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March 9, 2005
IRS: Gut Schulz v IRS

DOJ: Court's Opinion Threatens Tax System

Schulz Responds


On March 1st, IRS and DOJ filed a motion with the Second Circuit Court of Appeals asking the Court to amend its January ruling in Schulz v IRS (Case No. 04-0196).

Today, Bob Schulz mailed to the Court in Manhattan his brief opposing that motion.

The government's motion is evidence that IRS is obviously upset with the Court's opinion that held that the recipient of an IRS administrative summons "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."

In Schulz, the Court also held that "IRS Summonses apply no force to taxpayers, and no consequences can befall a taxpayer who refuses or ignores, or otherwise does not comply with an IRS summons until that summons is backed by a federal court order."

Clearly troubled by the potential implications of the Schulz decision, the DOJ engaged their "top guns" from the Attorney General's office in DC to request that the Court of Appeals gut its decision in Schulz, which clearly binds IRS to the due process requirements of the Constitution, limiting IRS's ability to use force against tax payers absent a court order. The IRS obviously sees its ability to acquire personal and private property, on demand, as being constrained.

 

 


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