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IRS Abuse Reports


IRS Abuse Report #137
Date: Fri Dec 27 11:40:32 1996
To: sue@irs.class-action.com
From: GP

My husband and I recently settled a 7-year battle with the IRS with an Offer-In-Compromise. We had to refinance our home and are now having problems making our monthly payments to our creditors.

The IRS lost my husband's files for over 2 years after we moved from Texas to Tennessee. I have written my US legislators and even the White House trying to seek governmental intervention. We retained a tax attorney that worked on our case pro bono because he felt we had been repeatedly screwed by the IRS.

My husband's wages were levied in February 1995 without written notice from the IRS. Our bank account was seized in November 1995 without written notice. Our attorney (who had Power of Attorney) never received notification either.

I feel the IRS should have written our liability off due to their blatant ignorance and mishandling of our files for 7 LONG years.

The Offer in Compromise was drawn out over 2 years -- IRS regulations changed and new forms had to be completed again and again. I think we submitted this information to the IRS 3 or 4 times before it was finally settled.

The IRS took 7 years of our lives, created hardship financially, created emotional devastation, and we still had to pay through the nose to resolve the problems the IRS kept having with our files.

I can't begin to describe the agony my husband and I have gone through. He has been hospitalized several times because of stress. I have hundreds of pages of documentation that an attorney thought was good enough to take our case, but the IRS will do what the IRS wants, when they want, and how they want. They make rules as they go.

PLEASE HELP abolish this farce of a governmental agency called the IRS.


IRS Abuse Report #138
Date: Sat Dec 28 1:25:01 1996
To: sue@irs.class-action.com
From: JP

I was hired and worked as an IRS Agent in the Jacksonville (FL) District. My work was fine until I helped a taxpayer get a previously closed case reopened due to the sloppiness of a Collections Officer. I also discovered a refund amount due her that was nearly barred by the statute of limitations (her tax accountant had failed to file her claim for refund).

The combined amount she was refunded should have been around $30,000.

After I closed this case, I was belittled, chastised, and hassled by the group manager and the branch chief. I resigned.

The lip-service about taxpayer rights is a source of great mirth in the bowels of an IRS post-of-duty.


IRS Abuse Report #139
Date: Sat, 28 Dec 1996 23:05:46
To: sue@irs.class-action.com
From: RS

The following is in reference to my parents:

People With Homelessness

Paul S. is a 77 year old man.

He has had a heart attack and has had heart surgery (angioplasty twice). He has had a stroke. He has a pre-diabetic condition and circulatory problems in his legs and feet. He has trouble walking and talking.

He is married to Florence, his wife of 55 years. Florence is 78 years old. She has osteoarthritis, high blood pressure, and a hearing impairment. She has a broken rib.

The IRS says Paul and Florence owe $62,203 in taxes for 1973-1980, $32,949 in penalties for 1973-1980, and $$286,362 in interest for 1973-1980. The IRS says they owe $264,000 in taxes, penalties, and interest for 1981-1988.

For a total of $596,514. Plus compound interest for 1995 and 1996.

The IRS is currently seizing Paul's entire ERISA pension by a continuous levy for the past year and a half. The amount so seized does not even pay the accumulating compound interest, or reduce Paul's tax liability.

The IRS has filed suit in federal court to seize Paul and Florence's home of 33 years.

The Taxpayer's Bill of Rights section of the IRS code (passed by Congress in 1988) provides that a taxpayer's home is exempt from seizure, except as authorized by the District Director or the Assistant District Director.

The Chicago District Director of the IRS has authorized the seizure of Paul and Florence's home.

Their home has been appraised at $95,000. Net proceeds from seizure and sale of their home would not be sufficient to pay the interest, nor extinguish the penalties, nor extinguish the tax.

After seizure and sale of their home, Paul and Florence would be homeless and destitute.


IRS Abuse Report #140
Date: Wed Jan 1 12:22:44 1997
To: sue@irs.class-action.com
From: LF

By missing 2 quarterly payments of under $3,000, The IRS filed liens on the property where I had my business. With the excessive penalty's and interest the less than $6,000 tax bill turned into over $20,000. One day an IRS agent came to my business and told me that if I didn't give him a check for $5,000 tomorrow he would come and padlock the door so I wouldn't be allowed in the building. So in order not to be shut down I had to take the money from deposits of jobs that had orders for. This eventually left me with no money to do these jobs, therefore I had to shut down my business and have a sheriff sale to repay the people whose money I had used to pay the IRS.

I am now out of business, with no equipment and still owe the IRS around $20,000 after years of payments.


IRS Abuse Report #141
Date: Wed Jan 1 19:27:39 1997
To: sue@irs.class-action.com
From: KF

As a successful entrepreneur in a technical field, I used to earn over $100,000 in compensation for labor while providing highly technical services which I estimated generated from 10 to 20 new jobs a year. My clients went from little shops of under 10 to international concerns with hundreds of workers; a growth to which I was proud to be a major contributor.

