Pure Trusts and the Freedom Movement

 

      Various groups and individuals in the country are selling "pure trusts" or "common law" trusts to protect assets from the Internal Revenue Service.  They claim that since these trusts are based on the common law right to contract that they predate our laws and are exempt from the tax laws. Such a concept is ridiculous.  There is no authority for the argument.  Individuals who claim that these special trusts have some sort of magic protection are simply telling the gullible what they want to hear.  And since people are willing to pay a lot of money to listen to what they want to hear, these unscrupulous vendors are making a ton of money off the public. 

 

      Another kind of trust going around is the "Massachusetts Business Trust." Vendors make claims that these trusts do not have to file tax returns.  There is no basis for this argument either.  The IRS treats business trusts like corporations for tax purposes.  Also, there are disadvantages to a business trust.  The shareholders can be held personally liable for business trust debts.  The use of a business trust will not protect you from the IRS's claim that the trust owes taxes on its business income.  Furthermore, the IRS can go after the directors of the trust for the back taxes of the trust.  Don't set up a business trust for the purpose of avoiding taxes, it won't work.  There are no tax advantages.

 

 

THE REVENUE OFFICER

 

           

            The boys and girls that go out to harass the middle class are called Revenue Officers. There are about 8,000 Revenue Officers. They are divided into a field group for a particular area.  A Group Manager who has about 12 Revenue Officers under his charge supervises each field group. The Revenue Officers get their cases based on zip codes and by grade level. The most experienced Revenue Officers get the biggest cases involving the most amount of money.

 

            The Revenue Officers have unbelievable power in their collection activity.  They can seize bank accounts, accounts receivable and wages without the consent of their superior. All they have to do is sign their name to a Notice of Levy. However, they are also given a great deal of discretion to grant payment plans

            When the Revenue Officer gets a case he will follow the following procedure.

 

                 1.  The officer will make a visit to the home or place of business to discuss payment.

 

                2.  If the individual is not there, the Revenue Officer leaves his business card.

 

                 3.  The Revenue Officer will eventually interview the individual to either collect the money or work out a payment plan.

 

                 4.  If the individual is not cooperative, the Revenue Officer will search public records, etc. for assets and he will seize those assets.

 

     5.  If the Revenue Officer is frustrated in his attempt to get money, he may issue a summons to the individual and to third party record keepers. Of course the individual may wish to assert his Fifth Amendment Rights in response to specific questions at the collection summons meeting

As you can see, the IRS goes after "their" money.  So be prepared and informed.