|January 29, 2005
U.S. Court of Appeals Rules IRS
Cannot Apply Force Against A Tax Payer
Without A Court Order
Free To Ignore An IRS Summons
Queensbury, NY – On January 25, 2005, the U.S. Court of Appeals for
the Second Circuit held that taxpayers cannot be compelled by the IRS to
turn over personal and private property to the IRS, absent a federal court
Quoting from the decision (Schulz v. IRS, Case No. 04-0196-cv),
“...absent an effort to seek enforcement through a federal court, IRS
summonses apply no force to taxpayers, and no consequence whatever can
befall a taxpayer who refuses, ignores, or otherwise does not comply with
an IRS summons until that summons is backed by a federal court order…[a
taxpayer] cannot be held in contempt, arrested, detained, or otherwise
punished for refusing to comply with the original IRS summons, no matter
the taxpayer's reasons, or lack of reasons for so refusing.”
Without declaring those provisions of the Code unconstitutional on their
face, the court, in effect, nullified key enforcement provisions of the
Internal Revenue Code, stripping the IRS of much of its power to compel
compliance with its administrative demands for personal and private
property. The court characterized IRS summonses issued under Section 7602 as
The court went on to say that the
federal courts are there to protect taxpayers from an “overreaching” IRS,
and that the IRS must go through the federal courts before force can be
applied on anyone by the IRS to turn over personal and private property to
Key Enforcement Provisions Of The
Internal Revenue Code Nullified
The paragraphs above begin a
that will be sent to thousands of
media outlets and influential individuals across the nation over the next
The evolution of this lawsuit,
Schulz v. IRS, has played an integral role in the execution of the
Right-to-Petition lawsuit strategy and may soon, after the conclusive and
far-reaching decision of the Appellate Court, provide the legal basis
necessary to finalize, and secure jurisdiction over the Internal Revenue
Service and the Department of Justice to answer our claims of constitutional
In their decision in this case
brought by WTP Chairman Bob Schulz, the court has expressly recognized that
the IRS, as has been asserted in the Right-to-Petition lawsuit, routinely
violates people's Due Process rights in their day-to-day administrative
practices. As such, the findings of the Second Circuit firmly establish for
the (D.C.) District Court the substance of the causes of action put forth in
our Right-to-Petition lawsuit.
In the coming days, WTP Chairman Bob Schulz will make further statements
about these unfolding events and detail our assertive plans to generate
widespread public awareness of our efforts, and our success.
Your Support Needed
This legal milestone is
proof-positive of the significant progress the Foundation is achieving in
its coordinated, rational, and professionally executed attack on those that
would infringe our Rights.
Without doubt, the concerted, sustained efforts (and contributions) of WTP
supporters over the last several years are having a demonstrable impact on
the institutions of our government.
At this time, your generous, and ongoing
support is needed to finance the enormous landmark legal endeavor that we
have committed to, and to insure that WTP – and all the Plaintiffs – and all
those that support our cause, will prevail in our common quest to secure
Please consider making a substantial one-time donation, and further
committing to an ongoing, monthly investment so that our organization has
the resources needed to complete this ambitious, and historical undertaking.
You have our sincerest Thanks and gratitude.
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Click Here to Read the Second
Circuit’s Decision (Adobe .pdf
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Release (.html format)
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Read the December 2004,
where the Court of Appeals ordered DOJ to explain the position
it took during oral arguments claiming that IRS Summons
have NO authority unless the Summons are enforced in federal district court.
reply to the court countering
LISTEN to the
oral arguments before the Second Circuit Court of Appeals (12/13/04)