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Date: Fri, 14 Nov 1997 06:17:00 -0800
To: (Recipient list suppressed)
From: Paul Andrew Mitchell [address in tool bar]
Subject: SLS: What the IRS can Seize (fwd)

>                 What Is IRS Allowed to Seize?
>                     by Scott Huckleberry
>Government tax administrators routinely exceed their authority to seize 
>property. The Internal Revenue Code specifically outlines WHO is authorized 
>to seize property, WHAT property is actually subject to seizure, and HOW to 
>proceed with a seizure.
>Section 7321 if the IR Code describes what property the IRS is authorized to 
>seize. It States:
>     Any property subject to forfeiture ... may be seized by the secretary.
>Note that the authorization is limited, and applies only to the property 
>subject to forfeiture. Now isn't that interesting! The reader should 
>immediately ask the question: what property is subject to forfeiture, and 
>what property is not?
>Sections 7301 through 7304 of the IR Code will answer this question. It 
>places limitations on the IRS by authorizing the seizure of certain specific 
>items only. The "property subject to forfeiture" is limited to articles such 
>as those that are subject to the tax on alcohol, tobacco, and firearms, the 
>raw materials and equipment used to manufacture them, packaging materials, 
>and vehicles used to transport them. The few other articles include 
>counterfeit stamps, fraudulent bonds, fraudulent permits, etc. You should 
>immediately notice that in each case the only things subject to forfeiture 
>are related to items on which an excise tax is imposed. The IRS is NOT 
>IR Code Section 7608(b)(1) and 7608(2)(C), respectively state:
>     Any criminal investigator...is, in the performance of his duties, 
>authorized to perform the functions described in paragraph (2)."
>Paragraph (2)(C):
>     to make seizures of property subject to forfeiture under the internal 
>revenue laws.
>Again, notice the limitation. Then, IR Code Section 6335(a) states:
>     ...after seizure of [that] property, notice in writing shall be given 
>... to the owner of the property ...
>The notice is sent after the seizure but interestingly enough, IR Code 
>Section 6502(b) states that:
>     The date on which a levy on property or the rights to property is made 
>shall be the date on which the notice of seizure ... is given."
>According to law, levy can be made only when the property to be levied on is 
>possessed by the U.S. Government, such as unpaid wages and salaries of U.S. 
>employees (6331(a)) or property that has been seized (6502(b)). IRS 
>personnel intentionally deceive financial institutions and employers into 
>thinking that levies have been made when no seizures have taken place. Since 
>the IRS cannot lawfully seize property to force payment of income tax 
>(because it is a voluntary tax), what can they do to enforce payment of an 
>If the IRS claims that an income tax is owed, thus creating a tax lien, IR 
>Code Section 7403 provides that the IRS may initiate a civil action in a 
>U.S. District court to enforce the lien by obtaining a money judgement 
>against the delinquent "taxpayer". Enforcement of any judgement would be 
>executed by law enforcement personnel such as a sheriff or his deputies, not 
>IRS personnel. Under no circumstances does the IRS have any authority to 
>seize any property for any income tax claim! Except for taxable subject to 
>forfeiture for non payment of the the U.S. excise tax, the attachments and 
>seizures of property for enforcement of money judgements from court of law 
>are governed by state law, not the U.S. Code.
>Many individuals have received correspondence from IRS agents that appear to 
>be liens or judgements. Don't be confused by these documents. No "piece of 
>paper" from an administrator can adjudicate the ultimate rights of all 
>parties concerned. That agent may send you a document with a formidable 
>title such as "lien and judgement", but remember that titles have no legal 
>effect. Ask yourself; lien against what?; judgement by whom? Those 
>determinations can only be made by a court of law, not some revenue officer 
>or collection agent.
>The presumption of liability, and the ensuing assessment by a revenue 
>officer is only a quasi judicial conclusion. That fancy term describes an 
>action by a public administrative officer who has drawn a conclusion upon 
>which to base future action. The conclusion however, has no force of law 
>because it did not come from a court of law. If the revenue officer wants to 
>legally compel you to pay an income tax, he must take you into a court of 
>law and sue you. Action such as this is not only time consuming and costly, 
>but quite often ineffective against the individual who is aware of his 
>constitutional rights and the applicable laws. Revenue agents know they have 
>no authority to make an individual liable for income tax and they can not 
>make anyone pay a tax. They can however, trick you into volunteering!
>Administrative officers generally trick individuals into giving them the 
>jurisdiction. They do this by requesting that you give them information. If 
>you're informed enough to know they have no authority, and you ask them to 
>show you the alleged authority they are relying on to ask for the 
>information, they will either misapply a section of the code to deceive you, 
>or they will ignore your question altogether.
>If they strike out with their request for information, their second option 
>may be to direct you to appeal to a "tax court". This is where many 
>individuals are fooled. A tax court you see, is not a court of law. The fact 
>that the "United States Tax Court" is merely a tax appeal board, is stated 
>in the footnotes of IR Code Section 7441, which states:
>     The Board of Tax Appeals shall be continued as an independent agency in 
>the Executive Branch of the Government, and shall be known as the Tax Court.
>The name was changed to deceive the public and cause them to think it was 
>part of the judicial branch of government, when in fact it was not.
