Grievance 40 - Intimidation

The U.S. Constitution failed to specifically protect Americans from
government operating by secret, illegal or improper means, including to
fund itself. Senate hearings in 1997 revealed how the Internal Revenue
Service intimidated and caused anguish and injury to many Americans
innocent of any criminal act, while operating on a policy contrary to
American jurisprudence that instilled widespread fear.

Beginning in 1913, under Article XVI of the Constitution, that some claim
was never legally approved, the government imposed a small tax on
personal income that was raised over ensuing years to as much as 45
percent in some cases, with the IRS designated as the collection agency.
By 1996, the agency was collecting $7.3 billion to finance itself for
one year, plus $1.7 trillion for the remainder of government, and abuse
of taxpayers was common. Senate Finance Committee Chairman William Roth
said the system was not healthy;

"The income tax is losing the confidence
of the American people."

Roth noted that even internal audits found serious fault with its
operations;

"...a stunning confession of the sins of the IRS."

The IRS Operators Manual, a secret document obtained through the Freedom
of Information Act in the 1970's, was highly censored. The many deleted
sections raised suspicion of tactics that could bring strong criticism
and force changes. In 1997 alone, the agency admitted to 10,000
property seizures with one in four conducted improperly.

Income tax laws grew complicated with tax breaks, and IRS answers to
taxpayer inquiries were often inconsistent. Many taxpayers felt it
necessary to hire professional help out of fear that the agency would
impose fines, plus interest, even for honest errors.

Politicians added deception to the IRS process. Through added fines and
interest totalling $18.3 billion in 1996, Congress avoided directly
raising taxes on income for added revenue.

In Senate hearings, IRS agent and "whistleblower" Jennifer Long
disclosed some of the internal operations;

"I have actually witnessed IRS manage-
ment manipulate income tax return
figures just to increase their office or
division collection statistics...(they)
extract unfairly assessed taxes from
taxpayers, literally ruining families, lives
and businesses...all unnecessarily and
sometimes illegally."

Delaware construction contractor Tom Savage testified that he paid
$50,000 to the agency when it disputed his tax payments;

"...when the resources of the government
are unleashed on you, you are in trouble
no matter how good your case."

Savage paid $51,000 for a defense attorney.

Low and middle income taxpayers with no money to hire a professional tax
filer or hire an attorney in disputes with the IRS, were often targets
for auditing while, at the same time, agents were told not to audit
friends of the agency's management.

Senate testimony revealed that citizen complaints sent to the IRS'
inspection division were routinely ignored, and agency employees who
reported internal problems became targets of retaliation. Fear of the
agency's power was widespread.

Abuse was alleged by a small business couple who claimed they had been
singled out because they had become strong competitors of some
influential business interests that had political connections;

"The IRS seized our financial records
and placed a lien on our bank account
for taxes we did not owe, preventing us
from using the records and money to
defend ourselves. We think our com-
petitors were behind the agency's action."

The IRS operated on a policy opposite of the standard of American
jurisprudence that a person is "innocent until proven guilty" until
1998, when the burden of proof was placed accordingly on the agency.

With an AUTHENTIC CONSTITUTION in harmony with the natural Cosmic Laws
of the universe, and producing High Moral Values and Democratic Ideals, government
services are provided through non-intimidating and non-intrusive subscription and
enlistment.

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