they seize my house.


IRS Abuse Report #346
Date: Thu Jan 8 10:38:13 1998
To: sue@irs.class-action.com
From: MO

My business took a hard hit due to the recession, and I was unable to pay the IRS taxes for 1989, 1990, 1993. In 1993 I submitted an Offer in Compromise after extensive documentation was submitted, it was denied claiming to be missing documentation! I resubmitted the documentation and was a few days delayed, but I had spoken to a revenue agent who informed me that the deadline was extended. The offer was denied due to late filing! I took the liberty to send all documents w/return receipts and recorded the conversation w/the revenue agent extending the deadline due to the volume of documentation requested. The offer was still denied and I was informed that I had to resubmit and all of the documentation was lost so I needed to prepare it again! My employer recently received a garnishment levy from the IRS, but since I am currently a full time student my earnings are meager, yet they take it all!! I originally owed $5916 in taxes and have paid the IRS $7290 at my families expense. I still owe, according to the IRS over $10,000. I am at a point were I'm not even working since I will never be able to get ahead on the mounting penalties and interest. In summary the IRS is crippling my financial future at this time with no end in sight!


IRS Abuse Report #347
Date: Sun Jan 11 8:56:50 1998
To: sue@irs.class-action.com
From: MN

Our lives are pure hell. 2 years ago we got a letter from IRS saying we were getting audited. We have a friend that does taxes on the side to earn extra money. She assured us that she was highly qualified and would do our taxes but that she couldn't sign them because she wasn't licensed, but that it was still legal for her to do them for us. We trusted her and she did them for 8 years. We paid her a fee for this and they were done every year. We had no idea she was doing them wrong.

When asked to come into the office for audit I was told I could bring a friend, my auditor, CPA etc. Not knowing the laws I went by myself knowing we did nothing wrong. I was showed one line that they felt was in error. The auditor said if I could clear this up the audit was over. I was in great relief and explained to him that my husband just had a heart attack and was recovering and that this really had us upset and scared. He assured me that it could be over if we could clear up that one matter. I called my friend and she said she would come in with me to explain any problem as nothing was wrong. She did, and the auditor admitted that she was right. The audit should have been over from what he had told me. However, he dug into some other issues, she explained them and so on. He asked to see my files which I was requested to bring in with me. I gave them to him and he questioned our deposits in the bank.

I tried to explain that I bought jewelry supplies for my friend and did some craft shows once in awhile. He said that it was never put on the tax papers. So I again got my friend we went in and tried to explain everything to him, he said that he understood where the money came from and that we were about at the end of the audit, he had to turn it into his superior and she would say whether we would be audited for the prior year. Before leaving I told him this was making me a nervous wreck and my husband and asked if this would go on much longer? He said no, it was just about wound up. I said I know you have an idea if this will be closed or if they will audit us for the prior year and he said in his opinion it looked fine to him and not to worry that it was almost over. I was so relieved.

The fear of going in there was so hard. I was brought to tears numerous times and voices were raised, and this was mostly over my book keeping. He made me go home and redo my files 2-3 times. I was really upset. I had always heard you just take your receipts and w-2s in and they audit you. He made me completely re-do my files the way he wanted them. Not being a book keeper, I didn't understand, this made him mad at me when I came in the next time. IT got worse and worse at each appointment he said take them home and re-do them again. I was a nervous wreck. Well he finally accepted them and he assured me that everything was going to be ok. That I would get a letter in the mail telling me if the audit was over or if they were going to audit us for another back year he said within one week. I waited and waited and no word. We were a nervous wreck watching the phone and mail and nothing came. I called his office and they would say 'yes he is in just a minute' then they would get back on the phone after telling him it was me and say that He is not in right now'. This happened a few times so I just went into the office and asked to see him. He had kept my files and I needed them and we wanted to know what was going on. He came to the outer door and told me that everything was fine I had nothing to worry about. If I didn't hear nothing that was good news that his audit was over. We waited and nothing came so we assumed it was over.

