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Assertion: The IRS comes back to "reclaim" CtC-educated refunds FALSE. ONE OF THE PERNICIOUS FICTIONS persistently promoted by the "ignorance tax" crowd is that CtC-educated victories are the result of some kind of glitch in the tax-agency's systems-- that they have all "slipped through the cracks", and are just a series of remarkably widespread and sustained mistakes that'll get straightened-out in due course.
If so, it would be a pretty big and long-lasting "crack"... This lie is cleverly used in an effort to defuse the impact of the many-years-and-counting river of never-before-seen-in-history accomplishments of the CtC community since 2003, and to plant anxieties in the minds of those unfortunate few in the community who are subjected to special discouragement efforts either before or after securing their victories. However, the fact is that every one of the hundreds of thousands of refunds made to CtC-educated claimants goes through specific, special scrutiny by the IRS before the checks and notices are issued. After all, the IRS is not some uniquely naive entity that just sends out checks because someone asks for them! What a ridiculous thing to suggest! Contrary to self-serving myths promoted by the IRS and its fellow-travelers to keep you from grasping the evidentiary significance of CtC-educated victories, all filings claiming refunds (not just CtC-educated filings) are challenged by default. As the Taxpayer Advocate Service of the Department of the Treasury describes it in its 2013 Annual Report to Congress: The return integrity process is complex and multifaceted. A tax return must travel a long path with many potential roadblocks before the IRS accepts it as filed. The main goal of IVO is to stop fraudulent refunds before they are issued by identifying potentially false returns, usually through wages or withholding reported on the returns. The IRS does this primarily with the Electronic Fraud Detection System, which was built in the 1990s. EFDS runs all individual tax returns through various filters to identify characteristics that may indicate a high risk of fraud. See the report here. In particular, ALL CtC-educated filings have ALWAYS been scrutinized, both by the EFDS and the "Questionable Refund Program", not to mention every IRS employee who sees them, before the returns have been processed and the refunds have been issued. The vast majority of such filings show and claim a refund of withholdings-- ALL withholdings-- while showing no "income" at all, and many are even accompanied by detailed explanations of exactly what is being expressed with the return (see, for instance, this, this and this). The simple, glaringly-evidentiary fact is that every check and credit issued by the United States in response to a CtC-educated claim has passed through the gauntlet and been approved. There is much more than just a policy statement to demonstrate the vetting, by the way. The scrutiny is especially manifest in the scores of special victories posted on the Victories Highlights page and in the 'Every Which Way But Loose' series. Click on those links and look at those fully-documented cases closely. Having studied those special cases, think clearly and recognize: NOT ONE OF THESE EPISODES-- WHICH CONTINUE TO THIS DAY-- WOULD HAVE EVER HAPPENED IF THE NONSENSE THAT "THESE ARE JUST SLIPPING THROUGH THE CRACKS-- THE IRS'LL FIX THESE MISTAKES WHEN THEY NOTICE THEM" WERE TRUE. The IRS notices the hell out of these filings, and ends up honoring them. Unfortunately, some folks let themselves get flustered by hearing about scary "threat letters and notices" and imagine what clearly isn't true. Some of these flustered folks even give in to their fear and do something to reverse or compromise their educated filings, or fail to properly respond to agency hoaxes. Then they actually DO suffer some after-filing adverse consequence. Some folks, whether flustered or not, mistake agency actions actually based on things they did (or didn't do) in the past as being based on their educated filings and make missteps in response. Worse, their actions having been taken because they believed the government could do something (even though it couldn't), some of these victimized folks of both kinds then become loud voices supporting the false assertions about all this, and presenting their own cases as proof! The IRS has cultivated a scary reputation precisely for this purpose of generating mistakes and scary rumors of these kinds. It relies on those it hopes to snow into self-inflicted wounds not thinking clearly and thereby falling prey to its nonsense.
