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PDtax, CPA firm owner
Category: Tax
Positive Feedback: 96.2 %
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Experience: 30 years tax experience.
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I have a long history with the IRS,Revenue officers tax court

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I have a long history with the IRS,Revenue officers tax court and the taxpayers advocate, I have won in tax court and received two letters of apology..I found a systemic problem ...the didn't believe me and arrogantly and aggressively pursued me...I hired atty and accountants and prevailed and settled got no deal just paid what I owed with int and penalty...there was a problem about monies they had taken and I had no accounting ...when I pushed them for it they denied it existed I proved and got a refund with interest...They are after me again and I am tired of this..I am in touch with my treasury officer and tax advocate...they are ok people but no help at his point I suspect a vendetta because I am a pain and I am always proved right.....At this point as I try to resolve my issues I want to explore the possibility of suing the IRS because for their continued arrogance and illegal seizing of my assets when by the code they were and are in violation of the process I am in compliance and have not been given my due process I am tired of being right and I want the harassment to end.....YOUR THOUGHTS? I have used your service on other matters and Have been very grateful for the response I have gotten

Submitted: 12 months ago.
Category: Tax
Expert:  PDtax replied 12 months ago.


PDtax :

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Expert:  PDtax replied 12 months ago.

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Expert:  PDtax replied 12 months ago.

I can help with the tax collection/controversy process you have been through. I will need some more information about your case, but I can think of a few suggestions I might have 'ready':

type of tax issue previously litigated, years, resolution
frequency of audit (annual, every 2, every 3

treatment of similar issues you lost in tax court (revised, doing things the same way, etc.)

issues at stake (audit, due taxes not paid, anything ever asserted like tax protester, etc.).

Please provide some more background, and I will see what my bag of tricks might have in it for you...

Customer: replied 12 months ago.

Issue dates back to mid 80"s
wife's former name caused us problems
we spent years fighting because data bases back then did not cross reference this correctly
I also showed them that this happened because my wife was the second soc number on form and they should have been able to correct by number
they continued to admit the problem and every several years came back after me for taxes already paid under one name but hey wanted taxes on the second name even though there was only one number
they wanted 278,000 in unpaid taxes we finally got an apology and we paid only the taxes we owed ... because some of this was delinquent at the time (Illness) we also paid int and penalties
final amount was ~90,000
we were promised this was over (2005)
several years later I am trying to prove to the same people that the overzealous treasury agent had continued to arrogantly personally (had check sent to him)continue to seize funds in violation of the process and perhaps even had done so illegally
For three years I fought them to find the money
I got it back with interest in 2010
during this period I had triple by pass surgery
and I was also in arrears went to IRS again directly
I not only got the check but my arrears were deemed uncorrectable
fast forward to today Back in Nov 2011 they started again
I am in middle of some of the same stuff and the agent and advocate had been signed off my case
it's taken me this long to get this far and have my old case reopened and be assigned the same advocate who got a new agent to report to and I have
At this point I submitted all info required and am compliant
The seizures haven't stopped and now the agent is moving to new office and won't be available at new location until end of month and advocate wont return my calls
I am am frustrated and I have been told in the past that my case might be one that I could sue the IRS for the harassment and illegal action for damages this has done to me

Fantasy...Possible Reality???.....back to you
Thank you
Tom



Expert:  PDtax replied 12 months ago.

It never ceases to amaze me when I hear a story of IRS abuse. You substantially won, but IRS has you targeted and come back every few years (to avoid the problems that arise when they come back the next year after losing - it's abuse, and relief is granted by the courts).

Since your prior year arrears are classified as uncollectible (53), even if IRS did pursue you for something, it's not likely they can actually get paid.

I have an idea for you. As you know, representing yourself before IRS is a full time job, and stressful in a way most can't understand. Hiring a tax pro, which you have done, is costly and might be unnecessary. Once you have been calling the Revenue Officer and the Taxpayer Advocate so much they won't return your calls, it's time for the big guns.

1. I would make a FOIA request for their entire file, and let the Revenue Officer and Taxpayer Advocate know you have made the request. Send them copies of the letter. In it, you should ask for the complete IRS file, including everything you can locate about your prior tax cases, your DIF score, their litigation file, everything. Ask a tax pro to help, since your request is a legal one, and a poorly drafted FOIA request will not get you what you want. They charge for photocopying, so plan on spending some $ for all the paperwork.

2. Since this request is often made by taxpayers considering tax litigation, you will get everyone's attention. I would then ask for a collection and audit stay until the documents have been processed and delivered, and add a month or so to review them. You should make that request of the Advocate. You do not need to reveal your intentions to make this request, only that these documents are on their way.

3. You have strategy options here. Since a Revenue Officer has been involved, I assume an audit or other adjustment has been proposed. You might consider just taking your case to Appeals, or an audit reconsideration if available, where a fresh IRS representative will look at your case (removes RO and TA) and might close or otherwise settle the case.

4. If Appeals has failed, submit an Offer in Compromise, using the grounds of effective tax administration. Your FOIA request will be invaluable here, since you will be able to use IRS documents to prove they should drop this and move on to other taxpayers.

5. You didn't go into your uncollectible status very much, but there is an additional forum I would consider: bankruptcy court. Bankruptcy courts do have a little-used power to reset liabilities which supersedes IRS audit/appeals. Consult a bankruptcy pro to advise.

6. Yes, it looks like you can litigate for damages. The FOIA documents and your own story will be compelling evidence. The fact that you have been in court with IRS (did you make a deal, or litigate to a decision?) would normally scare them off. Having them come after you, knowing you are uncollectible, might be demonstrable to a judge that abuse of authority has occurred.

7. I know I mentioned it before, but please consider hiring a tax pro to represent you. These issues are too much and too important to blow the statute by missing a filing deadline, for example.

Keep in mind your state (NY) will require reporting of any changes to your filed returns as well. Their interests must be considered and settled as well.

Just a few thoughts. Thanks for asking from Just Answer, ask more if you need to. Add positive feedback if I gave you something to work with.

PDtax, CPA firm owner
Category: Tax
Positive Feedback: 96.2 %
Satisfied Customers: 1296
Experience: 30 years tax experience.
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