Just prior to the audit, my husband had a heart attack, was told he was diabetic, and we were forced into bankruptcy. Everything hit at once. Then things started going a little better and my husband broke his ankle, just before Christmas and my daughter passed away from cancer 2 days after Christmas. I can't tell you the pain and mental state we were in. We have never had more pain in our lives to handle. Then I got a call from the audit man and he said that I needed to come into the office. I called the day of the appointment and asked them to make a new one because I didn't feel well. She said the auditor wasn't in but she would make me a new one. A little bit after that we were sitting in our home that day and 2 men came to the door. IT was the auditor and an "FBI" man and they said if I couldn't come to them that they came out to see us. We invited them in and they told us that it was serious and that we could be in great trouble and that they had a case against us. We were so shocked and terrified. They explained that because of the extra income not reported on the taxes in a schedule C for 4 years that it was fraud. We tried to explain that a schedule C was always filed. They said no and that was fraud and we were really in trouble. That we could get our files and if we could prove where we made the money and if we could prove we filed a schedule C on it that it would help . They gave us a chance to bring in our files for the 4 years and I called our friend that did the taxes and she assured me that the schedule C was filed every single year. We thought it was all a mistake. If we owed money we just wanted to pay it on a payment plan and try to get back a life. We got a CPA that we were told was really good in matters this serious.

We went with our CPA into their office and the federal men were there we were told, and ready to handcuff us and take us away. I started crying and tried to think who I could call to go get my dogs and some things out of our house. Prior to going into the office meeting our CPA told us that this was not just an audit but that we were going to be indicted for fraud. We were petrified. He said that we could get an attorney but the IRS said they had a closed case on us and that if our records were not perfect we would lose. We were taken to a little room where the auditor sat across from us and our CPA at the end of the table and informed us that the government wanted to indicte us for fraud and that we were looking at 20 years as it stood. We were told what was going to happen, they were going to file fraud charges against us and that we would have to get an attorney and that even if we got one there was no hope that we would win as they had an air tight case against us and fighting it in court would run into the 100's of thousands of dollars and did we have the means to fight it and try to win a case that we were going to lose anyway? We sat there and had no idea of what to do or say. We said we couldn't afford the attorney and would do anything they wanted to keep us from going to prison! Anything. They left the room and came back and asked our CPA what he proposed. The CPA said he would like to offer a compromise. They left the room and we sat on pins and needles while our life hung in the balance and our CPA had to tell me to be quiet because we were being recorded in that room. My husband and I had no idea of that. We were so shook up. They re-entered the room said they had talked it over and they would listen to a compromise.

At this point they left the room and our CPA told us he was going to offer them a cash total that we would owe and that we would pay it. He said no matter what the amount was if we would trust him and go along with it. We had no alternative, we both said anything you can do. They came in the room and the auditor asked for the offer and the CPA started writing things down. The auditor took it out of the room to his superiors for an ok and then came in the room again. He said that they could start the offer. He then showed the CPA a bunch of paper with numbers and said this is what we want. The CPA asked for conference, the auditor left the room and the CPA showed it to us and it was rediculous but he said we had no room to argue it was that or prison and that they would dicker to get a lower sum. The auditor came back into the room and they would do some figuring push an amount back and forth to each other and disagree. We had no idea what the amounts were still. At the time that didn't matter to us.

You have to understand that my husband and I felt like we were Americans and the Gestapo was interrogating us. It was much more intense and terrifying then what I can put on paper, I couldn't quit shaking and I urinated in my pants. I would look at my husband and he was as pale as a ghost. I was so afraid he was going to have a heart attack. He was so nervous he was speechless. We both were like robots and did whatever they suggested, the fear was that bad every time he left the room. When he would close that door we were waiting for a death sentence when he walked back in. He would be gone for quite a few minutes. Which to us seemed like forever and the fear we felt when he re-entered was unbelievable. Any time he left the room he could have come back in and said 'No they won't accept this' and we were going to prison. My heart stopped several times and I know my husband's did, I was so worried for him. It didn't even matter that they had scared me to death or into urinating on myself. It just didn't matter I was terrified beyond caring about anything but my husbands health. When the auditor re-entered again which seemed like the 100th time but was probably the 6th or 7th, I don't know, they started bartering back and forth with our lives in numbers. With sums we knew we couldn't pay. But from the insinuations we got from them we had nothing to fight with and had to sit there and let them take our lives over.

