Saw this: http://www.reuters.com/article/idUSWBT01379520100413?type=marketsNews and decided to post somethng I wrote back when Lawrence Summers was still at Harvard…
In 1997, the Senate began to reform IRS.
Former Commissar Peterson testified that verbal attacks on IRS encourage events like the Oklahoma City Bombing.
The testimony of former Commissar Lawrence Summers (now president of Harvard University), stressed the importance of avoiding criticism of IRS agents.
The Senators heard that pressure to produce at IRS makes it a terrible place to work.
What will we do?
I won’t keep you in suspense. The lasting consequence of reform was this finding: tax collectors suffer from stress-related disabilities. Our wonderful lawgivers hobbled any defense of the federal government to phony disability claims by revenue agents. And now it’s a cry of treason for a citizen to denounce the altruism of IRS agents.
The revenue agent, the unceasing victim.
Anything wrong with this picture? Sure. It’s baloney. The revenue agent deserves to suffer. His lack of integrity is the problem with the IRS. He’s the most rapacious creature known. He robs the rest of us. He always has. He always will. Wasn’t Jesus condemned for befriending harlots and publicans?
Who ever volunteered for a community project and found himself working elbow-to-elbow with an IRS agent? A glass blower? Maybe. A preacher that parts his hair? Or a feminist that has orgasms? Perhaps. But never a revenue agent.
IRS looks the other way while its agents extort the rest of us. We submit impotently to unconscionable acts of IRS agents. And we pay him, a case study in mediocrity, far better than any comparable workingman, indifferent to his cost to government.
Cost to the government? You decide.
In Kordopatis v. US, (DC Pa, 1/13/97), IRS exacted a $6,000 penalty tax out of Kordopatis. Kordopatis’ ladyfriend owned part of a failed dress shop–she failed to pay all the employee taxes. Kordopatis, not an officer, director, or shareholder, had no authority to sign checks or hire/fire employees. He loaned money to the store, and on one occasion, he and his ladyfriend locked her co-owner out of the store.
In Kordopatis, IRS went to war with no law and no facts supporting its position. IRS paid the salary of some peephole artist to investigate and make the unprovable determination of Kordopatis’ liability. The case passed supervision and review, but even then, any number of IRS appeals and several government lawyers could have ditched the case.
Did the peephole artist get fired for wasting $50,000? Or his supervisor? Or the reviewer? Or the appeals officer? What happened to the ostensible advocate for the Commonwealth? I’ll bet not a one got a stern talking to. $50,000. That’s a lot of money, ask anyone at the DNC.
The government suffers these kinds of losses because of the revenue agent’s prolific lying. If any fraud holds a candle to a cop, it’s the common variety revenue agent. Any revenue agent that tells you otherwise is lying.
Johnson v. Sawyer (77AFTR2d 96-2383) displays an even more outrageous example of profligate waste and fibbing when nothing is at stake. Mrs. Johnson kept goofy business records for her high-profile husband. Johnson underpaid his tax by $3,475. To protect his wife, Johnson paid the tax and plead guilty to a criminal charge for one year, subject to strict measures to avoid publicity, agreed to by the US Attorney’s office. He received a six-month probated sentence, and no fine. High school kids get stiffer penalties for smashing pumpkins on Halloween, or for peeing on bushes in the park.
Five days later, on April 15, Johnson learned that the press was needling big shots in his company about his conviction. IRS had released the news to 21 area media outlets, stating falsely that Johnson plead guilty in two years, altered documents, and falsified deductions. Two days later, over strenuous objections from Johnson and the US Attorney, IRS issued a regional news release. What possible rationale could they offer for violating the plea agreement? IRS theorized the “no publicity” agreement bound only the US Attorney, not IRS. Johnson, a highly decorated WWII veteran, lost his job.
A jury awarded Johnson $6,000,000 in actual damages, plus $3,000,000 in punitive damages, for intentional and malicious IRS conduct. US appealed. In the process, the US attorney suborned false IRS testimony. According to the appellate judge “… the opposite was true.” (Judges attend charm school to learn to say “the opposite was true” where common men say “it’s a goddamn lie.”)
$9,000,000, plus interest for 15 years, plus the cost of compensating the ostensible advocate for US. Some people don’t pay that much alimony. The IRS appealed again. Johnson doesn’t think he’ll ever see the money.
Finally, consider the bungled high-jacking in the case of US v. Williams (75 AFTR2d 95-1805). Ms. Williams planned to divorce Mr. Williams, who fell behind in paying the employee taxes at his restaurant. In the property division, Mr. Williams transferred his interest in their house to Ms. Williams. Ms. Williams assumed $650,000 in debts. Six months later and single, Ms. Williams contracted to sell the house. A week before closing, IRS notified Ms. Williams and the purchaser that IRS claimed liens on the property of $41,937. The purchaser threatened to sue Ms. Williams if she failed to close, so Ms. Williams paid the tax under protest and filed a claim for refund.
IRS denied Williams’ claim, so she sued. While admitting the tax was lawlessly collected, IRS theory was “Ms. Williams can’t sue. She’s not the taxpayer, her ex was.” IRS argued that the law denies Williams standing because that would open the government to rampant abuse at the hands of parties who volunteer to pay taxes they don’t owe. Read that last sentence over until you understand it. Abuse by taxpayers who owe nothing… incredible.
OK. I insisted that revenue agents cost the government money, that they are liars, blackmailers, high-jackers, rogues and extortionists. These three cases corroborate that hypothesis. The only question: are the conclusions hastily made? Or are the cases exceptional, or drawn out of context?
My thirty years experience says no. These three cases simply repeat a theme that percolates out of tax cases. Inexorably, one concludes that he, the malevolent revenue agent, grasps no idea except that it damages his enemy; that he has an incurable hatred of taxpayers. Why this simian rage? Simply because the revenue agent perceives that a regular citizen is having a better time than he is.
H. L. Mencken attributed the same idiosyncrasies to farmers. But here on the foreskin of the 21st century, the revenue agent far outstrips the farmer when it comes to venality.
Like Mencken’s husbandman, the revenue agent is not against alcohol. He uses alcohol, but he drinks alone. He only puts down the use of alcohol when it stimulates cultured communion. The revenue agent would outlaw the civilized use of alcohol. Why? He repudiates the form most agreeable to the common man, but inaccessible to him.
Our representatives bestow egregious authority on a brotherhood of philistines. Only federal judges have more power than revenue officers, so unconscionable acts lie within the means of windowpeekers. People often call revenue agents Nazis, and it’s easy to see why. Once the Nazis obtained the means, the unspeakable also soon fell within their tastes and mores. Why does the revenue agent continually assault the American public with his degraded ethics? Because he can.
Millions of schedules, billions of columns, furrows in a field sowed to give forth a harvest of early retirement, nay, disability retirement. The pious publican plows onward, tilling in the dusty footsteps of the mule, the subservient taxpayer.
But the path rises to meet the footfall of the revenue agent. It’s OK to whip the mule if he stumbles. He’s rented.