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In case it is an issue to you, or even an
interest to you, I will share why I went to prison.
helped people fight the IRS!
1990, a friend came to me with an IRS problem. My advice was to
"Pay up." He claimed that the amount the IRS claimed he
owed was more than he actually made during those years. That
obviously couldn't be right, I thought, but still felt like I
couldn't help him.
A week later, he was back at my
breakfast table with a letter someone had written for him. The
letter started out accusing the IRS of being liars, cheats, and
thieves and then got really nasty after that. As I read the
letter, my hands literally shook in fear. I told the man that I
no longer felt he was going to prison; I believed he was going to
The man mailed the letter that day. Eight days
later, he received a letter from the District Director declaring
"there was no balance due on your account."
spend hundreds of hours over the next two years learning more
about the IRS and about our tax laws than I ever imagined
existed. One of the many things I learned was that the IRS had
actually been audited. Well, sort of audited. Well, one specific
letter mail-out program had been audited. In fact, the Office of
Management and Budget (OMB) had audited one specific letter
writing program performed by the IRS, and had done so for five
years in a row. Many of you have been a recipient of that letter
program. You probably know exactly what I mean. You completed
your Form 1040 Income Tax Return and you paid your taxes. Several
years later you received a letter from the IRS claiming you owed
back taxes, penalties, and interest. You knew that was not
correct, so you called your CPA or tax attorney. He or she
recommended that you pay what the IRS wanted because they
estimated it would cost even more to pay the cost for the tax
professional to fight the issue. Yet, in your heart, you KNEW you
did not owe that money.
Well, according to that OMB audit,
you were very possibly right. The OMB found that 49% of those
letters were either inaccurate, or just plain bogus. The IRS said
something like, "Gee, we're sorry. We will do better
next year." And the next year the OMB ran another audit
and discovered that 49% of the letters demanding money from
individuals were either inaccurate or just plain bogus. For five
years in a row, the OMB found that 49% of those collections
letters were either inaccurate or just plain bogus. And each year
the OMB copied the Congressional Committee charged with IRS
oversight with the study. And each year Congress did nothing. And
each year the IRS did nothing. So the OMB wrote a report to the
Congressional Committee advising them that there will be no more
OMB reviews of the IRS since Congress refused to do anything with
the five studies already submitted to it. The OMB considered it
to be a waste of time and money pointing out severe problems
within the IRS, knowing that both the IRS and Congress refused to
do anything with the information.
Another very important
fact that I discovered was the Individual Master File. Each and
every American who has ever filed an income tax return has an
Individual Master File (IMF). And this file is THE FILE for each
and every taxpayer. It is the file from which all reports are
printed, and into which all transactions are entered. In other
words, if any money was owed, it showed up in the IMF. And when
the money was not owed, the IMF revealed that, too.
here was the problem for the IRS -- the 49% bogus collection
letters were obviously false, if the IMF was consulted. So I
helped people obtain their Master Files, showed that the Master
Files didn't indicate money due that the IRS was claiming, and
then helped the people demand that the IRS correct the records
and stop collections. Obviously, I did a lot more than that, but
that was the root of what I did for clients. And I was effective.
So effective, in fact, that the IRS had to stop me.
bottom line was simple. The collection letter from the IRS HAD to
match the taxes due in the IMF or the collection letter was
false. Once the IRS is informed of the disparity between what the
IMF claimed was due and what the collection letter claimed was
due, then the IRS was required by law and by procedure to examine
the records and determine which was accurate - the IMF or the
collection letter. Since federal law REQUIRES the IRS to keep
accurate records if they are going to keep any records at all,
then the IRS had to perform an internal review of the records and
prove which number was accurate. During the time of the review,
established IRS procedure required that all collections efforts
stop. And once the review is completed, the IRS MUST make
whatever corrections were necessary. In other words, the IRS was
required to cease collections efforts if the Master File did not
show any amount due.
But the problem is not solved just
because the taxpayer tells the IRS it is in error. One must know
the correct procedural title of the requirement, and the location
within the Code of Federal Regulations, before the IRS is
required to do anything. In the eyes of the law, the IRS is
always right unless you know their procedures better than they.
And that is what I did. I knew IRS procedures and I knew how to
force the IRS to correct the records or cease collections. And
even more important, I could show the section of the Tax Code
where the IRS is notified that once it has been informed of the
errors, and once it has been informed of the proper procedure, it
is illegal for the IRS to continue moving forward against the
The bottom line was simple - the IRS had to
stop me, even if it had to lie, cheat and steal to do it.
I will place links so you can click and read several of the
so-called indictments issued by the Assistant District Attorney
Frank Dale in Knoxville, TN. I use the word "so-called"
and the word "indictments" with care because there were
at least 6 different and unique Indictments issued by Mr. Dale's
office; each one unique, each one individually created, each one
with only electronic signatures and no real signatures, and each
one presented to the Federal District Court as if it was a true
copy of the lawful Indictment. Yet the federal magistrate in the
case proclaimed on the record that there was no lawful signed
original Indictment in the hands of the court. There were instead
six different and individually created documents which the
Assistant District Attorney Frank Dale CLAIMED was the lawful
original Indictment. The Magistrate Judge stated on the record
that there were six different fraudulent documents and not one
lawful Indictment. Yet my court-appointed defense attorney felt
that was not serious enough to object.
