WARNING about a particular IRS Letter

[PANICPASS]

Keep in mind that the main reason they want you to file is your alleged DUTY to do so. After all, most Americans do because they believe it is their duty to do so. That's why IRS has a 95% conviction rate. That's why no one ever wins the "FDCPA" argument even though it is the correct argument. DUTY is the name of the game.

[rushpat]

An interesting view from a tax spe******ts/former IRS agent:

(Full article: http://taxatlanta.com/Re-Enter_Tax_System.htm)

Excerpt of interest:

All IRS/CID agents are keenly aware of the number of prosecutions needed each year. The unwritten rule for a successful Special Agent: don't get bogged down with a time-consuming case where the taxpayer knows his rights and is stonewalling at every point and turn. Believe me, the Special Agent will try to find a way to get rid of this type case and have it returned to the Audit Division for final resolution. Remember, most criminal-tax cases require at least some cooperation from the taxpayer. If the taxpayer is not cooperating, it is highly likely the Special Agent will get rid of this case and move onto the easy ones.

and then later

As long as the IRS continues to have the option of prosecuting taxpayers who voluntarily disclose their tax crimes and fully pay the tax, penalties, and interest, there really is no incentive (no reward) for full disclosure, full payment, and full cooperation. The bottom line: the more you help the IRS, the more likely the IRS will recommend prosecution!



hmm... almost sounds like they are saying that it's better to stonewall, fight, slow down and generally be a nuisance than to help.

[rushpat]

Another interesting excerpt, from their FAQ page (http://taxatlanta.com/faq.htm)




7. What percentage of the population refuses to file tax returns and gets away with it?

*

There are many people who participate in the underground economy that uses cash, gold coins, diamonds, drugs, or other merchandise to purchase products and services for their "normal business." All of their assets are in corporation names or other disguised entities. It doesn't take rocket science to figure out that people who go to great lengths to avoid receiving W-2's and 1099's have no tax return problems.

*

If you throw in the illegal immigrant problem, and the fact that most transient workers provide bogus SSN's to their employers, the percentage of non-filers in the United States is around 30%.

The percentage of non-filers in the U.S. is around 30% and growing.

[PANICPASS]

Originally Posted by rushpat

An interesting view from a tax spe******ts/former IRS agent:

(Full article: http://taxatlanta.com/Re-Enter_Tax_System.htm)

Excerpt of interest:

All IRS/CID agents are keenly aware of the number of prosecutions needed each year. The unwritten rule for a successful Special Agent: don't get bogged down with a time-consuming case where the taxpayer knows his rights and is stonewalling at every point and turn. Believe me, the Special Agent will try to find a way to get rid of this type case and have it returned to the Audit Division for final resolution. Remember, most criminal-tax cases require at least some cooperation from the taxpayer. If the taxpayer is not cooperating, it is highly likely the Special Agent will get rid of this case and move onto the easy ones.

Talk to Tommy Cryer. He has a horror story to tell you. A Special Agent who runs away from a tax case because a taxpayer is stonewalling and knows his rights, probably isn't much of a "Special Agent."

[farmer_giles_of_ham]

Originally Posted by rushpat

Another interesting excerpt, from their FAQ page (http://taxatlanta.com/faq.htm)




7. What percentage of the population refuses to file tax returns and gets away with it?

*

There are many people who participate in the underground economy that uses cash, gold coins, diamonds, drugs, or other merchandise to purchase products and services for their "normal business." All of their assets are in corporation names or other disguised entities. It doesn't take rocket science to figure out that people who go to great lengths to avoid receiving W-2's and 1099's have no tax return problems.

*

If you throw in the illegal immigrant problem, and the fact that most transient workers provide bogus SSN's to their employers, the percentage of non-filers in the United States is around 30%.

The percentage of non-filers in the U.S. is around 30% and growing.

That web-site is very interesting, an example of how professionals from within the system can be helpful. I wonder if when the IRS files its own "substitute for return" that is the basis from which to negotiate a settlement. Is this related or required for a "general ataxpayer assessment"? Why should anyone have a duty to file when the IRS can do it themselves?

The thing missed however is what assessment power the IRS has- what do they know, how can they know it, what procedures must be followed, etc.

The first question I want to know in any imputation of income is: "what was the alleged taxpayers cost-basis in the transaction"? Thats what is never contested, it's just assumed "everything that comes in is income". Yet there is law contemplating the fact that 'gross income' might include non-income items.

Maybe the first question really should be- "how does this receipt even qualify as income"? There are many models that leave the transaction in flux, without a complete settlement. Transfers in trust, and loan process...

The referenced website is right on when stressing "silence is golden". Tommy Cryer and Wesley Snipes are 'high-profile' which changes the 'general rules'...

And they both won, in the main.

[rushpat]

Yeah, admitting that those who don't have w2's, 1099's don't have tax return problems, and also describe how they go about it and admit to 30% nonfilers... he even cautioned about getting back into the system and signing returns that would become evidence of a crime.

So, from my viewpoint, trying to appease, file, sign away years of my life, etc, will just be giving them rope they can use to hang me, and hope in their "helpfulness" and "mercy" to not try to crush me later. Besides, the thought of filing returns for the first time in my life is nauseating.

Making sure they get as little info from me as possible still may lead to action against me, but it will only be on hear-say then. Basically, it's w2s, which are currently unrebutted.

[farmer_giles_of_ham]

Originally Posted by rushpat

Making sure they get as little info from me as possible still may lead to action against me, but it will only be on hear-say then. Basically, it's w2s, which are currently unrebutted.

Its only hear-say right now. Those w2 are unverified account statements- the conclusion that they constitute "gross income" is just an unqualified opinion. There are so many other possibilities. Even if you signed a w4, so what? Were those particular payments related, and correctly conceived as reportable income?

That's why the "ctc method" (which btw I basically disagree with) is right on in a very essential point- your sworn statements rebuts these merely private imputations. Only unlike CtC, dont argue- a sure loser. Just deny, without explanation. It's your right to deny any accusation!

In the list of answers to a pleading in court, every procedural code gives 3 possible responses:

1. agreed

2. denied

3. unable to form a responsive answer for insufficient information (has the effect of a denial)

The last one is more like an implied attack on the adversary's case- "I don't know what you're talking about". Make them prove the case. Plus, you don't commit to any one position or give any further evidence.

It may be that the IRS has a great deal of difficulty even arriving at a valid assessment without your cooperation. They don't have 1st hand knowledge of the facts, like the nature of the transfer or the cost-basis. Maybe you were just owed that money, or you bought it fair and square.

[rushpat]

Good info.

Right now though, I'm still sitting on 6 proposed assessments, which I believe constitute presentments. In the past, when dealing with the California state tax collection group, all presentments were returned within a short amount of time with the R4C, accompanied by a lengthy list of reasons their presentment was deficient and also including proof of previous default by them, along with an affidavit of the timeline and the negative averment.

I'm thinking this situation probably requires something so that the presentment isn't taken to be accepted due to non-response.

Thanks again for the input.