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Too Close to Home?
Two headlines. Similar stories. The first from Switzerland:
The United States authorities have offered to lift the threat of legal action against 11 Swiss banks in exchange for information, a Swiss paper reported on Sunday.
This is part of a very long story. The US Justice Department has been doing everything it can to get the names of US citizens who have Swiss bank accounts. The DOJ damn near busted UBS over this a few years back. Now they are going after the other Swiss banks. The lawyers at the DOJ don’t kid around:
“Give us the names or we’ll sue the shit out of you”.
Given what happened to UBS ($780mm in fines), the other banks have no choice but to fold and hand over the info.
This second story ratchets things up a bit and brings it home:(Link)
A federal district court judge has given the Internal Revenue Service permission to serve a “John Doe” summons on the California State Board of Equalization demanding the names of residents who transferred property to their children or grandchildren for little or no money, from 2005 to 2010.
The IRS has used John Doe summons to seek lists of American taxpayers unreported offshore accounts at Swiss Bank UBS and at HSBC’s bank in India.
These pushy techniques have worked well in Switzerland. The hard
working folks at the DOJ/IRS are now bringing them to California. This means that the IRS can look at anyone’s real estate transactions. With John Doe warrants, they can go fishing/snooping wherever they like.
Think what you will of this. The country is starved for revenue. The outfit that is charged with collecting that revenue has an army of tough-minded lawyers behind it. It will have the power to turn over stones as it pleases. In the end this effort will raise some additional revenue. It will scare the crap out of a few folks as well. Some will cheer this. I see the John Doe warrants as a big and dangerous step on a very slippery slope. It sure won’t do much for Uncle Sam’s image.
Unrelated Note:
In my forecasts for 2011 I said:
-Kim Jong-Il will die. His son will take over. The heir is a nut, there will be more military exercises that results in shells landing on S. Korea soil. China will make public statements that it is trying to bring order; behind the scenes they will be applauding the chaos.
I got the first part right. I believe I will be right on the second part too. This could get very messy. Fast.
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Their leverage is gone. Why did the Nazis honor the "neutral" status and stash their loot in Switzerland as opposed to ransacking the place? Why has every crook and tin pot dictator since kept his stash in Switzerland? Now the US is broke and they're coming to collect?
Switzerland has no leverage and they better realize this fast. Their options are very limited. Either pay out to the US and become totally irrelevant or join Europe and deal with the consequences later. Bottom line is that the US is broke and they are looking in every corner of the world for ransom.
On a personal level, I've always found the IRS to be rather helpful, especially when forking over more dough.
Then again, even Hannibal Lechter was personable when forking over another victim!
Somewhat OT but here's Wegelin's latest Investment Commentary - good stuff as always.
http://www.wegelin.ch/sites/default/files/publications/wegelin_investment_commentary_280.pdf
So you're upset that the IRS went before a Judge and got a warrant? How about the new law that was just passed that allows the military to arrest citizens, on U.S. soil, not formally charge them with a crime, hold them indefinitely without seeing a judge, and also order secret torture!? Does that bother you at all?
If I survive that, they would be feeding me 3000 calories a day. I would not survive the obesity within the year.
One way or another, add me to the tree of liberty.
Bruce - reviewed your predictions for 2011 - congrats - you did very well imo. Much better than most. Look forward to your list for 2012. Merry Christmas.
Shakedown time
I wonder if "it's not a crime if the banks do it" Bruce has as much of a problem with the banks turning your privacy inside out for a profit.
The only difference between the IRS (a thug corporation) and the fraud banks is the price.
The financial industry decimated privacy, government just follows in the wake of convenience.
The real question is, "where does government end and the banks begin or vis versa?" They are one and the same.
Both seem to be parasitic.
Hating him doesn't help.
This evil must be killed.
Because he hates freedom.
From personal experience, I can tell you the IRS has the capability to turn your life into hell, no matter whether you're at fault or not. They can pretty much do anything they like with your financial life.
I would not fuck with them.
It's much better really to simply not have any money.
Which is not a lot of protection mind you, but they might cut and run when they realize they aren't getting any more blood from your particular turnip.
You may be suprised to find how little money they will ruin your life over.
Zack Attack is very correct on this. I had two issues with the IRS. I came in a solid second both times.
