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IRS Money Laundering Scheme Exposed By Veteran
Freedom Outpost ^ | June 21, 2013 | Dean Garrison

Posted on 06/21/2013 11:29:31 AM PDT by EXCH54FE

According to USC, Title 38, §5301 Veteran‘s disability benefits are exempt from all taxes and/or any other form of withholding. The IRS cannot touch this money and creditors cannot either.

Payments of benefits due or to become due under any law administered by the Secretary shall not be assignable except to the extent specifically authorized by law, and such payments made to, or on account of, a beneficiary shall be exempt from taxation, shall be exempt from the claim of creditors, and shall not be liable to attachment, levy, or seizure by or under any legal or equitable process whatever, either before or after receipt by the beneficiary.

I am not an attorney but it sounds to me like these funds cannot be touched by creditors or the tax man. Well… that was the understanding of Kevin Lake as well but he found out that the IRS has found a way to ignore the law. This is from Kevin Lake’s column on Freedom Outpost:

A couple of months ago, when I logged into my online bank account to make sure that my VA disability check had been deposited (I am a 60% disabled veteran of the Iraq War) I saw red and a negative balance, beside which read the word “hold.”

I called my bank and was informed that the IRS had sent a letter demanding that the bank take all of the available funds out of my account on the first day of the month and then wire them to them. The bank gave me a telephone number at which to call the IRS. After being placed on hold for a very long time- long as in a biblical age- I finally spoke with an agent.

(Excerpt) Read more at freedomoutpost.com ...


TOPICS: Crime/Corruption; Culture/Society; Government; News/Current Events
KEYWORDS: irs
We face an ever growing frustration in this country as more and more government agencies and officials are not willing to abide by the laws as they are written
1 posted on 06/21/2013 11:29:31 AM PDT by EXCH54FE
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To: EXCH54FE
And a growing frustration as thieves loot the treasury and out pockets and thumb their noses at the laws of the land.
2 posted on 06/21/2013 11:35:29 AM PDT by American in Israel (A wise man's heart directs him to the right, but the foolish mans heart directs him toward the left.)
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To: EXCH54FE

LESSON: If you piss off a Democrip, you can expect the IRS to trump up a reason to seize all your assets.


3 posted on 06/21/2013 11:37:26 AM PDT by E. Pluribus Unum (Religious faith in government is far crazier than religious faith in God.)
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To: EXCH54FE

The IRS has lost its moral authority and should be dissolved.


4 posted on 06/21/2013 11:38:42 AM PDT by MeganC (A gun is like a parachute. If you need one, and don't have one, you'll never need one again.)
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To: MeganC

Damned right! Shut the fascists down!


5 posted on 06/21/2013 11:43:33 AM PDT by Jim Robinson (Resistance to tyrants is obedience to God!!)
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To: MeganC

The IRS never had any moral authority. It is and has always been a protection racket.


6 posted on 06/21/2013 11:44:42 AM PDT by Louis Foxwell (This is a wake up call. Join the Sultan Knish ping list.)
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To: EXCH54FE
More and more government agencies and officials are not willing to abide by the laws as they are written.

Is it ok to admit we are now officially a fascist Banana Republic?

"Your 0dingaCare papers can be filled out just up the ramp. The subdermal ID chipping is a simple process."


7 posted on 06/21/2013 11:46:24 AM PDT by USS Johnston (Is life so dear or peace so sweet as to be bought at the price of chains & slavery? - Patrick Henry)
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To: Louis Foxwell

” The IRS never had any moral authority. It is and has always been a protection racket.”

Correct


8 posted on 06/21/2013 11:47:49 AM PDT by stephenjohnbanker
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To: MeganC
I find a lot of "disabled" vets and others to not be that disabled, so its hard to work up a lot of pity.....just saying....

I wish the VA and the DOD would be a little more strict on handing out pensions and then I suppose, the IRS wouldn't have to stoop to these tactics...

9 posted on 06/21/2013 11:50:59 AM PDT by cherry
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To: stephenjohnbanker
8 posts and no one asked ...

.. and the bank gave it to them ?

or is the FBI able to hack into banks and their private accounts ?

10 posted on 06/21/2013 11:52:44 AM PDT by knarf (I say things that are true ... I have no proof, but they're true.)
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To: cherry

No offense..but its not up to you to determine their level of disability. Its an earned right that VA docs have determined to meet the level of compensation. Its not like the SSDI...it is alot harder to get certain levels of disability. Either way the point of the article is that the IRS tried breaking the law by stealing federally protected money.


