THOUGHTS ON IRS SELECTION OF CRIMINAL VICTIMS

 

 

          The IRS has millions of potential victims that it  could pursue each year for  criminal tax cases.  However, the IRS picks very few.  The trials are carefully chosen to get the most benefit for the least amount of effort. United States Attorneys and CID Agents love easy cases.

 

          Furthermore, the IRS is aware that jury-nullification is currently working in the government's favor.  Juries consistently and routinely convict defendants of willful failure to file and willful tax evasion in spite of the fact that these individuals truly believe their position and are not willful.  Therefore, the law has been nullified.  Juries are convicting individuals because the defendants have not paid taxes.  The issue of willfulness isn't considered because the individuals on juries refuse to believe that an individual could believe that he is not required to file.  The filing requirement is as natural to them as the air they breathe.

 

          It is also evident that there are particular fact situations that lend themselves to criminal prosecution. The IRS loves the following types of fact situations:

 

    1.  An individual who works for the government or for an industry that is supported by the government, such as the defense industry.

 

    2.  An individual who makes more than the average amount of income.

 

    3.  An individual who is trained with tax money like an airplane pilot.

 

    4.  An individual who has used a phony social security number at one point in time.

 

          5.  An individual who has filed an exempt W-4.

 

    6.  An individual who uses foreign bank accounts, set up trusts, uses a light blue pen, uses a commodity exchange, purchases gold and silver, shreds his paper, transfers assets, etc. in combination with two or more of the above facts.

 

    7.  An individual who made the decision, by himself, without the advice of counsel that he was not required to file a 1040 Return.

 

 

          If your fact situation lends itself to several of the above points, especially the filing of an Exempt W-4; it is strongly suggested that you reconsider your position.  Recently, the IRS admitted to an attorney friend of mine that the IRS does not pursue "tax protestors" criminally when they file returns.  The IRS really is after the traditional tax cheats; but they hit some tax protestors criminally to make examples of them and to get "voluntary" compliance among the rest of the tax protestors.  Although the IRS consistently refers to the filing of tax returns as "voluntary," it prosecutes a handful of individuals each year to give the illusion that filing returns is "required."  The IRS cannot refer to the filing of returns as required, because then the agency would be requiring individuals to waive their Fifth Amendment Rights.  Americans must continue to voluntarily waive their Fifth Amenment Rights for the Income Tax to be constituitonal.

 

          The obvious way to stop a criminal hit if you are an individual in the high-risk category as outlined above, is to file back returns.  We suggest that you get a letter from counsel when you do this to diffuse your late filing as an element of willfulness should the government decide to use it in your particular case. Good luck and keep in touch.

Assessments and the Bankruptcy of Taxes

 

      Remember that taxes are not dischargeable in bankruptcy court unless the IRS has had 240 days from the date of assessment to collect the tax. The date of the filing of the return is not the date of assessment.  See In re Whithead, 61 B.R. 397 (Or. 1986) and In re Hays 166 B.R. 946 (Bkrtcy.D.NM 1994).

 

            The IRS cannot assess a deficiency unless it mails out a notice of deficiency which is also referred to as a "90-day letter." If the debtor does not file a petition with the United States Tax Court or a bankruptcy, the deficiency may be assessed after 90 days. Internal Revenue Code Section 6303 states the following regarding assessments: "Where it is otherwise provided by this title, the Secretary shall, as soon as practicable, and within 60 days, after the making of an assessment of a tax pursuant to Section 6203, give notice to each person liable for the unpaid tax, stating the amount and demanding payment thereof.  Such notice shall be left at the dwelling or usual place of business of such person, or shall be sent by mail to such person's last known address." 

 

      Remember to be sure that your taxes were assessed more than 240 days before you file bankruptcy or you may have severe problems with an effective discharge of the alleged tax liability.

 

     

 

 

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Download a free copy of: Why No One is Required to File Tax Returns at: www.anti-irs.com