The IRS Claims New Patriot Act Type Powers to Punish Political Dissenters

December 16, 2003

The IRS, through the small office of "Director of Practice," claims the authority to wield carte blanche authority over all the other powers of government -- the authority to monitor, surveil, and eavesdrop on political dissenters, the authority to pry into the private financial records of banks, businesses, and taxpayers, the authority to conduct secret investigations under a criminal grand jury, and the authority to censure political dissenters by branding on them a badge of infamy and stripping them of governmentally-protected licenses. In short, under the guise of a "practice" investigation, the IRS claims the right to wield all intrusive and invasive powers of government available.

A "license" to practice before the IRS -- even for people who have never requested such a license or actually practiced before the IRS, but are given one as a matter of law if they are accountants -- "licenses" the IRS to conduct private audits without notice to the taxpayer, confer with criminal prosecutors without disclosure, and bring special "disbarment" proceedings against disfavored dissenters, even if the alleged "disreputable" conduct has nothing to do with any "practice" before the IRS.

The IRS now claims it can use these so-called "practice" investigations of anyone who Congress licenses to practice before the IRS -- regardless of whether they actually practice before the IRS -- to surveil the public appearances of dissenters, eavesdrop on the political conversations of dissenters, benefit from secret grand jury investigations, hold secret conferences with the criminal investigators, surreptitiously tap the private database of taxpayer information, including taxpayers who merely have some financial "connection" to the accused, audit the political dissenter's personal financial records, and use all this information against the dissenter in the "practice" proceeding.

Under the guise of a "practice" investigation, the IRS can ignore all the normal procedural protections against an illicit audit while it conducts such an audit. Simultaneously, the IRS can ignore all the legal protections afforded a person accused of a crime while conferencing with the people conducting a criminal investigation. Indeed, the IRS can even ignore the sunshine laws, as the records of such "practice investigation" are exempt from disclosure under the Freedom of Information Act, as are grand jury proceedings.

The IRS claims it can exercise this authority in a secret proceeding without allowing a person the opportunity to cure any alleged mistakes, the opportunity to prepare a defense by knowing the exact facts they are accused of, without any opportunity for discovery, without any opportunity to call witnesses necessary for their defense, without any opportunity to cross examine their accusers, without any opportunity to testify at their own hearing about the merits of their position, without being forced to testify against themselves without such an assertion being held against them, and without even an opportunity for a hearing on the evidence.

This power of this little office with a Napoleonic vision goes even beyond the Patriot Act type authority and stories of FBI monitoring of war protesters.

Too Hoover-ish to be true in modern America? Just read the case of the IRS against Joe Banister scheduled for a "hearing" -- a hearing where the IRS prohibited Banister from introducing any witnesses or presenting any evidence as to his defenses, and even discussing the sincerity, the truth or the "reasonableness" of his positions -- on December 1 in the city by the bay, in the Tax Court chambers of the federal courthouse in San Francisco. History is being made.

Robert R. Raymond