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#
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Event
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From/To
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Applicable section(s) of this document
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Applicable Statutes (U.S.C.)
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Applicable Regulations
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Relevant forms
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IRS Publication(s)
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Details
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1
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Expatriate
your “U.S.** citizenship”
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Citizen/IRS
Citizen/Atty
General
Citizen/Social
Security Administration
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8.5.3.1
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26
U.S.C. §877 Expatriation to Avoid Tax
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Expatriation
letter in section 15.6.9.
SSA
Notice of Change of Citizenship in section 15.6.8.
Voter
Registration Affidavit Attachment in section 15.6.6. |
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2
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Privacy
Act Request for your IMF
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Citizen/IRS
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8.4.2
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5
U.S.C. §552a Privacy Act
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Privacy
Act Request for Documents in section 15.15.5.
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Request
last three years.
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3
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Request
a Determination Letter from the IRS
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Citizen/IRS
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8.5.4.9
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26
CFR §601.201
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“Test
for Federal Tax Professionals” in section 15.1.
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Cost
is $275
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4
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IRS
response to Determination Letter Request
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IRS/Citizen
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8.5.4.9
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26
CFR §601.201
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5
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Get
an opinion letter from tax professional
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Tax
professional/citizen
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Forms:
15.3
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Documents
the fact that citizen is not obligated to pay federal income tax.
Required because of the Supreme Court Case of Cheek v.
United States, 498 U.S. 192, 1991.
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6
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Withdraw
W-4 form from employer and file an Exemption Certificate or IRS Form
W-8 to stop withholding
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Citizen/employer
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Background:
8.5.4.7.4
Process:
8.5.4.12
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IRS
form W-4 or W-4 Exempt
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IRS
Pub 919: Is My
Withholding Correct?
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Revokes
employer's withholding of federal income tax and social security
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7
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Request
tax refunds for past three years
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Citizen/IRS
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Process:
8.5.4.9
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Federal
refund letter in section 15.9.1.
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Use
IRS forms 1040X. Also
file form 4852 to
correct any W-2's that have incorrect amounts
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8
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Stop
filing 1040 tax returns or file zero returns
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Citizen
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Process:
8.5.4.13
Background:
5.8.7
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IRS
1040NR
IRS
form 4868
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File
as a nonresident alien if you file at all.
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9
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IRS
Request for Income Tax Returns to citizen
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IRS/citizen
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Response:
15.9
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IRS
CP-501
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This
letter asks for copies of income tax returns that were not filed on
previous years
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10
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Notice
of Deficiency Sent from IRS to taxpayer
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IRS/citizen
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Process:
7.6.7
Response:
15.12
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IRS
CP-515 Notice
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Notifies
taxpayer of overdue liability.
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11
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IRS
Audit/Examination request or Taxpayer Request
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IRS/citizen
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Response:
15.11.3
Questions
to ask: 15.1 (Test for
Federal Tax Professionals)
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26
U.S.C. §7123
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Test
for Federal Tax Professionals found in section 15.1
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IRS
Pub 5: Your Appeal
Rights and How to Prepare a Protest if You Don’t Agree
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Attempt
to schedule tax examination meeting.
Bring records but don’t admit having them. Tell IRS you will video or tape record the hearing and will
bring witnesses and a court reporter.
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12
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Send
List of Questions to IRS to answer prior to the examination/audit
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Citizen/IRS
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Test
for Federal Tax Professionals: 15.1
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Section
15.11.1 “Certified
Letter of 32 Questions to Send to IRS BEFORE the Audit Begins”
“Test
for Federal Tax Professionals” in section 15.1
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Tell
the IRS you won’t meet until they answer the questions.
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13
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Discovery
of evidence prior to first IRS meeting by both Citizen and IRS
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Both
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7.6.13-7.6.15
Forms:
15.15
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5
U.S.C. §552a Privacy Act
5
U.S.C. §552 Freedom of Information Act
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FOIA
forms in section 15.15.
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Both
IRS and citizen should work diligently to gather as much evidence
about what the other side knows as possible.
This will ensure that FUD (Fear, Uncertainty, and Doubt
tactics cannot be used at the bargaining table to gain advantage).
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14
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IRS
Audit/Examination
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IRS
and citizen
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IRS
tactics: 7.6.8-7.6.9
Forms
to use during: 15.11
Preparation:
15.11
Questions
to ask: 15.1
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“Test
for Federal Tax Professionals” in section 15.1
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Meeting
between IRS and citizen. Citizen
brings any records that might advantage his case and hurt the IRS.
Otherwise, he doesn't even mention he has records so they
can't be subpoenad or requested by the IRS.
Citizen should also request a referral for "Technical
Advice" if the agent disagrees with him on the "gross
income" or 26 USC Sec. 861 "source" arguments.
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15
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Citizen
request that case be referred to national office for "technical
advice"
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IRS
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7.6.11,
15.11.3
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26
CFR § 601.105(b)(5)(iii)
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Case
is referred for technical advice to the IRS district director if the
agent does any of the following at the meeting:
1.
Talk about any USC or CFR statutes that make him liable for
tax.
