By: A.J. Cook


Two well-known tax protestors were questioned, a Denver newspaper says, in the $1 million arson fire at the Colorado Springs branch of the IRS.

Whether they started the fire or not, protestors continue to play havoc with the IRS and its agents and clog the U.S. tax system. After Congress increased protestor penalties in the early 1980s, Tax Court Chief Judge Samuel Sterrett said: "We are seeing the end of tax protestor cases. "That was wishful thinking; the protest movement has hardly slowed down.

Many protestors follow a book called The Law That Never Was. It says the 16th Amendment -- the income tax Amendment -- was never properly ratified: Of the 37 instruments of confirmation by the states, 33 contained errors of dictation, spelling, punctuation or capitalization. The U.S. Secretary of State considered the mistakes trivial and declared the Amendment adopted.

This protestor "Bible" also claims modern protestors are heroes, like the Founding Fathers who protested unfair taxation in 1776. It advises protestors that, when challenged by the IRS, to demand a trial by jury with 12 similarly overburdened taxpayers.

The movement has its roots in the 1960s when dissidents didn't want their taxes financing the Vietnam War. They showed their objections by marching in the streets. Today they show their frustration with violence or threats of violence against IRS officers and by scribbling derogatory comments on their returns. They give hackneyed reasons why they aren't paying or filing a complete return:

• The government wastes the money.
  
• Filing a return violates the right against self-incrimination.
  
• Because citizens must work to pay taxes, taxes are a form of slavery.
  
• Wages shouldn't be taxed because they come from work by a human being, a depreciating asset. The depreciation deduction offsets wage income, leaving no profit.
  

None of these excuses has been accepted by the courts. Judges slam the door on anyone who raises one.

Protestors accomplish nothing battling the IRS and are fortunate if they avoid jail time. Inevitably they end up broke after paying past due taxes, penalties, interest and legal expenses. Their only solution to correcting our tax system is the legislative route. Now, harass Washington.

Marvin D. Miller wrote on his tax return that the Internal Revenue Service and the whole tax structure is fraudulent. He also asked if the agency agreed.

The IRS response: a frivolous return penalty.

Protestors such as the Knox, Ind., dissident slow down the IRS operations and clog the courts. They vent frustration by scribbling comments on their returns. More serious, though, are organizations such as the Virginia Patriots which encourage fraud.

It cost only $160 for Robert R. Poyer of Newport News, Va., to join the Patriots. To him, this seemed like a bargain. As a member he learned how to file IRS Form W-4 with his employer to prevent any withholding tax. As advised, he claimed 14 exemptions, a number recommended to guarantee no tax money would be deducted. One leader prepared an amended return for Poyer to get a refund by showing expenses of a non-existent business.

Roy Sheffler also joined. The Patriots gave him their plan for beating the tax system and amended his return, showing fake deductions.

The Patriots also planned for future IRS intrusion. They said not to use bank accounts to prevent the IRS from reconstructing income and to transfer assets to friends and relatives to avoid IRS seizure. They created a legal defense fund to assist members audited.

The government brought charges against Poyer and other members. It wasn't difficult at all to convince the Tax Court to agree with its fraud penalty -- Sheffler was an undercover IRS agent.

The Moral: Show patriotism July 4th, not April 15th.

Protest leaders such as Marc S. Kelley and Thomas J. Rinkel are also convicted of tax violations. Rinkel, of Broken Arrow, Okla., formed American Patriots Services. He espoused the usual protestor line but added a product to his advisory services to make it difficult for the IRS to follow his client's paper trail. He sold "copy not" pens for writing checks which would make copying by banks difficult or impossible.

Kelley, a leader of the Constitutional Tax Association, told members to destroy credit cards and deal only in cash to make it difficult for the IRS to determine their income. When charged with assisting in filing false W-4 forms, he argued he didn't prepare them, he only gave advice. The judge said he advised -- but in great detail. "He did not take pen in hand to complete the forms, but participation was as real as if he had."

Ironically, Kelley correctly reported his own income to the IRS.