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Law Educator, Esq.
Law Educator, Esq., Attorney
Category: Legal
Satisfied Customers: 117378
Experience:  JA Mentor -Attorney Labor/employment, corporate, sports law, admiralty/maritime and civil rights law
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I was incarcerated months, on an IRS conviction, based on

Customer Question

I was incarcerated for 8 months, on an IRS conviction, based on the Stated Income mortgage application, on which I was required to agree to that my CPA annual income was that of the national average, as indicated on the web-site. This was the basis n which Countrywide Credit, Washington Mutual, etc became very wealthy and, even though this strategy was supported by the national credit bureaus, the house appraisers, and the mortgage warehousing agents, Freddymac and FannyMae. But, as I was told by my Federal Defense Attorney, the best way out was a deal, whereas, if I decided on a jury trial I would probably receive 2 1/2 years incarceration. Now, in addition, the IRS sued me for not having reported $500,000 additional income in 2006. Subsequently, they issued me a formal letter (after 6 months incarceration, taht they accepted by return as filed.
I believe the entire IRS activity was politically motivated and hidden b the fact that there was limited or no documentation required by mortgage lenders for over 16 years (a sub-prime borrower, for which 10 million borrowers lost their homes). Ques. Was I to blamed for this. I borrowed money to build one small house in Salem Oregon based on the Stated Income concept. I would like to sue that department, the IRS and the manager of the division. What are the possibilities?
Submitted: 1 year ago.
Category: Legal
Expert:  Law Educator, Esq. replied 1 year ago.
Thank you for your question. I look forward to working with you to provide you the information you are seeking for educational purposes only.
Unfortunately, once you were convicted or plead guilty, you ruined any chance of suit against anyone. In order to have tried to sue the IRS for malicious prosecution, you would have had to have either been found not guilty or you had to appeal the conviction and get it vacated. However, based on what you stated, once you were convicted/did not appeal or plead guilty, you cannot win a civil suit against them.
Furthermore, in order to sue any government entity you have to overcome their statutory immunity by proving more than ordinary negligence you have to prove malicious misconduct or gross negligence. Again, by you pleading or being convicted, you cannot prove that unless you have some brand new evidence you just discovered and in that case you have to file a post conviction relief petition to vacate your plea or conviction and that is going to require you to get a new attorney to file the appeal and seek to get the conviction vacated based on this new evidence.