They would total figures, show them to each other and then finally they both agreed on an amount. It didn't come to us then but they each had an amount written on a piece of paper at the beginning, I guess the auditor said isn't that funny we both had the exact same amount written down. The auditor took it out of the room, again we waited with the fear of god in us and he finally re-entered and said that it was acceptable. They showed it to us and then he left the room again. Awhile later he came in with contracts and papers to sign and our CPA told us to sign everything he had our power of attorney and he signed them and that in the deal we would not be audited for the prior 6 or 7 years if we agreed to pay this amount and that our CPA would amend 2 years of our taxes and submit them for approval and then we would get a payment plan. Our CPA said yes and the signing was completed and the meeting was over.

The ordeal that my husband and I was submitted to was no less then what we see in the movies in a nazi story. We didn't know what we were doing and didn't care at that point, due to what they told us. We just gave them anything they wanted. We left that day so scared we didn't know what to do. We have an average home that we are buying, we kept our bills up after the bankruptcy, my husband drove truck and was gone 22 days out of the month. Not knowing in between all of this if he had a home, wife or dogs to even come home to. His time on the road was stressful to his health and the conditions he worked under made him a nervous wreck. We were told by the CPA that the papers would come in the mail for a payment plan. They never came and I got letters from the IRS saying they were going to attach the pay check, lien the house and vehicles and anything we owned. I called the CPA and he said that he submitted it to the IRS and to disregard the letters it was automation that was behind. We couldn't let it go it was our life and they were serious so I went in and talked to the CPA and he resubmitted it to make sure they had it and I was told not to worry, again I got a letter saying that because we have neglected to make a payment plan and answer their letter that they were attaching the paycheck seizing the vehicles and home etc. I was terrified again and went to the CPA, he was out of town. I called the number on the IRS letter and explained that he had our power of attorney and that I couldn't do anything and she said they had no correspondence from our CPA on record let alone a power of attorney and that she would give me 2 days to get it to her and the forms for the payment plan. I again went to the CPA and he gave him the financial status and he resubmitted it again and we got another final notice saying we have failed to make any attempt to pay this bill and that they have written us numerous letters and given us numerous chances to clear the matter up with installments and we have ignored them and that this time it was the last attempt to let us have a payment plan and action was being taken place. I called the CPA, he called them and he called me in the morning and told us that it was straightened out that a payment plan would be in the mail.

This was all over several weeks and the harassment from the IRS not applying the papers that our CPA sent in put us through hell again. It had started almost 2 years ago and seemed like it was not going to stop. Then a payment plan came in the mail and we were told we had to also pay estimated taxes at the same time in a different check by our CPA. The amount to us was unbelievable. We have been in a nightmare for almost 2 years and are still not out of it. The penalties and interest they added on made the amount bigger and bigger and this keeps going and there is no way we will ever get it paid at this rate. The depression they have put us in has driven each of us at separate times to the point where we actually thought about committing suicide. We had no life, our health was bad, different situations drove us to the limit because the IRS couldn't treat us like human beings and Americans. In that whole time we endured the stress they put upon us, my husband broke his ankle, I lost my daughter to cancer, this is very hard for me to write these things, my husband lost both of his parents a month apart from each other.

Our CPA finally got them to straighten out their files and get us the payment plan but we were at the end of our rope. I even had a conversation with my CPA that was trying to help us that was so emotional that he threatened to quit us and drop the whole compromise. I can't tell you or put in words what this has done to my husband and myself. We now wait each day to see if we can make the payments. If not we know that they will take our home, truck, and everything.

This is not what America is supposed to be. If we knowingly set out to cheat the government out of money then this would be so different but we had no idea that our friend didn't file a schedule C all those years and that we were guilty of anything. If we owed them money we wanted to pay it and get on with our life. We always wanted to pay what we owed that wasn't the problem. It never entered our minds not to pay it. We just wanted to pay what was reasonable considering the circumstances and see if we could go on with a life. We don't feel the amount is fair to us. But they didn't' care, they were taking us to prison and we had no alternative. We are paying an amount now that is unfair and the interest and penalties are astronomical. I see no end to it if my husband becomes ill or he loses his job. There is no life when you owe IRS, they are in every day that you live, making it harder and harder to see an end for or a time for peace again. IRS has an un-American system that only tears down the average working American that is the backbone of the country. These laws weren't made for us they were made for higher ups that don't care about the working man or family. The methods they use are Communistic, that's the only word I can think of to express what we are going through. My husband still goes to work as long as he can and we hope that something or someone can make a difference in our life and people like us. Something must me done to take the outrageous power that they have bestowed upon themselves away. It's Un-American and I am ashamed to say they are part of our United States because they are not. They belong in a country where these tactics and methods belong. Not here in American.