2.
Refuses to answer or addresses legal issues regarding the
"source" issues raised in 26 USC Sec. 861.
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16
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IRS
findings prepared on IRS Form 23C Assessment form
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IRS/citizen
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Process:
8.5.4.15-8.5.4.16
Forms:
15.11
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26
U.S.C. §6020
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IRS
Form 23C: Assessment
Certificate
IRS
Form 4340: Certificate of Assessments and Payments
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Agent
prepares a 23C assessment form based on conduct of the tax
examination. Typically,
this form has several defects that need to be objected to
vehemently, usually because it is not based on evidence or because
it is not signed. Demand
a copy of the Agent’s Delegation Order that authorizes him to
prepare this form.
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17
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Prosecution
for "willful failure to file" if taxpayer did not file
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IRS/citizen
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Background:
3.8.11
Response:
15.13.1
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26
U.S.C. 7203 Willful Failure to File
26
U.S.C. 7402(f) Jurisdiction
of federal courts
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IRS
1040 Booklet
IRS
1040NR Booklet
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This
is a scare tactic meant to intimidate citizens into forfeiting their
5th Amendment rights by incriminating themselves with a signature on
a tax return that is signed "under penalty of perjury".
Note that 26 U.S.C. §7402(f) does NOT give federal courts
jurisdiction to prosecute tax crimes!
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18
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IRS
prepares a "substitute for return" if taxpayer won't do it
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IRS/Citizen
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7.6.12
No
authority to assess: 5.6.2.
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26
U.S.C. §6020
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IRS has the NO authority to prepare a substitute for return
unless the taxpayer consents! Citizen is NOT obligated to sign any return
prepared by the Secretary of the Treasury or his delegate that he
does not agree to.
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19
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IRS
Appeal by citizen
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Citizen/IRS
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Background:
7.6.18
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IRS
form 911: Application for Taxpayer Assistance Order
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IRS
Pub 1 Your Rights as a Taxpayer
IRS
Pub 5: Appeal Rights
and How to Prepare a Protest If You Don’t Agree
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Citizen
may appeal the ruling administratively with the IRS.
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20
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IRS
issues "Notice of levy” or “Levy" on citizen's
property
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IRS/Citizen
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Response:
15.12
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26
U.S.C. §6331 Levy and Distraint
26
U.S.C. §6332 Surrender of Property Subject to Levy
26
U.S.C. §6334 Property Exempt from Levy
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IRS
form 668A: Notice of Levy
IRS
form 668B: Levy
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IRS
Pub 594 The IRS Collection Process
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IRS
does this without jurisdiction or authority on the property of the
citizen. See section
10.3 (“Federal Territorial Jurisdiction”) for details.
IRS can only legally issue the Notice of Levy
against officers, employees, or elected officials of the U.S.
Government as per 26 U.S.C. §6331(a).
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21
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IRS
notifies citizen that his administrative appeal has been disallowed.
Issues a "Notice of intent to levy" to citizen
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IRS/Citizen
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Background:
7.6.20
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IRS
Pub 5: Appeal Rights
and How to Prepare a Protest If You Don’t Agree
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The
Notice of intent to levy is not a levy and cannot be used to seize
or take assets of the taxpayers.
Some banks will illegally honor it anyway.
Make sure you tell your bank the law so they don't give away
your assets!
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22
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Citizen
requests a Collection Due Process hearing from the IRS on their tax
case
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IRS/Citizen
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Background:
7.6.17,
11.10
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IRS
Form 12153: Request for
a Collection Due Process Hearing
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IRS
Pub 594: The IRS
Collection Process
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Citizen
requests court hearing. Case
is referred to Tax Court first, unless citizen files in U.S.
District Court, for which he would probably be better off, since the
Tax Court is NOT an agency of the Judiciary branch and operates far
too informally.
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23
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IRS
rejects request for Collection Due Process hearing and forces sale
of home or auctions it off after levy/lien
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IRS/Citizen
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7.6.20-7.6.22
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Property
must be seized before it can be auctioned off.
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24
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Fiduciary
for Citizen, employer, or county recorder violates their fiduciary
duty and wrongfully turns over property of Citizen in violation of
Fifth Amendment.
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Fiduciary/IRS
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8.5.5.9
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25
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Citizen
files lawsuit against financial institution or Country Recorder or
Employer for grand theft, violation of fiduciary duty, and violation
of 26 U.S.C. §6331(a)
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Citizen/Federal
District Court
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Background:
7.6.19,
11.10.3
Process:
8.5.5
Jurisdiction:
5.6.2
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Jurisdiction:
26 U.S.C. 7402(f)
26
U.S.C. §6331(a)
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Undertake
to hold fiduciary liable for breach of fiduciary duty.
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26
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Tax
Court
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NA
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Background:
11.10.2
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Trial
at Tax Court, if citizen insists.
Note: Federal
District Court is better.
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27
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Citizen
files lawsuit against in Federal District Court
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Citizen/Federal
District Court
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Background:
7.6.19,
11.10.3
Process:
8.5.5
Jurisdiction:
5.6.2
Issues:
8.5.5.9
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