There have been tax resisters starting the day after the first tax. Normally they lose because they are fighting the state. This time a major win for the regular guy has just occurred and everyone should know about it.
Queensbury, NY On January 25, 2005, the U.S. Court of Appeals for the Second Circuit held that taxpayers cannot be compelled by the IRS to turn over personal and private property to the IRS, absent a federal court order.Now instead of small little threatening letters that used to work they have to go to a federal judge and show cause why they need these records.
Quoting from the decision (Schulz v. IRS, Case No. 04-0196-cv),
...absent an effort to seek enforcement through a federal court, IRS summonses apply no force to taxpayers, and no consequence whatever can befall a taxpayer who refuses, ignores, or otherwise does not comply with an IRS summons until that summons is backed by a federal court order [a taxpayer] cannot be held in contempt, arrested, detained, or otherwise punished for refusing to comply with the original IRS summons, no matter the taxpayer's reasons, or lack of reasons for so refusing.
Without declaring those provisions of the Code unconstitutional on their face, the court, in effect, nullified key enforcement provisions of the Internal Revenue Code, stripping the IRS of much of its power to compel compliance with its administrative demands for personal and private property. The court characterized IRS summonses issued under Section 7602 as mere requests.
The court went on to say that the federal courts are there to protect taxpayers from an overreaching IRS, and that the IRS must go through the federal courts before force can be applied on anyone by the IRS to turn over personal and private property to the IRS.
The strong arm tactics used by the IRS have become legend. Seizing business records and destroying whole companies..then dropping the case. Now they will have to get more then a "we think something is up" as a reason to take our records.