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IRS Abuse Reports


IRS Abuse Report #41
Date: Sat Dec 9 10:48:32 1995
To: sue@irs.class-action.com
From: PG

The company where I am the Business Director was seized after the I.R.S. had entered into a payment agreement and we had given them $55,000. The majority of the money owed now is penalty and interest. However, to get the business back, we had to file a Chapter 11.


IRS Abuse Report #42
Date: Mon Dec 11 12:51:45 1995
To: sue@irs.class-action.com
From: TR

My home belongs to the IRS and every attempt to negotiate is met with a brick wall. In 1982 I was brought an investment, by an investment counselor, that would allow me to enter into the music/record business. This investment promised some tax advantages so I met with the IRS to insure legality. I was informed by the IRS that the investment was sound. Upon making the investment and taking the tax credits in 1983, I was audited in 1986. The tax credits were denied. The IRS applied interest and penalties which made the amount owed impossible to pay. Liens were placed on my home. Because of the liens my credit was ruined. Because of this I was unable to get loans to pay off the liens. This year I found a funding company that would work with the IRS to negotiate the amounts owed and give me a second mortgage. The IRS refused to negotiate and instead is in the process of increasing the lien amounts for additional interests and penalties. So far, an $18000 tax savings, originally approved by the IRS, has resulted in $62000 debt to the IRS. During my last conversation with an IRS agent, I was told that the only way they would negotiate was if I sold my home and gave them all of the equity plus $1500. When I asked the agent where he expected me to find housing, I was informed "that's not my problem".


IRS Abuse Report #43
Date: Fri, 15 Dec 95 08:17:01 -0800
To: sue@irs.class-action.com
From: MY Story:

I was audited by the IRS for Income Tax Filing Years 1980, 81, 83, and 84 and thru this audit I lost a vehicle by IRS seizure while I was on an out of state work assignment in 1985. In 1988 I had some military trauma flash backs which ended up with my being incarcerated from June 1988 until November 1994. During this period of incarceration I was able to pay in-full the tax owed for the years of 1983 and 1984. I had an attorney represent me before the IRS in an effort to settle the tax debts. Through delays caused by the IRS not answering his inquiries, it took over 18 months, as well as red-tape run-arounds, to finalize payment for years 1983 and 84. We asked for a waiver of interest for the period of my incarceration [only]. The waver was denied. My tax debt for the unpaid years, was originally somewhere in the areas of $1100 for one and $2500 for the other. With the IRS disallowing the waiver of interest during my term of incarceration, the total tax debt for those 2 years is just over $10,000. The IRS has agreed to installment payments of $247/month for 3 years. I do not object to paying the original amount plus interest and penalties for the years prior to my being incarcerated. My payment of some $4,000 for the years of 1983 and 1984 while incarcerate is evidence that I am trying to settle my tax obligation. I just have a real problem with the IRS incurring interest upon my remaining debt during a time of incarceration.

I am also disabled and receiving Social Security Disability Income monthly payments, a 10% VA monthly Compensation, and monthly payments from a trust my deceased parents setup for me. This is my total source of income other than my wife's Social Security Retirement income. I am just getting my family back into a stable living environment and this $247 monthly installment payments for 36 months will be a considerable burden. If the interest were adjusted to waive the period of incarceration I would likely be able to settle in full, 6 to 8 months, though with some short-term hardship. I could then continue my productive, tax paying life without the anxiety of continually looking over my shoulder for the feared impending ambush coming.


IRS Abuse Report #44
Date: Sun Dec 17 11:05:15 1995
To: sue@irs.class-action.com
From: JK

Audited tax return from 1983 in the year 1989, then demanded that copies of checks, rather than actual bank statements which matched Merrill Lynch Cash Management Account statements, be provided. Merrill Lynch did not have the cancelled checks even though their literature states that they keep them on hand and will provide them, or copies of them, upon request.

IRS then rejected clearly legitimate deductions and demanded immediate payment of $250,000 in "unpaid taxes, interest, and penalties" which now adds up to more than $450,000.