11 posted on 06/21/2013 11:56:08 AM PDT by aft_lizard
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To: EXCH54FE
I wonder if the IRS treats conservatives differently than liberals when it comes to such matters. Moreover, does the SSA grant disability to conservatives? I would be curious to see the list of SSD recipients by voter registration status.

Illegal aliens have the advantage when applying for entitlements.. Food stamps, welfare; no questions asked. Didn't the Boston bombers get food stamps and welfare? These are 0bama's 'Democrat voter recruitment programs', so I would imagine conservatives are given a tough time throughout the process. The immigration reform Bill is nothing but a 'Democrat voter recruitment program'. The GOP are total buffoons for not seeing it. IDIOTS, ALL OF THEM.

12 posted on 06/21/2013 11:57:25 AM PDT by CivilWarBrewing
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To: cherry; EXCH54FE

“I wish the VA and the DOD would be a little more strict on handing out pensions and then I suppose, the IRS wouldn’t have to stoop to these tactics...”

Sorry, not playing. If disability fraud is going on then it needs to be addressed separately and by the VA, not the IRS. There is a law in place the prohibits the IRS from doing what they did in this case and THERE’S NO EXCUSE FOR A LAW ENFORCEMENT AGENCY THAT WILLFULLY VIOLATES THE LAW.

People like that are properly called CRIMINALS.

I personally see no difference whatsoever between a thug beating up a veteran in the street and stealing their money and the IRS arrogantly doing the same thing with some politically motivated and perverted interpretation of the law.

Again, there is no excuse for the IRS violating the law and I am deeply concerned about your values that you would entertain and advance the kind of moral relativism that most people on FR protest thousands of times per day.


13 posted on 06/21/2013 11:57:52 AM PDT by MeganC (A gun is like a parachute. If you need one, and don't have one, you'll never need one again.)
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To: knarf

” is the FBI able to hack into banks and their private accounts ? “

In this day and age, probably.


14 posted on 06/21/2013 11:57:56 AM PDT by stephenjohnbanker
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To: cherry

Also there are miles of difference between pension and compensation. There is non service connected pension through the va and retirement pension through the DOD. VA compensation ranges anywhere from 10percent for minor injuries to 100 percent plus SMCs for severely disabled. Individuals who earned that during service and often during a deployment.


15 posted on 06/21/2013 12:00:14 PM PDT by aft_lizard
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To: knarf
.. and the bank gave it to them ?

How many bank managers do you think are familiar with the law regarding vet disability money?

How many bank managers do you think would be willing to tell the IRS to go to hell, for the benefit of a customer?

16 posted on 06/21/2013 12:01:08 PM PDT by PapaBear3625 (You don't notice it's a police state until the police come for you.)
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To: knarf

Payments of benefits due or to become due under any law administered by the Secretary shall not be assignable except to the extent specifically authorized by law, and such payments made to, or on account of, a beneficiary shall be exempt from taxation, shall be exempt from the claim of creditors, and shall not be liable to attachment, levy, or seizure by or under any legal or equitable process whatever, either before or after receipt by the beneficiary.


Does cash retain its identity once in the general fund of a bank?


17 posted on 06/21/2013 12:01:10 PM PDT by PeterPrinciple
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To: EXCH54FE
You need to go the whole article. The IRS was not grabbing his veterans benefits. The IRS was garnishing his bank account because they thought he had an unpaid tax bill. They were in error and refunded the money.

Once exempt funds are placed in a general bank account, a creditor can garnish them for a debt.

18 posted on 06/21/2013 12:01:12 PM PDT by colorado tanker
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To: cherry

“I find a lot of “disabled” vets and others to not be that disabled, so its hard to work up a lot of pity.....just saying....” “I wish the VA and the DOD would be a little more strict on handing out pensions...”

Although I am familiar with some of the con-men and women you mentioned ...I for one would GLADLY give back the pittance that the VA has “determined” that I am eligible for... in return for having an undamaged back, a lack of constant pain and a perpetual weather forecaster (arthritis)... just saying. :)


19 posted on 06/21/2013 12:01:39 PM PDT by NCDragon ( Americans will always do the right thing, after they've exhausted all the alternatives. WC)
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To: EXCH54FE
This is nothing new.

