Collections

Robert Clarkson 864-225-3061    email Nelson Waller 864-225-0882

  1. Illegal Tax Collection Act
    1. Val Patriot's Lawsuit I
      1. Injunction Order Against IRS Levy
      2. Show Cause Order, signed by Judge
      3. Reply to Defendent's Response to Motion For a Preliminary Injunction
      4. Motion for Production of Documents
      5. Opposition to Motion to Dismiss
    2. Val Patriot's Lawsuit II
      1. Administrative Claim for Unauthorized Collection Actions
    3. Ernie Patriot
      1. Complaint for Damages and Injunctive Relief
      2. Temporary Restraining Order and Injunction
      3. Summary Judgment
      4. Objection to Motion to Dismiss
      5. Motion for New Trial
      6. Notice of Appeal
      7. Administrative Claim
      8. Motion for Enlargement of Time
      9. Decision Letter
      10. Appellant Brief
      11. Reply Brief
    4. The Law on Illegal Tax Collections
      1. Illegal Tax Collection Act IRC §7433
      2. § 301.7433-1
        (Regulation for civil cause of action for certain unauthorized collection actions.)
      3. Article on IRS Liens: 95% Incorrectly Applied
      4. TIGTA 2006 Report on IRS Liens [95% Incorrect]
      5. Fair Tax Collections Act IRC 6304
    5. Exhaustive Administrative Remedies
      1. Administrative Claim Instructions
      2. Henry Patriot's Warning to IRS
      3. Doug and Sherrie's Administrative Claim
      4. Alternate Administrative Claim
      5. Victorious Litigator Helps Others Remove the Mark of the Beast
    6. Cases on Illegal Tax Collections
      (and Federal Bounty Hunter Statute)
      1. Venen vs. USA
        (Important case on ITCA and exhausting administrative remedies)
  2. Removing Tax Liens and Levies
    1. Clarkson's Report on Removing Liens and Levies
    2. Removing Social Security Levies
    3. New Social Security Letter 1
    4. Can my Social Security be levied?
    5. Regulation on Re-Filing a Tax Lien 301.6323
    6. Excessive SS Levy
    7. Administrative Letter
  3. Failure to Release Liens
    1. Regulation on Release of Liens 26 CFR 401.6325
    2. Law on the Release of Liens Sect 6325
    3. Federal Regulation for the Failure to Release Lien 301.7432-1
    4. Ted Freeman's Request for Release of Lien
      1. Ted's Admin Claim for Unauthorized Collection
      2. Ted's Admin Letter
      3. Ted's Letter for Release of Lien
      4. Ted's Admin Claim
      5. Ted's Letter to the Area Director
      6. Answer and Counter-Claim
      7. Ted Patriot's Final Motion
    5. Ernie's Request for Release of Lien
      1. Request for Release of Lien Under 26 CFR 401.6325-1(f)
      2. Administrative Claim for Failure to Release Lien Under IRS §7432 & 26 CFR 301.7432-1
    6. Karen Patriot's Request for Release of Lien
      1. Request to Remove Liens
      2. Request to Remove Refiled & NOD
      3. Admin Claim for Illegal Tax Collection
    7. Russell Patriot's Case
      1. Levy Letter
      2. Motion to Alter Judgment
      3. Opposition to Motion to Alter Judgement by CIR
    8. Bob Patriot's Request for Release of Lien
      1. Request to Remove Liens
      2. Request to Remove Refiled & NOD
      3. Admin Claim for Illegal Tax Collection
      4. Answer and Counter-Claim
      5. Discovery
      6. Opposition to Motion for Summary Judgment
      7. Motion to Dismiss
      8. Opposition to Report and Recommendation of Magistrate
      9. Letter to Magistrate
      10. Objection to Magistrate's Order
      11. Motion for Reconsideration
      12. Appeal of Magistrate's Report
    9. Dr. Steve Patriot's Case
      1. Memorandum and Counterclaim on Invalid Liens
      2. Government's Memo in Opposition
      3. Motion for Certification
      4. Motion for New Trial
      5. Motion for Amended Judgment
      6. Request for Stay of Judgment
    10. Robert E. Freeman
      1. Answer & Counterclaim on Suit to Foreclose Lien
    11. Jeanne Patriot
      1. Government's Motion to Grant Petition to Approve Levy
      2. Jeanne's Objection to Petition for Judicial Approval of Levy
      3. Opposition to Motion to Grant Petition
      4. Objection to Magistrate’s Orders (Lack of Authority)
      5. Morris Shatraw Levy Letter
      6. Morris-Shatraw Levy Letter II
      7. Motion for Jury Trial
      8. Motion to Dismiss
  4. Collection Appeals Administratively
    1. Directions by Robert Clarkson
    2. Collection Appeal Request Form with directions from the IRS
    3. Sample Completed Collection Appeal Request Form
    4. Administrative Appeal
  5. Alter Ego -- Nominee Cases
    1. Request for Removal of Alter Ego Lien
  6. Help from the Government from Agents
    1. Help from the Government from Agents
  7. Letters
    1. Request for Dependents on Pension Levy
    2. To Taxpayer Advocate on Illegal Levy
  8. Collection Alternatives
    1. Offer in Compromise (pennies on the dollar)
      1. Clarkson's Instructions (see Earnest Letter Writing book section XVII)
      2. IRS Forms and Instructions (Requires Adobe Reader)
      3. Instructions for OIC Waiver of Fees
      4. IRS Instructions on Reinstatement of OIC
      5. Court Decisions on OIC
        1. Abuse of Discretion (Requires Adobe Reader)
        2. New Rules on OIC
    2. OIC Stops Collections
  9. Financial Statemnt 433F
    1. Clarkson's Instructions (see Earnest Letter Writing book section XVII)
    2. IRS Forms and Instrucitions (Requires Adobe Reader)
  10. Payment Schedule or Installment Agrement
    1. Clarkson's Instructions (see Earnest Letter Writing book section XVII)
    2. IRS Forms and Instructions (Requires Adobe Reader)
  11. CNC--Currently Not Collectible (Financial Hardship)
  12. Private Collection Agencies
    1. Response to Private Collection Agency.
    2. Letter to Private Collection Agency.
    3. Validation Letter to Collection Agency
    4. Willlie's Letter to Collection Agency
  13. Regulations for Private Collection Agencies:
    1. Validation of Debts [15 USC 1692g]
    2. Instructions on What to Do
      1. Use Collection Agency Laws Against IRS Collections
      2. Debt Collections Fair Practices Act
      3. Section 6502 Collections after assesment
      4. NFTL--Throwing-off Oppressive Government via Credit Reporting Agency Blocking and Dispute
      5. Treasury Offset Program Explained
      6. Federal Debt Collection Procedures Act of 1990
      7. New FDCPA Ruling
      8. Letter to GA DOR
  14. Back-Up Withholding
    1. Administrative Appeal on DPC
    2. Dispute of Back-up Withholding
    3. Challenge to Back-upWithholding
  15. Cases
    1. Foreclosure on Tax Lien: Nipper Case
    2. IRS Violates Fourth Amendment: Bleavins vs. Bartles
    3. Form 23-C explained-March Case
    4. Foreclosure on Alter Ego Lien
  16. IRS Publications Related to Collections
    1. Internal Revenue Manual, 114.1 Ch. 4: Compliance and Customer Service Manager's Handbook
    2. Collection Managers Internal Revenue Manual, Part 5: Collection Process
    3. IRS Office of Chief Counsel Collection Due Process Hearing Guidelines
    4. IRS Publication 1: Your Rights as a Taxpayer
    5. IRS Publication 594: The IRS Collection Process
    6. IRS Publication 1660: Collection Appeal Rights
    7. Tax Division Judgment Collection Manual