The IRS is now on the attack and have fraudulently liened my home while arrogantly ignoring my correspondence over the last five years. The people in my Congressman's office speak with pride how the IRS is 'above the law'.

At present, I figure it is of no value to be a wealth/job producer if my fruits are to be stolen in direct violation of the Constitution and decisions of the Supreme Court. Some of my associates have quietly reduced or terminated their businesses, moved their fruits and sometimes families to places providing greater liberty, or have reduced their expenses to live moderately on early retirement.

Over 3/4 this countries productive effort is now consumed by the IRS scam. That is a lot of lost 'quality of life' for all. Look at my case, over $100,000 and 10-20 jobs per year are now lost. And I use to buy a lot of products and services!


IRS Abuse Report #142

Date: Thu Jan 2 22:24:03 1997
To: sue@irs.class-action.com
From: AT

THIS SITE NEEDS GREATER EXPOSURE TO THE PUBLIC EYE, THEN WOULD GET MORE SUPPORT.

In 1984 the computer where my (ex)wife was employed 'hiccuped', reporting a second 1099 and a second stock dividend payout, each with the decimal place moved to the RIGHT 2 decimal places, appearing as a total of around $16,000 additional income. I was totally unaware of this situation until two years later when the IRS sent a letter stating the basic financial 'oversight' on my part and of course adding P & I onto those increased tax figures.

As my wife was now estranged and non-locatable, of course I became the chicken to pluck. To make a long story short, I have been going through financial hell since then (I lost my due to levies, lost my house and am currently so stressed if I have a heart attack in the near future it will be because of the IRS. I have tried to deal with these things called IRS agents. It is impossible. It is time for the American people to stand up and fight while we're still allowed to bear arms against this Gestapo dept. Thinking I would get resolve through a so-called tax lawyer, I contracted with him only to learn he is a 'former'? IRS agent who simply assisted me in filling out forms and then sent them off to his IRS buddies. I think a flat sales tax with out the IRS would work better than what we got. When will this wanton oppression be stopped? Where is help?


IRS Abuse Report #143
Date: Tue Jan 7 9:27:07 1997
To: sue@irs.class-action.com
From: PA

We are presently in a negotiation process with the IRS and we feel that we have no control over the IRS official that we deal with. He is unprofessional, disrespectful and nasty. I can not see how we will be treated fair in anyway and we expect the worst. Thanks, a struggling small business.


IRS Abuse Report #144
Date: Sun Jan 12 15:34:13 1997
To: sue@irs.class-action.com
From: RA

Reading the abuse reports made me realize I'm not alone. I know now that my life is truly ruined I have no future.

January 9, 1997 after several months and a notice of intent to levy, 2 IRS agents came to my house and gave me a deadline of 3:00 p.m. Jan. 10th to pay back payroll taxes. They left signed paperwork that plainly stated we had until 3:00 p.m. Friday. We had assured the agents that the funds were in place and offered to let them speak to the attorney to confirm, they declined. At 10:45 a.m. Friday Jan. 10th 6 agents showed up at my business and told my employee and customers that the business was being seized. I spoke to the IRS supervisor who was on our property and asked him why IRS was taking this action, when I had made arrangements the day before to be at IRS offices at 3:00. The supervisor, DQ, told me that when his agents got back to the office he decided that the agreement wasn't to his satisfaction and he made the decision to seize the property Friday morning. I asked why no one told me about the change, DQ said WE DON'T HAVE TO CALL YOU. I said I could get the funds and be there in about an hour, since IRS was demanding certified funds I asked for releases, which DQ said they had. What a lie.

These people threatened my employee if she didn't answer their questions, I mean really scared her, they asked about her where she banked told her that I had refused to talk to them, a lie I had never spoken to this man.

When I arrived with the funds, I asked for the releases again, this time they said they did not have them I said then let's go to your offices with this check and finish our business. The agent told me that I either hand over the check right then and quit asking about releases or they would seize the property regardless of the check. I point blank asked one agent, CB, if she would type the releases when she got back to the office and she told me that yes, she was going back to the office that afternoon and she would do the releases and she asked me for the bank's fax number. She lied, my accounts are frozen and come Monday morning I'm probably out of business. I've been called 'fair game', stupid, a liar. My property was damaged, my credit ruined, everything we've worked for is gone. I paid the tax.

After reading other horror stories, I know in my heart that no one will help us. I e-mailed every senator and house member, not just the people from my state, and I begged for help and hope for at the least one response, but as of now no one has.

How can this government allow the IRS to completely destroy a family. It does not make sense to me to take a persons livelihood thereby guaranteeing that the taxes the IRS claims you owe will never be paid. These people want to sell my inventory, which is less than $2,000.00 retail, for whatever they can get and then come to me personally for the balance. We were never sent a notice by certified mail, which I believe IRS is supposed to do. Our bank accounts are frozen, since I paid the tax this means the IRS has levied for more money that is owed, that is illegal as well I believe. The screaming, name calling and intimidation are unbearable.