IRS Abuse Report #45
Date: Thu, 21 Dec 1995 00:42:54 -0500
To: sue@irs.class-action.com
From: BE

My life has been made miserable and my credit ruined by IRS liens relating to a business that I operated from 1978 to 1984. I always had an accountant do my withholding taxes and to the best of my knowledge, except for the last quarter of operations, when the company had no funds, I eventually made all payments. I have never had any conversation or correspondence with the IRS regarding these liens, but now they have seemed to multiply out of nothing into more than $80,000, and a couple of them have expired, meaning that probably more than $100,000 has been assessed against me by the IRS for nothing that I can figure out.

It is my belief that the IRS misapplied payments that I made while the business was operating and did not credit them to my company, as I did change the name of the business twice. After that, penalties and interest applied by the IRS to mistaken claims have simply escalated, and continue to do so. There is nothing I can do to fight this, as all of the records from that business were given up when the business' lease was terminated in 1985. In any event, I have not been able to buy a home or a car, or anything on new credit as the IRS liens are viewed as the worst kind of credit liability. To make matters worse, due to my age, I have been unable to find suitable employment although I am doing important volunteer work which means that I am capable if I could get hired.


IRS Abuse Report #46
Date: Fri Dec 22 22:14:23 1995
To: sue@irs.class-action.com
From: AS

The IRS has garnisheed wages three times. The IRS attempted once for $50,000. I am so sick of these people not answering my letters and stealing my property (wages).


IRS Abuse Report #47
Date: Wed Dec 27 13:23:52 1995
To: sue@irs.class-action.com
From: LS

They have made so many mistakes on my account and charged me with monies I do not owe. Every time, they send me two and three letters about the same thing. They have made my life a living hell.


IRS Abuse Report #48
Date: Wed Jan 10 13:12:38 EST 1996
To: sue@irs.class-action.com
From: JS

IRS has Fed.Tax Liens filled against my property. I can't even go on living, with this over my head. 56 years old..no way to ever pay off..Taxes paid..penalties and interest keep building. No way out..P.S. Probably dropping E-Mail address soon..Suicide the only answer to forgetting this problem. Help...

Can't purchase house, mine falling down..Can't even make any major purchase..Life not really worth going on 56 yrs. old and no end to this mess....Also, they took a friend of mine, house and everything he owned..ruined him forever. Help me...


IRS Abuse Report #49
Date: Sat, 13 Jan 1996 21:49:29 -0500
To: sue@irs.class-action.com
The IRS is currently attempting to audit me on fictitious income they claim was suppose to have been reported on my 1985 Tax return. I am using the IRS Ombudsman to assist me in responding to the IRS. With interest and penalties, they turned a few hundred dollars dispute it into a $30,000 dispute. They have also Garnished my wages. Understand, my first claim against them was not prior notice (even about the garnishment) and the IRS states they sent notice to the address on the form. Well I haven't lived there since 1986 and the IRS has (from a print out of their own system) my current address as well as my current and previous employers. I wish I could afford a really good attorney. I'd like to put the IRS in their place.


IRS Abuse Report #50
Date: Thu, 18 Jan 1996 02:01:12 -0800
To: sue@irs.class-action.com

Five years ago, my brother was married to a woman who filed a tax report owing $1,100 . She did not pay it. A year later my brother divorced this women. Now, the IRS wants my brother to pay taxes, interest, and penalties for his ex-wife.

My brother had bought a "dollar" home and lived in it for a few years and really fixed the place up and when he moved he sold it for 17,000 dollars! That's a real good improvement and the place really did look nice, but all the other homes in the area are worth about $10,000 dollars. He lived in a ghetto. Well, the IRS now says that the house was sold for $54,000 and not $17,000 and they want there cut of the action.

My brother now lives with a woman he is not married to. He has 4 boys that are living with him, ages 2 to 14. The IRS says he can't claim them as a deduction. He also has 2 children of his own which live with their mother, ages 8 and 15. He doesn't claim them but does have to provide support for them.

The woman that he lives with made 3,000 dollars last year as a janitor. He brought in a whopping $20,000 last year. My brother works very hard to support the family the best that he can. Last week he went to pick up his paycheck and to his surprise, its only for a hundred bucks for two weeks work. The IRS put a levy against his wages for 1,800 hundred dollars. He lives paycheck to paycheck as do alot of Americans.

My brother NEEDS help and advise. I told him to pick up a second job until the IRS finds him and then move on to another job. He is 40 years old and has no savings, no retirement, and no future. What do you think is going to happen if no release comes?