I have dates and times for almost everything but am still missing papers that the auditor has and the CPA. I can get them if they are needed for precise situations if needed. I asked the IRS for them back and my CPA but I have got nothing from them. I have most of the papers proving my situation and have made notes through the whole time period in case something happened or if we were offered help I would have something to go by. Please let me know if there is any hope for us, and people like us in the same situation? Thank you so much for letting me tell you our nightmare. It's still not over.


IRS Abuse Report #348
Date: Sun Jan 11 22:28:11 1998
To: sue@irs.class-action.com
From: RL

I got a notice of audit in mid 88', agent came to my small Business and ask questions, one was "how long have you been doing your books this way"? I replied, 'Since I bought the business in 80'. She wanted to see business and paper work back to 80', I let her, stupid me. In 89' she and her supervisor handed me a bill for $80M. I fought it for 6.5 years, proving 8 different times that they were wrong in their assumptions and accusations. I appealed twice, finally took them to federal court, then they wanted to settle for a credit to me for $32. They lied, took my books for 2 years, made dozens of errors, billed me w/o written audit, threatened, liened, criminalized me, separated us on paper, basterdized our 5 children, informed everyone in our small town, ruined my business and reputation. In mid 95' it started all over again and now I'm going back to tax court. It's never over is it? If it wasn't for a wonderful family and a great Lord, I would have given up years ago.


IRS Abuse Report #349
Date: Wed Jan 14 1:26:23 1998
To: sue@irs.class-action.com
From: RH

Have been unemployed since 1985 and have not filed since then. This is because a zealous agent refused to let me see a supervisor after requesting four times. The IRS then claimed I owed $203,000 and I had better pay immediately or a lien would be placed against our home. I am 50 and have never made more than 10,000 in any year.


IRS Abuse Report #350
Date: Mon Jan 19 13:29:12 1998
To: sue@irs.class-action.com
From: FN

The IRS has harassed and abused its power. The IRS single-handedly disagrees, unilaterally, without any reason, every piece of proof that I submitted for deductions. Legitimate deductions for dependent expenses, business purpose and business deductions. This IRS thing is pretty scary. The IRS plays the role of collector, judge, and enforcer. The IRS, in other words, represents classic Communism -- which I fled Vietnam to avoid. The first thing a taxpayer hears from an auditor is: 'you are a liar, whatever documentation you provide to me, I will need further proof'. Such proofs are very time-consuming, humiliating and sucks all livelihood out of a person. We must dramatically reduce the IRS role ASAP. The IRS must be nothing more than anyone else, i.e., it must go through the court system to prove anyone is guilty before collecting a penny. We must turn around the system, we must turn the system upside down:


IRS Abuse Report #351
Date: Mon, 19 Jan 1998 14:48:44
To: sue@irs.class-action.com
From: JO

The submissions to this list seem credible to me, NOW. At the time I had a banking levy placed against me by IRS, I began reading the IRS abuse reports on this group, and I wondered if these were actually true.

Then, the IRS levied my SALARY without notice in writing, and my attempts to get this levy cleared are entering their third month, so far without success.

I've written US Senators in my state and have received polite replies that they will look into the situation. My CPA has been unable to connect with the IRS agent who is handling the levy and other details. CPA calls, the agent is 'out.' etc. Attorney's don't work for free, etc.

What I mean is, I am experiencing what I observed in the abuse reports. I am experiencing the same invisibility and lack of cooperation from IRS, and the same powerlessness of US representatives. My case is no different from the hundreds of others reported---lost job, used savings to subsist, etc., and now IRS has levied the job it took me a long long time to find, and has made it impossible for me to survive. So, my story lines up with that of others who have written: powerless Congressmen, aloof IRS agents, all of it.