RC06
Robert B. Clarkson


TOP

Administrative Claim Instructions

Instructions:

If the federal tax collectors harass you, send them this letter. This is a powerful act of Congress and the agency is greatly concerned. You need to personalize this draft letter before you submit it.

However, this is only a preliminary draft letter and should not be used for a real purpose at this time. The real letter will be posted soon on the PN website under "Collections." Please confer with Dr. Clarkson before you make a final administrative claim.

TOP

Administrative Claim

Return Name and Address:

Val Patriot
1776 Freedom Way
Rebelville, SC 29622

Dated January 12, 2006

Area Director of IRS for this Region
Attn: Compliance Technical Support Manager
___________________________
___________________________

Re: ADMINISTRATIVE CLAIM FOR UNAUTHORIZED COLLECTION ACTIONS UNDER IRS 7433 & 26 CFR 301.7433-1

Dear: Compliance Technical Support Manager:

This is an administrative claim for civil damages for Unauthorized Collection Actions under IRC 7433 and CFR 301.7433-1.

Under said law in section (d)(1) and said regulation in section (d)______, I am required to exhaust my administrative remedies. This letter is my method of doing that. I will file a civil action in US District Court under IRC 7433 for the wrongful and illegal collections actions against me.

Under CFR 301.7433 (1) (d)________, I must inform you of the following:

1. My name and address is above. My telephone number and identification number are below. The best time to call me is____ ...during normal business hours.....

2. The grounds of my claim for damages include:
The IRS unlawfully collected under notice of levy for year 1999 in the amount of $5,387.11. The tax collectors violated IRC Section 6330(e) suspension of collections because the CDPH was requested and accepted but not yet scheduled.

3. The injuries for this claim include:
My family of me, my wife and two children in school were left as little as $315.00 biweekly from 7/25/05-to-11/13/05. My wife's mental health worsened, my children developed physical distress from lack of proper nutritional food, medicine, clothing, etc. Also, the children in public school did not have the basics which were needed. The children exhibited lack of motivation in all daily routines. Pain, suffering, emotional distress and anxiety were daily occurrences in our lives for that time.

Also, we were unable to pay our bills, which resulted in huge interest incurred and penalty charges from the credit card companies, etc.

4. The dollar amount of the claim includes:
(A) $6,000 for return of my wages collected illegally including interest
(B) $100, 000 minimum statutory damages

In conclusion, this is my claim for damages for wrongful actions of IRS employees. Under federal law, I am entitled to compensation.

Yours:

Signature:________________________________
                  Val Patriot


Telephone number: _________________________ 


SSN:____________________________________

TOP

Alternate Administrative Claim

Marilyn Freeman
PO Box 33
Freedomville, KY 12345

Date: August 28, 2006

Area Director of IRS for this Region
Attn: Compliance Technical Support Manager
PO Box 2148
Grand Junction, Colorado 82834-0733

Re: ADMINISTRATIVE CLAIM FOR UNAUTHORIZED COLLECTION ACTIONS UNDER IRS 7433 & 26 CFR 301.7433-1

Dear: Compliance Technical Support Manager:

This is an administrative claim for civil damages for Unauthorized Collection Actions under IRC 7433 and CFR 301.7433-1.

Under said law in section (d) (1) and said regulation in section (d), I am required to exhaust my administrative remedies. This letter is my method of doing that. I will file a civil action in US District Court under IRC 7433 for the wrongful and illegal collections actions against me.

Under CFR 301.7433 (e) (2), I must inform you of the following:

1. My name and address is above. My telephone number and identification number are below. The best time to call me is during normal business hours.

2. The grounds of my claim for damages include:

A. IRS unlawfully collected under notice of levy for tax year 1994-2003 the amount of $53,895.78 from my retirement benefit from Michigan Public School Employees Retirement System. Approximately $10,000 of that was the amount claimant owed for past due taxes, interest and penalties. The rest was expensive levies. Further the IRS figures for the amount taken on this levy are $30,000, which is about $25,000 less than has actually been confiscated.

B. The amount of the tax collection was excessive in the amount of approximately $30,000- $40,000.

C. During the time of the excessive levy, I sent the IRS dozens and dozens of letters and made innumerable phone calls. The IRS was clearly notified several times that the amount of the levy was in excess of the amount that the IRS records show was owed by claimant.

3. The injuries for this claim include:

A. Severe and unnecessary hardship to me and my family. We were denied the necessities of life due to this levy plus the illegal levy on my husband’s Social Security retirement benefit under the TOP.

B. Further, I was forced to hire and retain expensive tax professionals to assist me, to w rite letters and explain to me my avenues of contesting the illegal levy.

C. This robbery of my pension fund caused anxiety, emotional distress, mental anguish, severe health problems, etc…

D. Loss of use of my money, reasonable interest.

4. The dollar amount of the claim include:

A. $30,000-$40,000 for return of my pension collected illegally.

B. Interest on excessive amount taken.

C. $100, 000 minimum statutory damages.

In conclusion, this is my claim for damages for wrongful actions of IRS employees. Under federal law, I am entitled to compensation.

Yours:

Signature:_________________________________
                Marilyn Freeman
         phone number:  (864) 555-1234
               SSN:  123-45-6789

TOP

95% of IRS Liens Issued Incorrectly

Monday July 3, 2006 Page G-8
ISSN 1523-567X
Tax, Budget & Accounting

Tax Liens
IRS Incorrectly Issued Liens in 95 Percent
Of Cases Analyzed in Audit, TIGTA Says

The Internal Revenue Service did not comply with federal laws and failed to follow its own internal guidelines when issuing lien notices based on an audit of federal tax liens analyzed between September 2005 and February 2006, the Treasury Inspector General for Tax Administration concluded in a report released June 30.

