“Hello, I’m with the IRS and I'm here to help you.”
That’s one of three biggest lies we learn in life. It’s sad that it happens on a daily level at the Internal Revenue Service. Many law-abiding citizens seek tax guidance from the IRS, only to find this government agency not liable for the advice it gives. During Senate hearings held recently, many people came forward to testify on their frightening experiences with the Internal Revenue Service. The names were changed to keep them from being audited again.
Take for example Bill Davenport. He was obviously making too much money for his own good. Bill was looking for a tax shelter, and he ended up looking for shelter.
"My home belongs to the IRS and every attempt to negotiate is met with a brick wall. In 1992 an investment counselor that would allow me to enter into the music/record business brought me an investment. This investment promised some tax advantages so I met with the IRS to insure legality. I was informed by the IRS that the investment was sound.
Upon making the investment and taking the tax credits in 1993, I was audited in 1996. The tax credits were denied. The IRS applied interest and penalties, which made the amount owed impossible to pay. Liens were placed on my home. Because of the liens my credit was ruined. Because of this I was unable to get loans to pay off the liens. This year I found a funding company that would work with the IRS to negotiate the amounts owed and give me a second mortgage. The IRS refused to negotiate and instead is in the process of increasing the lien amounts for additional interests and penalties. So far, an $18000 tax saving, originally approved by the IRS, has resulted in $62000 debt to the IRS. During my last conversation with an IRS agent, I was told that the only way they would negotiate was if I sold my home and gave them all of the equity plus $1500. When I asked the agent where he expected me to find housing, I was informed "that's not my problem".
It’s important to note that Bill came to the IRS for the right answers, used the information, and paid dearly for it. Remember that the weight of the audit is on the accused, not the accuser. It’s high stakes poker. You’re asking for a fair hand, and guess who’s dealing the cards?
Another example below shows the IRS won’t be the least bit apprehensive in drumming up business when they need it.An informant (I thought he was a friend) introduced us to a person who, unknown to us, was an undercover agent for the IRS. This person (agent) claimed he would make our taxes disappear and provide documented proof, all for 10% of the dollar amount owed in taxes. Because of timing and slow business, four people fell for this trap. They are now going to jail and are subject to large fines. Until this happened, these people had never done anything wrong or illegal regarding taxes. Is the IRS so desperate that they have to entrap people, encouraging or bribing them to cheat? We had no intentions of not paying our taxes until they came to us with the idea. Please let the people know that the IRS is setting up sting operations. Since this happened, over four years ago, we have all paid our taxes along with penalties and interest. Yet, we are still going to jail. I will not use my name here because they are vindictive and will make it worse for me. The country must know that this sort of thing is happening here in America.
The only safe way to ensure your finances aren’t prone to this sort of attack is by doing what thousands of other Americans do; invest offshore! The tax advantages and investment profits have and always will be a safe haven for the smart investor who want to keep his or her fair share for their family.
IRS Horror Stories
The Equal Rights Amendment was never passed in the United States. Even so, women in this country are starting to see more level playing field in the business world. The Internal Revenue Service is taking a lead role, providing men and women equal access to harassment and intimidation. Just ask Debbie H. whose name has been changed when her testimony was provided at the Senate Hearings on IRS abuse. Put yourself in her shoes and walk a mile in them.
On Friday, August 8, 1997, at approximately 8:30 a.m., I was returning home from the vet’s office with my neighbors sons, Russell and Richard. I saw two or three police cars and a big flat bed tow truck blocking my way out of the parking lot. One police Officer, James Schott, came over to my car and asked, "How are you today?" I answered, "I’m happy and joyful". He seemed nervous, looking around at other people who were coming closer to my car. I didn't know what was going on. I thought they were going to have to move those vehicles so that I can go home.
The officer Schott then asked me nicely to get out of the car. I said "why?" Before he had a chance to answer, another man, Daniel Dockum, very rudely commanded me to get out of the car. I said to him, "who are you?" He answered in a very intimidating manner; "You’ll find out, just get out of the car and tell the boys to get out too." I grabbed my purse and opened the door. I told the boys to go ahead and also get out.
Officer Schott asked, "Are you Denise?" I said, “ yes.” Then he said, "These are federal agents, do you know her?" pointing out a girl who was walking towards me. I said "yes" after recognizing her to be Revenue Officer C. Barron. Ms. Barron walked up to me and handed me a copy of Publication one. She said, "Are you prepared to pay six thousand three hundred ninety nine dollars and eleven cents". I answered "For what, I don't even have a checkbook with me". She said, "I am taking your car."
Three more people in suits came walking towards me. Some came from a dark blue car and others from a gray van. I did not know these people. No one was introduced or showed me any identification even after I asked.
"Do you have a court order signed by a judge?" I asked. Daniel Dockum got right in my face, I could feel and smell his breath, and said, "She doesn't need a court order, here is her authority", and somebody handed me IRS Form 668-B, Levy.
Turning to Officer Schott, who looked confused, I said,
"She can't take my car, without an order from the court signed by a judge, don't I have any rights?"
Daniel Dockum shouted "NO". I said to Officer Schott, "We have not been in front of a judge yet, she has no court order, are you going to let her steal my car?” Officer Schott faced me. I think I saw a little compassion in his eyes, and he said, "Look I’m just a Pompano Beach police officer, these people are federal agents, you will cooperate with them and not give anybody any trouble or I will have to put you under arrest". With the boys in my care for the day I knew at that moment that it was useless to assert myself or insist on my rights. I felt like I was starting to cry.
I was very angry. I felt like this gang of thugs was violating me. There was no one to help me.“ Just put yourself in that situation. Can you imagine being surrounded, with no one there to help? The term “violated” is being too kind. And the equal justice provision in the IRS Collection division doesn’t just stop on women. Give us your sick, your tired, your hungry…taxes.“In 1976, my mother owed $300 in taxes. They were not paid due to the fact that she was diagnosed with cancer and given 12 weeks to live. In May, as she lay dying, two IRS agents showed up at my house where we had moved my mother to take care of her. They told me they were friends and had come to visit.
I took them to her room where they introduced themselves as IRS agents and served her with papers to confiscate everything she owned. She was too weak to sign the paper but did make an X and I signed for her. On that day, they took everything she owned, even the soda bottles at her place of business! She died within the week.“They felt her pain. There is a way you can protect yourself from taking the full brunt of an IRS attack. Consider offshore investment. It’s protection for you and your finances. Better yet, it’s the smart way to protect your children’s or loved one’s financial future.