All this heartache from our government not a foreign power but our own UNITED STATES GOVERNMENT. Our dreams are shattered, our lives destroyed. My heart goes out to all the people who shared their stories on this service, I cried for you, I cried for myself.


IRS Abuse Report #145
Date: Thu, 16 Jan 1997
To: sue@irs.class-action.com
From: CA

I don't know if you saw a senate/congressional hearing about the IRS that was broadcast on C-Span a few months ago. In it congressmen told horror stories of how people in their districts ended up committing suicide after the IRS ruined their finances for no reason. They also mentioned about how the IRS code, which as Jack Kemp noted is 83 years old or something like that, is so many millions of words and pages long that it would take 2 1/2 years of full-time reading just to go through it once! As a result, every a gent has their own idea as to what the code actually means and how it is interpreted. The IRS employs 5X as many people as the FBI, 3X as many as the CIA - more people than the military! It is definitely an out of control KGB like operation, unjustly shutting people down and seizing their property. I'm glad you are fighting them - they are truly evil and can not even balance their own books year to year! Good luck with the lawsuit!


IRS Abuse Report #146
Date: Fri Jan 17 11:57:13 1997
To: sue@irs.class-action.com
From: JS

After operating a profitable business for four years, the IRS decided that I could not take a full deduction for a piece of equipment I had purchased, but instead must amortize the expense over a 3 year period. The fifth year, due to the amortization, the business showed a loss. Apparently, an agent at the Van Nuys IRS office decided that, while I had been a business for the first four years, for the fifth year I was not a business, but a hobby! I had made a gross income that year of about $35,000, and had deductions totaling $ 25,000, which included my home mortgage and medical expenses. The agent decided to disallow all of the expenses. But instead of just disallowing them, he took the $25,000 from the schedule C, and added it to my gross income of $35,000, so that now in a year that I made $35,000 I owed taxes on $60,000. Then, in order to make sure that I could not appeal (Bear in mind that the IRS did all of this without contacting me), since you only have 30 days since the first notice is mailed, they mailed my first, second and third (and final) notice to a place I ha d not worked in over 10 years. Then, after waiting a year for the penalties and interest to accrue to nearly $20,000, they seized my home and everything I owned except for the truck I was driving and the clothes on my back. I contacted several attorneys before I could find one that would work on credit, since my checking and savings accounts had been cleaned out simultaneously with the seizure of my home.

IT took the agent nearly 6 months to get the IRS to even tell me why I owed the taxes. When he finally got a copy of the tax return that the agent had modified, he could not believe what they had done. He said we had a good case, and that I should have my house back in short order. Then the IRS explained to him that if he didn't drop the case, every one of his other clients would be subjected to 'strenuous' audits. I now had no attorney, and was out the $5,000 I had borrowed from my father to keep him on the case for the 6 months.

I ended up living in my truck in a parking lot for a year, while the IRS held my house and everything I owned. They even denied me access to my safe deposit box, which held my passport, birth certificate and adoption papers, and my social security card. Because I could not even prove I was a citizen of this country, I could find only the most menial of jobs.

After fighting with the IRS for over a year about the way they had wrongfully altered my tax return, they agreed that, yes, I really didn't owe them the money, but since it was in the computer the only way to straighten it out was for me to pay them the m oney that I was wrongfully charged, then re-file my tax return the way it was before it was changed by their agent. They would then re-audit me and return the moneys due me.

My dad helped me finally get the $20,000 together to buy back my house from them, by co-signing on a loan at a very high interest, with the house as collateral. When I finally was given permission by the IRS to re-enter my own home, I drove to Simi Valley to see it for the first time since I had been denied access, almost exactly a year earlier. As I walked up to the front of the house, past the overgrown front yard, I noticed that the front door was missing. Not open, missing. I took one look inside the house, just about threw up, and went next door to phone the police. They spent over 4 hours writing their report on the damage to the house, and taking photographs. there was approximately 3 inches of water on the floor in most of the rooms, and every thing I owned that had not been stolen was now in that water. All of my clothes, and my book collection of 40 years, which included a family bible that pre-dated our country's Independence Day.

A few days later, I got a call from the IRS, stating that I had to drive into downtown Los Angeles to sign some papers to get title to my house returned to me. When I got there, they had a legal-size green form, stating that they were returning my house to me in the same condition as when they took it. I tried very hard to control my anger while I explained to the lady that not only wasn't it in the same condition, but there was thousands of dollars worth of damage. She said they would have to send an investigator out. I told her I'd make it easy for them, and not replace the front door until after I heard from them.

