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IRS ABUSE ― Criminal

IRS Guilty of Fraud

f you ever had any doubts concerning the morally depraved and illegal activities of some IRS employees, the U.S. Court of Appeals case Dixon v. U.S. [91 AFTR 2d 2003-569 (9th Cir. 2003)] filed January 17, 2003, should strike fear in your heart.  The U.S. Court of Appeals remanded this case twice and finally, on the taxpayer's fourth appeal, the U.S. Court of Appeals decided to reverse the U.S. Tax Court's decision based on intentional acts of fraud, perjury, witness tampering, secret IRS payoffs, and secret IRS deals that favored some taxpayers and damaged others. All of these acts were perpetrated by corrupt IRS attorneys.

Even more reprehensible is the fact the top brass at IRS awarded the corrupt attorneys large monetary bonuses for their efforts to win this case at all costs.  If this had happened in the private sector, the above acts would have been referred to as payoffs or bribes.

The Dixon case is quite long, but I have listed a few excerpts for you to get a feel for the scathing decision handed down by the U.S. Court of Appeals.

  1. Counsel for the IRS committed intentional fraud on the court.

  2. IRS counsel entered into secret agreements with certain taxpayers in exchange for false testimony and cooperation in the government's case.

  3. IRS attorneys corrupted the adversarial nature of the proceeding, the integrity of the witnesses, and the ability of the court to judge with impartiality.

  4. IRS attorneys violated the rights of taxpayers who agreed to be bound by the U.S. Tax Court decision.

  5. Factual findings of the U.S. Tax Court support the conclusion that fraud plainly designed to corrupt the legitimacy of the truth-seeking process was perpetrated on the trial court by IRS attorneys McWade and Sims.

  6. There can be no questions here ― the actions of IRS attorneys McWade and Sims amounted to fraud on both the taxpayers and the U.S. Tax Court.  The proceeding (in U.S. Tax Court) was a charade fraught with concealed motives, hidden payments, and false testimony.

The Appeals Court ordered sanctions against the U.S. Tax Court and the IRS attorneys.  Get this ― IRS attorneys McWade and Sims were suspended for two weeks without pay and transferred to another district.  McWade took early retirement and kept his cash bonus.  Sims returned his cash bonus, but continues to work (administrative duties only!) for the IRS Regional Counsel's Office in San Francisco.

Now stop for a moment: what fines, penalties and jail time would you and your attorney receive for the same type of illegal behavior?  I guarantee ― you and/or your attorney would be serving a sentence of 3 - 5 years in a federal penitentiary!

The Dixon case offers important insight into the day-to-day operations at the IRS.  Every office has a secret cadre of employees and managers that know "what is best for the IRS" and they develop their own vigilante style of enforcement.  That is, they have no qualms about bending, breaking or distorting the law ― to accomplish in their view "the real mission of the IRS."

This case is a real eye-opener for the American public and I am sure this is why the IRS attorneys in collusion with their friends at the U.S. Tax Court fought so hard to beat down the taxpayers so many times ― hoping always that the taxpayers would take their licking and go home.  To classify this case as repugnant is an understatement indeed!  But it clearly demonstrates the widespread abuse secretly condoned at almost every IRS office nationwide.

Now let's talk about how the IRS cabal (secret cadre) takes care of their own.  The Treasury Inspector General for Tax Administration is charged with the responsibility of investigating and recommending for prosecution any IRS employee that participates in any illegal activity involving fraud, waste, abuse, etc.  Where is the Inspector General for this case?  Why has there not been a housecleaning of corrupt IRS employees in the Regional Counsel's office?  How can these criminals (officers of the court) continue to practice law and continue to work for the IRS?  The answer: the cabal is alive and well, and as demonstrated by this court case the secret web of vigilantes runs from the lowest post of duty to the highest IRS offices in Washington, D.C.

The costs associated with said crimes of the Internal Revenue Service and its corrupt employees involved two court systems, four appeals, thousands of wasted hours for the taxpayers and the government, and unbelievable legal fees to represent the taxpayers in four courts.  Yet the total cost to the career IRS employees that committed these crimes was nothing more than two weeks pay and a transfer ― not a real deterrent for future activities of the cabal.

The IRS is unlike any other bureaucracy.  It is a living, breathing juggernaut run by men and women who have unlimited resources and unlimited power over most American citizens.  If you remember only one thing after leaving this web site, I want you to remember this ― IRS employees represent the government; they do not represent you, the taxpayer.  If you have an IRS problem, make sure you hire someone that deals with the IRS every day and is willing to fight for your rights every step of the way.


The more things change, the more they remain the same.