"The Tax Code represents the genius of legal fiction... The IRS has never really known why people pay the income tax... The IRS encourages voluntary compliance, through FEAR." -Jack Warren Wade Jr., former IRS officer in charge of the Nationwide Revenue Officer Training Program, in his book ‘When You Owe The IRS’ Remember, people, "fear is the mind-killer". Keep your mind alive, and your thinking-cap on. IN FACT, WHEN MY WIFE, DOREEN was being sentenced for contempt of court for refusing to change her returns as ordered by a corrupt court on the request of the same DOJ responsible for all the bs being discussed in this collection, the DOJ attorneys prosecuting her case made a telling admission about the "they'll-just-come-back-and-get-you" nonsense. Likely blind to the larger implications and simply focused on doing their best to smear Doreen, these attorneys admitted that contrary to this endlessly-flogged eyewash from the "suppress CtC" troll community, there are practically no CtC-educated filers with victories posted at losthorizons.com who are targets of any adverse government attention, whether to reverse their refunds or otherwise. The government wanted badly to tar Doreen by associating her with "tax scofflaws", and it did the best it could. What was its best? To declare that its records show that all of 25 people whose victories are posted on losthorizons.com are being targeted by some kind of IRS attention. Yes, that's right, not 2,500, not 250, but 25, from a total posted list of 1,200 victories (at that time), themselves just a sampling of the hundreds of thousands overall. Trying to use the petition condemning the lawlessness of Doreen's persecution and calling for her exoneration against her by suggesting she was supported by ne'er-do-wells and criminals who needed a good drubbing of Doreen to set the fear of the State in their hearts, the prosecutors said this: "As we point out in our Sentencing Memorandum, the people who signed that petition and who are the followers of the outcome of this case are exactly the kind of people who need to be deterred from violating the tax laws. The public records show that more than 120 of them are in some kind of tax trouble already. Typically in the State and local records they are subject to Federal or State tax liens. At least 25 of these individuals have documents posted on the Lost Horizons website as an example of these so-called victories of rule of law." See the transcript page here. The tool making these declarations goes on to say, "These are people that have actually obtained fraudulent refunds based on the scheme promoted by the Defendant." But this is purely gratuitous rhetoric intended to mislead and prejudice the judge to whom these remarks were directed. No one has ever been accused of fraud in regard to a proper CtC-educated filing-- not even Doreen herself, or me, for that matter. Further, the fellow's own prior statement about these folks simply being subject to tax liens belies this hyperbolic assertion. People believed by the government to have obtained fraudulent refunds don't just have liens filed against them; and frankly, even liens mean nothing. Liens are routinely filed as a purely bureaucratic exercise without the slightest evidence behind them-- or even so much as a signature-- just on the basis of some as-yet-unproven, and possibly entirely-spurious allegation of a tax deficiency. SO, THE BEST THE GOVERNMENT COULD DO in trying to smear Doreen by pointing at people with a CtC-association who it claims are in trouble with the government is a measly 25 folks with victories posted (out of 1,200 such posted victories, many of which are many years old). And the worst it can say is that these folks have perhaps as much as a tax lien filed against them... But even that measly 25 doesn't mean what it is meant to be mistaken for by this DOJ hack. Rather, it means the opposite when subjected to a moment's thought. That moment's thought reveals that the problems (such as they may be) of every one of even that measly 25 are actually just holdover problems from past bad practices engaged-in before the discovery of CtC (which unfortunately cannot rectify EVERY consequence of past bad practices). Or they are purely contrived harassments targeting particular individuals for particular reasons having nothing to do with their educated filings themselves. Think about it. Obviously, if those problems were simply a consequence of CtC-educated practices, the number of folks to which the government could and would refer would be something a whole lot closer to 1,200 at least, if not thousands and thousands! Had this government hack been able to say ANYTHING adverse about more than this special handful of 25 victors, he surely would have done so. But he could not, because there IS nothing. NEXT TIME YOU HEAR FROM THE TROLL COMMUNITY that everybody acting on a CtC education is bound for misery and comeuppance and an eventual reversal of his or her victory, tell them to crawl back into the darkness. A swift kick to help them on their way might not be out of line, either. *** Here's something else to think about in regard to the myth about "the IRS coming back to "reclaim" CtC-educated refunds": All scary bluster and bs by the agency notwithstanding, the statutes say that the government's mechanism for "reclaiming" a refund is a suit under 26 USC § 7405. That's the provision under which the United States is authorized to attempt to recover what it alleges to have been an erroneously-made refund, even one it alleges to have been induced by fraud or misrepresentation of material fact.
With one telling exception (which is NOT really an exception, as will be discussed elsewhere in this collection), this never happens in regard to CtC-educated refunds. |