A week later I got the form in the mail. Where they had wanted me to sign it, there was now an official stamp: 'TAXPAYER NOT AVAILABLE FOR SIGNATURE. CASE CLOSED'.

I contacted the IRS to find out when they would audit me, so I could recover some of my losses. I was informed that THEY decide who get audited, and when. Needless to say, I didn't make the list.

It cost me over $65,000 to repair the damage, which included replacement of several walls, wall heaters, and most everything that came within 6' of the floor. Everything that was in the house when I finally got it back had to be thrown away. Things that I and my ancestors had spent lifetimes preserving, all went into 3 roll-off dumpsters.

Even with this expenditure (for which I have every receipt), I still had to sell my home as a distressed house, since I couldn't make the payments long enough to finish the necessary repairs. It sold for about $20,000 less than the value of the homes on either side.

Now, as if to add insult to injury, the IRS has decided that I can't deduct the expense of repairing their damages, I can't deduct the 50% of the selling price that I had to give my ex-wife, and I can't deduct the damage done to my personal property.

The net result is that, on a house I bought for $22,000, held for 10 years and sold for $117,000, I have now been forced to pay the IRS for 'Capital Gains'. Owning my own home in this country has cost me over $200,000, and forced me to live on the street for a year Now I am living on a small boat, which is all that I can afford, since I am now making payments on $48,000 worth of credit card bill run up repa iring the house and paying the IRS their blood money.

The bank that held my safe deposit box decided to move while all this was going on, and gave me 60 days to remove my stuff from the box - yet wouldn't let me remove it until the IRS said OK. They never did allow it, now the bank doesn't know where the stuff that was in it went. All of my papers, etc. are now gone, and are impossible to replace.

Thank you, IRS. I hope someday to be able to repay you for what you have done to me.

I heard that about a year after this was done to me, the head of the Van Nuys IRS was sent to jail. Apparently, he and several of his agents had been screwing up peoples lives, and then accepting bribes to straighten out the mess they had made. I guess I just didn't realize that a bribe could have saved me thousands of dollars, and years of grief.


IRS Abuse Report #147
Date: Fri Jan 17 15:11:14 1997
To: sue@irs.class-action.com
From: RG

It started with a request for verification of expenditures regarding Lease/Repairs and maintenance expenditures on my Schedule C for some space I had leased for my business. Once I satisfied this request I was told that I could not use part of my residence as a business. I guess they figured out that that accusation wasn't going to work since my residence was in a different location. They then went on to accuse me of not having a profit motive. Personally, I don't know too many people who start a business without a profit motive. Now, they've got a whole laundry list of records and other personal information that they want from me.

It seems to me that the more information you give these people, the more they hassle you. They have been harassing me for the past four years and I don't see any end in sight. I guess what it comes down to is that the IRS is accusing me of perjury since I signed their tax forms under penalty of perjury. I have been an honest tax paying Citizen for over 20 years and I think this sort of behavior on the part of the IRS is abhorrent. It's like some kind of torture technique they use by leveling these accusations and persisting for years(reminds me of the Chinese water torture). I think somebody has got to stand up to them.

I'm willing to do whatever I can to help out in this class action lawsuit. Sign me up and let's do whatever we can to get rid of this rogue agency.


IRS Abuse Report #148
Date: Mon Feb 3 16:14:41 1997
To: sue@irs.class-action.com
From: BS

The Internal Revenue Service is using strong-arm tactics to collect $3,000 from me that I don't owe. It falsely accuses me of receiving an undeserved $1,740 refund for tax year 1993 without evidence. It has nearly doubled the assessment with penalties and interest, even though I have followed its appeal procedures to the letter. It now threatens seizures of my property, bank accounts and paychecks, although the case awaits a Federal Tax Court hearing. All IRS's actions are violations of Federal laws, IRS policies and taxpayer rights.


IRS Abuse Report #149
Date: Thu Feb 13 13:49:19 1997
To: sue@irs.class-action.com
From: DL

Upon being honorably discharged from the Army I started a small construction company, that I operated until 1984. My inability to collect earned receivables caused me to close the doors.

When the company was closed neither the company nor I owed any IRS related taxes. However, the IRS alleged that there were employee wage tax deposits outstanding and they informed me that they would be imposing a 100% penalty upon me for same.

I formally informed the IRS in 1984 that until such time as they afforded me due process of law, that I would not be filing subsequent returns and voluntarily giving them financial information.

In 1986 the IRS stole monies from the settlement of law suits pertaining to the construction company that equaled the total alleged indebtedness that they claimed I owed.

Later in 1986 the IRS claimed that they had no record of receiving the payment and informed me that I was under investigation for criminal activities.

In 1988, for years after the alleged indebtedness, I filed a personal bankruptcy and claimed the amount purported by the IRS. The bankruptcy court formally DISCHARGED the debt.

