Dear President\'s Tax Panel Members:

Please consider my five pages of double-spaced comments written in text
of 12 point font.

Thank you for a chance at closure from my bad experience by unloading
this heavy burden.

What\'s worse than being taken advantage of by IRS criminals is paying
for their retirement.

Please understand I have no objections to paying for my share of
operating the government.

Sincerely,

Richard H. Strickland

CA Real Estate Broker

1639 Marbury Street

West Covina, CA 91791

RchrdStrck@AOL.Com
\<[[mailto:RchrdStrck@AOL.Com]{.underline}](mailto:RchrdStrck@AOL.Com)\>

TAXPAYER HEADACHES, COMPLEXITIES AND BURDENS

[The Compulsory Nature Of An IRS Audit Demands A Determination Of The
Following]{.underline}:

1.  Does a federal IRS agent lose his supremacy clause immunity when
    carrying out his

> responsibilities in an objectively unreasonable manner specifically
> prohibited by law?

2.  Does the continued complained-of mode of conduct constitute
    collection activity?

3.  Is the Treasury Department / Internal Revenue Service regulated by
    the Privacy Act?

4.  When does activity in connection with collection began within
    meaning of the law?

> The 1974 Privacy Act Notice known as IRS Notice 609 is sent with each
> audit notice.

## It says, "When asking for information we must tell you why we are asking." It seems to 

## 

## mean if the IRS wrongly concludes a taxpayer made money while misrepresenting the 

## 

## purpose of the audit and denies knowing informant giving false information they violate 

## 

## Notice 609 and the Treasury Department violated federal law in the 1974 Privacy Act. 

##  The Taxpayer Bill of rights says, in Title VII, Sec. 701(b)(B)(ii), "If the IRS does 

## 

## not follow published guidance the IRS position is presumed to be unjustified." It seems 

## 

## to mean if an IRS agent ignores his guidance in IRS Notice 609 and wrongly concludes I 

## 

## made money he violated the Taxpayer Bill of Rights and the U.S. Treasury Department 

## 

## has violated the Privacy Act. In my case the IRS agent also violated CA Criminal law in 

## 

## Penal 182 by conspiring to falsely maintain a proceeding against me for money; and 

## 

## ignored CA Civil law saying escrow isn't closed until all the terms of escrow are met. 

When the IRS wrongly claimed I made money while denying they knew their

informant giving them false information it took four years and a federal
complaint for

them to recant their mistake. In America equivocation is considered a
form of evasion.

However, four years and a federal complaint is an unconscionable evasion
that belies

fairness amounting to Ex Post Fact punishment prohibited by the U.S.
Bill of Rights. The

victims of this kind of tax audit terrorism refer to it as IRS
Industrial Backdoor Policy.

(Page 1 of 5)

# Submitted by Richard H. Strickland

### ASPECTS OF THE TAX SYSTEM THAT ARE UNFAIR

I was a victim of tax audit terrorism when I bought a house from a bank
for resale

at a profit that turned into the subject of the unjustified IRS audit
discussed herein. The

former owner who had lost it at a trustee sale occupied it under adverse
possession. He

was an ex law enforcement officer who didn't have a job or money to
move. I offered to

use part of my profit to pay for his moving costs if he would allow me
on the property

before escrow closed to paint and repair the house. When the house was
repaired the

former owner began acting crazy and threatened to kill anyone who tried
to move into his

home and scared my buyer out of the deal. I could have resold it but he
firebombed it.

I served him with eviction papers and he threatened to ruin my life with
an IRS

audit if I went through with it. His wife created, signed and recorded a
fraudulent HUD

statement changing the ownership of the property and canceling my Writ
for Possession.

It caused his eviction procedure to be started all over again and
allowed him to continue

living in the house for free a few more months. The statement also said
I made \$60,000.

When the FBI investigated the HUD statement the ex law enforcement
officer

told them that he and I were partners, I made \$60,000, and I wouldn't
give him his share.

They said since I was the one on title if I made a profit I was going to
jail and also lose

my broker's license. I told them I didn't make a profit I lost money.
They said they'd

have the IRS audit me to find out. The IRS sent their audit notice to me
as a corporation.

I am not incorporated but their informant (the person I evicted) stole a
1040 return from

me that was incorrectly prepared for me as a corporation, and never
filed with the IRS.

At the audit I asked the IRS agent why I was being audited. He said it
was a

Page 2 of 5

Submitted by Richard Hl Strickland

routine audit. I asked, how do you do a routine audit of a company that
doesn't exist,

I am not incorporated? He said that was just a typo. I asked him who
made the return he

wanted to audit and he said the name of the CPA who mistakenly prepared
the return for

me as a corporation. The IRS agent denied knowing his informant who
stole my files and

office equipment, had threatened to ruin me with IRS audit, and
prevented me selling the

house after I painted it by firebombing it. The IRS had morphed into
evil personified.

By denying he knew this evildoer the IRS agent prevented timely
resolution of the facts.