These folks are like "Terminators". They never stop. They are relentless. They always prevail.
you can't complain about Big Brother and be it at the same time.
Is that because you took a chance and were wrong on a tax issue bruce? Twice...
My accounting teachers told me that the tax world is 5% black, 5% white, and 90% gray. The big boys get to run test cases through for pennies on the dollar to see treatment and/or get precedent... the little boys not so much. You're feeling around in the dark. Sometimes you find a little cash... sometimes the bogeyman.
Granted, if you have a defensible position, take it... but you better have someone else sign that return.
A Counter-Story to dealing with the IRS, even though I dispise them, from a Corporate Controller.
On income tax there hasn't been a problem. I keep it lean and clean, and have EXACTING support, by period, to supply. Our last couple of years of income tax have now been refunded which has allowed us, as a conglomerate of privately owned companies, to survive the current depression.
On other things, like the fuel tax refund...we have squabbles. First, this tax, diesel fuel, is paid in advance. We have to supply the detail of the use of fuel by type and vehicle. If we're late filing, the refund is refused. A late filing can happen simply because our companies have over three hundred vehicles, on and off road, with power take-off units on about 100 over the road vehicles and ONE accountant (me) to pull it all together while closing a period, quarter, year.
While those quarterly refunds may be denied, they can still be claimed on the 1120...it just takes a bit longer.
The REAL problems I run into deal with indivividual States that assume that entities they encounter are not registered, licensed, or remitting Sales Tax. (the most recent, today, is Arizone) Even when we've been there for decades and have been faithfully transmitting funds for Sales tax in all of our locations.
But of any, the worst, the most vile and evil, more extreme than the IRS is the Franchise Tax Board in the Great State of the California Republic. Those bastards will seize every dollar in every bank account, even if it exceeds what they believe is a tax liability...and it takes weeks to get them released after proving they have their heads up their asses.
The IRS, cunts that they are, are pussies compared to the State of California.
In the end, the problem is overzealous peters... attempting to interpret regulations even the "drafters" never tried to interpret... [even if the legislators wrote it, they're in office because they suck shit at drafting and couldn't hack it in real practice, generally speaking]. The reason they do so is because they have the threat of the gun (the long dick of the law).
If we were to say, give them strikes that would count against retirement benefits for example, then I strongly suspect frivolous cases would be weeded out in short order.
I recently had a case where we represented someone with the same name as another person with a sales tax lien... simple questions like, did you compare the social security number or birthdate of our client to that of the person with the lien just went whoosh over their heads...
Of course, I'm of the mindset that as our delevaraging inflationary nightmare continues, there will be more capable minds joining the ranks of the state just to get a paycheck... so I suspect this problem will work itself out at least partially. In the end, the best method would be to simplify the underlying regulations, but that is too practical and might put some civil servants into the real work force.
Johnny Carson told us what IRS stands for:
It
Really
Sucks!
From my personal experience this was an understatement.
If you put "the" "irs" together, you get "theirs".
IRS + Military = source of legal power for since the dawn of government.
When Russian government decides to take over your hedge fund so that one of the ex-KGB guys can run it, they just say your fund owes made up government backtaxes and because you can't pay them, government is going to take ownership of your business in lieu of the payments. YOu go see the judge just to find out the judge is also ex-KGB and part of the mafia along with police and russian IRS all headed by some Army general.
http://www.foxnews.com/story/0,2933,586581,00.html
Good article Bruce, you're on the right side of this one.
The IRS or some tax inspector has disallowed my foreign earned income tax deduction for 2010. My first letter from the IRS arrived in early November demanding a reply weeks before the letter even arrived. I wrote a detailed explanation describing how they need to look on form 2555. A week ago came the letter threatening leins on my property. On Wednesday I spent the entire afternoon on the phone with 8 different IRS agents in Philadelphia and New York. Each agent would put me on hold for 10-15 minutes and then give me a number for some other department where I would spend 15-30 minutes navigating their phone systems. Here is the result:
1. 3 of them promised I would get a call from the responible agent withing 3 working days. It is now 4 working days, still no call.