TIGTA said it reviewed a statistically valid sample of 150 notices of federal tax liens and determined IRS correctly mailed the lien notices to taxpayers in only seven cases, or 4.7 percent of the time.

Additionally, IRS did not inform representatives of taxpayers that liens were filed against their clients in 75 percent of the sampled cases, the audit said. In addition, undelivered lien notices were not timely controlled by IRS's automated lien system, the TIGTA's report, dated June 21, said.

In a June 2 response to a draft of the audit, IRS agreed to implement TIGTA recommendations to improve its lien processes and said it has made "significant procedural changes" to its lien program.

In fiscal year 2001 IRS filed 426,166 liens, in FY 2005 it filed 544,316 liens, and in FY 2005 it filed 522,887 liens, the report said.

Internal Revenue Code Section 6320, which outlines due process requirements associated with IRS issuing a Notice of Federal Tax Lien (NFTL) to a taxpayer, contains calendar deadlines by which IRS must deliver liens to taxpayers and includes what types of information must be included with the liens. The section also outlines a taxpayer's right to a fair hearing related to an imposed lien.

'No Improvement' Cited

The June 21 audit was TIGTA's eighth annual audit to determine if IRS complied with code Section 6320 and IRS internal guidelines related to NFTLs. The report said in prior years TIGTA audits found IRS had not achieved full compliance with the law and its own internal guidelines.

Despite IRS use of a new procedure of consolidated lien work at two IRS campuses in an effort to reduce the number of untimely issued notices, TIGTA said it "identified no improvement in the timeliness of mailing lien notices since our prior visit. ... This year's percentage of untimely mailed lien notices (4.67 percent) is the same as the percentage that we identified last year."

Based on its latest findings that IRS mailed lien notices in a timely fashion only 4.67 percent of the time during its audit, TIGTA estimated in its report 23,825 lien notices prepared from Aug. 1, 2004, to July 31, 2005, could have been mailed late.

The report said undelivered mail continued to be a problem. IRS management reports for the fourth quarter of FY 2005 and the first quarter of FY 2006 showed 108,764 lien notices were returned undelivered, the audit said.

TIGTA recommended IRS's Small Business/Self-Employed Division consult with IRS's Office of Chief Counsel to identify any actions necessary to correct potential legal violations identified in the TIGTA report. IRS said in its June 2 response it has already completed that action.

TIGTA also recommended IRS further automate specific processes associated with the lien program, a recommendation IRS said it will implement no later than Dec. 31.

The report, Fiscal Year 2006 Statutory Review of Compliance With Lien Due Process Procedures (2006-30-094) is available on the Web at http://www.ustreas.gov/tigta/oa_auditreports_fy06.html .

TOP

REMOVING TAX LIENS AND LEVIES

A Clarkson Report

So, the stinking, rotten IRS has placed a tax lien on your real estate, or a levy on your paycheck. What can you do? Well, you have options. You can do one of several things. You need to read and study, then pick the best route for you. Order the materials you need from the book list. The tax collectors have many tricks, but they can be beaten with knowledge and determination.

1. What is a tax lien? A tax lien is a lien like a mortgage lien or a mechanic's lien, which is an encumbrance against real property that runs with the land, i.e. whoever purchases the land also takes the indebtedness. A lien is a claim or hold upon the real property of another as security for a debt that can he satisfied by the property or the sale of it. A lien attaches to all real estate of the debtor (even property acquired after the date filed) in the county where the lien was filed.

A lien holder can foreclose on the property, i.e. put it up for auction and sale on the courthouse steps.

2. What is a federal tax lien? It is a lien against your real estate located in the county in whose courthouse the lien is filed. Regardless of the title or wording of the name of the IRS form used, once it is filed by the clerk of court, it is binding or notice to the world, for six to ten years. Tax liens only apply to real property. If you have none in the county where filed, the lien has no effect unless you buy or inherit some real property in that county. The lien does not cross county lines.

Do not have false hopes due to the misleading words on the federal tax lien form. Once it is received by the clerk of court, it is accepted by the legal community. Also, a federal lien supersedes state law, so you have no protection, homestead or otherwise.

3. When a lien is filed against your house, nobody comes out there and places a large piece of paper across the roof of your home, hut rather a notice is recorded at the courthouse which warns all future buyers and lenders that a lien holder has a prior claim against the real estate owned by you in that county. Normally, prospective buyers of the property will not buy the property unless you pay off the lien and have it removed. Or, the buyer would pay you less than the full price and use the money due you to pay the lien holder. Lenders will not lend money on real estate when notified of a prior lien unless arrangements are made in advance to satisfy the prior encumbrances.

4. Liens and mortgages have a priority system whereby whichever one is filed first has the first claim against the real property and whoever is recorded second can only collect what is left over. Real estate law is explained well in Clarkson's Tax Collector's Manual

However, the buyer or lender does not have to satisfy the lien. A family member could accept the house with all the liens on it. Deeds can still he drawn and filed as property can be sold or transferred with lien on record. Some purchasers will buy land with lien on record.

However, the lien just sits there at the courthouse until it expires unless the tax thieves attempt to foreclose, i.e. sell your property at auction. However, if someone wishes to purchase your home, they could mandate satisfaction of the lien prior to purchase. Yet, if no auction or purchase takes place after six to ten years, the tax lien expires by the statute of limitations unless the tax collector renews the lien. However, such liens are rarely renewed. In 1990, the law was changed to allow the IRS ten years to renew a tax lien. Other liens such as mortgages, mechanic's liens etc. expire at varying times. The statue of limitations can be tolled or extended by several of your actions. However, this extension is not recorded in the deed room and is generally ineffective.

5. The usual procedure of the Instant Robbery Squad is to allow small liens to expire by the statute of limitations and to foreclose on the large ones. However, under the new IRS procedures, the tax thieves are ignoring almost everybody and almost all liens. Therefore, the best course of action today is to do nothing, unless the local IRS agent acts serious. If you receive a Notice of Seizure, Foreclosure or Auction, call Dr. Clarkson immediately.

6. Under the CDPH laws IRC §6320 and §6330, the Instant Robbery Squad cannot foreclose on a lien or use enforcement methods while the CDPH is pending. Therefore, always request your CDPH. You must do this timely and you must follow procedures.

