The Bad, Bad Law, IRS, Congress and Stealing from Grandma

Photosource: Flickr Creative Commons by Tax Credits https://www.flickr.com/photos/76657755@N04/

Photosource: Flickr Creative Commons by Tax Credits https://www.flickr.com/photos/76657755@N04/

If you give the IRS the legal power to seize money without cause, they’re going to take that legal power and use it to abuse everyday folks.

It’s kind of like one of Newton’s Laws of Motion. It just works that way.

It seems that back when Congress was in one of its rare bill-passing moods, this time in a holy zeal to wage “war on drugs,” it turned diarrheic and passed any stupid law that came into its collective head. Among these was a law that gives the IRS the power to seize monies of private citizens without preamble or proof of wrongdoing, without, in fact, suspicion of wrong-doing.

Here’s how it works. Suppose, say, you sold 3 prime acres of the old family homestead. Suppose you got the not-so-princely sum of fifty thousand dollars for the land.

Rather than deposit all of the money in one savings account, suppose you opened a second savings account and deposited 7 thousand you were setting aside to pay taxes on the sale. Then, you put another 5 thousand in an account set up to pay for the funeral of an elderly relative when the time comes. The rest of the money you put in your main savings account.

By doing this innocent, and even intelligent, bit of allocating of your own money, you would have committed a federal crime called “structuring.” Because you had “structured” your money to suit your needs, the IRS could seize it without warning.

The IRS does not have to prove that you had criminal intent for the money. It does not even have to believe that you had criminal intent for it. Your money could be seized and you could be prosecuted without having done anything wrong at all, simply for allocating your money to suit yourself like, say, a free American.

The law that allows this was passed with the supposed purpose of catching bad guys, specifically bad guys who are funding terrorists and laundering drug money and such. As will all bad laws, I would imagine that anyone who questioned its utterly stupid verbiage was accused of being “soft” on crime. This kind of emotional and political blackmail, writ as it is across the internet and in cable news talk-a-thons, can scare lawmakers into voting for bad laws.

When the force pushing for the law is none other than the IRS with their vast terror-tactic powers and the president of the United States, who is off on a legacy-building crusade, voting against even a law as obviously horrid as this one gets dicey. Political demagoguery and political cowardice are how grandma loses her life-savings to government forfeiture and ends up defending herself in federal court against charges that she has violated this nebulous and entirely unjust law.

The IRS has been seizing private monies with this law for a long time. According to Yahoo News, they seized $242 million in 2500 cases between 2005 and 2012. Fully one third of these seizures “were nothing more than cash transactions under $10,000.” Half of these were returned after owners challenged the IRS action.

That’s sounds sorta good. It means that half of these people were able to defend themselves. But think for a moment what defending yourself against the IRS entails.

Think of the anguish, the fear, the expense, the protracted and ugly battles and accusatory conversations, the search for an attorney who specializes in this stuff, the legal fees. Think about that and tell me that even the people who got their money back didn’t suffer a kind of legal purgatory because of this bad, bad law.

Consider also that not every innocent person whose money was flat-out stolen from them under this law was able to get it back. It takes determination and cash to fight these things. It takes willpower and nerves of steel. It takes a lot more fight than, say, an elderly person who had been depositing their spouse’s life insurance in separate accounts, divided up for the kids, would be able to muster.

The IRS has run into a bit of criticism because of the fact that it’s using the legal power that Congress gave it in the way the law clearly says that it can. As a result, the IRS is saying that it will stop being such a bad boy agency in this regard. They promise that they are going to stop seizing money that comes from legal sources. And we’re supposed to believe them and trust them and call it square.

What’s missing in this is the responsibility of our elected lawmakers in Congress to either repeal or amend this law. I know, it sounds like science fiction to expect our lawmakers to stop positioning themselves to either (1) take back the power if they are the Ds or (2) add the White House to the power they’ve got if they are the Rs, and do their jobs.

I know that’s not going to happen. Running for the next election is all they do in Congress. Governing this great country and representing the interests of We the People is not what they are about.

They aren’t going to change that just because the government is abusing the people they are supposed to represent due to a bad law that they passed themselves. That would be responsible. It’s the kind of thing that an actual public servant might do.

