Friday, April 12, 2013

What IRS?

A recent amended complaint filed by the Illinois Administrator charges an attorney with making frivolous arguments on behalf of clients in several matters.

One case involved an appeal from a federal tax conviction.

The complaint alleges:

Respondent argued 19 issues on appeal, including that:

  1. [client] Patridge could only be penalized if he knew which section of the Internal Revenue Code made his tax evasion unlawful; and

  2. The federal Paperwork Reduction Act, 44 U.S.C. §§ 3501 et seq. foreclosed Patridge's conviction because IRS Form 1040 lacked avalid control number from the Office of Budget and Management and the forms were thus "outlaw and bootleg."

Respondent's arguments, above, were frivolous. A defendant does not need to the section of the Tax Code he is violating before he can be prosecuted, he only need know the Code requires him to pay. A defendant's tax evasion conviction cannot be overturned on the basis that basis relevant IRS regulations and instruction books did not display Office of Management and Budget (OMB) control numbers as allegedly required by the Paperwork Reduction Act, as a defendant is convicted of violating a statute, not a regulation or instruction book.

On November 14, 2007, the Seventh Circuit Court of Appeals issued an opinion holding that all 19
issues raised by Respondent on appeal were frivolous, affirming Patridge's conviction, and ordering $10,000 for his frivolous arguments and his noncompliance with the rules of appellate procedure.

In another tax matter, the attorney sought a stay and argued:

  1. "Appellees cannot justifiably dispute the ‘IRS' no longer legally exists."

  2. "The Secretary [of the Treasury] is prohibited by Title 4, Sec. 72 from exercising his office outside the District of Columbia." and

  3. "It should be clear by now there is no lawfully established Internal Revenue Service with jurisdiction outside the District of Columbia or among the several States."

The amended complaint also alleges that the attorney made false statements in the bar investigation. (Mike Frisch)

Bar Discipline & Process | Permalink

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