7. Remove a lien? You can do several things, depending on the circumstances:

A. Fight Back! Do not allow a lien in first place. You can stop a lien and beat an audit. See Clarkson video Audit Procedure 1: How to Handle the IRS (video $30, audio $10).

People who file and not pay are vulnerable to collection activity. Best not to file. See Clarkson video Introduction to the U.S. Constitution and the Income Tax ($30, audio $10). If you file and do not pay, make yourself judgment proof.

B. Do nothing and allow the statute of limitations to run. This is the best course, especially for small liens, but this depends on circumstances. Call Dr. Clarkson.

C. Pay the lien off. This is the worst option. Do not do it unless it is absolutely necessary.

D. File a quiet title action. This works for a small number of people in certain circumstances. This is not a panacea and does not work for everybody.

E. File a tax refund suit. This is what Dr. Clarkson recommends, but even so, it only works for a few people. See below.

F. Deed the property to wife or children. This will stop future liens in most but not all circumstances. Deed to wife is ineffective in community property states (i.e. Western USA ) unless you dissolve the community property status.

G. File bankruptcy. This works great, except for liens on real estate, which are secured debts, which are not erased by bankruptcy. However, a Chapter 13 (wage earner plan) or Chapter 7 Discharge can slow and temporarily halt a foreclosure auction.

H. Allow foreclosure. If all looks hopeless, or you want to move anyway, allow the loan company to foreclose. You can stall and delay the mortgage for years and live in the house without payments or rent. Put that money aside or buy silver rounds. When you have to move after 2-3 years, take your savings and buy a new house.

Under the Taxpayer Bill of Rights, the IRS cannot foreclose unless the value of the house is about 20% plus 10% greater than the mortgage, i.e. the forced - sale value. Therefore, do not make mortgage payments and drive up the value of the home mortgage which has priority over liens filed afterward. Unfortunately, under the new regulations, few lenders will allow you to do this.

If the bank brings the foreclosure, the tax collector can collect nothing, depending on the amount of your home equity. It is true that you can delay sale and auction of your home for years, but that is hard work.

I. Property taxes are super-priority and can bump mortgages and tax liens. If you do not pay county real property taxes, the county or city can sell your house free and clear of liens, i.e. take all the money and lien holders collect nothing. Of course, the mortgage holder would bid in their note and thus protect their interests.

The tax lien holder can legally do that also, but does not do that, as the IRS cannot gain permission from national headquarters to enter a bid.

Thusly, the county auctions your home, your friend or relative bids it in and the IRS loses their money. Simple, but do not do this without legitimate legal advice. Call Dr. Clarkson. http://www.patriotnetwork.info

J. Foreclosure on yourself. If you have a mortgage you can use that to bump IRS out. Hard to do, but effective. Follow Dr. Clarkson's advice carefully here.

8. You need to read and study. Tax liens are a difficult area of the law. However, the material is not hard and only takes a lot of time to study and understand. We recommend the following material:

A. Tax Collector Manual -- the actual training and instruction manual for tax collectors. Best explanation in clear and simple language of how collection and lien system of IRS operates. Essential information. $8 for Book I, II or III; $20 for set of all three books. Note: Bankruptcy on the IRS Book III of the Tax Collectors Manual explains in simple language how to discharge tax debts by IRS. $8.

B. Judgment Proofing. The Clarkson 2-part series that explains how you can protect your property from the thieving tax collector. These describe IRS collection procedures and the steps you can take to stop them. These are available in DVD or VHS for $30 each.

IMPORTANT—Real estate has particular legal requirements. Be careful. Do not take advice from friends and associates no matter how well meaning they are. Follow advice of Dr. Clarkson or real estate lawyer only.

C. Law Dictionary by Gifis. A good, full explanation of the terms you will see. Used by lawyers and judges. $30

D. Silver and Gold Explained. The Clarkson video that best explains a safe and secure saving system that is outside the reach of the tax thieves. Proven successful. Video $30, Audio $10.

E. Financial Privacy —No Checks. The classic Clarkson video/book that explains how you can escape the tyranny of the IRS and Federal Reserve System. Operate your business without a bank account. Video $30, Audio $10, Book $10.

All available from the Patriot Bookstore.

Note: you can also borrow books on bankruptcy from the public library.

9. The levy on bank account. Since the banks/Federal Reserve/IRS are all the same thing, we can do little here. The IRS just switches your money from their joint account with you in their bank to their account in the same bank. It's gone and irretrievable, except with quick bankruptcy.

Under the new law, the IRS can place a hold on your account for twenty days, during which you can make a deal with the IRS. Then they will remove the hold. Best to never deal with those tax thieves, but a fake OIC or fake cooperation can remove the hold on your account.

However, you are not required to maintain a bank account—so close out all those in your name. If you have any connection to any bank account, even just a signature card, the IRS can steal it (or really, just transfer it).

The Patriot Network strongly recommends that you do NOT have a bank account or any connection with one. See Financial Privacy—No Checks.

The only effective way to protect your money in a bank account is to withdraw all funds. You can invest your savings in silver and gold. See Silver and Gold explained, above.

If you feel you must have a bank account, you can open a foreign bank account (see Financial Privacy— No Checks, above), or have a friend or relative open an account in their name with no connection to you. Then they can hand you a package of pre-signed checks. However, this is not recommended. See Judgment Proofing, above.

10. These levies, as most, are not continuous and do not apply again unless the IRS sends a new levy form. However, most financial institutions ignore this provision of the law.

11. Brokerage Accounts and Investment. The IRS can steal these easily, if they bother to. It may take the tax collectors a while to levy these, but once done, not much we can do. Actually, they frequently do not find brokerage accounts and almost never find other types of investments and receivables.

12. Wage and Salary Levy. The slovenly tax collectors often find your employer and steal your paycheck. This is difficult unless your employer will go along with us. However, you can:

A. Seek refund of what was stolen if you qualify.

B. Ask your company to make you an independent contractor. Then you will have no wages and salary to levy. This is explained in Clarkson's Independent Contractor Agreements. $10 book or $20 Text CD

C. You can work for a labor service company or temporary labor supplier, often called "job shop.” Then the company would send your entire paycheck to the job shop, which would pay you with no levy on them.

The patriot community has several temporary labor companies that can hire you and sell your labor to your company. E-mail Dr. Clarkson for names and addresses.

D. Bankruptcy. You can file bankruptcy and immediately remove wage levies and in some cases make the IRS refund stolen pay. See Bankruptcy below.