2. They are not allowed to forward a call to specific agent.
3. They will not provide email adresses, so email is impossible
4. Most of the contacts were black and clearly knew next to nothing about US taxes. They were only capable of taking my name and number and providing some other department to contact. This is where the money for the 16000 new IRS agents went. It was only about patronage/diversity/reparations.
The IRS has been consumed by the government uselessness vortex, it is like the dark forest in lord of the rings. Don't venture there if you don't posess magical powers.
Or hire a Jew CPA. I did. They fear him.
CONFED,
A bit of advice............get everything you have and hide it.Cause the reason your not getting called back is they are coming after you and your shit.
Retain a Lawyer, and have all the papers ready, or they will drag your ass to hell n back.
GUILTY UNTIL PROVEN INNOCENT.
3 of them promised I would get a call from the responsible agent withing 3 working days. It is now 4 working days, still no call.
When the HEAD of the IRS Say's he has someone else do his returns, because their too confusing, you knew your screwed.
Overstate deductions, pay a fine.....understate income, go to jail.
Like the court system, you don't want to EVER allow yourself to be exposed to an audit. Ever.
Most IRS correspondence is initated and sent by computer, no person knows your case. I am a tax lawyer and see the IRS miss, lose, and confuse things all the time. It aint easy managing a nation of taxpayers.....
You will not get a person assigned to your case until the Notice of Levy comes, then there is almost always a person and number to call - an IRS Revenue Agent, i.e. collections
You can walk into your local IRS office and take a number, wait as long as you waited on the phone, and talk to a human being. Be respectful and honest and you will get a long way with that person. They hear horror stories from angry people all day so if you are kind, gentle, but forceful with your case and show them the evidence you will come away with a smile. If the result of the meeting is not right, then ask to request a Due Process hearing and you will get another kick at the can. First and foremost, you have to control your emotions.
In my many years of dealing with the IRS, I have only come accross one Nazi type -- I have him in a case now, but even there I think he is just following higher-ups instruction.
Like every profession, some nuts, some good people, some angry people, you just have to ferret through and take the higher road.
Great advice!
But a .45 will save a shitload of time.
First, hire an attorney... that is worth a shit.
Second, tell your attorney EVERYTHING and walk him through EVERYTHING... (presume he is an idiot).
These types of things are incredibly common... the people working at the first tier are simply overwhelmed by the subject matter of the positions (you are racist, but I won't get into that). They often times do not properly scan documents or otherwise recognize your submittals... this has to do, in large part, because of the decentralized nature of claims... some are handled over here, others are handled over there... and neither hand knows what the other is doing.
In the end, it's likely more of an organization thing on their part than a conspiracy against you.
PS, ALWAYS be sure to have records of your submittals to the IRS. This means copies of the documents you send along with post office verification of shipment to the IRS and receipt by the IRS. When these disputes arise, you just tell them that they have misplaced your submittal and you send another copy along with your delivery receipt from the first time you sent it...
PS 2, YOU WILL NEVER GET ANYWHERE UNTIL YOU ARE ASSIGNED A SPECIFIC PERSON (obviously higher up) WITHIN THE I.R.S.... DO NOT WASTE YOUR TIME.
It only takes a few minutes to electronically submit a return once a year and a short 15 minute visit when necessary downtown.
I would imagine that particular inconvince and fees would not be necessary when you can enter unemployed and income zero and send the whole thing back in the mail.
Talking on the phone can only incriminate YOU!
Everything is in writing (period).
Do NOT ask them for help, get an attorney.
So... they were black and this is why they know nothing about tax?
Aside from being a racist, you're a dumbass. Do you think 'they' (being the government in case I was losing you) would staff a call centre with accountants or taxation lawyers? Seriously?
Aside from the impossibility of finding professionals to do that kind of work, the cost would give people like you something to cry about. Additionally, were they to provide you with advice and it was incorrect for your situation, you'd have grounds to sue.
First contact layer is always unskilled. If you want advice, get a lawyer.
Thunder_Downunder
No,ALL of the layers are clueless............................1st-31st.There are OVER 26,000 pages plus of rules and regs.Not ONE son of a Bitch alive knows what they all mean.
You are correct, IRS call, letter, no response, or working it out asap, LAWYER your ass up.
You are wrong, till you prove yourself correct.
It's a friggin rip off scam .I cannot guarantee you the INFORMATION I am giving you is correct is the std answer, because NO ONE knows at the IRS if it is or isn't.
