by Robert R. Raymond
November 28,2003
In a precendent-setting case, the IRS wielded new power to punish the
political speech of those who "espouse views" the government
considers "inconsistent" with government-held beliefs. In a hearing
originally closed to the public in a secret tribunal on a military
island, but moved to a public location after protests from the press
and the public, the IRS wants to wield this power against a former
IRS whistleblower, who was forced to resign upon his discovery of
fraud in the agency.
After monitoring and taping the whisteblower's
appearances on Sixty Minutes, talk radio shows, and political
publications where he rebroadcast his findings of IRS fraud, the IRS
initiated this inquisition against their former whistelblower. This
new power may find new political targets soon enough.
The IRS, through the small office of "Director of Practice," claims
the authority to wield carte blanche authority over all the other
powers of government -- the authority to monitor, surveil, and
eavesdrop on political dissenters, the authority to pry into the
private financial records of banks, businesses, and taxpayers, the
authority to conduct secret investigations under a criminal grand
jury, and the authority to censure political dissenters by branding
on them a badge of infamy and stripping them of governmentally-
protected licenses. In short, under the guise of a "practice"
investigation, the IRS claims the right to wield all intrusive and
invasive powers of government available...
A "license" to practice before the IRS -- even for people who have
never requested such a license or actually practiced before the IRS,
but are given one as a matter of law if they are accountants --
"licenses" the IRS to conduct private audits without notice to the
taxpayer, confer with criminal prosecutors without disclosure, and
bring special "disbarment" proceedings against disfavored dissenters,
even if the alleged "disreputable" conduct has nothing to do with
any "practice" before the IRS.
The IRS now claims it can use these so-called "practice"
investigations of anyone who Congress licenses to practice before the
IRS -- regardless of whether they actually practice before the IRS --
to surveil the public appearances of dissenters, eavesdrop on the
political conversations of dissenters, benefit from secret grand jury
investigations, hold secret conferences with the criminal
investigators, surreptiously tap the private database of taxpayer
information, including taxpayers who merely have some
financial "connection" to the accused, audit the political
dissenter's personal financial records, and use all this information
against the dissenter in the "practice" proceeding.
Under the guise of a "practice" investigation, the IRS can ignore all
the normal procedural protections against an illicit audit while it
conducts such an audit. Simultaneously, the IRS can ignore all the
legal protections afforded a person accused of a crime while
conferencing with the people conducting a criminal investigation.
Indeed, the IRS can even ignore the sunshine laws, as the records of
such "practice investigation" are exempt from disclosure under the
Freedom of Information Act, as are grand jury proceedings.
The IRS claims it can exercise this authority in a secret proceeding
without allowing a person the opportunity to cure any alleged
mistakes, the opportunity to prepare a defense by knowing the exact
facts they are accused of, without any opportunity for discovery,
without any opportunity to call witnesses necessary for their
defense, without any opportunity to cross examine their accusers,
without any opportunity to testify at their own hearing about the
merits of their position, without being forced to testify against
themselves without such an assertion being held against them, and
without even an opportunity for a hearing on the evidence.
This power of this little office with a Napoleonic vision goes even
beyond the Patriot Act type authority and stories of FBI monitoring
of war protestors.
Too Hoover-ish to be true in modern America? Just read the case of
the IRS against Joe Banister scheduled for a "hearing" -- a hearing
where the IRs prohibited Banister from introducing any witnesses or
presenting any evidence as to his defenses, and even discussing the
sincerity, the truth or the "reasonableness" of his positions -- on
December 1 in the city by the bay, in the Tax Court chambers of the
federal courthouse in San Francisco. History is being made.
For more information contact:
Law Offices of Robert G. Bernhoft S. C 207 East Buffalo Street Suite
600
Milwaukee, Wisconsin 53202 ph. 414-276-3333
fx. 414-276-2822
rgbernhoft@bernhoftlaw.com
rebarnes@bernhoftlaw.com