E. Exemptions. When your company notifies you of a wage levy, they will give you an IRS form. Read it and you will discover that you can claim your wife and children or dependents. Your exemptions limit the IRS's thieving. You are entitled to a set-off of about $150 per week for yourself or over $650 per month. Also, each dependent, whether real or not, can give you an exemption of about $75 per week or about $300 per month per person. A large family or a part-time job would render the levy ineffective.

F. Wife sues for child support. A child support order has priority over IRS wage levy if filed first. Have your wife steal your paycheck first.

G. Sue your employer. Then they would fire you and you could collect unemployment for six to twelve months. Use this money to go into business for yourself.

H. Change jobs. If you change jobs, the Instant Robbery Squad will seldom find you (unless you claim exempt on withholding. See Clarkson book Introduction to the Income Tax, $5, for information about the W-4 form.). The IRS seldom looks very hard. Your new employer will not know about the levy, which then would not apply. However if you quit your job, your pension etc. may then pay out, which the IRS would steal. Wages and salary levies are continuous, i.e. attached to future pay checks.

If your employer agrees, you can make arrangements for him to fire you and then rehire you a few days later. When he fires you, you are no longer working for the company, your levy is squashed and does not reapply when you are rehired.

13. The Tax Refund Suit. You can sue the IRS and take your case to a jury. The jurors hate the tax collectors and almost always find in your favor. Actually though, the U.S. Attorney knows what the jury will do and therefore will offer you a settlement that you cannot refuse.

However, to file a tax refund suit, the law requires that you first pay the taxes allegedly due. This is unwise, unless they have already stolen the money. Generally, we can force them to refund to you one-half of what was a stolen, depending on the circumstances. If you were audited or ignored a 90-day letter, then the tax refund suit may be the best route. No tax refund suit exists if you go to tax court.

For a tax refund suit, you must file an IRS Form 1040X, available from the IRS or the Patriot Network. The IRS will refund your money in a few months or deny your claim. After the denial or six months, your can sue. Be sure to request a jury trial. The Patriot Bookstore has a packet for Tax Refund Suits. $50. Or on the bookstore page.

14. Bankruptcy. You can now file bankruptcy on the IRS and wipe out the tax debts for your personal income tax, but not for withholding taxes on employees.

You can file Chapter 7 for a complete and total discharge of debts, including income taxes past due three years.

Or you could file Chapter 13, the wage earner plan, to remove liens and levies and make a few payments for a few years, then a discharge.

We have books and packets for you to use to file bankruptcy by yourself without an attorney. You can also find good books at your public library that explains bankruptcy laws in simple, easy language. Feel free to call Dr. Clarkson if you are a Patriot Network member.

15. Backup and support. The Patriot Network has Dr. Clarkson and his crew of expert paralegals that can help you through the maze of revenue regulations and federal laws. Feel free to contact us for help. However, we first want you to view the Patriot Network introductory video to see what we are doing. Also, you should join the Network and receive the membership services plus the Clarkson Law Course.

16. Plead poverty. You can negotiate with the tax collectors and persuade them to remove liens and levies due to hardship. This could be dangerous, so be careful.

When you receive a Notice of Lien or Levy for your local tax collector, you can contact the Revenue Officer on your case. You can explain that you have no assets and no money, yet you have a number of small children. The tax collector has the authority to postpone all collection activities in such cases. However, most will deny this.

17. The OIC: Cut a deal. If you have no sizable assets, the Revenue Officers have the authority to compromise a tax claim. Often they can be very generous. The Patriot Network has negotiated very large reductions. However, the tax collectors want you to fill out a financial statement, which is worse than a 1040 form, along with other forms including past 1040's. Dr. Clarkson does NOT recommend filling out this statement unless it is the last option. After you confess all your personal and private activities, you can ask for a payment schedule to pay your taxes. The IRS loves the monthly payments and will allow almost everybody to use them. Also you can make your offer in compromise, which is a request to pay a lesser amount due to your impecunious state. They can and will cut your tax due but only if you beg and surrender all of your rights. Also, the offer in compromise can stop or slow your filing for bankruptcy. Dr. Clarkson advises, though, that it is often a good deal.

18. Illegal or harassment levy. To frighten you, the tax thieves often file illegal liens and levies. If so, you can remove them by writing a few careful letters and contacting your Congressman. See Clarkson's Earnest Letter Writing book.

Often the thieves will file a tax lien prior to issuing the 90-day letter or Notice of Deficiency, a mandatory step. If so, you can sue to easily remove the lien. To scare people, the collection agents will slap seizure notices around. This is illegal and easily overturned. You can put the tax rat in jail if you are willing to push hard enough. You can sue them for $100,000 damages under the Illegal Tax Collection Act IRC §7433.

19. The Taxpayers Advocate (formerly the PRO). You can contact the Problems Resolution Officer in any district office. Some are helpful but none has much authority and most are incompetent. The chief PRO or Taxpayer Ombudsman, New National Taxpayer Advocate is in the IRS national office in Washington , DC . You can file the Taxpayer Assistance Order (Form 911) for an order halting IRS activity. Try it.

20. The 1040X. You can amend old returns by filing 1040X Amended Return. If the IRS audits a return and you lose the audit, you can restart the audit with the 1040X. Also, if the rotten tax collectors file a tax return for you or audit you for not filing, they will dream up large figures against you. If you are judgment proof, you can laugh away their non-collectible judgments. However, if they can find a way to punish you, you can beat them with the 1040X.

The amended tax return is also the first step for the tax refund suit. To fill out this form, put down what they say are your figures, then enter the correct ones. This is not complicated. You can hire a tax preparer for this. However, some tax return preparers will try to overcharge you. Shop around to find a cheap one or call the Patriot Network. Or, just attach to the 1040X a copy of old or correct returns.

The important part of the 1040X is Part II on the back. Here, explain carefully what you want. You may not be able to add new figures later. Explain, for example, that the IRS audited you and came up with figures that are incorrect and taxes that are not owed, that you do not owe the taxes because you have children, dependents, etc. You can file as many 1040X's as you wish. Do so.

21. Contractor Payments. If you do not work for wages and salaries but work as an independent contractor, you are not an employee and you receive contract payments. Frequently, the IRS will illegally and incorrectly use a wage levy on contract payments. Your company will honor this immoral act, outlawed even by the IRS, because the payroll department does not understand the law or care about your rights.

Actually the law provides for continuous levy and seizure of wages and salaries only and nothing else. However, the company will illegally treat a seizure of contract payments as continuous. The IRS law provides that a levy on money due you other than wages and salaries steals only what the company owes you at the time the levy is received, nothing else.

If you have a problem here, the Patriot Network can help.