Stepford Employees.
It's not a unique situation. It works the same way in most of the western world.
Taxation is strict liability, if the gov. can prove you earned an income, its taxable unless you can prove the validity of the 'deductions/exemptions' etc.
Deductions are what make it hard. But we can thank sheeple for responding positively to the various pork-barrel efforts of polies over the last 70 years. Bush-tax cuts anyone?
Taxation should be flat, with nil deductions or exemptions IMO. But it will never happen, because the people will only see what they lose, not what they gain.
The gov. department is not there to offer advice, only enact the law. I don't see why people have trouble understanding this. If you want to work the system or argue with it, you need a professional. Expecting a callcentre to do that for you and then getting angry about it is just stupid and unrealistic.
If it was me, I'd shut up and pay unless I had very very strong grounds. Asking for an audit is like stepping in front of a bus..
At least we know why he calls himself Thunder DownUnder. All of his thunder comes from his down under.
How insightful of you. It is indeed why I chose that handle, I can't deny a juvenile sense of humor. Any Australians reading it would almost certainly know it refers to a fart.
I'm sure everyone here appreciated your contribution future tense mixing bowl.
Maybe 20 years ago I was astonished to learn that 22.8% ( I remembered the number because of my astonishment) of IRS employees are black. Black over representation in federal employment is not a new thing ( see the Post Office) but, given the nature of the IRS's work it did give me pause. Sort of like learning the Nuclear Regulatory Agency or NASA engineers were 20% black when they make up maybe 2 or 3 percent of nuclear and aeronautical engineers if that.
That's weird, the IRS holding your life hostage?!
THIS IS A FUCKING DEMOCRACY!?
It was never a Democracy. It used to be a Democratic Republic.
True dat Tricky ;-)
For ConfederateH
The only advice I can give (and I alot of good advice below...legal eagle being one) is remember you are dealing with a bureaucracy. One department or person will not have a clue that another is also dealing with you. My point is, you will get conflicting guidance from them (or other correspondence) stating things that you thought were already resolved one way or another are not.
Its like a time warp...lol.
If the amounts in dispute are small and you can stand some sick humor with compounding interest & penalties for your trouble, have fun with them. If the amount is large you need representation if you can afford it.
Someone I know is going through it too. A small business type but used to be a AVP and is completely fearless and antagonistic with them ;-)
Good luck.
Yeah, we got to read between the lines on this one. This isn't about mere "US citizens" than it is finding out which corrupt bankers, politicians, statesment (past and present) and pubic figures are involved with the disbursement of illegal monies in overseas, hidden banking institutions. Why? Exposures. Why? Cause they are going to be arrested and indichted next year, it will make Watergate look like a picnic.
Think about, why go after the 99% with quadruple the effort and a fraction of the prize vs. going after the 1% with a 1/5th the work and "thousands of times" the prize? Think outside the box, people.
Pleae read parts I & II:
http://www.divinecosmos.com/start-here/davids-blog/995-lawsuit-end-tyran...
A copy of the suit is aval at Pacer or I can post it.
....um, where is ZH on this?? Tyler???
wake me up when someone lands their ass in jail over it.
"A copy of the suit is aval at Pacer or I can post it."
Post it at the bottom...I for one would like to read it.
I found that the original link was no longer accessible. DoS attack or just too much traffic, I don't know.
For all here I mirrored it on my own site http://www.orchidpark.net/trillion_dollar_lawsuit/Keenan_complaint_11-23-2011_SDNY.pdf
Most certainly a fascinating tale, some parts of which I was already aware of trough different sources. The think the origin of the smuggled 134B bonds confiscated in Italy is credible. That Berlusconi tried to put his hands on it, hilarious. Plus a great cast of shady characters..
... "a great cast of shady characters.."
This whole story is an entertaining read that I would love to believe, but the shady characters involved are a bit much aren't they.
This CHODOIN DAIKAKU is straight out of a Mexican wrestling circus. For being such a "famous" person, there ain't jack shit on the internet about him before this year.
I dunno - seems like more knuckled headed, way too detailed conspiracy stuff like that lawsuit about the Dragon Family. Interesting read yes - true? Dunno. My guess: the ramblings of a psycho.