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by thelogos 4251 days ago
This has been the case for a long time. The IRS works on a guilty-until-proven-innocent basis. Take the case of collectible gain tax, if you do not have evidence to prove the value of the item on the date it was acquired, then the IRS calculates the tax based on the total value of the item, not just the profit. So if you buy something that might increased in value at a later date, you better keep the receipt.

And of course, anytime the government freezes your asset and property, it takes a tremendous amount of time and effort to get it back. Meanwhile, you won't have any means to hire a good lawyer.

2 comments

Keep in mind, this is the only government entity who spent millions of dollars to figure out how to continue to collect taxes in the event of a nuclear war and the collapse of society.

Great book if you want to get really scared about how much power the IRS actually has: http://www.amazon.com/Law-Unto-Itself-Abuse-Power/dp/0679732...?

I wonder whatever happened to the "kinder gentler" IRS we were supposed to get with the Restructuring and Reform Act of 1998?

Just in case you're lazy: http://en.wikipedia.org/wiki/Internal_Revenue_Service_Restru...

> this is the only government entity who spent millions of dollars to figure out how to continue to collect taxes in the event of a nuclear war

There is an odd implication to that statement, that you apparently believe multiple government agencies should have developed such plans.

I read it the other way around, that other governments wouldn't do something so ridiculous.
And if you do have the means to hire a lawyer they would likely require you to travel to Virginia and pick a lawyer from their list of lawyers approved to represent people in that specific district.

Our justice system is a complete joke, I wonder if it's always been this way or if it's just common knowledge now that every indiscretion is publicized on the internet.

Basically, once your asset has been frozen, the game is nearly over. Even without any charge being pressed, it takes years to get back the seized asset/property, if it's given back at all, that is.

If you were charge with a crime and this gets dismissed later for whatever reason, things get even tougher.

Additionally, if you even get arrested, you won't have any money for bond (a good time to call up the rich relatives), and you could be in jail for a long time.

And if you do have the means to hire a lawyer they would likely require you to travel to Virginia and pick a lawyer from their list of lawyers approved to represent people in that specific district.

Completely false. You can hire any lawyer you want, wherever you want in the US. And you can force the IRS to litigate in the federal district court of your choice.

Practice before a federal court merely requires admission to practice in any state court.

That's not what happened with Ladar Levison (the Lavabit case). He couldn't use his lawyer, he had to find a new one in that particular district in Virginia.

So I know for a fact the last half of your statement is not true, although it might apply to cases that aren't related to certain government agencies.