Some years ago I was hospitalized for three months and then out of work for several years of recovery. Two years later the IRS audited me, saying that I had not reported any income for the last three months of the accident year. I showed-up with my accountant and a copy of my hospital record. In what has to be an epic moment in IRS history, the agent leaned over the desk, right in my face, and sneered, "That's your story." In the end I had to meet with or fax records to the IRS 13 times over the next two years. In the end, they made me pay "back taxes" and fines on money I never made. The coda was that they then lost most of my financial records when I asked for them back and told me to get lost. I couldn't afford to appeal.

20 posted on 06/21/2013 12:06:24 PM PDT by pabianice
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To: EXCH54FE

You know this government is way past ‘out of control.’

This story made me sick.

All these Federal Agencies have to go. Or at minimum be pruned to pre WWII levels.

If that doesn’t happen, we are just a sad debating club on the Titanic. Nothing will change. No ‘good guy’ getting in will be able to do anything. The only platform that I’ll vote for is that the beast is euthanized.


21 posted on 06/21/2013 12:07:13 PM PDT by LibertyLA (fighting libtards and other giant government enablers!)
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To: colorado tanker

You can’t get your benefits in cash or check, its got to go into a bank account, hence the money laundering trick. Wouldn’t make any difference if he had separate accounts for VA benefits, general income, etc. as they would seize them all and you would have to spend the time and energy trying to prove otherwise.


22 posted on 06/21/2013 12:32:13 PM PDT by RetiredTexasVet (UN Secretary General Barki-At-Moon says, "Save the planet - eat more bugs"!)
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To: EXCH54FE

All your answers are here:

http://www.fairtax.org/site/PageServer?pagename=FAQs


23 posted on 06/21/2013 12:33:02 PM PDT by Hostage (Be Breitbart!)
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To: aft_lizard
Another note on VA disability. My husband had 20% disability on a back injury received in a copter crash. As a retiree, his 20% disability was taken out of his retirement pay and sent to him by VA. The only plus was he paid no taxes on that portion of his retirement. The IRS is NOT supposed to tax VA disability compensation.

Had he not been retired, he would have received a non taxable check from VA.

vaudine

24 posted on 06/21/2013 12:55:21 PM PDT by vaudine
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To: MeganC

Sometimes the facts are not clear.

It could be that the vet in question owed back taxes on some other matter unrelated to his vet disability pay. In that case the IRS can do what they did.

But still the larger point I made just above is that there exists a much more efficient and transparent tax code. We should all study it and become expert on it.


25 posted on 06/21/2013 12:56:11 PM PDT by Hostage (Be Breitbart!)
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To: EXCH54FE

“I called my bank and was informed that the IRS had sent a letter demanding that the bank take all of the available funds out of my account on the first day of the month and then wire them to them.”

They need a court order not a letter. The bank can be sued.


26 posted on 06/21/2013 1:11:03 PM PDT by dljordan (WhoVoltaire: "To find out who rules over you, simply find out who you are not allowed to criticize.")
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To: Hostage

“It could be that the vet in question owed back taxes on some other matter unrelated to his vet disability pay. In that case the IRS can do what they did.”

No, they can’t.

The following is from the >> IRS website <<

There shall be exempt from levy—
(10) Certain service-connected disability payments Any amount payable to an individual as a service-connected (within the meaning of section 101 (16) (The term “service-connected” means, with respect to disability or death, that such disability was incurred or aggravated, or that the death resulted from a disability incurred or aggravated, in line of duty in the active military, naval, or air service.) of title 38, United States Code) disability benefit under— Veterans disability benefits have specific protection from levy or seizure under United States Code Title 26, 6334. The IRS cannot seize the benefits to pay a tax debt under that law.


27 posted on 06/21/2013 1:55:10 PM PDT by MeganC (A gun is like a parachute. If you need one, and don't have one, you'll never need one again.)
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To: stephenjohnbanker; knarf

Hack? They don’t need no hackers!

All they gotta do is show up at the bank door.............


28 posted on 06/21/2013 2:09:31 PM PDT by Red Badger (Want to be surprised? Google your own name......Want to have fun? Google your friend's names........)
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To: MeganC

They did not attach his disability payment, they attached his bank account. One can debate what the difference is if he only receives disability income and nothing else. But we don’t know that.

