On February 23, 2007, the IRS sent me Letter 950 showing how much tax I allegedly owed them for the years 2003, 2004 and 2005. I guess someone at the IRS needed to be working on something so they reconstructed the Bureau of Labor statistics for those years to arrive at the amount of my income and started adding penalties and interest to validate their reconstruction.
I showed this to Robert who instantly saw through the 25 pages of their scheme and helped me draft a letter to them, disputing and challenging their false findings. We stated the TRUTH: Congress had outlawed using the Bureau of Labor statistics years ago. I also asked for a day to meet with them.
Their humble, most gracious and very creative reply was a Notice of Deficiency with the same 25 pages attached to it to prove their commitment to the Paperwork Reduction Act. (If you notice a slight bit of sarcasm here, it's because of my learning from Robert about how powerless the IRS really is. What I used to be scared about, I now find as a source of entertainment.)
Anyway, I guess they wanted to scare me with the volume of information and calculations. I already had a volume of work to do with my 7609 case, my CDPH case, my wife's CDPH case, and another letter-writing circus involving a case against my wife where they could not keep the years straight. Robert (with use of the Patriot Network website) guided me through this maze of cases and helped me keep my sanity during this time.
I petitioned the Tax Court about this tax liability case for 2003-2005 and received a hearing date set in Columbia, SC for February 2, 2009. With Robert's help, I placed a Petition and Amended Petition for Redetermination of a Deficiency before the court that I found at the website. The IRS countered with an Answer to Amended Petition.
On December 29, 2007, I followed Robert's directions and requested an out of court settlement. The IRS lawyers refused and started preparing for trial. Over a year later, on January 6, 2009, District Counsel gave up and cancelled the case. Apparently they finally figured out what we knew all the time — that their Bureau of Labor statistics drummed-up stuff against me, combined with the effectiveness and plain truth of the Patriot Network's expert documents, meant their case wasn't going to hold water. They would be an embarrassment to the Tax Court, and, with The Great One on my team, they had no chance!
Note: Click here to see Harry's victory order.
From Dr. Clarkson:
We are winning dozens of small issues in tax court. These procedural victories are too minor to be reported separately. The judges on the tax court are just fed up with the IRS bullying tactics, insults to the courts and ignoring the rules.
We are wining many cases, on procedural grounds when the judges simply turn down the IRS orders or remand the cases to a lower level. These one sentence orders are smashing victories to the tax court experts, but do not seem like much to the tax victims.
We will continue to report on the clear victories which everybody can understand. Court decisions on the minor procedural points are also very important, but not so exciting.