Tuesday, May 05, 2009

IRS - Irrational Screwballs Survive

Have you ever had a problem with the IRS? If not consider yourself fortunate. I receive a notice from the IRS each tax year around May or June saying they have changed my tax return. The notice states if I disagree with the change, to call them or write them within 60 days. I have found calling them does little good and there is no record of the communication. Therefore, I write and send is United States Post Office Certified Return Receipt.

It has never failed, but within 30 days they send a notice they have not heard from me. The “within 60 days” must really be within 30 days, but they have not fixed the form letter. I write again sending a copy of the United States Post Office Certified Return Receipt and a copy of the first reply again by United States Post Office Certified Return Receipt.

Then around August I get a third notice again stating I have not responded. I write again sending a copy of the United States Post Office Certified Return Receipt and a copy of the first reply again by United States Post Office Certified Return Receipt.

Then the IRS goes silent. You have no idea what they are doing. Six months go by and you send them an inquiry into your first response. Within a month I receive a notice stating that because of the huge number of inquires, they have not completed their investigation and that I will hear from them in 30 days. It has now been seven years and I have communicated more than 40 times concerning it and they still state I have not responded.

I called the IRS and finally was told the following. The IRS does not keep a copy of the correspondence I send the IRS. If the IRS kept a copy of all correspondences, they would run out of room. If this was not so serious, it would be comical.

In 2005 the IRS made a mistake and went through all the administrative procedures like a broken clock. I do not think they intended to go that far, but they did and it left me no alternative than to take them to court. Within months of filing the IRS tried to get the case dismissed. No longer was the IRS in control of documents, but the Court was. The court was great; they work like a fine clock with deadlines. The IRS filed a motion to dismiss the case because they had found they had used the wrong procedure and had abated any increase in taxes. I tried to keep the case alive, but with no taxes owed, the Court dismissed the case.

The IRS then used what they thought was the correct procedure to access an increase in taxes and we ended back in court. I submitted my pretrial memorandum, legal basis and facts to the Court. On February 11, 2008 in Indianapolis I was ready for bear. I was ready to try my case without an attorney. The judge called the docket, I stepped forward and was prepared, right was right. The first thing out of the IRS’s mouth is that “we conceded.” I was not going to get to present my case, show how the IRS has harassed a US Citizen or get closure. The IRS was pleading a Writ of Mandamus, basically telling the court it did not have authority to order the IRS to do something the IRS was required to do by statute, but was not doing. To this day, I just laugh and cry over this contradiction of words. The IRS is required by statute passed by our elected representatives to do something and they tell the court it does not have authority to order the IRS to comply with law.

The IRS did not want a record of this case for others to use. It was an open and shut case. The IRS was clearly wrong. There was no doubt. The judge asked me if I understood what the IRS was doing and I replied yes. I then asked the judge if I could make a statement for the record. He looked at me and said, yes, I would like to hear it. In ten minutes I presented the facts, legal basis and made the IRS look pretty silly. The judge turned to the IRS and said “I will write an order if I can or letter of opinion.”

You would think that my problems with the IRS would be over. They are starting all over for the same reason. This time I won’t be in Tax Court, but the Federal Court System that does have jurisdiction. The IRS is out of control.


At 8:21 PM, Anonymous Anonymous said...

Hey Bill,
next year file an extension instead of filing on the 15th, maybe they won't find you in the queue . .


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