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Court: Taxpayers can ignore IRS summonses
WorldNet Daily ^ | 02-01-05

Posted on 02/01/2005 6:16:28 AM PST by TIElniff

Court: Taxpayers can ignore IRS summonses Ruling says action has no teeth without federal court order

A U.S. appeals court has ruled the IRS cannot compel taxpayers to turn over personal and private property without a federal court order and that taxpayers can ignore the agencies summonses until actual enforcement action is taken.

In the case Schulz v. IRS, the Second Circuit Court of Appeals in Manhattan ruled:

... absent an effort to seek enforcement through a federal court, IRS summonses apply no force to taxpayers, and no consequence whatever can befall a taxpayer who refuses, ignores, or otherwise does not comply with an IRS summons until that summons is backed by a federal court order. ? [A taxpayer] cannot be held in contempt, arrested, detained, or otherwise punished for refusing to comply with the original IRS summons, no matter the taxpayer's reasons, or lack of reasons for so refusing.

Bob Schulz, the plaintiff, is head of We the People, an organization that has taken separate legal action against the federal government for its failure to answer a "petition for redress of grievances" regarding the income tax. Though the court affirmed a lower court decision in favor of the IRS, saying Schulz's motion to quash an IRS summons lacked "subject matter," it used the ruling as a means to clarify the agency's power under 26 U.S.C. Section 7604.

The appeals court decision [.pdf document ] of Jan. 25 stated the federal courts protect taxpayers from an "overreaching" IRS and that the agency must go through the federal courts before force can be applied on anyone to turn over personal and private property to the IRS. Absent a federal court order, the IRS summons amounts simply to a "request," the court ruled, which can be ignored.

A statement on the group's website went on to say: "Without declaring provisions of the code unconstitutional on their face, the court, in effect, nullified key enforcement provisions of the Internal Revenue Code, stripping the IRS of much of its power to compel compliance with its administrative demands for personal and private property."

We the People claims the court decision will benefit the organization's class-action lawsuit against the IRS.

States the group: "The court has expressly recognized that the IRS, as has been asserted in the right-to-petition lawsuit, routinely violates people's due process rights in their day-to-day administrative practices. As such, the findings of the Second Circuit firmly establish for the District Court the substance of the causes of action put forth in our right-to-petition lawsuit."

Schulz's lawsuit stemmed from an IRS summons served on him in relation to an investigation. He claims the summons was a direct infringement on his First Amendment rights.

Activists of the "tax honesty" movement, in which WTP is a leading voice, believe the federal government lacks any legal jurisdiction to enforce the income tax, that there is no law that requires Americans to pay the tax, and that the tax is enforced in a manner that violates the U.S. Constitution.


TOPICS: Government; News/Current Events
KEYWORDS: bobschulz; givemeliberty; incometax; irs; schulz; taxes; taxhonesty; wethepeople; wnd; worldnetdaily
Well. What do you think of this?
1 posted on 02/01/2005 6:16:28 AM PST by TIElniff
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To: TIElniff

Sweet


2 posted on 02/01/2005 6:18:18 AM PST by nuffsenuff
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To: TIElniff
It's a very small step in the right direction.
But if you think that we'll ever get to the goal.......I have a bridge to sell you.
3 posted on 02/01/2005 6:20:29 AM PST by Politically Correct
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To: TIElniff
The link above is wrong. Try this:

http://www.worldnetdaily.com/news/article.asp?ARTICLE_ID=42634

4 posted on 02/01/2005 6:22:51 AM PST by savedbygrace ("No Monday morning quarterback has never led a team to victory" GW Bush)
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To: TIElniff
A U.S. appeals court has ruled the IRS cannot compel taxpayers to turn over personal and private property without a federal court order

how strong is the leg that earned income is "personal and private property"?

5 posted on 02/01/2005 6:23:20 AM PST by Revelation 911
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To: TIElniff

Could this have helped Al Capone in any way ????


6 posted on 02/01/2005 6:23:23 AM PST by Renegade
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To: Renegade

Could this have helped Al Capone in any way ????

Or how about the NAACP?


7 posted on 02/01/2005 6:24:08 AM PST by NC28203
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To: TIElniff

Does this ruling only apply to certain areas, like the homemade machinegun situation in the ninth circuit?


8 posted on 02/01/2005 6:29:33 AM PST by jsmith48 (www.isupatriot.com)
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To: savedbygrace

Thanks for the correction.


9 posted on 02/01/2005 6:32:16 AM PST by TIElniff (Autonomy is the guise of every graceless heart.)
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To: Revelation 911
how strong is the leg that earned income is "personal and private property"?