IRS Abuse Report #51
Date: Fri Jan 19 18:19:46 EST 1996
To: sue@irs.class-action.com
From: DS

During 1992 and 1993, my wife and I did not have enough tax withheld from our paychecks. As a result, we ended up owing the IRS almost $10,000, a large portion of which was penalties and interest. We set up an installment agreement, and have been paying on it for over three years. On TWO occasions during this time, we were late (by less than 5 days) in making our payment. This prompted someone in the IRS to decide that we are a "nonpayment risk." So, they seized our bank account and filed a public tax lien against us. They did not notify us of this action, and we found out when we received a call from an organization that helps out people with tax problems. We were able to get our bank account released, but only after dozens of phone calls to every IRS office whose number I could get, and a visit to two IRS offices. I was not able to get the lien released. In fact, they couldn't even tell me who in the IRS had taken the action. The bottom line? Because of the lien, we are not able to get a loan for a car, and were even turned down for renting a house. All because the IRS "seized" our credit for two late payments totalling $430. I know this may sound trivial compared to some horror stories, but every act of unconstitutional aggression by our government hurts us all.


IRS Abuse Report #52
Date: Fri Jan 19 21:28:33 EST 1996
To: sue@irs.class-action.com
From: JK

I made a typo when filling out my forms making my sons social security number invalid. Because of this, they refused to let me claim him as a dependent. They ordered me to produce all kinds of paper work to prove that he was my son and that he lived with me. While I was getting the paperwork, I wrote them numerous letters explaining the typing error and asked if they would simply check their records they would see that I had been claiming him for the last 16 years and that his status hadn't changed. They would not accept him as my dependent. Each time I would send them the papers they requested, they would take several months to reply, always informing me of more papers they wanted, which in turn, I would send. When they decided that I had sent enough paper work, they sent me a notice saying to much time had elapsed and that the case was closed. Now, not only do I owe them the original amount, they assessed a penalty of 25% for late payment.


IRS Abuse Report #53
Date: Tue, 23 Jan 96 00:23:43 -0800
To: sue@irs.class-action.com
From: JB

In the late 70's and early 80's I was behind on filing my returns. In 1984, I filed 8 years all at once and paid the fines. Now in 1994, the IRS has said that they did not receive my 78 return until 1989, and my 1981 return until 1986, and when a refund was due me, they kept the refund. Now can you believe what the IRS has done regarding penalties and interest since 1978 and 1981. The amounts they are claiming, you would not believe. I have dealt with seven offices, and at least 21 IRS employees. The left hand doesn't know the right hand. The Problem Resolution Program (PRP) only sends letters saying pay.....You mail these people proof of your filings, and they lose those documents and the process starts over again. The IRS should be eliminated, and I am sure persons in the private sector could do a much better job.


IRS Abuse Report #54
Date: Tue Jan 23 02:13:01 EST 1996
To: sue@irs.class-action.com
From: GC

It is time to stop the unconstitutional powers of the IRS. They need to be put out of business, along with anyone who supports them. They took my father-in-law and put a levy on him for my tax problems. No due process, they come and spit on your due process. It is time to shut them down and do America a great deed.


IRS Abuse Report #55
Date: Sat Jan 27 01:37:45 EST 1996
To: sue@irs.class-action.com
From: TA

The money extorted from my paycheck and personal finances every day by the IRS has cost me freedom of movement, basic human comfort, a Chapter 11 Bankruptcy, and continual involuntary servitude. The presence of the IRS has created underlying fear in my personal life and the lives of my family. This fear has prevented productivity and the ability to live up to my highest potential as a human being and to exercise personal freedoms awarded me at birth. The money extorted every day prevents me from investing in the future, specifically my health and financial well-being when I become a senior citizen, and prevents my family the basic human right of safety and well-being in their future years. The IRS is a threat to my safety, both physically and mentally, and should be charged with endangering the health and well-being of every American citizen.


IRS Abuse Report #56
Date: Thu Feb 1 18:39:39 EST 1996
To: sue@irs.class-action.com
From: RC

The IRS is taking $1800 of my $2000 pension which leaves me fairly penniless and unable to support myself in retirement.