I no longer have ANY doubt that the abuse postings are for the most part, real and authentic, and I also conclude that our US representatives are fully aware and fully supportive of what the IRS is doing. This should scare ANYONE: IRS apparently has permission to do exactly what they are doing. This is an X-files script. How do we stop this economic slaughter? I read here that many consider suicide as an option, and frankly I am beginning to also. The state of Michigan, for example, seeks to jail Dr. Kevorkian for his helping to euthanize patients, but at the same time, IRS can push people to taking their lives and that is OK?!

The ethics behind IRS actions are simply outrageous. I do not say that taxes are unconstitutional, but I do say that the IRS should not operate outside the Constitution, and our elected officials have apparently allowed it to do just that.


IRS Abuse Report #352
Date: The Jan 22 11:12:01 1998
To: sue@irs.class-action.com
From: SB

After having observed the development of this web site over the last six or so months, I have refrained from entering my truly horrific IRS abuse story. But JO's entry on 1/19 of his/her abuse inflicted by the IRS (See IRS Abuse Report #351) where JO mentions that he/she questioned the validity of the previous 350 reports, has prompted me to add my thoughts. Yes, these things happen all too often and No, suicide is not the answer. The IRS will not let a taxpayer's suicide abuse stand in their way of collecting $. My husband of 23 years committed suicide due to several years of IRS' very abusive tactics. They did to us all of the usual things mentioned in the previous 351 reports ... and more. The first line of my husband's suicide note cited the IRS .. ' they sit, do nothing and watch you die.' He left behind me a widow at age 48, a sixteen year old daughter, his mother, father, sister, brother, many relatives and friends. To keep this brief, I will not delineate the years & years of IRS abuse. What I would like to tell everyone out there in the same boat, is that suicide not does stop IRS collection agents. Since my husband's suicide, I have been harassed by two agents -- one of whom lined my husband's life insurance policy and the other agent levied the unspent proceeds from another life insurance policy. In essence, not only did the IRS kill my husband, they have taken his life insurance money which was intended to support me and my daughter. Suicide is not the solution. The surviving spouse then has to deal with the IRS alone, and in a very vulnerable emotional state. The loss of my husband is almost more than I can bear, and now I have to deal with the IRS as well. My senator Judd Gregg has been most helpful, but even he couldn't get the IRS to back down. I may be a meek & quiet individual (who's also an emotional wreck), but when the IRS took my husband away I decided to let the IRS have it back with both barrels. I will fight ... and I plan to win. Yes, 'JO' these IRS abuses are real, even in this 'free' country and the sad thing is that they are allowed to continue even to this very day. We'll be reading about them in subsequent IRS Abuse Reports, I'm sure. I have had quite enough, haven't you??


IRS Abuse Report #353
Date: Sat Jan 24 17:47:25 1998
To: sue@irs.class-action.com
From: RC

I have been in battle for over twelve years over tax returns from 1983 and 1984. I have been lied to, given false information on how to absolve problems leaving me with even greater penalties and interest. I have been forced to sign away my Statute of Limitations. I have had my credit ruined and my marriage almost ruined. They have burdened my new wife with monetary obligations that have absolutely nothing do with her. Her credit has also been ruined. At every step of the way there is harassment and threats. The almighty "Intent To Levy Wages" letters keep coming especially if you make any attempt to disagree or complain. I have lost two good jobs due to these letters to my employers. Although illegal to fire you because of them it happens and can be easily covered up. Taxpayer assistance and problem resolution is a farce and a lie. It gets you nowhere but in deeper crap the next time you have to talk one of the heavy weight crooks on the end of a phone line which takes hours to get to. How can we ever hope to get out of the trap we are in? The penalties and interest keeps you from ever paying it off. You can't get a loan because there is crap on your credit report and liens on your property. It is worse than owing Guido the loan-shark. WELCOME TO HELL ON EARTH!


IRS Abuse Report #354
Date: Sat Jan 24 22:40:15 1998
To: sue@irs.class-action.com
From: LP

After reading through the many examples of IRS abuses, I now have some solace and peace of mind that I am not the only one disgusted with this organization that has been given license to steal, badger, and kill the american SPIRIT.