During my trial,
ADA Dale consistently claimed to the judge and to the jury that I
was accused of crimes and that they were felony charges. Yet the
fraudulent Indictments accused me of misdemeanors, and not
felonies. During my trial, ADA Dale consistently claimed to the
judge and to the jury that I was engaged in criminal activities.
Yet the IRS admitted on the stand and on the record that not one
of the activities I was accused of doing was illegal. IRS Agent
Suzanne Lee admitted on the stand while under oath that I had
done nothing illegal; the problem was only that the IRS believed
I should not have been performing those activities to help people
against the IRS. Besides lying about the six different so-called
Indictments, and besides lying about the felony charges, there
was a long list of lies and illegalities and procedural errors
committed by Assistant District Attorney Frank Dale during the
trial; errors that no ethical or honorable prosecutor would have
ever committed, and every ethical and honorable defense attorney
would have jumped all over.
But apparently my
court-appointed defense attorney was no more honest than the
prosecutor. Defense Attorney Kim Tollison of Knoxville performed
admirably, at least for one committed to getting a conviction.
Mr. Tollison believed that my arrest warrant didn't need to be
lawfully signed to be valid. He didn't believe that six different
fraudulent Indictments and no lawful Indictment was a problem. He
didn't even think Mr. Dale falsely claiming that I was charged
with criminal felony charges when they were legally only
misdemeanors was anything to be upset about. We argued
frequently, as you might imagine, over many issues that I felt
were strong and important issues, and he felt I should just be
more patient. Finally, I submitted a strong Motion to Dismiss,
pointing out all the lawful and procedural errors in my trial.
Kim Tollison refused to file the Motion, but gave no reason. We
argued back and forth for weeks, and I finally told him to file
or I will fire him and ask the Court for another attorney. He
took my Motion, watered it down to a document with the legal
impact of a request that we all get along, broke it into two
separate Motions, and filed them. When I read them, I was livid.
I called him and explained exactly why the magistrate was going
to deny the motions. And, of course, he did.
And the next
thing I knew, I had a new attorney. From Kim Tollison's same
office, I received a letter asking the Court appoint Laura Davis
as my new attorney. And in our first phone call, Laura Davis told
me that she was in control of my case and that she would decide
what should be filed and when it should be filed. For quite some
weeks, we argued over everything. Laura Davis told me in emails
and by phone that everything I was complaining about was moot,
and that I should just keep quiet and allow her to prepare for
trial. Naturally, what she was preparing for was to minimize my
conviction because she was convinced I had broken all sorts of
tax laws and would be convicted. Yet Laura Davis never once asked
me what I actually did for my clients. She never once asked
questions about the Master File and why I needed those computer
records to help my clients fight the IRS. And she never even read
the OMB report or the letters I sent to the IRS to challenge the
amounts the IRS was attempting to collect from my clients. Laura
Davis had no clue what I did for my clients, and didn't really
care. All she wanted to do was minimize the time she spent on my
case, and get a conviction as quickly and as quietly as
To make a long story short, I was convicted of
all three counts in my fraudulent Indictment, and sentenced to 18
months in a federal penitentiary, followed by one year of
supervised probation. I was excited about my appeal because there
were so many "irregularities" and procedural errors
that I thought I was guaranteed to win on appeal. But my
court-appointed attorney for my Appeal, Robert Vogel of
Knoxville, TN, refused to talk to me about my case. Not once in
more than two years did he and I discuss the grounds for Appeal.
I sent dozens of emails with no response from him. I had
initially mailed to him more than 30 pages of notes, documenting
each of the 10 issues that I felt were grounds for appeal. He
never read them, he never talked to me about them, and he
declined to include even one of them in the Appeals Brief. As a
result, I lost my appeal.
Well, at least I am not a
convicted felon. And that is an interesting item by itself. When
I was sent to prison, I asked at least a dozen prison employees,
including my "counsellor," about my status. Each one I
asked agreed that the prison contained only convicted felons.
When I pointed out that I was accused of three misdemeanors and
convicted of three misdemeanors, each one of them refused to talk
to me any more.
When I finally left prison and met with my
Parole Officer, he would not even talk about my misdemeanor
verses felon question. When I asked a second time, I was assigned
to a new Parole Officer. Each time I had an initial meeting or
initial phone call, I would ask my new P.O. if my records showed
that I was a convicted felon or if I was only convicted of three
misdemeanors. I don't know if it was a coincidence or if it was a
result of the question, but not one of my P.O.s would answer the
question, and then I was immediately transferred to a new P.O. I
met five P.O.s in six weeks. Each one lasted just until the first
contact, where I would ask the question. I asked the question,
and then I was transferred in the next few days.
you ask, yes, I was guilty of helping people fight the IRS. And
yes, I was guilty of being effective at stopping the IRS from
illegally collecting millions of dollars it knew was not
legitimately owed by individuals. But No, I was not guilty of
breaking any laws.
If you have any questions at all,
please feel free to contact me through this website.