I am not defending the IRS. I am merely pointing out that we don’t know the full circumstances.

Even if it was back taxes that he owed, I still am opposed to the IRS and the Income tax.

Here is the true solution:
http://www.fairtax.org/site/PageServer?pagename=FAQs


29 posted on 06/21/2013 2:11:09 PM PDT by Hostage (Be Breitbart!)
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To: Red Badger

Good point: )


30 posted on 06/21/2013 2:12:20 PM PDT by stephenjohnbanker
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To: MeganC

***** “The IRS has lost its moral authority and should be dissolved.” *****

Acid or Alkaline solution? I heard that if you run them through Pigs first it speeds up the process.


31 posted on 06/21/2013 2:13:46 PM PDT by TexasTransplant (Idiocracy used to just be a Movie... Live every day as your last...one day you will be right)
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To: PapaBear3625

“How many bank managers do you think would be willing to tell the IRS to go to hell, for the benefit of a customer? “

I’ll take zero for $100.


32 posted on 06/21/2013 2:13:50 PM PDT by vette6387
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To: Hostage

Seizing the payment after it’s deposited is disgustingly disingenuous.


33 posted on 06/21/2013 2:15:23 PM PDT by MeganC (A gun is like a parachute. If you need one, and don't have one, you'll never need one again.)
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To: LibertyLA

***** “You know this government is way past ‘out of control.’

This story made me sick.

All these Federal Agencies have to go. Or at minimum be pruned to pre WWII levels.

If that doesn’t happen, we are just a sad debating club on the Titanic. Nothing will change. No ‘good guy’ getting in will be able to do anything. The only platform that I’ll vote for is that the beast is euthanized.” *****

Bump what you said

TT


34 posted on 06/21/2013 2:15:41 PM PDT by TexasTransplant (Idiocracy used to just be a Movie... Live every day as your last...one day you will be right)
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To: aft_lizard
the IRS tried breaking the law by stealing federally protected money.

They broke the law by stealing money. Giving it back does not negate the fact that they broke the law. They need to be indicted, tried and generally treated as they treat average Americans.

35 posted on 06/21/2013 2:50:29 PM PDT by ELS
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To: MeganC

If, for the sake of argument, he sold some real estate and did not pay income tax on its gain, and he is in arrears and penalties and fees are added, then it is legal for the IRS to attach his bank account.

But all that is based on ‘If’. We simply do not know.

But I can tell you this for sure, that the IRS is manned by persons that are not always wise and smart. They are often knuckleheaded, meaning they can be belligerent and thuggish. Absolutely they have been abusive in thousands of instances.

But we must choose our fights wisely. We have to make a judgement after we have seen the facts and evidence, like a member of a jury. This story could be real or it could be someone playing the victim trying to enrage us against the IRS. We have to be careful not to lose our credibility.

The FairTax is the solution. There is still enforcement, and there is still a Tax Court but it is so much better and more transparent that it will do wonders for America.


36 posted on 06/21/2013 2:52:18 PM PDT by Hostage (Be Breitbart!)
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To: Hostage

In light of the fact that the IRS ended up being compelled to obey their own rules there is no ‘if’ in this case.


37 posted on 06/21/2013 3:00:15 PM PDT by MeganC (A gun is like a parachute. If you need one, and don't have one, you'll never need one again.)
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To: MeganC

The IRS has never had moral authority. Socialist Fascism doesn’t need a moral excuse, just the compliance, of the subjects. This immoral lapse, happens everytime a suppose group of leaders, are just helping out everyone. In the history of Our Founding- who started the Whiskey Rebellion? Was it a tax man, or the rebuke of such? Out, where I live, whiskey is for drinkin’, and water is for fightin’.


38 posted on 06/21/2013 3:26:20 PM PDT by RedHeeler
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To: EXCH54FE

Lower down we see that our VET was writing for a Tea Party publication, now the key here is that the darn congressmen and women don’t care if tea party folks get the shaft - they disagree with grass roots players 95% of the time and want them shut out of the debate!!!


39 posted on 06/21/2013 4:02:42 PM PDT by q_an_a (the more laws the less justice)
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To: cherry
I find a lot of “disabled” vets and others to not be that disabled, <<

lol...me too!..I find the other side to be the hard core..Wanna wrestle?....*W*

40 posted on 06/21/2013 11:24:36 PM PDT by M-cubed
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