Time: Sun Feb 23 14:10:36 1997 by primenet.com (8.8.5/8.8.5) with SMTP id NAA25927; Sun, 23 Feb 1997 13:14:08 -0700 (MST) Date: Sun, 23 Feb 1997 14:08:25 -0800 To: (Recipient list suppressed) From: Paul Andrew Mitchell [address in tool bar] Subject: SLS: Dan Pilla on the IRS <snip> >Weekly Update >Volume 4, Issue 5 >February 20, 1997 > > >Pilla Answers Pressing Questions on IRS, Taxes > > Q: Your new book points out that Big Brother wants to spy on us and >control us more than ever. > A: My book is an expose of the IRS plan to audit every aspect of your >financial life. We have uncovered documents that show the IRS is in the midst >of launching an audit invasion. It amounts to a spy operation on every >American citizen. > They want to track every transaction you engage in. They want to know >where and how you are spending your money, and who you are giving your money >to. They have put forth a plan that will allow them to track every >transaction with the long-term goal of eliminating cash and the paper tax >return so they can follow every single move you make. > What is really staggering is they intend literally to reach into the >living rooms, bedrooms and closets of every American citizen, and they want >to reach into the file cabinets, back offices, and front meeting rooms of >every business. > I have gone through about 600 pages of documentation in the manual >that shows this. The first critical element is to have a number assigned to >every citizen. > I have been talking about Social Security numbers and minors since >the first law was passed in 1986. I have always maintained the IRS never had >the legal authority to actually get or use that number for minor children. > Now things have changed. In 1996 Congress [gave] the authority to >force every citizen to take a number. The IRS is trying to set up an >economic system to allow the government to know everything you buy, how you >buy it, where you buy it from, and what you are going to do with it once you >get it. > The whole premise of this audit invasion is the notion that every >citizen is cheating on his tax return. This is the one thing driving the IRS >nuts about any cash in circulation at all. This is why the agency is working >so hard to eliminate cash. > They believe people are cheating across the board - not from the >standpoint of overstating deductions, but from the standpoint of under- >reporting income. The IRS knows as long as there is cash in circulation, >there is at least the possibility that somebody might earn a dollar and not >report it on their tax return, and they can't possibly tolerate that. > Q: Is the issue one of money or of control? > A: It is both. Money is part of it: Congress has spent this country >hopelessly into debt. The other element is control: they've got to be able to >control people -- what they do, how they do it -- more importantly, how they >react to the IRS. > The IRS has a plan to gain access to every mortgage application filed >in this country; home loans, second mortgages on homes, home equity lines of >credit. You tell the mortgage company your story; you give them your >financial data. They have been running a test program in the Fresno district >in California that is now being rolled out nationwide. The IRS is accessing >private files and records almost on a full-time and continuing basis. > There are several things the IRS is trying to exempt itself from in >order to expand its information-gathering practices. The IRS has [a plan] to >exempt itself from the Privacy Act of 1994 so it does not have to reveal the >information it has gathered about an individual -- that you have the right to >be notified by the IRS that it is in the process of gathering information >about you, or the sources of information that it is gathering about you. > Second, the IRS has a plan called the Automated Information >Integrated On-line Resource Network. They want to gain on-time or immediate >time access to every public and private data base in the country for the >purpose of spying on people and finding out what is going on. > Third, they have a plan to actively, physically, plant spies in >businesses for the purposes of observing their operations. The IRS has >included the Small Business Administration, the Better Business Bureau, Dunn >& Bradstreet, and trade associations like the Chamber of Commerce as part of >this spy network. This means every bit of data you give to these >organizations as a business person is going to end up in the hands of the >IRS. > Fourth, they are building a dossier on personal finances. They want >to do an analysis of every nickel you spend, every check you write, your >assets, your personal property including furniture, clothing, jewelry, cars, >recreational vehicles, your credit card, borrowing and spending habits. > They even want to go through personal files such as divorce records >and talk to your friends and neighbors. This should be - to me it is - a very >disturbing proposition. > Fifth is a lifestyle interrogation where they sit down with you to >fill out what they call their Personal Living Expense analysis -- a PLE. It >is a detailed