The U.S. Supreme
Court said in Thatcher v. Powell, 19 U.S. (6
Wheat.) 119 (1821) that no public officer can take
any action affecting your property “…unless authorized
so to do by express law, …and that the person invested
with such a power, must pursue with precision the
course prescribed by law, or his act is invalid…”
The United States
Congressmen and Senators got tired of having their
constituents come to their offices with complaints
about the IRS. To get some relief they passed laws
that embodied the principles enunciated in Thatcher
v. Powell and those laws are in the United States
Code at 26 U.S.C. § 7433:
a) In general
If, in connection with any collection of Federal
tax with respect to a taxpayer, any officer or employee
of the Internal Revenue Service recklessly or
intentionally, or by reason of negligence, disregards
any provision of this title, or any regulation promulgated
under this title, such taxpayer may bring a
civil action for damages against the United States
in a district court of the United States. Except
as provided in section 7432, such civil action shall
be the exclusive remedy for recovering damages resulting
from such actions.
(d)(1) of that section before you can bring suit you
must have, “…exhausted the administrative remedies
available to such plaintiff within the Internal Revenue
Service.” 26 C.F.R. 301.7433-1(e) describes how to
exhaust administrative remedies within the IRS:
claim for the lesser of $1,000,000 ($100,000 in
the case of negligence) or actual, direct economic
damages as defined in paragraph (b) of this section
shall be sent in writing to the Area Director,
Attn: Compliance Technical Support Manager of
the area in which the taxpayer currently resides.
A court listed
in its decision what must be included in
of sending the above mentioned “administrative claim,”
which I call a notice of intent to sue, is illustrated
in my recent research done to upgrade this package.
In my most recent research I found 47 district court
and appellate cases that mentioned 26 U.S.C. §
7433. Of those, 22 were dismissed for failure of the
plaintiff to obtain a waiver of sovereign immunity
by sending in an “administrative claim.” Of the remaining
25 cases all but two were references to 26 U.S.C.
§ 7433 that were made by the court in passing.
This caused me to conclude that the Compliance Technical
Support Manager is doing something for those who send
competent “administrative claims” that is keeping
them from suing; i.e. releasing the levies.
If you have listened to the conference call above,
or read the call transcript you already know that
I think the Compliance Technical Support Manager’s
job is to look those letters over and do what it takes
to prevent a lawsuit. Based on the results, if you
write an effective letter, I believe that this guy
has the authority to call off the dogs! I am of the
opinion that this will not work unless your letter
sounds credible. The only way to do that is to sit
and read all of the cases, statutes, sample letters
and regs. This package is designed to make it easy
for you to do that. It is important that each person
do their research and make their letter sound as credible
as possible because when the letter reaches Compliance
Technical Support Manager in the Area Director's office
he is already going to know which arguments are valid
and which ones are not. The Compliance Technical Support
Manager is not going to take action in your favor
unless your letter is credible. This is the reason
I keep checking the case law and try to stay current.
He is going to know what the courts have done most
recently and so should we. If your letter contains
arguments that are not valid you letter will not be
credible nor will it be effective. I think if your
letter is good enough the Compliance Technical Support
Manager can tell the IRS agent that is chasing you,
‘If you don’t leave this one alone, we are going to
get sued.’ Two of my friends got their levies off
using this process by just sending the letter!
Some of the people
that read this will ask, ‘Will it work?’ I think you
should probably be asking, ‘Can I make it work with
just a letter, or, will I have to sue?” As I was reviewing
the case law I came across the following collateral
wins that came after a suit was filed:
received a refund of all the money collected, and
the remaining tax liability was abated. Shaw
v. U.S., Fifth Circuit.
dismissed the criminal action against the plaintiff.
Fishburn v. Brown, Sixth Circuit, 1997.
The IRS returned
a seized Cadillac. Washington v. U.S., Ninth
of the defendant’s (IRS/US) calculation of the plaintiff’s
tax liability was resolved in the plaintiff’s favor
in tax court. Templeman v. U.S., First Circuit,
levied funds were returned. Raymond v. U.S.,
Sixth Circuit, 1993.
conceded that an assessment was erroneous and released
its liens. Miller v. U.S. (N.D. Cal. 1992).
provided the forms during the litigation that they
had previously refused to. Ball v. U.S.,
No. 94-2125 (7th Cir. 1995).
If you choose to
file suit and go about it right you can even win damages.
In the 5th Circuit case of Gandy Nursery v. U.S.
a jury awarded Gandy Nursery $388,500 in damages.
The district court also awarded Gandy Nursery $317,738.50
in costs and attorney's fees and ordered that the
Government pay post-judgment interest on the $16,800
awarded Gandy Nursery for the Government's negligent
failure to release certain liens.
To me, that is
just amazing to find any published decisions that
go against the IRS because typically they do not publish
So, it is time
to start looking around for the provisions of Title
26, or the regulations promulgated under Title 26
that the IRS has recklessly or intentionally, or by
reason of negligence, disregarded. I offer a package
that will make it easier and cheaper for you to pursue
this process to stop a levy against.
The package I am offering here
IS NOT THE ARGUMENTS;
it is the delivery system. How well this works
for YOU will be determined by what kind of
arguments you have it deliver for you.
HELP YOU EFFECTIVELY DELIVER YOUR ARGUMENTS THIS
- 106 cases about
26 U.S.C. § 7433 (Why
- A copy of the
statute 26 U.S.C. § 7433
- A copy of the
regulation 26 C.F.R. 301.7433-1
- 2 sample “administrative
claim” letters that won
- The Area Director
Addresses to send your letter to
for use of the package.