Starting in 1990, six years after the alleged indebtedness incurred and two years after the alleged debt was discharged, the IRS informed me that they did not recognize the discharge, and at that time finally filed a lien against me. Also at that time, the IRS contacted all major credit reporting agencies and sent them a copy of the lien.

All during the last thirteen years, the IRS has made my life a living hell and purposely tried to cause me total financial ruin. Also, for the last eleven years I have been branded a criminal by the IRS.


IRS Abuse Report #150
Date: Sat, 15 Feb 1997
To: sue@irs.class-action.com
From: JW

Recently, I was told the following by an IRS employee, and I quote:

'We at the I.R.S. are doing the job we were commissioned by Congress to do. We are people, like you and your neighbors, and we don't deserve abuse and attacks from the citizens we serve.'

Thanks to your web site, I looked him square in the eye and said:

'You moron, blaming your employer for making you steal people's money and harass them is the biggest cop-out I have ever seen. YOU are responsible for your own actions. If it weren't for robotic nitwits like you to carry out unjust laws, we would live in a free society. It is not just Congress to blame. Any honest person would find employment elsewhere where he could PRODUCE profit instead of coercing profit away from those that do. There is no escaping the fact that YOU are to blame for assisting in the carrying-out of any injustice your employer/government asks of you.

Fully-integrated honesty makes it dreadfully clear. I think it's time you use it and become a valuable, productive, and conscious MAN. Earn an honest living instead of destroying what others have worked so hard for. Blaming what you do on your employer absolves you of no guilt at all. The admonitory finger of Reason still points right at you, mister. You absolutely deserve to be 'treated shabbily for doing [your] job,' for by doing it you show yourself to be nothing but a shabby excuse for a man.

Thanks to Neo-Tech your days are numbered.'


IRS Abuse Report #151
Date: Wed Feb 19 14:48:20 1997
To: sue@irs.class-action.com
From: GP

My husband and I recently (October 1996) settled with the IRS by an Offer-In-Compromise. This ended a 7-year battle where the IRS lost files for over 2 years, lied, never had any accountability, ruined our credit, seized our bank account WITHOUT prior notification, levied my husband's income WITHOUT prior notification, and so on.

To be able to pay for the amount as defined by the IRS as to what they would accept for an Offer In Compromise (which really didn't compromise anything on the IRS's part), we had to refinance our home. We closed on 10/8/96 and a check for $23,116 was sent via Federal Express for delivery on 10/9/96.

Today (2/19/97) I find that there are still liens filed against my home. I contacted the IRS and was advised that the Collections division that handles Offers still show in their computer system that our debt is OWED!!!

THIS IS AN OUTRAGE!!!! We paid our debt and the IRS is still inflicting their pain on me and my husband. Our credit is still being flagged for debts that we don't even owe.

I either want the $23,116 that we paid out PLUS interest OR I want to see the IRS done away with.


IRS Abuse Report #152
Date: Thu, 27 Feb 1997
To: sue@irs.class-action.com
From: ANON

I too am on the payment plan with the IRS. I am also permanently disabled with a congenital cardiac condition that I recently had surgery for. I waited too long for the surgery so there was permanent damage to my heart muscle. I am 49. I do not receive public assistance, I was fortunate enough to have private disability insurance coverage. I have worked since I was 14 and never received any public assistance. A large part of my insurance payments each month goes to the IRS on a payment plan to pay back taxes they say I owe. I cannot afford a tax attorney so I keep paying but with penalties and interest the principle doesn't go down. I have been threatened with bank account seizure, which doesn't amount to much but my credit is still good and I want to protect it. I don't have property for them to seize except a car that my wife needs for work. So I will keep paying, probably for the rest of my life. I thought the amendment against slavery passed. I suppose the IRS overseers haven't read the constitution.


IRS Abuse Report #153
Date: Fri, 28 Feb 1997
To: sue@irs.class-action.com
From: RF

Dear Sir: On February 12 1997, I had the unfortunate opportunity of the IRS to enter my place of business and proceed with the closure of same. I was sent a certified letter on Jan 09,1997 stating that I had thirty days to respond and I did on Jan 20, 1997 with a registered letter. The next communication that I had with the IRS was on February 12. When they entered my business and proceeded to close such business. They had the locks changed, put out bids on merchandise that had cost at wholesale $1919 for $638. Made the community think that I had done something Illegal and almost destroyed my creditability as a business. What really angers me is their ability to enter a business and do whatever they like whenever they like. My business is a florist and bridal, needless to say that the week they entered my business was the week of Valentines, a florist''s busiest week of the year. By entering my shop, the IRS, cost me approximately $8000 of business. Is there nothing we as business people and taxpayers can do other than go along with the GESTAPO of THE UNITED STATES??? Is there not a new law that was passed in '96 that prevents the IRS from Malicious Collection?


