- The Internal Revenue Service has threatened to evict
an infirm elderly couple from their home of many years for non-payment
of back taxes that the couple says they don't owe.
- On Feb. 25, U.S. District Court Judge James B. Zagel
ruled in favor of the government, despite his legal authority to rule out
the IRS' conviction request because of the couple's special medical conditions.
Mr. and Mrs. Paul Stout of Chicago, 81 and 82 years old respectively, were
not represented by legal counsel because they couldn't afford it, they
- The Stout's "foreclosure suit" stemmed from
an IRS lien "covering taxes from 1973 through 1980," Mr. Stout
told WND, and was "affirmed by the tax court and supposedly assessed
in 1982." The taxes allegedly owed, Stout said, including penalties
and interest, amount to around $500,000.
- "This is much more than my entire cash flow for
the years in question. The value of our home is also much less than this,"
- However, what most frustrates the couple, Mr. Stout said,
was the hypocrisy and confusion built into the IRS codes.
- On the one hand, IRS code forbids the agency from assigning
a levy to "a principal residence." But on the other hand, said
Stout, "the IRS district director and others are given the power to
levy, under IRS Code 6334(e)(1) anyway."
- Also, Judge Zagel "admitted that my wife was an
'innocent spouse' under IRS codes, and that he had the power to stop the
eviction to protect her, but he did not," Stout said.
- Finally, according to the Illinois resident, the IRS
repeatedly refused to produce a required "assessment" of lien
during his motions for discovery during his court case.
- "The Court refused to compel them to produce,"
Stout said, adding that Zagel also "refused to consider my motions
to produce a lawful assessment and to dismiss for lack of jurisdiction.
- "The Court simply wouldn't let me file," Stout
told WorldNetDaily. Worse, he added, "in the absence of a lawful assessment,
the Court does not have subject matter jurisdiction or a claim upon which
relief can be granted, or to make any rulings."
- Stout said he believes both the court and the IRS have
taken a hard-line approach with him because he said he has been "labeled
an illegal tax protestor, a designation made unlawful by Congress"
a few years ago.
- "I understand that the government will move the
court for an order evicting us on a 'day certain,' but I don't know the
timing," he said.
- Stout said the IRS had made him a compromise offer of
about ten percent of what he allegedly owes.
- "The IRS might accept an offer in compromise of
about $50,000, which I don't have," he said. "An attorney offered
to do it for fees of about $20-25,000, which I don't have either."
- The whole case, said the Illinois man, amounted to a
series of "catch-22s."
- IRS officials did not return phone calls seeking comment
on the case.
- The ordeal has the Stouts particularly worried because
neither of them are in good health.
- Citing a list of health problems Mrs. Stout has, ranging
from aortic aneurysms to celiac sprue -- "a condition where the body
cannot tolerate any gluten from wheat, oats, barley or other sources,"
Mr. Stout said -- the couple had hoped the IRS Taxpayer Advocate would
end the case because of their medical hardships.
- "According to IRS code," Stout said, "the
advocate or ombudsman could stop this eviction in cases of hardship [IRC
7811(a),(b)], but the district director and many others can overrule his
order anyway [IRC 7811(e)]."
- Just got this as a reply to the article that I forwarded
about the IRS and the elderly couple. Thought this would be of interest.
- From (name on file) Subject: Re: the power to destroy...
- These cases arise from time to time. Quite aside from
judicial corruption, which Sherm Skolnick has fought for nearly 35 years,
the proper and effective way to deal with the Service here evidently was
missed some time back at the beginning, when the older couple allowed the
IRS to omit administrative due process appeal of lien or taxes due notification...a
common practice. The defendants missed their chance to contain the situation
then, by not demanding due process presentation of evidence and confront
adverse witnesses...which the IRS cannot do and that stops them cold.
- If citizens mishandle the initial notifications and the
IRS proceeds to court, it is too late. The hapless citizen already has
missed his chance for recourse. Joseph-san tells me that NO judge will
make an adverse tax ruling. Thus the courts are NOT the place to realize
tax rights. The only effective means is either due process at the initial
notice phase or, if the Service refuses due process, make THAT the issue
through Senator or Congressman, who love to intervene for constituents.
That forces the Service to relent, allow the first appeal, the Administrative
Examination, where citizens then can invoke due process rights: since the
Service cannot demonstrate law requiring filing or tax owed, or adverse
witnesses who can, it stops.
- The poor defendants also probably indicted themselves,
since the Service does not determine taxes...it can't...only CPAs or reporting
entities like banks or employers or gullible citizens do that: then the
IRS has a taxable event to work with. The first thing Joe will tell you
is that you're better off NOT filing, which first is not required of resident
US citizens, and second denies 5th Amendment protection because of the
required oath "signed under penalty of perjury". That signature
line is the one the Service always emphasizes..."be sure to sign your
return". An irony in filing is that then you are your own worst enemy.
You are creating a taxable event for the Service, which it cannot do by
itself. A further irony is that a non-filer therefore is at much less risk
than a filer!
- To avoid being labeled a "tax-protestor", the
wise course is always act as "...trying to comply with the law and
diligently wanting to pay any taxes due"...if they can show which
law requires it...which, of course, they can not. There are other refinements,
which Joe (Banister) will show you, but these steps are the foundation
to handle the Service. Unfortunately, most people are ignorant of them
and hang themselves.
- SIGHTINGS HOMEPAGE
Site Served by TheHostPros