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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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