How can the fruits of your labor NOT be 'private property'?

10 posted on 02/01/2005 6:37:24 AM PST by MamaTexan ( The foundation of a Republic --- Man owes obedience to his Creator, NOT his creation)
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To: MamaTexan

well, thats what I was getting at - I can picture someone making the argument that unless it is court ordered, they dont have to pay


11 posted on 02/01/2005 6:39:17 AM PST by Revelation 911
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To: Revelation 911
I would like to read what someone familiar with the law says about this ruling.
12 posted on 02/01/2005 6:42:42 AM PST by Citizen Tom Paine (An old sailor sends.)
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To: TIElniff
More nonsense from Bob Schulz.

Does anyone doubt that judgments will now be accompanied by federal court orders?

Federal judges can issue federal court orders.

13 posted on 02/01/2005 6:46:56 AM PST by sinkspur ("Preach the gospel. If necessary, use words.")
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To: TIElniff

irs bump for later read


14 posted on 02/01/2005 6:48:03 AM PST by Jason_b
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To: sinkspur

actually the process will probably be turned over to Federal Magistrates for the inevitable notice and hearings.

Somehow I imagine cases that get that far are not too common.


15 posted on 02/01/2005 6:53:01 AM PST by longtermmemmory (VOTE!)
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To: longtermmemmory
People who don't respond to IRS summonses are simply going to shell out more money for legal fees in cases they will inevitably lose.

But, Bob Schulz will get rich off tapes and cassettes and books, bought by gullible people who think that they, somehow, don't owe any taxes.

16 posted on 02/01/2005 6:56:15 AM PST by sinkspur ("Preach the gospel. If necessary, use words.")
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To: TIElniff

Nice.


17 posted on 02/01/2005 6:56:21 AM PST by Bikers4Bush (Flood waters rising, heading for more conservative ground. Vote for true conservatives!)
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To: sinkspur

I guess the NAACP has nothing to worry about now.


18 posted on 02/01/2005 6:58:51 AM PST by headstamp
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To: sinkspur
He's putting lipstick on a pig.

The Court ruled that, because IRS summonses are universally recognized as having no legal significance, Mr. Schulz presented no justiciable issue to the Court for consideration when he asked that a summons be quashed.

This appears to be the result argued by the IRS and is actually something of an erosion of taxpayer rights in the 2nd Circuit which had, in a case 40 years or so ago, permitted taxpayers to challenge IRS summonses.

19 posted on 02/01/2005 6:58:54 AM PST by Mr. Lucky
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To: sinkspur
Does anyone doubt that judgments will now be accompanied by federal court orders?

Which will require the hiring of more judges......and more taxes to support them.

20 posted on 02/01/2005 6:59:30 AM PST by 1Old Pro
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To: 1Old Pro

The IRS can ruin you until the courts step in. That's why we need the National Sales Tax.


21 posted on 02/01/2005 7:00:48 AM PST by AppyPappy (If You're Not A Part Of The Solution, There's Good Money To Be Made In Prolonging The Problem.)
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To: AppyPappy
That's why we need the National Sales Tax.

Well, my wife is already preparing for that by buying everything and anything so when we have a sales tax we won't need anything :)

22 posted on 02/01/2005 7:02:32 AM PST by 1Old Pro
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To: TIElniff; ancient_geezer

ping


23 posted on 02/01/2005 7:05:29 AM PST by Principled
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To: TIElniff

And the IRS will care? I think not. The IRS is the American equivalent of the KGD, NKVD, SAVAK and all the other secret police orgaizations in tryannical nations. The only way to bring them to heel is to shut it down, Like that will ever happen


24 posted on 02/01/2005 7:07:37 AM PST by StoneColdTaxHater
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To: TIElniff

And the IRS will care? I think not. The IRS is the American equivalent of the KGD, NKVD, SAVAK and all the other secret police orgaizations in tryannical nations. The only way to bring them to heel is to shut it down, Like that will ever happen


25 posted on 02/01/2005 7:08:09 AM PST by StoneColdTaxHater
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To: sinkspur

Big tax planning tip - don't annoy the IRS! No matter what the court case suggests, cooperation can get better results when facing an audit. You throw out all chance of negotiation or reduction of penalties by being obstructive.


26 posted on 02/01/2005 7:20:19 AM PST by RicocheT
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To: TIElniff

Believe me, it's a heck of a lot cheaper just to pay them than to pay an attorney!


27 posted on 02/01/2005 7:45:52 AM PST by kellynla (U.S.M.C. 1st Battalion,5th Marine Regiment, 1st Marine Div. Viet Nam 69&70 Semper Fi)
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To: jsmith48
Does this ruling only apply to certain areas, like the homemade machinegun situation in the ninth circuit?

