People keep asking how to handle the IRS, get the IRS off their backs and out of their lives, and so on. I do not believe in the patty-cake approach. I rather favor figuratively putting on chain mail gloves and punching them straight in the face, followed by an Anderson Silva kick to the chin (a la UFC 126), and a Jon Jones choke-out.
You can write estoppel letters all day long and get ignored. But I like best these methods:
- Make yourself judgment proof (to prepare for the succeeding methods, except the last).
- Send a Privacy Act or Freedom of Information Act request for your individual master file, a verified tax assessment, and a statement of any law that makes you subject to and liable for income tax.
- Criminal Complaint
- Rebut inaccurate 3rd party reports of income
- Cycle through CDPH and Tax Court till the statute of limitations expires
- Make a whole bunch of money, file the standard 1040, pay taxes, shut up about it, life happy.
All of these assume you believe you have no income tax liability, and file no return. #6 implies that you know how you want to spend your remaining years - NOT fighting with the IRS, but having your spouse and children, friends, relatives, and coworkers love and respect you. Let's review the methods.
- Judgment Proofing - You judgment-proof yourself by getting all assets out of your name and putting them in a double-blind trust or giving them to someone the IRS cannot trace from your correspondence, phone calls, or banking and other records. As you will see below, the IRS will go after EVERYTHING you or your relatives or a trust owns if it seems remotely connected to you, and IF the IRS thinks you owe income tax.
- FOIA - Look for disclosure officers in the online IRS manual at http://irs.gov. Prepare your FOIA letter in accordance with Dave Miner's suggestion (or contact Patrick Lynch) and send it to the disclosure officer for your area. Mail it and wait a month or so for the response. Note that you can write to the chief counsel of the IRS (a DOJ attorney) and ask for determination of taxpayer status. You have to include $500, according to the rules. I consider this a waste of time because I know of no one who has achieved anything with it.
- IMF- I like the IMF method best because it gets the IRS off your back permanently if you follow all the way through. You use the FOIA method repeatedly obtain your IMF and other files, use the IRS 6209 Manual to decode the IMF and discover the errors in it that make you appear as a person liable for tax, discover what document created the error, discover who created that document, and discover why. Then you write to that person and demand that the person create a new document reversing the error, and make a corresponding entry in your IMF, and show proof of it. Because such a host of class A thieving assholes populate the IRS, the process takes a couple of years. Note that the error typically shows you as a resident of the Federal Zone (Puerto Rico, US Virgin Islands, Guam, American Samoa) and involved in a taxable activity (making truck tires, importing or making alcohol, tobacco, firearms, explosives, or pharmaceuticals, for example). If you get them to correct this error and show you as a non-filer, they will leave you alone.
- Lawsuit. With this method, you file a Trespass on Case lawsuit for creating a case against you when no case justification exists. If you do not file a tax return, and somebody sends a report (W-2, 1099, W-9, etc) to the IRS indicating you earned income , the IRS will ask you by letter (probably to the wrong address) for the return , then prepare an illegal substitute for return, enter a freeze the computer, enter an SFR code which will trigger an assessment based on standard deductions and the reported income. The IRS will not prepare a verified assessment. The agent will prepare a group report based on computer contents showing millions in liability when you request it. The agent will write a certification that the printout constitutes an accurate transcript of what the computer contains, but will not certify under penalties of purjury that an assessment officer duly authorized by the district director has assessed that you owe the tax. This of course creates a tax liability unlawfully. As a consequence, you get a 90 day notice, followed by a 30 day notice (probably to the wrong address, intentionally) if you don't pay, followed by a lien and levy in which the agent encumbers your real estate, snatches the content of whatever bank account it can find, garnishes your paycheck, snatches your social security and any investment accounts, and brings the sheriff out to snatch your car, boat, motorcycle, and so on, all without remorse or mercy. And all illegally. You would wisely keep track of all communications and actions and the time and energy you spend on this mess, and all the losses you suffer, converted into dollars (I don't know how you convert your spouse dumping you, sleepless nights, loss of all the hot sex you used to get, disrespect at work. and the public humiliation. But somewhere somehow you have to keep track of all that because when you file your lawsuit, you will need all that to prove damages. Note that you may also file a 26 USC 7431 or 7433 (the code whereby Congress strips the IRS of immunity for unauthorized or injurious collection actions) lawsuit, but only after you exhaust administrative remedy, meaning slog through CDPH and Tax Court.
- Criminal Complaint - I love this method because you have a glimmer of a chance that the government will go after the rogue agent who has decided to ruin your life. The foregoing processes will turn up a bunch of proof of violations of 26 USC 7214, the code by which Congress strips the IRS of immunity for its criminal acts. Unless an IRS agent has stolen your refund check or held you up at gunpoint, the DOJ an FBI will trash your complaints because they love helping the IRS steal your assets. So you go to http://www.uscourts.gov, click Forms and Fees, Forms by category, criminal forms, and then download Form AO-091 (criminal complaint) and AO-442 (arrest warrant). Prepare the forms and attach them to your affidavit of probable cause. Then take them to one United States District Court judge or magistrate after another until you find one who will sign the complaint. Tell the judges you need the signature to prove you submitted it so you don't get indicted and prosecuted for violating 18 USC 4, Misprision of Felony (for failing to report the crime). If you get no signature, modify the form using Adobe Acrobat Pro for use by the FBI or US Army, Navy, AirForce, Marines, or Coast Guard, and get a military officer to sign it. Now take it to the FBI and DOJ and demand action. If they give you short shrift, add the recalcitrant agents/attorneys to the complaint under misprision of Felony and accessories to the crime, possibly even co-conspirators under 18 USC 241. Make sure you send copies to the news media with a cover letter bearing a summary of the crime and how the government protects its own and you had to go to exraordinary lengths. Also send it to the Treasury Inspector General for Tax Administration, the Commissioner of Internal Revenue, AND the IRS CID and demand the firing and arrest of the criminal agent.
- Rebut 3rd party lies about your receiving income. You can easily do this. Just follow the Pete Hendrickson technique in Cracking the Code, now a free e-book. Get it here: http://losthorizons.com/CtCforFree.pdf. If you want somebody to help you with the process, write to me and let me know. http://bobhurt.com/contact.php.
- Cycling through Collection Due Process Hearings (CDPH) and Tax Court - I equate it with swimming in a pool with venomous sea snakes. Because it takes skill to present your case and because you so rarely get reasonably honorable response, I recommend hiring an expert (NOT a lawyer) to guide you through the process. Contact the folks at http://patriotnetwork.info. Lindsey Howell has pretty good experience. He told me that you can make two complete cycles in about 10 years. Well and good, but who wants to have the hatchet hanging over his head for 10 years for EVERY year of tax issues?
- Making a lot of money should not seem so onerous. You ought to figure out how you want to spend your life and get on with it. Make a lot of money by applying the genius and determination you will need for battling the IRS. Then everybody will admire and appreciate you and want your friendship. You'll have plenty to bribe the IRS through 1040's to leave you alone, and plenty to take your spouse on long vacations and put your kids through dance and guitar lessons and college: THE AMERICAN DREAM. I doubt that you dreamed as a kind of fighting the IRS throughout your adult life.