analysis of how you are spending money. > They want you to list how much money you spend on groceries and >outside meals, clothing, laundry and dry cleaning, barber, beauty shop and >cosmetic supplies, educational supplies, recreation, entertainment, >vacations, club dues, lodge expenses, gifts and allowances. > The IRS's tentacles are reaching out in every direction. Every time >you spend money, you are potentially creating income for the person you give >it to, and the IRS is certainly concerned about those people as well, >particularly the small businesses, the self-employed operations, the men and >women who are the backbone of this country that provide jobs for 80 percent >of the people. > Q: You say there is "phantom income" they are looking for. What does >that refer to? > A: "Phantom income" is the name I have given the income the IRS is >going to assign to people who don't know how to defend themselves in the >audit environment. They think everybody is hiding income. These new audit >techniques are designed to uncover this alleged income and to assess people >with the income. > The problem with this is that the vast majority of Americans are >honest when it comes to reporting their income. That means people are going >to be victimized by phantom income -- income that doesn't exist except in the >minds of the IRS tax auditor. > The vast majority of what the IRS is going to try to do it does not >have the legal authority to do. > It is going to rely on bluff, intimidation, misinformation, >misinformation - in many cases it is going to lie to people concerning what >your rights are and what their limitations are. It is vital that people >understand they have the right to say "no" to this tax audit invasion, and >they can make it stick when they do. > The American people are doing their level best with what everybody >knows is a very complicated tax code. The motto of the IRS, as I see it in my >coming-up on 21 years of experience in dealing with the IRS is: They don't >care if you owe it or not, they just want to get the money. > Q: there any way the states and the people can devise a public >disclosure commission to oversee the IRS as to what it is doing to the >freedom of citizens? > A: That is a question more people need to be asking: why doesn't >somebody oversee the IRS more carefully? I have testified and provided >documentation before the House Ways and Means Committee on a number of >occasions About a year ago the IRS had its Taxpayer Compliance Measurement >Program Audit - the so-called TCMP audit - shut down. The reason is because >of the testimony I provided to the oversight subcommittee on how outrageous >those IRS audits were, considering that they are wrong more than half the >time. > Q: What happened to the law they were going to put into effect that >the IRS must prove we need an audit? > A: Rep. Jim Traficant had offered a proposal that would effectively >shift the burden of proof to the IRS. > What the law says has changed ever so slightly. Under the new >Taxpayers Bill of Rights, no longer can the IRS blindly rely on a W-2 or 1099 >(they have tremendous error rates), "The secretary shall have the burden of >producing reasonable and probative information concerning such deficiency in >tax in addition to the information return." > That means the IRS has to come up with something more than just the >information return as evidence of the fact that you had the income when you >the citizen claim that information is wrong. > What it does not say is that the burden to prove the case is on the >IRS and that is what the bill's original authors intended. We are talking >about the claim that the IRS knocks on your door and says, "We think you >earned $20,000 and you didn't report it on your tax return." If you do it >right you can force the burden of proof on the IRS now, legally and properly, >and if they can't come in with some evidence, they are dead in the water. > Q: It's the federal government -- not the citizens -- who drove this >country toward bankruptcy. Now the feds want to tax us to pay their bills. > A: You are exactly right. Congress spent the money and has put the >average family in the U.S. in the position where they have to spend 45 cents >of every dollar they earn on taxes at the federal, state and local level. >People wonder why their standards of living have gone backwards. > The reason is taxation. For Congress to continue to look to the >American people to fund this insatiable appetite for spending is insane - >when is it going to end? <snip> ======================================================================== Paul Andrew, Mitchell, B.A., M.S. : Counselor at Law, federal witness email: [address in tool bar] : Eudora Pro 3.0.1 on Intel 586 CPU web site: http://www.supremelaw.com : library & law school registration ship to: c/o 2509 N. Campbell, #1776 : this is free speech, at its best Tucson, Arizona state : state zone, not the federal zone Postal Zone 85719/tdc : USPS delays first class w/o this ========================================================================
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