In February of 2001, I was audited by the IRS. I was a self employed mortgage broker, and my husband sold real estate. Like most citizens, we paid our taxes. In the years 1999 and 2000 we received partial refunds of the taxes we paid (almost $60,000 in total tax paid and $24,000 received as a refund combined for both years).
I was 7 months pregnant at the time of audit notification, and like most consumers was terrified of this governmental agency. I'd asked if we could initiate the process after my daughter was born, as I was due in May. Two days after that request, I came home to a summons taped to the front door of my home. I filed the returns myself, using the ever popular Turbo Tax - but had apparently made some (user) errors that the software did not detect.
I did seek representation from a CPA, but it was rather a learning curve for him - as he hadn't prepared the returns. The day I delivered my daughter, he called me to tell me that it was all over and I only owed $35,000 and after penalties and interest, I was looking at just shy of $50,000. Well, needless to say - I didn't have that kind of money and what we had got back, we had already used to pay off debt etc... I submitted a payment plan to the IRS, which they denied. We then began to receive levy intent notices, and the IRS filed liens on our primary residence. This action pushed us to the direction of filing a Chapter 13 Bankruptcy because through the Bankruptcy Court, the IRS had to agree to a payment plan of no more than 5 years. We filed the Bankruptcy petition, and so it began.
Four years into this plan, I've painfully learned that the tax audit performed on my returns for those years and subsequent secured claims filed against me as a result, were in violation of the Constitution. In sum, the Paperwork Reduction Act (PRA) of 1995 requires that all government agencies display valid OMB (Office of Management and Budget) numbers and that certain disclosures be made directly on all information collection forms (such as a 1040) that the public is requested to file. (source) In March of 2006, a Grand Jury indicted Robert Lawrence on 6 counts of tax evasion. Less than two months later, the Department of Justice filed a motion to dismiss WITH prejudice... now why would they do that? It goes a little something like this. (keep trying if server down)
Lawrence's sole defense was that he was not required to file an IRS Form 1040 because it displays an invalid OMB control number (top right hand corner). Any information collection form, such as IRS Form 1040, which lacks bona fide statutory authority or which conflicts with the Constitution, CANNOT BE ISSUED AN OMB CONTROL NUMBER. If a control number were issued for such a form, the form would be invalid and of no force and effect:
(excerpt from source)
- IRS Form 1040 violates the Paperwork Reduction Act (PRA) and is therefore a legally invalid form.
- Under the Public Protection clause of the PRA, no person can be penalized for failing to file a 1040 if the IRS fails to fully comply with the PRA.
- The PRA statutes explicitly provide that a PRA challenge is a complete defense and can be raised in any administrative or judicial proceeding.
- The IRS Individual Form 1040 has not and cannot comply with the requirements of the PRA because no existing statute authorizes the IRS to impose or collect the federal income tax from individuals. That lack of bona fide authority makes it impossible for the IRS to avoid violating the PRA.
So, for four years (one year left to discharge) I realize now that the IRS did not even have the authority to audit me in the first place, as there is no law that even requires me to pay an unapportioned tax on my earnings and the Supreme Court has already ruled in this matter - twice. I cannot believe that my bankruptcy attorney would not validate the claims filed against me, however - I did allow it to happen, but not anymore. I've also learned that the 16th amendment (the Income Tax Amendment) was not even properly ratified into the US Constitution. Does someone know where this law is?
The people have spoken, and the government will answer.
--red