Note: the information in this Report is updated from time to time in the e-Patriot Cannon E-Zine according to what laws are changed or added. Very important for you to learn of further strategic developments.

Click here to join the Patriot Network, so we can help you with IRS harassment!

Robert Clarkson is a graduate of Clemson University in economics (1969) and the University of South Carolina Law School (1974). He is one of the South's leading patriotic political organizers. Robert Clarkson has been helping Patriots beat the IRS for 30 years. (mar06)

TOP

Removing Jose Patriot's Levy

Jose S. Freeman
5 Freedom Way
Fredomville, SC 22222

Aug. 30, 2005

Social Security Administration
6401 Security Blvd.
Baltimore, MD 21235


RE: JOSE FREEMAN
123-45-6789

Dear Sir/ Madam:

The Social Security Administration has removed from my retirement benefit check the amount of 15% under the Treasury Offset Program (TOP). This was sent to the IRS.

This is a hardship for me. This check is all I have to live on. I do not have any other income or monies. My health is failing me since my surgery and at present I still have to see a doctor to advice me about a cataract in my right eye.

I request that the 15% offset be waived and/or removed due to hardship, this check is all I have to live on.

Yours,
Jose S. Freeman

TOP

Can my social security be garnished?

(Not written by RBC: This info comes from a tax service)

Section 207 of the Social Security Act (42 U.S.C. 407 protects Social Security benefits from assignment, levy, or garnishment. However, the law provides five exceptions:

• Section 459 of the Act (42 U.S.C. 659) allows Social Security benefits to be garnished to enforce child support and/or alimony obligations;

• Section 6334 (c) of the Internal Revenue Code (26 U.S.C. 6334 (c)) allows benefits to be garnished to collect unpaid Federal taxes;

• Section 3402 (F) of the Internal Revenue Code allows beneficiaries to elect to have a percentage of their benefits withheld and paid to the Internal Revenue Service to satisfy their Federal income tax liability for the current year;

• The Debt Collection Act of 1996 (Public Law 104-134) allows benefits to be withheld and paid to another Federal agency to pay a non-tax debt the beneficiary owes to that agency: and

• The Tax Payer Relief Act of 1997 (Public Law 105-34) authorizes the Internal Revenue Service to collect overdue federal tax debts of beneficiaries by levying up to 15 percent of each monthly payment until the debt is paid.

The Social Security Administration's responsibility for protecting benefits against legal process and assignment usually ends when the beneficiary is paid. However, once paid, benefits continue to be protected under section 207 of the Act only as long as they are identifiable as Social Security benefits. This applies to money in a bank account where the only payments into the account are from direct deposit of Social Security benefits.

NOTE: IT does not appear that Supplemental Security Income payments cannot be levied or garnished.

TOP

NFTL--Throwing-off Oppressive Government via Credit Reporting Agency Blocking and Dispute

by Sovereign Dave

The “Notice of Federal Tax Lien” is a particular annoying governmental nuisance to the People. By essentially collusion with the states the federal government attempts collection through intimidation and law for government errantly applied to the people. Only government can slaughter the people and their rights on a whole-scale basis through forms and computers. In this regard the NFTL has become a “Weapon of Mass Distraction” as the IRS uses computers to deliver this weapon of deception. Most people encounter this silent weapon when they attempt to apply for credit. A credit reporting agency (CRA) will report this as “negative information” in the public records section of a consumer credit report; your loan will thusly be denied based on this adverse information. Fortunately there are only 3 credit reporting agencies and while the IRS has tried to shut the door on freedom, the FTC has opened the window. (FYI: All dispute addresses for the CRA”s are included on the cover letter.)

A Window in Disguise

Identity theft has become a problem of enormous proportion. According to estimates once every 79 seconds someone becomes the victim of identity theft. Here is a reference that claims victims of identity theft conveniently include “bogus IRS” letters:

Known Identity Theft Scams

In recent years, identity thieves have been very creative in the methods they have used to obtain their victims' personal information. Some methods have become well known to government authorities. Included below is a brief listing of some of the known identity theft scams. For an up to date listing of known identity theft scams, see the FTC's Identity Theft Scams webpage.

It is my contention that nearly all IRS letters are “bogus letters” in that they imply legitimacy through fantasy when mere usurpation is the reality. Many IRS letters and “notices” claim usurpation through the unjustified naming and numbering of people into statutory-created entities called “Taxpayers” with “Taxpayer Identification Numbers.”

Only in an environment of propaganda and through years of Stockholm Syndrome conditioning have the people become acceptable to this yoke of bondage. The government of this country is only fair and free to the extent that they want to treat all slaves as being equal. This is life in the democracy; it is communistic to the extent that “all must pay their fair share.” [a paraphrased statement to ignorant jurors by federal prosecutors] . To reveal the damaging effects of this cancerous conditioning in your own mind, simply replace every reference to Taxpayer with the word “slave” and the analogy will be self-evident; the IRS--per their mission statement --would only service slaves in applying “slave” law fairly and we would all have “SIN’s” or Slave Identification Numbers. In a free country with minds free of conditioning such assumptive tyranny is defective on face value.

When the slaves in the democracy become uneasy because certain unscrupulous deviants chose theft in the form of identity, they scream for government help. No government wants unequal and discontented slaves so they step in with laws for government--again disguised as laws for people. In this case the Credit Reporting Agencies feel their legitimacy and longevity is tied directly to compliance to laws for government. This becomes your avenue for freedom.

Please take a look at the following references on “government defined” identity theft. Also note what the government demands of a CRA on the presentation of an Identity Theft Report:

15 U.S.C. § 1681a (q)(3 &4) Defines Identity theft and an identity theft report as:

(3) Identity theft.— The term “identity theft” means a fraud committed using the identifying information of another person, subject to such further definition as the Commission may prescribe, by regulation. (4) Identity theft report.— The term “identity theft report” has the meaning given that term by rule of the Commission, and means, at a minimum, a report— (A) that alleges an identity theft; (B) that is a copy of an official, valid report filed by a consumer with an appropriate Federal, State, or local law enforcement agency, including the United States Postal Inspection Service, or such other government agency deemed appropriate by the Commission; and (C) the filing of which subjects the person filing the report to criminal penalties relating to the filing of false information if, in fact, the information in the report is false.

15 U.S.C. § 1681c-2(a) states the requirements for a block on negative information:

(a) Block Except as otherwise provided in this section, a consumer reporting agency shall block the reporting of any information in the file of a consumer that the consumer identifies as information that resulted from an alleged identity theft, not later than 4 business days after the date of receipt by such agency of— (1) appropriate proof of the identity of the consumer; (2) a copy of an identity theft report; (3) the identification of such information by the consumer; and (4) a statement by the consumer that the information is not information relating to any transaction by the consumer.

