January 29, 2005

Dramatic Development:

U.S. Court of Appeals Rules IRS
Cannot Apply Force Against A Tax Payer
Without A Court Order

Tax Payers Free To Ignore An IRS Summons

Queensbury, NYOn 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 order.

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 mere “requests.”

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 the IRS.

Key Enforcement Provisions Of The
Internal Revenue Code Nullified

The paragraphs above begin a press release that will be sent to thousands of media outlets and influential individuals across the nation over the next several days.

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 abuse.

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 Freedom.

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 format)

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Click Here to Read the WTP Press Release (.html format)

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Read the December 2004, DOJ Memorandum-Brief
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.

Read Schulz's reply to the court countering
DOJ's assertions.

LISTEN to the oral arguments before the Second Circuit Court of Appeals (12/13/04)