Inside The IRS' War On The People: True Stories of Oppression
- The Liberty Team
- Mar 29
- 11 min read
Updated: Apr 5
Liberty Financial Solutions, LLC: We worry about the IRS so you don't have to...
Inside the IRS' War On The People: True Stories of Oppression
Inside The IRS' War On The People: True Stories of Oppression
Friends, this is the first in a series of blog posts that I’m planning to write about the war that the IRS has been waging, and continues to wage against you, the great American people. Having spent almost 15 years working at the Internal Revenue Service, I’ve had a front row seat for what I would describe as atrocities that will make your blood boil. Now, as a CPA in private practice, I also have a unique seat witnessing what the IRS is continuing to try and do. However, I must admit that we at Liberty Tax Defenders have been and continue to be very successful in defending our clients, as we’ve saved them nearly $2 million the IRS was trying to squeeze out of them and have no doubt saved our clients hours upon hours of continued heartache and stress at the behest of the Tax Man.
Before going too much further, I must include several disclaimers. First, there are many honest hard-working American patriots that work for the Internal Revenue Service; they take great pride in serving their country and they check their biases at the door every morning exactly as they should. On the other hand, there are also many political hacks entrenched throughout the agency and it’s almost as if politics is their religion and they think that terrorizing the American people is somehow evangelizing or advancing their misguided cause. Sadly, there are far too many little wannabe Communists and petty tyrants running around the agency waging war on their fellow citizens, especially in the upper reaches of management. Their antics would make Stalin proud. Hopefully, DOGE will find and root out these zealots; and in numerous cases, prosecute them. But more importantly, hopefully, we as a people will demand accountability from a rogue agency that has abused its power and waged war against millions of innocent people for far too long. Second, actual names, locations, and other identifying information that I will discuss must be kept private for obvious reasons.
While I certainly understand and appreciate the mission and job that the IRS has to do (after all, representing clients before the agency is how we at Liberty Tax Defenders make our living), I believe that it is of first importance for the following questions to be addressed and answered (just for starters). These are very important questions that must be brought to the forefront of the public arena, and that Congress must ultimately act upon and address (these are questions that we will also continue to bring up).
Why does the IRS not have to abide by the same standards that the American people do?
Further, why does the public have no recourse to the atrocities that the IRS continues to commit against them?
You see, after DOGE went through and made cuts at the IRS, it’s been our experience that the Service has doubled down, and in response is now lashing out and retaliating against you; the American taxpayer. Perhaps you’re a practitioner whose clients are going through this nonsense like several of ours; or perhaps you or your business are under audit and you need to know that you’re not alone.
While I’ve got much to discuss in the coming days, weeks, months and perhaps years, I’ll begin by discussing some very recent and specific actions undertaken by the Service and then pose some points about what can be done about it.
The Issues (Remember, this is just the tip of the iceberg)
When documents, sometimes thousands of pages, have already been submitted to the IRS, why should taxpayers have to re-submit them when the IRS loses them? This is very costly and time consuming. Shouldn’t the IRS be held accountable for not properly preserving legal documents; especially when those documents all contain PII (personally identifiable information).
Mutual Commitment Dates: When the IRS sets a mutual commitment date with a taxpayer where both parties agree to wrap up the audit, why does the IRS get to break that date without recourse when the IRS is responsible for the date not being met?
IRC Section 6001: Requires taxpayers to keep records to prove positions taken on their tax returns. However, rogue agents often take this authority to extremes and activist judges at the District Court level often let them get away with it.
When documents, sometimes thousands of pages, have already been submitted to the IRS, why should taxpayers have to re-submit them?
Recently, several of our clients have been undergoing audits by new revenue agents that were on probationary status. These audits would be considered training cases for newer employees where there’s usually some outlandish-looking issue that looks bad, but that is generally cleared up pretty quickly. It’s quite obvious that in these particular situations, the probationary employees got fired by DOGE.
One of our clients has even been audited several times over the last decade and has been no-changed every single time (meaning the IRS proposed no changes to their tax returns). However, the Internal Revenue Service continues to come after them time and time again.
Nevertheless, in these particular audits, we’ve gone to great lengths to get the IRS the documents that they’ve requested. This has been extremely time consuming and also costly for our clients. Now, after the new agents have taken over these cases, the IRS has come back and requested the same documents all over again (in both cases).