IRS Abuse Report #154
Date: Tue Mar 4 18:39:38 1997
To: sue@irs.class-action.com
From: ANON

My 73 year old mother (who lives alone on a low fixed income). She was audited by the IRS last year for her 1993 tax return, which had been prepared by a tax accountant. She had never been audited before and has never done anything out of the ordinary or dishonest on her tax returns. According to the tax accountant in 1993, she owed the IRS about $800, which she scraped together and paid on time with her return. The IRS wrote back and said her return was in error. THEY actually owed HER $1300, they sent her check back and included a check to her for the $1300! She happily put the check in her bank account and counted it a blessing.

Now, after last years audit, the IRS told her they had made a mistake on her 1993 tax return, and that she actually owed them $3000 plus the $1300 they had paid her WITH INTEREST!!!, and they wanted the full amount IMMEDIATELY, or large penalties would b egin to accrue. She had no say in the matter whatsoever. After consulting with a known good tax accountant, she had to take the money out of her retirement savings to pay off the IRS, and the whole incident cost her a great deal of stress and grief, not to mention the money. Do the heartless thugs at the IRS have nothing better to do than harass an elderly woman out of her retirement savings, because they and/or an accountant screwed up? These thieves should be put behind bars where they belong, not running the most corrupt a nd feared government institution in our country. Abolish the IRS!


IRS Abuse Report #155
Date: Fri Mar 7 15:33:57 1997
To: sue@irs.class-action.com
From: ANON

My wife and daughter were maced and arrested in front of my 2 1/2year old grand daughter by local police in Billerica Ma. on Feb 12, 1993 when the police decided to they would help the IRS 'American Gestapo', seizure my wife''s car and my Truck Tracto. My wife was home alone when the IRS came demanding she pay them $56,000 or they would take her car and my truck after an hour of bullying my wife and daughter the police came.


IRS Abuse Report #156
Date: Tue Mar 11 10:05:03 1997
To: sue@irs.class-action.com
From: PH

I did not know there were so many people like myself that the IRS has destroyed.

In 1993 my husband suffered a massive heart attack and was unable to work after 27 years in the work force. I had to claim extra depends so I could get as much of my check as possible to cover medical services, prescriptions and keep a roof over our families head and food on the table. The kids had to be taken care of along with my husband and I didn't know what else to do.

Well we ended up owing the IRS over $2000 and of course we couldn't come up with it, so we made payments and that got us no where. It took from 1994 to the end of 1996 to finally get my husband's disability. All this time, we owed the IRS more and more. We finally paid off the IRS in 1996 when we got our disability back pay. Then we filed our income tax for that year, they got us even worse then before. The IRS claims we owe them over $6000 plus they penalized us for not taking enough money out for taxes! How were we to know that? It took me three years to pay off $2000 and the only way I could do that is because of the disability back pay. I will never be able to pay off $6000 plus penalties and late charges. They have taken all of my savings for my retirement and most of my paycheck. I don't understand how such a great country as ours could be so unfair and do such awful things to people.


IRS Abuse Report #157
Date: Tue Mar 18 12:01:59 1997
To: sue@irs.class-action.com
From: CJ

Before my husband and I got married, he was in business with a partner that turned out to be a con man. Unbeknownst to us, the con filed a 1099 falsely stating that my husband had earned a certain amount of money for that year. The con skipped town. Two years later the IRS says my husband owes back taxes, penalties and interest. He disputes this and the IRS says the burden of proof is on him to show he didn't make the filed income amount. After much gnashing of teeth in an effort to prove this fact, he was told it didn't matter, he owed the money. Since we got married and filed jointly, now I also am responsible for this 'debt.' Penalties and interest have escalated the total owed to over $11,000. We have been trying to work this out with the IRS for over 9 years!!! The paper work is astounding. We send it in, they send it back saying oops we also need this information. We send it in, they send another form. We follow up with visits and phone calls to jerk after jerk...no one knows anything. It's a continuous circle of never-ending hell.

We got a tax attorney to handle this finally. So what happens? We send in $5000 for compromise, which includes some interest and penalties. The IRS cashes our check, plus puts a levy on my wages! The check was sent in with all the information they required. Our attorney says it's against the law for them to have done this, but it doesn't sound like the IRS has to follow any laws! He said they should have accepted the compromise and then cashed the check or rejected the compromise and returned the check. So now they have our $5000 dollars and my pay is being garnished.

Needless to say our credit has been ruined by this whole ordeal. There is a lien on our house. I can't get a car without a co-signer. The only credit card I have is secured. I'm in sales and have to have these things in order to do my job! My husband is about to have a nervous break down!

The IRS employs people that have a total disregard for the humane and just treatment of others. I pity anyone who has to deal with the IRS. The IRS has gotten completely out of control.

If we don't do something, the IRS will get worse!!!!!


