Paul L. Caron

Tuesday, July 27, 2010

IRS Continues to Use 'Tax Protester' Label Despite Congressional Prohibition

TIGTA Section 3707 of the IRS Restructuring and Reform Act of 1998 prohibits the IRS from designating taxpayers as "illegal tax protesters (or any similar designation)." I.R.C. § 7803(d)(1)(A)(v) requires the Treasury Inspector General for Tax Administration to annually audit the IRS's compliance with § 3707. The TIGTA today released Fiscal Year 2010 Statutory Audit of Compliance With Legal Guidelines Prohibiting the Use of Illegal Tax Protester and Similar Designations (2010-30-073):

Congress was concerned that some taxpayers were being permanently labeled and stigmatized by the Illegal Tax Protester designation. The concern was that this label could bias IRS employees and result in unfair treatment of the taxpayer. ...

We found that, out of approximately 80.6 million records and cases, there were 196 instances in which employees had labeled taxpayers as “Tax Protester,” “Constitutionally Challenged,” or other similar designations ... We believe the 196 instances we did identify in the various systems previously listed are prohibited by law.

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I know of some IRS revenue officers who are "Taxpayer Protesters" and "Constitutionally Challenged."

There should be a point at which an individual revenue officer would be personally liable for his damaging acts that exceeded his authority.

Posted by: Woody | Jul 29, 2010 8:16:23 AM

I beleive the correct term is "tax Rangeler"

Posted by: Matt | Jul 29, 2010 7:13:29 AM

tex, I might agree with you if everyone were expected to obey the law, just because it's the law.

The IRS itself doesn't obey the law. Senators and Members of Congress don't obey the law. Obama administration officials don't obey the law.

By what right do those clowns insist others obey the law?

Posted by: mariner | Jul 28, 2010 12:05:43 PM

Ignorance of the law is no excuse...unless you're responsible for, you know, enforcing the law!

Posted by: Krump | Jul 28, 2010 9:02:51 AM

The law is the law and should be observed because it is the law. I have almost no sympathy for the IRS, but this touches on an area where I actually have some.

There are many people who persist in maintaining that, despite all the court cases to the contrary, the income tax is illegal. They think that they have the magic incantation that will make courts see the illegality despite the adverse precedent. You can't reason with such people. They will go to their graves convinced they have been railroaded by some overarching conspiracy.

Then again, perhaps the IRS and such people deserve each other.

Posted by: Tex the Pontificator | Jul 28, 2010 8:33:25 AM

As someone who by empirical evidence has been on the IRS shit list for years I've yet to find a straight forward answer from any source - never mind the IRS itself - on how to find out why our particular situation is perpetually screwed up.
How is this done?
It's not like the wife and I haven't dumped shloads of money on government, accountants and lawyers in efforts to comply and seen nothing but more crap for our trouble.
Seriously, I've felt like Job where tax departments are concerned and have resigned myself to the slim comfort found in the notion that God will not put that before man which he cannot bear.
Oh wait, I think I've just figured it out.
That pesky Christian/lion relationship perhaps?

Posted by: Brian | Jul 28, 2010 8:07:03 AM

Only favored persons - environmentalists, unions, minorities - may sue the government. The rest of us suckers are stuck behind the eight ball.

Posted by: Noah | Jul 28, 2010 8:01:28 AM

Simple way to make them stop it.

Allow the targets to sue for damages, with a nice and easy escalating scale for succeeding offenses -- say starting at $1,000 and doubling each time after that. Heck, the tax protester could probably even the score with the IRS and wipe out the its claim.

Posted by: Corky Boyd | Jul 28, 2010 7:50:20 AM

I've been designated? Yipeee!

Posted by: AKAZIP | Jul 27, 2010 3:21:45 PM

The IRS is the collection agency for the privately held parasitic Fed. The good news is the FED/IRS is running out of blood to suck. The bad news, it's us.

Posted by: robertsgt40 | Jul 27, 2010 1:18:29 PM