>It has no more authority to compel payment of a tax than an administrative 
>officer, but just as you can acknowledge his authority by voluntarily 
>submitting information, you can also acknowledge the authority of the "Tax 
>Court" by making an appeal to it. When you appeal to this so-called "court", 
>you are giving it permission to make any decision it wants. You are 
>"authorizing" it to adjudicate. You are giving it authority over you that it 
>otherwise would not have. By appealing to it, you are voluntarily admitting 
>(by implication) that an underlying liability already exists. Then the 
>administrative body can end up with the administrative ruling that it wanted 
>in the first place.
>Even then, they could not force you to pay anything, and they would not have 
>authority to seize anything, but ... with such a ruling, based upon your 
>voluntary compliance, the tax administrators could move the action into a 
>real court of law. Don't make the mistake of voluntarily giving them that 
>If you know you're not liable for income tax, and you fully understand the 
>process of deception that state and federal governments use to trick you 
>into voluntarily giving up your rights, you will neither submit information, 
>nor appeal to a so-called "tax court". If you've managed to get this far 
>then you're to be commended for your knowledge, dedication, and guts, but 
>the best is yet to come.
>The tax administrator, realizing that because of your knowledge you are now 
>a threat to "the system", may actually try something blatantly illegal. A 
>recent case in Maryland serves as a good example. After making exorbitant 
>income tax claims against an individual citizen and issuing the customary 
>demands for payment of those exorbitant claims, the agents of the tax 
>collector recorded one of their administrative lien forms in the record 
>office of the county. The form which is merely signed by an employee of the 
>tax department with no certification of its accuracy, is recorded to give 
>public notice that there is a tax claim against the individual for the 
>stated amount. The recorded forms bear the deceptive type-written title, 
>"LIEN AND JUDGEMENT FOR UNPAID TAX", despite the fact that there has never 
>been any judgement from any court of law. There was never any hearing in any 
>court nor were there any papers served or suit filed against the citizen.
>When the individual did not volunteer to pay the exorbitant tax claim, the 
>tax collector's attorney petitioned the circuit court of the county to issue 
>an order for sale of the individual's property. The Clerk of that court then 
>issued a "writ of execution" to the county sheriff directing him to attach 
>and sell the individual's house. Clerks obviously, can not render judgements 
>either. The writ contained the phrase:
>     You are hereby directed to levy upon the property of the judgement 
>debtor to satisfy a money judgement.
>A judgement debtor is one who owes an unpaid money judgement. Needless to 
>say, no money judgement had ever been made by any court of law. Black's law 
>dictionary defines a money judgement as a final order, decree, or judgement 
>of a court, in which a defendant (one who has the opportunity to face his 
>accusers and defend his/herself) is "required" to pay a sum of money, as 
>opposed to a decree, or judgement of equity, in which the court orders some 
>other type of relief.
>In order for due process to occur, a suit must be filed, the defendant must 
>be served, given time to prepare a defense, examine any evidence against 
>him, and be given the opportunity for a hearing. Only then can a final 
>judgement, in the form of a "money judgement", be made against him.
>The dedicated individual in Maryland confronted the clerk and the sheriff 
>with the fact that there was no money judgement and challenged the validity 
>of the Writ of Execution. In the hearing on this challenge, the judge agreed 
>with the individual and told the attorney for the state that there was no 
>way he could sell the individual's property without a "money judgement", 
>and, that the document bearing the printed title: "Notice of Lien and 
>Judgement", that the comptroller recorded had no force of law to compel sale 
>of property.
>The judge however, proceeded to put on quite a show on behalf of the 
>Comptroller by attempting to undermine the confidence of the individual. He 
>made reference to the fact that he would not "set aside the lien", (the 
>administrative claim) which he was not even asked to do since it was 
>irrelevant, and in a major attempt to deceive the individual he stated:
>     I will order the sale of the property.
>To understand the legal trickery behind this statement one has only to ask 
>the question: when will you order it to be sold? The judge knowingly used 
>future tense. He did not say "I hereby order" or "I am ordering". He said "I 
>will order" which means that at some time in the future he may order, or he 
>may not, depending on whether that issue is ever brought before him. The 
>judge knew full well the effect that such a statement was intended to have 
>on the individual. It was a veiled threat designed to scare him into paying 
>up voluntarily, or else.
>In the case of this individual, their scheme didn't work. The auction was 
>called off by the state just 2 hours prior to when the sale was to take 
>place. Needless to say the judge wouldn't dare to order a sale of the 
>citizen's property when there was no money judgement of which to base a 
>sale. You can see the lengths to which the state went to bluff this 
>     It could be said that fear and ignorance are the worst enemies you can 
>have, don't be stampeded by it. Even if the revenuers, and those conspiring 
>with them, after proper notification from you hold a shame sale of your 
>property, don't give it up -- attack with a proper court action. Know your 
>constitutional rights, and don't voluntarily give them up. Obtain a copy of 
>the laws regarding income tax, and take time to study the pertinent sections 
>so that you can't be misled.
>[Reprinted from `CBA Bulletin', July 1989; from `REASONABLE ACTION']

Paul Andrew Mitchell, Sui Juris      : Counselor at Law, federal witness 01
B.A.: Political Science, UCLA;   M.S.: Public Administration, U.C.Irvine 02
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