This is the United States Congress we’re talking about. They don’t do nothin’ but run for the next election and serve the special interests who pay for their campaigns.

This bad law won’t change so long as We the People continue to be bamboozled into thinking that either of the two political parties is the answer to our woes. So long as they can engage us in their ridiculous pie-throwing contests and keep us mesmerized with blind party loyalty, they’re going to continue with their bad governance and dereliction of duty.

So what we have is an agency saying that it’s going to change how it enforces a bad, bad law in order to stop a bit of bad, bad publicity. Meanwhile the people we’ve elected to write the laws are ignoring the problem and behaving as if lawmaking, actual lawmaking and law-fixing, has nothing whatsoever to do with them.

What’s wrong with this picture?

From Yahoo News:

IOWA CITY, Iowa (AP) — An Iowa widow is charged with a crime and had nearly $19,000 seized from her bank after depositing her late husband’s legally earned money in a way that evaded federal reporting requirements.

Janet Malone, 68, of Dubuque, is facing civil and criminal proceedings under a law intended to help investigators track large sums of cash tied to criminal activity such as drug trafficking and terrorism. But some members of Congress and libertarian groups have complained that the IRS and federal prosecutors are unfairly using it against ordinary people who deposit lawfully obtained money in increments below $10,000.

At issue is a law requiring banks to report deposits of more than $10,000 cash to the federal government. Anyone who breaks deposits into increments below that level to avoid the requirement is committing a crime known as “structuring” — whether their money is legal or not.

The IRS has increasingly used civil forfeiture proceedings to seize money from individuals and small businesses suspected of structuring violations, according to a review by the Institute for Justice, a libertarian group. The agency seized $242 million in 2,500 cases from 2005 to 2012 — a third of which arose from nothing more than cash transactions under $10,000. Nearly half was returned after owners challenged the action, often a year later.

Like Patheos Catholic on Facebook!

Patheos Catholic LogoCLICK HERE TO "LIKE" PATHEOS CATHOLIC ON FACEBOOK

National Organization for Marriage Sues the IRS for Disclosure of Tax Returns

 

If the government starts breaking its own laws to give out information from our tax returns for the purpose of allowing a favored group to punish their enemies, we are all in trouble.

In March 2012, the Human Rights Campaign, which is a gay rights organization that supports gay marriage, publish the National Organization for Marriage’s 2008 tax returns.

That, my friends, is clear evidence that somebody somewhere committed a felony. Yet, no one has charges have been brought and if there’s an investigation, it doesn’t appear to be going anywhere.

When the Human Rights Campaign published this list of donors, it laid these people open to harassment and reprisals of all sorts.

As I said earlier, when the government starts violating its own laws for the purpose of allowing a favored group to punish their enemies, we are all in trouble.

From The National Catholic Register:

National Organization for Marriage Sues IRS for Disclosure of Tax Returns (2085)

The lawyer for the organization says the measure is ‘in order to discover who committed these felonies against us and then hopefully get them prosecuted as a deterrent to future abuse by IRS officials.’

WASHINGTON — In March 2012, the Human Rights Campaign, the nation’s leading homosexual-rights group, posted the National Organization for Marriage’s (NOM) confidential 2008 tax returns, including the names of donors.

The disclosure of tax returns without permission is a felony, and NOM quickly cited evidence that allegedly pointed to an Internal Revenue Service official as the likely source of the confidential data.

But a year and a half later, after repeated inquiries elicited no satisfactory response from the IRS, NOM has filed a lawsuit demanding answers and damages.

“Our confidential tax returns were disclosed to the Human Rights Campaign, which posted our confidential list of donors (Schedule B of the tax return) on its website as part of its effort to harass and intimidate our donors into silence,” said John Eastman, NOM’s chairman and law professor at Chapman University School of Law, explaining the group’s decision to file the lawsuit on Oct. 3.

“Computer forensics discovered that the document had originated from within the IRS. Disclosure of a confidential tax return is a serious felony, yet no charges have been brought.”

 

Read more: http://www.ncregister.com/daily-news/the-national-organization-for-marriage-sues-the-irs-for-disclosure-of-tax-r?utm_source=feedburner&utm_medium=feed&utm_campaign=Feed%3A+NCRegisterDailyBlog+National+Catholic+Register#When:2013-10-18%2014:22:01#ixzz2i6cJl7kz

Like Patheos Catholic on Facebook!

