The Power To Destroy -
IRS To Evict Elderly Couple
By Jon E. Dougherty
© 2000
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 told WorldNetDaily.
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," he said.
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... 3-19-00
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 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.


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