IRS Abuse Report #158
Date: Thu Mar 20 0:48:07 1997
To: sue@irs.class-action.com
From: AW

I am absolutely terrified, have just had wages levied for $46,000. I am 50 years old and a single mother with two 17 year old children still at home. I have no assets and have considered filing bankruptcy. But after reading about IRS abuses where they don't honor bankruptcy....this morning I considered suicide. Have never taken an active stand politically, but would now against them.


IRS Abuse Report #159
Date: Sat Mar 22 21:45:17 1997
To: sue@irs.class-action.com
From: KE

The IRS says I owe them $75,000 in taxes, fines, and penalties. I an just a porter. I can not get credit, a loan, or have a savings account. The company I worked for 22 years went out of business and I lost my pension. I am 51 years old, have nothing for retirement, and the IRS wants everything I make. I am a Viet Nam vet. Is this the way America takes care of its own? I have friends that come from Russia and they can't believe it.


IRS Abuse Report #160
Date: Mon Mar 24 10:03:54 1997
To: sue@irs.class-action.com
From: HB

I have been trying for ten years to get caught up with the IRS. The last payment of some 33K from a house I sold 3 days prior to them seizing it. Now I am unable to pay the capitol gains and subsequent assessments from that sale of which all went to the IRS. My operating capitol has never recovered. I have a continuing all ensuing trepidation in all that I do. I am afraid to make money, hire employees or pursue any enterprise as this will only exacerbate the bleeding process. They will be over me for the rest of my life as long as I have a social security # and attempt to own property.


IRS Abuse Report #161
Date: Tue Apr 1 4:00:28 1997
To: sue@irs.class-action.com
From: DD

In 1986 I was a partner in a corporation. The partner that paid the bills and did the accounting neglected to pay tax on my income for three years (later I found he had used that money for repaying his personal loan) though I was under the impression my taxes had been paid as his actually were. In 1990, I began receiving the IRS form letters stating that I owed back tax and penalties. The amount had escalated from $60,000 dollars to over $225,000 w/penalties and interest.

The next step was the forced sale of my home. It would be seized and auctioned if I did not sell it voluntarily. The house was sold and the equity was given to the IRS at close of escrow. $160,000 dollars all told. Remember the original amount owed was $60,000. So the IRS is now up $100,000 dollars. At this point, you'd think it would be resolved but no.... I still owed $65,000 dollars (interest still accruing w/ penalties).

The next step suggested was to file an 'Offer In Compromise'. That's an offer based on your net worth. So, I was worth about $8,000 now. I offered $10,000. (I arranged a personal loan from a family member). The IRS rejected my offer. I felt as though my entire life was ending. I was suicidal, depressed and exasperated at the process and bewildered at the ruthlessness of the IRS. I began seeing a psychiatrist at the recommendation of a friend.

I was diagnosed as being depressed and having Delayed Stress Syndrome. The Doctor put me on disability and suggested I try to enjoy myself in the midst of the turmoil.

Then in about 2 months, I received yet another bill from the IRS. A bill for $27,000 for the capitol gains tax on the sale of my home. They have levied two checking accounts. They do not respond to my letters as required by the uniform commercial codes. I cannot own property as it would be seized. I can have no savings account or any dealing with a bank. Sometimes I wonder if I'll ever have a home again.

Thanks for your efforts to fight these tyrants.


IRS Abuse Report #162
Date: Mon Apr 7 14:37:56 1997
To: sue@irs.class-action.com
From: ANONA

THE IRS IS OUT OF CONTROL.

THE IRS AUDITED MY WIFE AND I. THEY SAID WE WERE OWED MONEY. NINE MONTHS LATER, WE HEARD FROM THEM AGIAN, THEY LOST OUR PAPER WORK. THE PERSON WHO DID THE ORIGINAL AUDIT WENT ON VACATION, NOW THEY SAY WE OWE $8,000 AND WONT LET US SHOW THEM PROOF THEY ARE WRONG. THEY ARE WORSE THAN ANY BANK ROBBER.


IRS Abuse Report #163

Date: Tue, Apr 8, 1997 1:32 PM
To: sue@irs.class-action.com
From: BG

In 1993 my husband and I were notified, due to an audit, that there was a problem with one of our previous tax returns. My husband, Bill, contacted the IRS many, many, many times (over a two year period in an attempt to remedy the situation. He was laid-off from his job in 1992, and after 3 months found another job at 1/4 of the salary he had been making. Needless to say, things were very hard on us. He tried very hard to make the IRS understand this and tried to work out this situation with them. The IRS was VERY difficult to work with.

In March, 1995, my husband committed suicide (shot himself in the head), leaving our son, Justin (12 years old) and I in unbelievable GRIEF (not to mention the terrible financial situation). Since Bill's death I had to put my son in a 'special' school in Irvine and he has been seeing a psychologist every single week since then. He is still devastated.

Bill left me a suicide note mentioning that he just couldn't handle dealing with the IRS any longer, and hopes that some day I'll be able to forgive him.