IRS Abuse Report #57
Date: Fri, 9 Feb 1996 02:39:02 -0500
To: sue@irs.class-action.com
From: BL

I am now engaged in a payment plan, which may not retire my IRS obligation before my death. The taxes in question, which I agree fully I owe (however, I strongly dispute the moral and legal basis for the penalties accruing thereto) were incurred in just two years, during which I was separated from my wife and trying to negotiate a divorce agreement. This period of time also saw the swift downturn of work availability in my profession, and in the general economy of the State of California. I was faced with providing necessary living accommodations for myself, my children, my to-be ex-wife, while trying to maintain a level of earning in a diminishing economy. It became clear to me that there simply wasn't enough money to satisfy all demands. I was eventually forced into bankruptcy.

Realizing my dilemma, I sought advice on how to deal with tax problems. One fact was perfectly clear: Filing tax returns when the means to pay was not at hand was tantamount to subjecting oneself to the most horrific torture. So, I did what was the proper thing to do: I delayed filing until I felt I could "face the music". Of course, the penalties and interest attached to the taxes have made the debt most burdensome.

Well, I was unable to pay the tax, and now I am on the aforementioned payment plan which will probably follow me to my grave -- if I can earn enough to stay a half-step ahead.

When I declared bankruptcy, my income taxes should have been discharged along with my other debts. I would now be a clean, productive citizen. Instead, I have a monstrous tax lien filed with the County Recorder, and the cloud of pernicious, untamed collection actions of the IRS hanging over me. The IRS doesn't have to live by any laws but their own. (And they hire the most obnoxious people -- but what normal person would want such a job?)

What possible good does this system serve? How does this differ from the time of indentured servants, "servants" who often paid with their lives when the tax collector paid his visit? Where is the constitutional authority for the establishment of an agency of the government which can disregard all the restraints of our constitution to achieve the ends of its mission? Where is the popular media exercising it's constitutionally protected grace to discuss this obfuscation of our rights? When will we all wake up to the fact that the IRS is, simply the armed servant of the power-grubbing, do-gooders -- social engineers, bureaucrats, and generally those who think their ideas and social mission is more important than individual rights and responsibility?


IRS Abuse Report #58
Date: Thu Feb 8 15:47:52 EST 1996
To: sue@irs.class-action.com
From: SR

In approximately 1983, I was asked by an employer to fill out a w-4 form. A few weeks later the IRS said the information I provided was false. They fined me $1,000 for providing false information. The IRS acted as judge and jury and convicted me without allowing me to redress my grievances. I refused to pay so they took all the money I had in my bank account and then they put a lien on my land and levied my wages.


IRS Abuse Report #59
Date: Thu Feb 8 19:58:37 EST 1996
To: sue@irs.class-action.com
From: JW

The income tax as presently levied makes us all slaves to politicians, IRS agents, state taxing agents, and their police state thugs. In reading Kahriger v. U.S. the supreme court states that a tax return, like the 1040, is a confession. If we are compelled to sign confessions in this "land of the free and home of the brave" then we are slaves! Even the Geneva Convention outlaws the use of torture, physical or mental, or any form of coercion to force a prisoner of war to sign a confession. We are worse off than prisoners of war; WE THE SLAVE PEOPLE in order to form a "more perfect union"? The IRS wipes their butt with the U.S. Constitution every day...they think its a piece of toilet paper...and the bulk of Americans seem satisfied being the tame little Slaves for these supercilious rats.

The IRS seized my car in 1988. I paid to get it back and I asked the agent, if this was the end of it for the 1984 year. He responded with "yes." A year later the agency was back rejecting the settlement because the agent had used the wrong form!

The agency then treated stock sales as total profit, disregarding the obvious purchase price, and in 1987 they proceed to turn what was less then $12k (before inflation) gross profit on sales of $40k investment over 10 years into in excess of $150k taxes with penalties and interest! I lost to the tax court judge. I spent over $2k on an attorney to file bankruptcy. The IRS accepted all but 1985, which they now claim as over $35k.


IRS Abuse Report #60
Date: Tue, 13 Feb 96 09:14:20 -2400
To: sue@irs.class-action.com
From: JM

The IRS has cleaned out our two IRA accounts and molested us in numerous other ways.



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