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Computer notices: an IRS Bonanza

"Your friendly IRS" is not all that friendly

Info by Peter A. Carminati from Bob Livingston Letter 3-12-00

WASHINGTON, D.C. (Wednesday 3-22-00)---The IRS has developed a huge, automated computer system that spews out bogus letters demanding tax payments from American citizens.

This system, like all IRS systems, operates on intimidation and bluff. IRS computer-generated paper letters demand "payment". These letters are unsigned by any agent, and contain little or no information beyond the fact the feds "demand payment".

This threat tactic, however bogus, brings in billions of dollars from frightened Americans who are too terrified to exert their rights. "Land of the Free, Home of the Brave" means nothing to most.

Most people pay. If they don't, they soon receive follow-up computer letters demanding payment with assessments for interest and penalties.

Fully half of these collection notices are phony or incorrect, according to the U.S. General Accounting Office.

The computer notice system does not allow for "taxpayer" response, questions or explanations. It circumvents the tax court process where there's a documented 60% chance the tax will be abated (canceled).

The IRS knows its victims can't communicate with its computer. So the tax agency can demand collections but never confront the "taxpayer" face-to-face.

Section 6213D of the federal tax code allows the IRS to make assessments through automated computer notices that are not subject to "deficiency" procedures.

Normal deficiency procedures allow a taxpayer a hearing in tax court. Deficiency procedures can be invoked during normal tax audits. But tax court hearings can't be demanded following simple computer notices that demand immediate payment. Thus many citizens are snookered out of their due-process rights.

There is an exception favoring the taxpayer in Section 6213D of the tax code. Of course, few people know about it, so they pay off the phony demand notice within the allotted 60 days.

If you respond in writing and demand cancellation and abatement of the alleged tax liability, the IRS must cancel the tax and issue a deficiency notice if there really is a tax due. That triggers a hearing, and gives a person a chance to present his side of the issue.

Do not ask questions or raise other issues. Simply demand abatement of the tax. This stops the tax demand for immediate payment. It allows for the normal tax court hearing process.

All income tax procedures and so-called tax law is, in truth, "merchant" law. It is not constitutional law. Merchant law means persons must respond to all IRS notices or they'll become subject to assessment and collection procedures.

It can quickly become an entangled nightmare. Unless one is judgment proof, the IRS can and will collect. This insidious agency is backed by real and present police power. It collects at gunpoint the money that pays your congressman's salary and perqs. Your congressman will never, never organize a movement to abolish the IRS. Neither will you.

More information may be obtained from Peter A. Carminati, P.O. Box 21, Brooksville, Maine 01956. Or phone him at 207-326-4736. His FAX number is 207-326-8757.