Unless you are blind, can you see that the CRA MUST block within 4 days any Identity Theft Information? Now I am not suggesting that one NOT go about a formal dispute; this is just a speedy method to “block” this negative information. It is a mere convenience we can use courtesy of our friends at the FTC.

I also want to clarify that this is one definition of identity theft courtesy of the federal government. States and local governments have “jumped” on the wagon too. Here is another definition courtesy of the FTC:

IDENTITY THEFT: Knowingly transfer[ring] or us[ing], without lawful authority, a means of identification of another person with the intent to commit, or to aid or abet, any unlawful activity that constitutes a violation of Federal law, or that constitutes a felony under any applicable State or local law.

My revelation that I share with you is this: “Your presentation to the CRA is NOT limited to just what the government decides to define as identity theft. As someone with common-law unalienable rights you are free to claim—legitimately of course—any form of theft of identity. Remember: Usurpation of any unalienable right is a violation of the covenant forming government and is hence unlawful for government. You are free to create your own Identity Theft Report in any fashion you see fit as long as you don’t claim it to be official.”

Personally I feel fraud when a government attempts to number the people or attempts to label them as Taxpayers—in particular when I document and they refuse to remove the statutory label. A NFTL states a lien exits against the “named taxpayer”. Does government have a right to convert or transfer “named people” into “named taxpayers”? A name is your claimed identity granted by your parents and accepted [or not] by you. A taxpayer is an identity creation of law for government—only applicable when you claim the underlying identity of liability.

Because SSN’s are unique and assigned to a name they can be a form of identity. A TIN is another means of identity that—in a free society—can only be equivalent to a SSN by consent of transferal. Any other continued transferal—especially when rebutted—is a form of identity theft.

My Methodology to Block Negative Information at CRA’s

Here are the steps I used:

  1. Called the three CRA’s and got a copy of the credit report. (If one is denied credit they will provide a free copy).
  2. Found the location for the county the “lien” was filed on-line. Called them and got instructions to obtain a certified copy.
  3. With certified copy in hand I wrote my Notice of Dispute (see attached). I signed the notarized statement at the bottom.
  4. I made 3 copies of the driver’s license. I included one in each envelop I mailed to the CRA to satisfy (a) of the “block”.
  5. I had my friend write out an “Identity Theft Report” (attached) Yes, I could have just filed the Notice of Dispute report with my local police or the FTC. However I chose to remain with the People and simply have my friend write-out the report and sign it. Is it “official” as in signed by an officer of government? No. Does it say its official? No. Is there any law for people that states your friend cannot write a report of identity theft? No. Would it be up to the CRA to verify “official” status? Yes. Would they or could they do so? Doubtful. Note the reference to false information and sworn statements which mimics law for government above. Remember: You are under no obligation of law for government. It is up to the CRA to accept your report; it surely helps if it is in a form they are used to seeing.
  6. I included a statement via a cover letter that I essentially have no business to conduct with the IRS and hence have no transaction with government giving rise to transactional business or information. See cover letter.

Please feel free to use any of this information in your own quest for freedom. Be aware I am not a lawyer and do not give legal advice.

Sovereign Dave


TOP

Section 6502 Collections After Assesment

United States Code - Title 26

§ 6502. Collection after assessment

  • (a) Length of period
    Where the assessment of any tax imposed by this title has been made within the period of limitation properly applicable thereto, such tax may be collected by levy or by a proceeding in court, but only if the levy is made or the proceeding begun
    1. (1) within 10 years after the assessment of the tax, or
    2. (2) prior to the expiration of any period f or collection agreed upon in writing by the Secretary and the taxpayer before the expiration of such 10-year period (or, if there is a release of levy under section 6343 after such 10-year period, then before such release). The period so agreed upon may be extended by subsequent agreements in writing made before the expiration of the period previously agreed upon. If a timely proceeding in court for the collection of a tax is commenced, the period during which such tax may be collected by levy shall be extended and shall not expire until the liability for the tax (or a judgment against the taxpayer arising from such liability) is satisfied or becomes unenforceable.
  • (b) Date when levy is considered made The date on which a levy on property or rights to property is made shall be the date on which the notice of seizure provided in section 6335(a) is given.

TOP

Letter to Tax Payer's Advocate

 

Mary Patriot
Street Address
City, State 29662

 

August 1, 2006

 

Tax Payer's Advocate
24000 Avila Rd. , Stop 2000,
Laguna Niguel , CA 92677

Dear Tax Advocate,

I have been audited by the IRS even though everyone knows I don't owe them a penny and they are taking money from my Social Security check. They have refused to assist me and to remove the lean even though I have told them this causes a hardship for me.

I am 78 years old and living in a senior care facility. Due to my age and infirmities, I am not able to withstand a complete tax audit and related legal matters. I receive Social Security which is not taxable. However the IRS is attempting to penalize me for not filing.

The tax agency is strictly interested in harassing me. I need your help. Would you please contact the IRS on my behalf, and ask them to figure my taxes correctly and then leave me alone.

Thank you in advance for your assistance.

Sincerely,

 

Mary Patriot

TOP

Request for Congressional Inquirey

Henry Patriot
15 Green Cir
Greenville, SC 29605

Date: November 22, 2005

Senator Jim DeMint
P.O. Box 12425
Columbia, SC 29211

To the Honorable Jim DeMint,

I am being brutalized by the IRS. Due to my age and infirmities, I am not able to withstand a complete tax audit and related legal matters.

I have been audited by the IRS for two years even though everyone knows I don’t owe them a penny. Due to my age I am not able to stand up to them any more.

I am retired; I receive Social Security which is not taxable. I receive a small pension from my long-term employer. The amount of the pension is less than the threshold amount for me to file. However the IRS is attempting to penalize me for not filing.

I am over 65 and my wife is over 65 and in a nursing home. I am entitled to four deductions. In order for me to file income tax forms, I would need taxable income of over 19,000 dollars. I don’t come anywhere close to that. Any IRS agent can look and instantly see that I do not owe any income tax.

I did not file an income tax form for those years because I did not make enough money according to IRS instructions in order to file. I have repeatedly asked the IRS to give me the credit for myself and my wife and figure the taxes for me to sign. They have refused to settle this case.

The tax agency is strictly interested in harassing me. I need your help. Would you please contact the IRS on my behalf, and ask them to figure my taxes correctly and then leave me alone.

Thank you in advance for your assistance.