Right now, this ruling only applies to the 2nd Circuit. Other circuits may have differing views on this issue, or they may have never decided this issue. Until and unless SCOTUS grants cert. for this case, this decision is only binding in the 2nd Circuit.

28 posted on 02/01/2005 7:49:46 AM PST by Modernman (What is moral is what you feel good after. - Ernest Hemingway)
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To: TIElniff

'bout time!


29 posted on 02/01/2005 7:52:16 AM PST by Bon mots
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To: TIElniff

If you are at the stage where the IRS is trying to seize property you are in deep sh@t. Making it go through one more step is not going to be your salvation.


30 posted on 02/01/2005 7:55:48 AM PST by justshutupandtakeit (Public Enemy #1, the RATmedia.)
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To: StoneColdTaxHater

Nothing like wild hysterical miscatagorization to make your case. THAT will win you loads of adherents I'm sure.


31 posted on 02/01/2005 7:58:54 AM PST by justshutupandtakeit (Public Enemy #1, the RATmedia.)
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To: Revelation 911

That leg is about as strong as that of a jellyfish's tentacles.


32 posted on 02/01/2005 7:59:52 AM PST by justshutupandtakeit (Public Enemy #1, the RATmedia.)
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To: savedbygrace

Yup, I'm gonna take WND's tax advice. I'm gonna like living in a dumpster after I get out of "club fed."


33 posted on 02/01/2005 8:01:11 AM PST by MediaMole
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To: 1Old Pro
Well, my wife is already preparing for that by buying everything and anything so when we have a sales tax we won't need anything :)

LOL!!!! That laugh did me so much good! :o)

34 posted on 02/01/2005 8:05:48 AM PST by OHelix
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To: TIElniff

d@mn! Maybe this will be the first real step in dismantelling the IRS...


35 posted on 02/01/2005 8:07:48 AM PST by Maigrey ("... I will stand in front of the box to put my heart in it." - Mohammed from Iraq the Blog)
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To: sinkspur

It was a serious determination by the court, not nonsense. From what I understand, the ruling by its nature, nullifed the part of the tax code that says the IRS alone has the authority to demand a judge issue an attachment warrant for someone who fails to respond to the IRS' summons. So, instead of the IRS being able to demand you respond to a summons under IRS authority, without having to show reason, the IRS must now seek a federal court order to compel compliance with a summons, which presumably would mean the agency would have to show reason for the summons.

Interesting to say the least...and it really gets folks jacked up about tax reform!


36 posted on 02/01/2005 8:36:44 AM PST by Electrowoman
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To: MediaMole
Well, if the report is accurate, it might be good news for taxpayers who haven't done anything wrong, but get zinged by the IRS even so.

The threat of prison from an agency that has been provided with its own court system is frightening, to say the least.

37 posted on 02/01/2005 9:27:40 AM PST by savedbygrace ("No Monday morning quarterback has never led a team to victory" GW Bush)
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To: savedbygrace

That's what I'm thinking, too.


38 posted on 02/01/2005 10:06:38 AM PST by Electrowoman
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To: Electrowoman

You can bet, if this report is accurate, that the IRS will appeal all the way up the line. Power is more addictive than herion.


39 posted on 02/01/2005 10:24:14 AM PST by savedbygrace ("No Monday morning quarterback has never led a team to victory" GW Bush)
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To: Electrowoman; savedbygrace; All
HOT NEW DEVELOPMENT!

The IRS, which won that round against Schulz after all, is now asking the court to amend its ruling, for the very reason that the court's language empowered Schulz and WND to go boasting. The IRS quoted this WorldNetDaily article in their response. This proves that they think: "The fair and effective administration and enforcement of our tax laws may thereby be significantly impaired" (USA Attorney Cihlar in the motion).

Schulz replied by asking the court instead to amend even more strongly in favor of his own point: to declare IRC enforcement section 7604(b) null and void! Watch for WND to post additional articles on this (free self-coverage).

40 posted on 03/10/2005 1:23:52 PM PST by Messianic Jews Net
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To: sinkspur
People who don't respond to IRS summonses are simply going to shell out more money for legal fees in cases they will inevitably lose.

But, Bob Schulz will get rich off tapes and cassettes and books, bought by gullible people who think that they, somehow, don't owe any taxes.

I agree totally.

Just hearing Bob Schulz' name makes my BS meter bury itself in the red zone...

41 posted on 03/10/2005 1:29:34 PM PST by EternalVigilance (Freedom. Brought to you by the grace of God and the Red, White and Blue...)
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