Patheos Catholic LogoCLICK HERE TO "LIKE" PATHEOS CATHOLIC ON FACEBOOK

Isn’t that Illegal?

 

The Congress shall have power to lay and collect taxes on incomes, from whatever source derived, without apportionment among the several States, and without regard to any census or enumeration.

That is the 16th Amendment to the Constitution of the United States.

Our government managed to rattle along without an income tax until this amendment was ratified in 1913. It’s ironic that this particular amendment was placed in the Bill of Rights, since it has become a method of limiting many of the other rights that Americans enjoy.

For instance, our system of jurisprudence is based on the notion that the individual citizen is regarded as innocent until proven guilty. What that means in practice is that the government actually has to prove that someone has broken the law before it can deprive that person of life, liberty or property.

However, the income tax laws turn this completely on its head. The government does not have to prove anything as regards income tax violations. It merely makes the charge and the individual citizen is tasked with proving their innocence. That is what income tax audits are all about. The government is operating on the idea that you are guilty of income tax evasion until and unless you can prove yourself innocent. The topper is that the government can be as invasive and onerous as it wants in these audits.

I know from personal experience that even a one-page tax form concerning employment with regular documented salaries can turn into an audit that costs the tax payer thousands of dollars and ties them up for many months. In other words, the government can audit an individual or a small business into bankruptcy, even if the business or the individual actually can prove that their taxes are clean and the government’s charges are bogus.

The powers granted to the government through its enforcement of the 16th Amendment are draconian enough without the application of political vendettas and personal malice. That’s why there are laws which are supposed to protect us from that sort of thing.

However, as our government veers away from the people, there is less to keep it in check. I’m not sure why a people that blandly accepts the idea that their government is reading their emails and listening in on their phone calls would be surprised to learn that this same government is also abusing the power inherent in the tax codes.

Maybe they’re not surprised.

Maybe it’s just that we the people have been battered so much by these repeating crises that we’ve become somewhat response damaged. Or perhaps we’re getting weary of voting the crooks out of office and then getting another set of crooks just as bad.

How many times have the voters of this country risen up and tossed the bums out?

And how much good has it done us?

That’s because the bums are replaceable by other bums, all of whom are owned and controlled by the same special interests. We can replace the puppets, but we don’t touch the puppet masters.

Maybe this is why there has been so little reaction to the news that the Obama administration exchanged information about people’s tax files with the IRS.

Or maybe people don’t understand that this is probably an illegal activity.

Or maybe people are just too tired to respond.

Which is it, I wonder? Are we losing hope in our ability to make our government respond to us?

Again, I am not sure. What I do know is that each succeeding administration tops the previous one in running over the American people.

From The Daily Caller:

Top Internal Revenue Service Obamacare official Sarah Hall Ingram discussed confidential taxpayer information with senior Obama White House officials, according to 2012 emails obtained by the House Oversight and Government Reform Committee and provided to The Daily Caller.

Lois Lerner, then head of the IRS Tax Exempt Organizations division, also received an email alongside White House officials that contained confidential information.

Ingram attempted to counsel the White House on a lawsuit from religious organizations opposing Obamacare’s contraception mandate. Email exchanges involving Ingram and White House officials — including White House health policy advisor Ellen Montz and deputy assistant to the president for health policy Jeanne Lambrew — contained confidential taxpayer information, according to Oversight.

The emails provided to Oversight investigators by the IRS had numerous redactions with the signifier “6103.”

Section 6103 of the Internal Revenue Code forbids a federal employee from “disclos[ing] any return or return information obtained by him in any manner in connection with his service as such an officer or an employee.”

Federal employees who illegally disclose confidential taxpayer information could face five years in prison.

Read more: http://dailycaller.com/2013/10/09/white-house-irs-exchanged-confidential-taxpayer-info/#ixzz2hXi90qoD

Like Patheos Catholic on Facebook!

Patheos Catholic LogoCLICK HERE TO "LIKE" PATHEOS CATHOLIC ON FACEBOOK


CLOSE | X

HIDE | X