Sincerely,

_____________

Henry Patriot

TOP

New rules for Offer in Compromise

IRS's revised offer in compromise form package reflects tough new TIPRA rules IR 2007-50;

Fact Sheet 2007-16 IRS has released the newly revised taxpayer application for an offer in compromise, the Form 656 package.

In an information release and fact sheet, IRS highlights how the Tax Increase Prevention and Reconciliation Act of 2005 (TIPRA, P.L. 109-222) has changed the way IRS's offer in compromise (OIC) program operates, effective July 16, 2006.

Background: IRS may compromise tax liabilities on doubt as to collectibility; doubt as to liability; economic hardship; and extraordinary events beyond the taxpayer's control. ( Reg. 301.7122-1(b) )

To make an offer, a taxpayer files Form 656, Offer in Compromise, and, except for offers based solely on doubt as to liability, Form 433-A, Collection Information Statement for Individuals, or Form 433-B, Collection Information Statement for Businesses. A $150 processing fee generally applies. TIPRA 509 made major changes to the IRS OIC program. These changes affect all offers received by IRS on or after July 16, 2006 (regardless of the postmark date on the offer).

The new TIPRA rules:

* requires any lump-sum OIC (i.e., any offer of payment made in fiveor fewer installments) to be accompanied by the payment of 20% of the amount of the offer. (Code Sec.7122(c)(1)(A))

* requires any periodic payment OIC to be accompanied by the payment of the amount of the first proposed installment. (Code Sec.7122(c)(1)(B)(i)) Any failure to make an installment (other than the first installment) due under a periodic payment OIC while the offer is being evaluated by IRS may be treated as a withdrawal of the offer.(Code Sec. 7122(c)(1)(B)(ii))

* provides that any OIC that isn't accompanied by the required payment may be returned to the taxpayer as unprocessable. (Code Sec.7122(d)(3)(C))

* allows the taxpayer to specify the application of any payment made under the above rules to the assessed tax or to other amounts (i.e.,penalties or interest) imposed with respect to that tax. (Code Sec.7122(c)(2)(A))

* treats an OIC as deemed accepted if IRS doesn't reject it within 24 months after it is submitted. (Code Sec. 7122(f))

* provides that any assessed tax or other amounts (i.e., interest or penalties) imposed with respect to a tax which is the subject of an OIC subject to the above rules will be reduced by any user fee imposed for the offer. (Code Sec. 7122(c)(2)(B))

* allows IRS to issue regs waiving any payment required under Code Sec. 7122(c)(1), consistent with the practices established in accordance with the Code Sec. 7122(d)(3) requirements. (Code Sec.7122(c)(2)(C))

New details on new rules.

In IR 2007-50 and Fact Sheet 2007-16, IRS highlights some of the major changes in its procedural and submission rules as a result of the TIPRA changes:

* Lump sum cash offer. Twenty percent of the total amount of the offer must be paid with the Form 656. If the installments will be paid in five months or less, the taxpayer should offer the "realizable value" of his assets, the amount that a taxpayer could reasonably expect from the sale of an asset if sold quickly, typically in 90 days or less (the quick sale value) minus what the taxpayer owes a secured creditor, plus the total that could be collected over 48 months of payments (or the remainder of the statutory period for collection,whichever is less). If the installment payments will be paid in more than five months, the taxpayer should offer the realizable value of his assets plus the total that could be collected over 60 months of payments (or the remainder of the statutory period for collection,whichever is less).

* Short term periodic payment offer. The offer amount must be paid within six to 24 months from the date IRS receives Form 656. The offer amount must reflect the taxpayer's realizable value of assets plus the amount that could be collected over 60 months of payments (or the remainder of the statutory period of collection, whichever is less). Failure to make the periodic payments during the offer investigation will cause the offer to be treated as withdrawn.

* Deferred periodic payment offer. The amount must be paid over the remaining statutory period for collecting the tax. As with the short term periodic payment offer, the taxpayer must submit the first payment along with Form 656, and must continue to make regular payments during the offer investigation. The offer amount must reflect the taxpayer's realizable value on assets, plus the amount that could be collected through monthly payments during the remaining life of the collection statute. Failure to make the periodic payments during the offer investigation will cause the offer to be treated as withdrawn.

* Designating payments. Taxpayers may designate in writing how IRS should apply the payments made while the offer is under investigation by specifying how the payments are to be applied to specific tax years or periods and to the type of tax. Without a written designation request, IRS will apply the payments in the best interest of the government. The $150 application fee cannot be designated by the taxpayer.

* Payment of tax. All offer payments are considered "payments on tax" and are not refundable regardless of whether IRS declares the offer not processable or later returns, rejects, withdraws, or terminates the offer as a result of its investigation. When this happens, IRS will apply the payments to the taxpayer's outstanding liability.

* Installment payment plans. A taxpayer who has an approved installment agreement payment plan with IRS and is making payments under this plan may stop remitting the installment payments at the time that a short term or deferred periodic payment offer (but not a lump sum cash offer) is filed. If it not accepted, the installment agreement payments must continue.

* Low-income taxpayers. New guidelines apply for defining a low-income taxpayer in determining the exception to application fee and the initial payment requirement. Effective with the revision of Form 656, a low-income taxpayer is one whose income falls at or below 25% of the 2006 HHS Poverty Guidelines. A new worksheet is also provided to help taxpayers determine if they're eligible for the low-income waiver. Taxpayers claiming the low-income exception must complete Form 656 and attach Form 656-A (renamed Income Certificationfor Offer in Compromise Application Fee and Payment) and the worksheet.

* Doubt as to liability offer. A taxpayer wishing to file a doubt as to liability offer must complete Form 656-L, Offer in Compromise (Doubt as to Liability), when claiming that all or part of the assessed tax liability is incorrect.

* Payment voucher. A new Form 656-PPV, Offer in Compromise Periodic Payment Voucher, must be used by taxpayers to remit the required short term or deferred periodic payments to IRS while the offer is under investigation.

RIA Research References: For offers in compromise, see FTC 2d/FIN T-9601 et seq.; United States Tax Reporter 71,224.01; TaxDesk 842,001; TG 70357.Source: Federal Taxes Weekly Alert (preview) 03/08/2007, Volume 53, No.10

TOP

... Neither the documents nor the heritage were to be found. Initially, I found this curious. Later, I found it alarming. At the IRS National Headquarters, there seemed little connection between the work of employees and actual tax collection--what I presumed to be the mission of the IRS. -- Shelley Davis before the Senate Finance Committee. (See full testimony.)

Home

For technical problems or broken links e-mail PN Webmaster