Understand, the documents we have submitted to the Service are very sensitive and contain financial data and other confidential data. So what happened to all of the documents that we have already submitted? It’s absolutely maddening to think that the IRS was so careless with such sensitive information. In essence, official documents containing sensitive taxpayer data have either been lost or destroyed.
Think about this; if you’re running a business and you lose your clients sensitive information, that would open you up to lawsuits and all sorts of other bad things. But when the IRS loses documents with sensitive information, that’s somehow okay? Where’s the recourse for the American people? Currently, there is none!
IRC Sections 7601(a) and 7602 give the IRS great authority (too much authority) to request documents and other information from taxpayers, but these statutes don’t address what happens when the IRS is careless and doesn’t properly maintain these documents and records. This absolutely must be changed and these code sections need to be updated to hold the IRS accountable for when they’re careless and reckless with taxpayer data.
Since it’s obvious that the IRS didn’t properly maintain our clients’ data and information (and likely that of thousands of others), then how can our clients (and the thousands of others going through the same thing) have peace of mind that their sensitive information has not been compromised? What’s to say their identities haven’t been stolen? Since this has happened in these several cases with us, you can bet your bottom dollar this is happening all over the country. It’s likely a near certainty that due to the IRS’ carelessness, incompetence, negligence, and abuse of power that thousands of Americans’ sensitive information has been compromised.
When the IRS has lost or mishandled documents that it’s already received, the burden of proof should be on them to have to reproduce said documents or move on with the audit without them. This means that the IRS should either have to end the audit or move on without the documents they lost (meaning they would soon have to close said audit down). It’s only fair, right? They were careless and lost sensitive information, so they should have to do without it. And, they should also be compelled to cover the damages for when taxpayer’s sensitive information is leaked, compromised, and stolen.
Mutual Commitment Dates: When the IRS sets a mutual commitment date with a taxpayer where both parties agree to wrap an audit up, why does the IRS get to break that date without recourse?
The mutual commitment date, or MCD, is a date that’s generally established at the first audit conference between the IRS and the taxpayers that are under audit. This is a date that the IRS agrees to wrap up the audit barring any unforeseen circumstances. It’s a date that both parties have input to and a date that both parties feel is appropriate to provide the necessary documentation so the IRS can employ the necessary examination techniques to conclude their work. While this date is not set in stone, it’s good practice to keep it.
In one particular case of ours, we established with the IRS a MCD at the end of March, 2025. This would allow plenty of time to get the needed documents and for the agent working the case plenty of time to perform the examination. Well, after months of hearing nothing from the IRS on this case, and mind you, we always follow up every few weeks to make sure we stay on top of things, a new agent finally gets back to us. This agent has decided that she’s going to completely throw out the original mutual commitment date and basically start over (because they lost all of the documents we submitted them and all the hours of work that we had already done with them).
Almost instantaneously, I filed Freedom of Information Acts requesting to get all of the records, workpapers, and communications that the IRS has on my clients. This is generally a good practice that I employ for most clients that are experiencing IRS issues. In my opinion, it’s always a good practice to see what the IRS has on a client and what they’re trying to conceal. You can also file a FOI by the following the prompts at the link below: https://www.irs.gov/privacy-disclosure/freedom-of-information-act-foia-guidelines
Why isn’t the IRS being held accountable for breaking their own mutual commitment date? Shouldn’t there be some recourse for the taxpayers who are having to go through this nightmare and then have to start all over after the Service was negligent and lost their sensitive information?
IRC Section 6001 requires taxpayers to keep records to prove positions taken on their tax returns. However, rogue agents often take this authority to extremes and activist judges at the district court level often let them get away with it.
IRC Section 6001 gives the IRS authority to require records and documents to substantiate positions taken on a tax return. The cheap seats version of this statute is that if you take a deduction on your tax return, you need to be able to prove that you actually incurred the expense. While I have absolutely zero problem with this statute, when you get little Stalin and Mao wannabes running around the IRS wanting to wage war on their fellow Americans (and activist judges willing to back up these Marxists), the authority granted from this statute is often abused as it is now. Allow me to illustrate.
Let’s say I book a business flight from Dallas, Texas to San Antonio, Texas on Southwest Airlines (which I do frequently). Let’s also say that I didn't save the original invoice that Southwest Airlines sent to me. However, my bookkeeper books the expense into the company books and records independently of me, the company credit card statement shows that I incurred the travel expense, and the company credit card statement and bank statement also show that I paid the expense. Therefore, we can safely assume that I had a legitimate, ordinary, and necessary business expense that can be deducted on my business tax return right? I think it’s a certainty that every jury in America would agree that I had anyway.