**HOW THE TAX CODE DISTORTS PERSONAL & BUSIENSS DECISSIONS**

## 

Prior to the unjustified audit when the IRS made a mistake about my
income my

wife and I had signed college loan applications for our children's
college funds. The

papers said if we ever learn you made more that claimed to get the money
none of your

children will be allowed to graduate from a state university. My wife
and I had sent our

children to private schools hoping they would do better in college; and
graduate too.

Now because of a mistake in an unjustified IRS audit the welfare of our
children was at

risk of not being allowed to graduate college. It was like they were out
to destroy us.

In tax court the IRS attorney had the judge sign his Stipulation of
Facts proving I

made the money. It was based on the fraudulent HUD statement created and
signed by

the IRS informant who they denied knowing. They were not telling me the
truth about

knowing their informant while accusing me of not telling them the truth
about the money.

Four years later after they admitted I didn't make the money they
admitted knowing their

informant by asking questions about his eviction. It was their way of
letting me know my

evicting him was justification for using the tax code like a club to
beat me with. To, like

he said, ruin me with an IRS audit. But, is this any way to run the
Treasury Department?

To protect our children's right to graduate from college I had to forget
about my

# Page 3 of 5

Submitted by Richard H. Strickland

career goals and abandon my business plan so I could start learning how
to practice law

without a license. There was no attorney to take the case for less than
\$50,000 up front.

A retired 33-year IRS attorney offered to talk to the IRS if I gave him
all my papers and

\$500, which I did. I didn't realize he had a conflict of interest. The
retired IRS attorney

received more in monthly benefits than what I paid him. After he cashed
my check he

began trying to negotiate a payment schedule with me for taxes on the
\$60,000 that I told

him I didn't make. I terminated him as my attorney and he refused to
return my papers.

It was only after I filed a federal complaint in district court in Los
Angeles, as CV

96-06164-RTM, that the IRS took a serious look at the facts in the tax
court and recanted

their claim I made money. Blue fire voltage arced through me when I
heard. It meant

our children could graduate from college and I could get back to
pursuing career goals.

The Taxpayer Bill of Rights says the IRS is liable for damages for
unauthorized

collection procedure. But, my complaint for damages based on the 1996
Taxpayer Bill

of Rights was dismissed three times in district court and twice in Ninth
Circuit Court (as

Case No. 01-55257) based on 1995 precedent. This is a definition of
wrongful dismissal

and judicial misconduct. A special commission appointed by Ninth Circuit
Court Chief

Justice Mary Schroeder is investigating this decision and other similar
decisions.

**GOALS PANEL SHOULD TRY TO ACHIEVE AS IT EVALUATES THE**

**EXISTING TAX SYSTEM AND RECOMMENDS OPTION FOR REFORM**

It is said the edge of chaos is not a physical location but a state of
mind, and that

surfing the edge of chaos fosters straight talk which fuels
disequilibrium and is essential

to navigating near the edge of chaos. The key to this discipline is to
view contention in a

different context. Conflict, reframed as "fuel for organizational
learning," can contribute

to an organization's long term-term vitality. The problem is not with
the tax system it is

with [some]{.underline} of the people running it. Power corrupts
[some]{.underline} people. Why spend millions to

change a system that works when we can spend far less to change a few
people who don't

# Page 4 of 5

Submitted by Richard H. Strickland

work? Government employees have good retirement benefits. Let
[some]{.underline} retire so they

no longer have the absolute power to destroy people's lives. It'd be
like a big tax break.

The IRS seems to be vulnerable to manipulation by evildoers. The IRS
informant

I evicted was illegally occupying property I bought from a bank. I had
the legal right to

buy and sell the property without illegal interference from him. When
the IRS ignored its

published guidance and took the informant's word I made money they
became part of his

conspiracy against me; and "The acts of one involved in a conspiracy
inure to the other."

Adickes v. Kress & Co., 398 US 144 (1970); Dennis v. Sparks, 449 US 24
(1980).

The Service needs to be careful who they make deals with. Their
informant who

threatened to ruin my life with an IRS audit was an ex sheriff deputy
allowed to resign

from his job instead of being fired when stealing from the evidence
room. Such a person

fits the definition of a hybrid terrorist. This is an unemployable
criminal without a police

record who knows how to circumvent the law and can talk to law
enforcement officers in

the good old boy vernacular without them knowing he's really not one of
them.

Their informant was on a white-collar crime spree when I evicted him.
After his

eviction I found his tax returns in the house. It showed he hadn't
worked for two years

before the date of the loan that was foreclosed on by the bank I bought
the house from.

HUD residential underwriting guidelines require two years of employment
to qualify for

a loan. It means their informant fabricated his loan application. I
found an IRS Levy on

their informant for \$5,900. This is how I knew they were untruthful
about knowing him.

I became a victim of IRS Industrial Backdoor Policy when I sought to
introduce

productivity growth technology in my industry at the time I bought the
house for resale at

a profit to use to implement my business plan. After evicting their
informant he illegally

charged his phone calls to my phone bill. Several of them went to my
organized industry

and precipitated the unjustified IRS audit. Rather than rewrite the Tax
Code perhaps the

President's Tax Code Panel may consider requesting damages for Privacy
Act violations?

# Page 5 of 5

# Submitted by Richard H. Strickland