Taxpayer Horror Stories

  1. A rogue Internal Revenue Service agent tried to frame former Senate majority leader Howard H. Baker Jr. (R-Tenn.) on money-laundering and bribery charges in a bizarre attempt by the agent to advance his career... The witnesses, describing the agency as riven by fear, favoritism and foul-ups, said senior IRS managers in Tennessee then covered up for the rogue agent when the scheme was uncovered by his supervisor and two other IRS workers." (Washington Post, May 1, 1998)

  2. The IRS carried out an armed raid on John Colaprete's home, though no charges were ever filed, under ludicrous allegations of money laundering, gun running, and drug dealing from a former bookkeeper who had embezzled $40,000 from his business. (Senate Finance Committee Press Release #105-306, April 28, 1998)

  3. William A. Moncrief paid an unnecessary $23 million settlement to the IRS to save his business which had been raided due to a disgruntled former employee's allegations. (Senate Finance Committee Press Release #105-306, April 28, 1998)

  4. During a 33 month investigation of Robert Gardner, the IRS seized his office property, lied to a grand jury, and tried to force his clients to wear hidden microphones. (Senate Finance Committee Press Release #105-306, April 28, 1998)

  5. The IRS "lost" the money deposited from Graham Knowland's $2,600 1996 income tax check, and the agency claims that he is responsible for the "lost" money. (Boston Globe, April 7, 1998)

  6. Monsignor Lawrence Ballweg [a Roman Catholic priest]... was unable to get a copy of his tax filing within a reasonable time so that he could respond to the IRS's allegation that he owed thousands of dollars of tax. (Senate Finance Committee Press release #105-179, September 24, 1997)

  7. As a result of the IRS' inability to send Katherine Hicks a bill for an out-of-court settlement, she has been subjected to tax liens against her house and levies against her husband's wages, and she has filed for bankruptcy and divorce to escape the IRS. (Senate Finance Committee Press Release #105-179, September 24, 1997)

  8. As a result of the IRS' inability to straighten out Nancy Jacobs' husband's employer- identification number, Mrs. Jacobs and her husband were subjected to liens, interest, and penalties for someone else's taxes for 17 years. (Senate Finance Committee Press Release #105-179, September 24, 1997)

  9. Tom Savage's company paid $50,000 in taxes that it did not owe to save itself from the IRS. (Senate Finance Committee Press Release #105-179, September 24, 1997)

  10. On April 30, 1998, IRS auditors "described instances of favoritism in tax cases towards wealthy individuals and powerful corporations." (Congress Daily, April 30, 1998)

    Other testimony from the Senate Finance Committee hearings: A | B | C
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