Trading stories of IRS nightmares

By Rich Olivastro
Posted 2/1/11

My column series calling for repeal of the income tax and shuttering the IRS has indeed struck a nerve with people everywhere. Many commented online supporting alternate tax models. Others communicated directly via e-mail, describing their …

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Trading stories of IRS nightmares

Posted

My column series calling for repeal of the income tax and shuttering the IRS has indeed struck a nerve with people everywhere. Many commented online supporting alternate tax models. Others communicated directly via e-mail, describing their personal ordeals with the IRS.

Almost all included information about their specific case or predicament. Many conveyed authorization to freely use the information they provided. Most wrote that they can be quoted directly, that is, identified by name.

But, a few – understandably – prefer not to have their name disclosed.

It’s likely due to fear of the IRS. Perhaps, too, it’s the result of what the agency has been permitted to do to citizens through the years … and might be likely to do to you, too.

In either case, all who wrote say they want their story out … for the good of the people and our country.

Because the virulent infection of IRS alchemy has spread into every aspect of our lives, we periodically inject increased doses of facts, personal stories, and citizen admonitions in treatment of the tax malignancy.

We do this in order to enjoin the principles of both the Declaration of Independence and the Constitution upon elected officials at every level in hope each will do that which must be done to rid all government of the noxious poisons afflicting our tax systems and political bodies.

What follows are excerpts from reader input describing their experiences with the IRS, their personal views, how IRS encumbers and takes citizens assets, etc. (I’ll add case info, court extracts, etc. when revisiting this topic in the future.)

One citizen’s story (while he authorized disclosing his name, at this time I will refrain from doing so):

“I’m a 64-year-old married man living in a 40-year-old mobile home with a 10-year-old vehicle.

“I really have nothing of any value … but the IRS (is) … now trying to destroy me.

“They never told me I had to do an audit … and last year they told me they didn’t have my 2006 taxes.

“But they did arbitrarily ‘change’ my filing … now they say that I owe them over $18,000 … they made those figures up.

“This from a guy … in his best year only made $33,000 … with him and his wife together.” 

Now the IRS has “ … instituted a phony ‘Notice of Levy’ to force me into complete poverty.”

Strong words, indeed.

Yet, the plight of this citizen is all too typical. He refers to a “Notice of Levy.” What is that?

A “Notice of Levy” is one tool the IRS uses from their bag of tricks to intimidate certain citizens. Generally, it unfolds this way:

If someone who receives an IRS Notice of Levy has some money – whether they actually owe the total amount of IRS defined tax or not – they pay up in order to avoid the IRS hassle.

Taxpayers without available money often sign agreements promising to make installment payments to the IRS, again, in order to avoid further IRS hassle. The gotcha here is the amount the IRS may deem a person or household can afford each month and what the person or family really can afford can be worlds apart.

When a citizen cannot pay or will not accede to IRS demands, the “Notice of Levy” process can move to the next step which includes two other actions: tax liens and bank levies.

Briefly:

IRS uses federal tax liens to corral targeted citizens to “attach to all your rights to property.” And, because tax liens “are public records that show you have tax debt with the government … such liens can lower credit score ratings … to prevent owners from taking out loans.”

The IRS also uses bank levies to “seize funds from your bank accounts (savings, checking, utility deposits, and business accounts).” The funds will be held for 21 days, in which time you have the ability to request some or all of the funds be released due to eligible circumstances (as defined by and decided by the IRS). After the holding period, the bank is required to send all funds… to the IRS.

Lastly, there is another way the IRS “may acquire possession of property which is not already in his possession, but you won’t find it written in the Internal Revenue Code.” That is, “… to accept collection of internal revenue taxes which are voluntarily paid …”

Some say “the IRS is actually bluffing non-federal employers, banks, and other third-party asset holders into turning over property to the Secretary (of the Treasury) when no authority to enforce such is given in the Internal Revenue Code” to seize monies and other assets.

That may be so.

But I – for one – do not know.

That said, all citizens deserve to know the truth.

See this article on www.baldwincountynow.com to answer this week’s poll question: 

Should Congress direct Treasury Secretary Geithner to either publicly specify the IRS code authorizing tax audits, liens or seizures of private citizens money and assets or direct the IRS to immediately and retroactively cease and desist all such activities?

Richard Olivastro is president of Olivastro Communications and founder of Citizens for Change. A professional member of the National Speakers Association, he is available pro bono for charitable fundraisers and public forums and can be reached via e-mail at richolivastro@gmail.com or phoned at 1-877-RichSpeaks.