Between 1986-1989, I was an office manager for a Chrysler dealership, in a depressed marketplace in urban new jersey. For a period of time, I was a signatory on the checking account. The owners began to have financial difficulty, federal liens were placed on the business. The IRS never informed me personally that I was a responsible party for the unpaid tax. The owners were fortunate to sell the business for enough money to cover the unpaid tax bill. Since I was not a corporate officer, I was not present at neither the first, or second, closing of sale. However, by the time these closings occurred, a 100% civil penalty had been imposed upon me, and of course, I hired an attorney to represent me. My attorney informed the IRS of the sale of the business, and that if they pursued the corporate attorney, they could collect the money at the closing. After all, they had liens on the business. For some reason, probably a monetary one, the IRS agents ignored my attorney. Ten years later, I am still pursued by the IRS. they have garnished my wages and made my life and my family's life miserable. This debt is not mine, but no one cares.


IRS Abuse Report #355
Date: Mon Jan 26 19:33:10 1998
To: sue@irs.class-action.com
From: SE

As a self employed citizen, I Have been harassed and abused by the IRS for many years. I strongly believe they are out-of-control with power. They are the America's Gestapo! The IRS should be abolished entirely.

I am currently in the middle of a major battle with the IRS over an audit for my 94 and 95 taxes. I gathered all my documentation to prove I did not owe taxes for those years, and my CPA (who I have had for 9 years, and has done an excellent job at my other audits), was suppose to go to the audit for me. Evidently, he did not show up for my audit, (we still don't know why), and 50 of his other client's audits, too! A short time later, much to my surprise, I received an "URGENT" letter from the IRS stating that I owed in excess of $20,000 for 94 and 95, and if not paid, liens and garnishment was the next step. I was contacted by a Tax Attorney shortly thereafter. He told me I had very little chance to be able to go back and be audited now, because it has already gone to collections. Although he agreed I have a "cut and dried" malpractice against my CPA, the IRS doesn't care about the circumstances, and I am now liable for the $20,000, which will literally put us into bankruptcy! So far I have spent over $2,000 in attorney's fees, and this is only the beginning of our fight. I am sick, not knowing what the future will bring.


IRS Abuse Report #356
Date: Tue Jan 27 17:44:03 1998
To: sue@irs.class-action.com
From: KK

For anyone who believes that the IRS only abuses the average taxpayer, I suggest that they go to work for this organization. What the IRS does to the average citizen is gentle compared to the stresses it imposes on its own employees. By the time an individual rises to permanent employee status, he or she has become so cynical that screwing taxpayers is just the way it is. Phony performance evaluations to get incompetent personnel out of a department is the norm, yet the competent employee is continually ignored in the awarding of promotions and performance awards. Training is done by the most boring speakers imaginable. And even then is inadequate to perform the job. Horror stories? No, part of the Reagan tax reduction program. Here's how it works. Take the most widespread tax benefit program and perform a 100% review of all the returns that claim it. Don't tell anyone that you are doing it. Delay issuing the full refund so that you have to pay interest, especially on those cases that the taxpayer got a refund loan. While you go after these poor people, let the top 20% incomes have a free ride on a program in which there may be up to 40% fraud. Sit back and laugh as the citizens BEG for a tax reform that will result in an increase in the tax burden for 62% of the population and the top 15% will have a tax reduction of up to 49% and more. When the people realize what is happening, you get to blame the 'lazy, incompetent and untrainable' employees. Way to go!


IRS Abuse Report #357
Date: Sat Jan 31 15:31:51 1998
To: sue@irs.class-action.com
From: JK

We have been in the process of solving a tax problem for my brother since September 1997. With telephone advice from 4 different IRS representatives (we have their names and dates of conversation) we thought we had an agreement that we would put an agreed upon sum of money in the mail by February 2, 1998, to the IRS and when they received that sum, they would send us an agreement for us to make payments beginning in March 1998, to retire the balance they claim is due. In the meantime we had written a letter to the Penalty & Interest Abatement Service in Ogden, UT, certified, return receipt requested, for which we have a return receipt stamped 12/24/97. There has been no reply. So, we were prepared to deposit the agreed upon sum of money on Monday, February 2, 1998, just like we promised. Today, January 31, 1998, my brother's employees went to cash their paychecks and the bank couldn't honor them because the IRS had confiscated all the funds on Friday, January 30. This has virtually put him out of business and destroyed his credibility with the bank. Congratulations to the IRS, they have now destroyed one more family and business.




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