However, back to one of our current cases at hand, the petty little tyrants who are still running around trying to terrorize our clients are going to attempt to disallow legitimate business expenses because the original source documents weren’t retained; even though the credit card statements show legitimate business expenses were incurred and paid, the bookkeepers appropriately booked the expenses independent of the taxpayers, and the taxpayers met the requirements of IRC Section 6001. However, certain Communists armed with too much authority have “different” interpretations of Section 6001 and are in turn practicing their religion of evangelizing, I mean terrorizing their fellow citizens. How sickening and appalling is this?
Now let me say this, we will absolutely defend the rights of our clients as we always do, and we will prevail against the Internal Revenue Service in these cases. However, we’ll very likely have to take our cases to the Appeals function of the IRS simply because we have power hungry lunatics who think they’re above the law and are trying to wage war on their fellow citizens.
Having said all of this, again, we’re going to prevail. Our clients have sufficient documentation to prove their expenses exist and were incurred. In short, we’re going to win and we’re going to win big. What’s angering is that In the process, The IRS is wasting hours of our time, it’s causing honest people more heartache, and it’s going to drag out the inevitable by up to two years.
Enough already. It’s time for us as citizens to stand up to this nonsense.
What do we do about it all?
First and foremost, with the issues I discussed above (the IRS not retaining records, mutual commitment dates, and IRC Section 6001), we need to ensure that this is brought into the public arena and public discourse. Honestly, how many of you knew anything about these issues until now? Quite simply, the IRS is allowed to go rogue and wage war against us because we allow them to. They operate in shadows and abuse their authority because we allow them to fly under the radar. There may never be a better opportunity to reform (or abolish) this rogue agency as the public wakes up to what’s really going on at 1111 Constitution Avenue. Word needs to continue to get out to let the American people know exactly what their tax dollars are being used for.
Next, if you’re under audit or your clients are under audit, you may want to strongly consider filing a Freedom of Information Act request at: https://www.irs.gov/privacy-disclosure/freedom-of-information-act-foia-guidelines. This will allow you to see all of the records and work-papers that the IRS has on you or your client. It’s also very good practice to request all communications including, but not limited to emails, messages in TEAMS and other mediums and even private text messages. (Yep, they’re frequently dumb enough to disclose sensitive information on their personal cell phones). This way, you can limit surprises and know exactly what the IRS has on you or your client.
Also, the IRS, particularly managers and employees who retain documents need to be held accountable for not preserving those records. When taxpayers send in thousands of pages of documents containing sensitive information, they should never have to submit those documents again. Again, this costs clients a lot of money to pay their representatives to have to compile and re-submit.
But more importantly, the IRS must be held accountable for not properly preserving records. While IRC Sections 7601(a) and 7602 give the IRS authority to request documents, these statutes must be updated to hold the IRS accountable when they misplace or don’t properly care for this very sensitive information. Congress has the ability to act to hold the Service accountable when they don’t properly retain documents. Additionally, when the IRS loses documents, that should be the end of their audit; a simple update to Sections 7601(a) and 7602 could accomplish this. The burden of proof should be on them to either properly care for and maintain the documents they’ve been entrusted with, or they should be required to carry on the audit without the documents that they lost (which of course would mean they have no case).
Further, IRC Section 6001 needs to be re-written or updated to where there is clarification and uniformity across the board. Rogue agents should not be allowed to require source documents when it can easily be proven that a legitimate business expense has been incurred. Again, Congress must act to provide clarification on the authority granted to the IRS from this section and to provide consequences for rogue IRS employees who abuse their authority.
The beauty of all of this is just by tweaking these 3 simple statutes (IRC Sections 6001, 7601(a), and 7602), the IRS’ authority can be severely limited and the agency can be tremendously reigned in. And the best news, I’m just getting started. I have so much more to share. Why hasn’t this happened before? I think the reasons are twofold and both go hand in hand. One is that people generally don’t know, and two, there’s not been much of an appetite for reforming the agency. I believe we’re on the verge of changing that as we speak.
In the coming weeks and months, we’ll be exploring how best to bring these issues before Congress. But for now, we would respectfully ask that you let your friends and neighbors know.
Finally, we want to hear from you. Sound off and let us know your thoughts on how the IRS can be held accountable?
Cheers!
©2025 Liberty Financial Solutions, LLC & ©2025 Brad R. Horton.
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