If only they (IRS) had worked with him, none of this would have happened.

I rest my case.

Following is a response to the above IRS Abuse Report

This is almost routine (at least the part about the IRS failing to respond or being hard to work with). One of my best friends committed suicide after the IRS ruined his thriving business (destroying 25 good jobs in the process) and essentially caused his wife's premature death from cancer. After he contacted them in good faith (BEFORE his liability was due) and asked them for more time or some kind of payment plan to handle his tax bill, to which they said 'no problem'. They then seized his bank account and padlocked his business doors. His cancer ridden wife was then told to 'go home' by the hospital because this man's entire fortune had been seized by IRS thugs and he could no longer pay her bill.

Then of course there is the famous Alex Council story from Winston-Salem, NC. This was another man who committed suicide so his life insurance could be used to pay off what later (in court) turned out to be a erroneous lien on his family's home. This one was covered on 20/20. It is the one where and IRS regional director arrogantly told the 20/20 interviewer: 'Just because a judge says we're wrong, doesn't mean we are.'


IRS Abuse Report #164
Date: Sat Apr 12 22:57:31 1997
To: sue@irs.class-action.com
From: GF

They sent me a letter telling me that I needed to sign a paper allowing them to go back further than was required to audit me . If I didn't sign, they would fine up to $10,000 dollars. I signed it all right stating that it was signed under threat. Later they claimed that I couldn't claim my kids as dependents on my 91' files and I owe them from 91 with penalties $2000 and its growing daily . They are going to garnish my wages. THEY have taken all my savings and DESTROYED my credit.


IRS Abuse Report #165
Date: Mon Apr 14 8:50:20 1997
To: sue@irs.class-action.com
From: KH

Please withhold personal information from any public reporting...IRS harassment techniques seem to be unlimited and their power out of control.

In spite of the fact I held no ownership or stock in a company I worked for I was held liable by the fact I had signatory ability on the payroll account. With penalties and interest I now owe over $250,000. Through IRS actions I have paid over $20,000 t o date with no end in sight. My ordeal began in 1985 and because of time, penalties accessed for having made offers in compromise, my statute will not expire until the year 2002. The icing on the cake was to find (from reliable inside sources) that no c ompromise will ever be accepted because I had the nerve to consult my local senator when this whole thing began. In effect, I am being blackballed by the IRS. The source I mention was never given my history so his findings had to come from my file. How would Congress feel to know that if a constituent contacts them, the IRS applies unlawful harassment tactics? If I could prove this I'd be a good case to cite.


IRS Abuse Report #166
Date: Mon Apr 14 16:39:45 1997
To: sue@irs.class-action.com
From: LC

I (a female) owned a business in 1989 & 90 with two others (males). I left the company in 1990; my then partners took full responsibility for all the debts and taxes. The IRS came after me in 1993 for $18,000 in taxes that they have not paid. They have n't stopped since; they have drained my checking account, they have put a lien on my house, taken all my tax refunds and made my life miserable. The infuriating part is that they haven't bothered my ex-male partners at all. They go for the easy kill -- females.


IRS Abuse Report #167
Date: Fri Apr 25 9:02:18 1997
To: sue@irs.class-action.com
From: LB

A payment plan was set up. For the first 6 months of this plan there were levies issued against my accounts and clients before I could even send a check to them. The payment was 2 times what I had said was disposable income. Now they say I am not paying enough (even though they set the amount) and are preparing to seize all my property. What the hell ever happened to life and liberty, the penalties and interest are about equal to a loan sharks rates.


IRS Abuse Report #168
Date: Fri Apr 25 19:50:38 1997
To: sue@irs.class-action.com
From: DD

IN 1990 The IRS audited John for 1988 and 1989 They concluded since our two children had been on welfare since 1986 John had no right to claim them or get an earned income credit. There is only ONE BIG PROBLEM neither of the children were even born yet an d were never on welfare, my other children were.

We have sent them all the paperwork they have asked for yet they still continue to take JOHN's income tax plus penalties and interest. WE cannot afford to hire a tax attorney, which I am sure the IRS knows.


IRS Abuse Report #169
Date: Tue Apr 29 21:03:48 1997
To: sue@irs.class-action.com
From: ANON

Something must be done to stop this. How can the IRS get away with all they do? I am now scared to death. I owe about $200. I am afraid that if I send it now, they will audit me. I just didn't file on time, thinking I would get a refund, but then I fo und out that I owe. Now it's too late to send the money in . I don't know what to do.


IRS Abuse Report #170
Date: Wed Apr 30 23:44:58 1997
To: sue@irs.class-action.com
From: TP

I am an Attorney. I have three clients that were given Notices of Levy and either had their account seized or were verbally abused by collection agents. No hearings were held or Notices given prior to the Levy notices. I had no idea that this was as w idespread as the site indicates.




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