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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.

I helped people fight the IRS!

Back in 1990, a friend came to me with an IRS problem. My advice was to "Pay up or go to jail." He stated 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 my friend that I no longer felt he was going to prison; I believed he was going to be shot.

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."

This simply did not make sense in my world! I spend hundreds of hours over the next two years learning more about the IRS and about our tax laws than I ever wanted; more 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 the estimated cost for the tax professional to fight the issue was more than the taxes due. 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 after 5 years, the OMB wrote a report to the Congressional Oversight 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.

And 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.

The 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 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 individual.

The bottom line was simple - the IRS had to stop me, even if it had to lie, cheat and steal to do it.

Below 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, Kim Tollison of Knoxville, felt that fraudulent indictments was not serious enough to warrant an objection.

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 fraudulent 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 that 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 possible.

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 Probation Officer, he would not even talk about my misdemeanor verses felon question. When I asked a second time, I was assigned to a new Probation 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 same question. I asked the question, and then I was transferred in the next few days.

So, if 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.







This WebSite last updated on November 30, 2015

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