[Congressional Record Volume 140, Number 70 (Wednesday, June 8, 1994)]
[House]
[Page H]
From the Congressional Record Online through the Government Printing Office [www.gpo.gov]


[Congressional Record: June 8, 1994]
From the Congressional Record Online via GPO Access [wais.access.gpo.gov]


                              {time}  1230
 
 MEMBERS' SIGNATURES SOUGHT ON DISCHARGE PETITION FOR BILL TO PROTECT 
                       AMERICAN TAXPAYERS' RIGHTS

  The SPEAKER pro tempore (Mr. Fields of Louisiana). Under the 
Speaker's announced policy of February 11, 1994, May 23, 1994, and 
today, the gentleman from Ohio [Mr. Traficant] is recognized for 60 
minutes as the designee of the majority leader.
  Mr. TRAFICANT. Mr. Speaker, today I want to talk about taxpayers' 
rights in America. I have a bill now known as H.R. 3261 and an 
accompanying discharge petition, Petition No. 12, to bring the bill to 
the floor because it will never come out of the chapter 13 file of the 
Ways and Means Committee, and I want to explain it. I want to explain 
it to the Congress so the Members can understand it.
  No American should fear their government. Every American should pay 
taxes, and we do pay taxes. But we have a tax system that is so 
complicated you need a Philadelphia attorney to interpret it and an 
accountant to fill out your tax forms, and when the IRS comes calling, 
the IRS is so powerful the tax attorney bails out on you and the 
accountant seems confused and some tax judge appointed for a lifetime 
term who does not want to get the IRS mad is going to make a decision 
on your entire life and future.
  Now, 95 to 99 percent of these IRS agents are fine people from fine 
families. They not only mean well, they do a great job, and they are 
good Americans. But there are a number of IRS agents who have been 
reckless and overzealous and who have ripped off Americans, mistreated 
Americans, abused Americans, and Congress has turned its back, its cold 
back, to much of this abuse.
  The Traficant bill does several things. First of all it says that 
when an IRS agent, with reckless disregard, violates the rights of a 
taxpayer, harasses, scares to death, intimidates, forces, and pressures 
a taxpayer against their will, and once that is proven in a court of 
law, that IRS agent is personally liable and out of their own pockets 
they have to pay damages.
  Second, existing law says that when that happens, the IRS which is 
responsible for the behavior of its agents is liable up to $100,000. 
The Traficant bill, H.R. 3261, says that is being expanded to $1 
million.
  Right now we have an IRS that is sending agents out with quotas and 
saying, ``Get that money, no matter how you get it.'' The Traficant 
bill is saying:

       You had better counsel them to do it the right way and 
     treat them with respect because they are the boss, and if you 
     don't, not only is the taxpayer going to be upset but the IRS 
     agent is going to get zapped personally and the IRS could be 
     penalized up to $1 million.

  Those two provisions were already included in legislation last year 
that happened to be vetoed, and those provisions were not the reason 
for the veto of H.R. 11, so they are uncontroversial. There are some 
people who are ducking the major issue around here and trying to cite 
those two provisions.
  The third provision is a basic tenet of the American Constitution, 
the methodology by which we govern ourselves. In America you are 
supposed to be innocent until proven guilty. Jeffrey Dahmer killed 17 
young men and boys. He ate part of their flesh. Jeffrey Dahmer was 
innocent till proven guilty. He did not have to give testimony against 
himself, he did not have to answer one question. He said, ``The 
Constitution and the Bill of Rights protect my interests.'' But when 
you go into a tax court on a civil proceeding and you are accused of 
fraud or tax evasion, you, the American taxpayer, has to prove your 
innocence. That is unbelievable.
  The Traficant bill basically deals with burden of proof. It takes us 
a little bit back to the Constitution, which everybody seems to wave 
around here, and here is what the Traficant bill says:

       When the IRS points its finger for tax fraud or tax 
     evasion, the IRS had better have a good case against you, Mom 
     and Dad, because if it is good enough for the Son of Sam to 
     be innocent, it is good enough for Mom and Dad in the tax 
     court, and the IRS has to prove you have committed fraud.

  That is the crux of the Traficant bill. I have close to 85 signatures 
on the discharge petition, and I need more Members of Congress to sign 
that discharge petition to allow it to come to this floor for debate, 
because otherwise it will never come out of that file 13 wastebasket 
down in the committee room.
  I want to cite a couple of things that have happened in our country, 
and I want the Members of Congress to think about this. Alex and Kay 
Council of North Carolina had a windfall in the sale of some property. 
Their accountant advised them to invest in a deal called Jackie's Fine 
Arts.

                              {time}  1240

  They invested in Jackie's Fine Arts because they would get some tax 
shelter, some tax credit, and would not give all of their gain up to 
Big Brother Uncle Sam. The accountant advised them it was legal at the 
time they took it. Five years later the IRS came back and wanted close 
to $300,000 in fines, penalties, and back interest, because they denied 
the tax shelter of Jackie's Fine Arts.
  Alex and Kay Council feverishly tried to deal with the IRS. The IRS 
said, ``We gave you a notice. Why didn't you respond?'' The Councils 
said they never got a notice. Six years later, in a court of law, 
ladies and gentlemen, it was proven the IRS sent the notice to the 
wrong address, but the IRS said by law, that makes no difference. Our 
intent was to mail it to the Councils.
  To really confuse this, ladies and gentlemen, Alex Council, faced 
with the loss of everything for his family and his children and his 
business, committed suicide. He committed suicide. An unbelievable case 
in American history. And listen to the suicide note that Alex Council 
left his wife Kay.

       My dearest Kay, I have taken my life in order to provide 
     capital for you. The IRS and its liens have been taken 
     against our property illegally by a runaway agency of our 
     government, and they have dried up all sources of credit for 
     us. So I have made the only decision I can. It is purely 
     business, Kay. I love you completely, Alex.

  He left a note telling her how to go about the insurance money, how 
to apply that money, fight for their good name, and she did. She 
exhausted all her money. Six months after Alex's suicide, the judge 
ruled the IRS was completely negligent and wrong.
  What has it come to here, Congress? Has the IRS become so powerful 
they scare even Members of Congress? I have had Members of Congress 
say, ``Jim, you are right, but I don't want to get involved. I am 
afraid to get involved.'' Members of Congress. Has this turned into 
wimp city? If Members of Congress are afraid of this powerful agency 
that Alex Council said is a runaway agency of our government, then what 
about the average taxpayer, folks? H.R. 3261, the IRS says, you are 
guilty of tax fraud, you are guilty, mom and dad, of tax evasion, they 
have every right to say it. But the Traficant bill says if you are 
going to accuse someone in America, the accused has the right to meet 
their accuser and the right in fact to all of the constitutional 
protections available under our Bill of Rights. And here is the basic 
tenant: In America, the last I heard, you are innocent until proven 
guilty. If it is good enough for Jeffrey Dahmer, it is good enough for 
Charles Manson, it is good enough for Richard Speck, good enough for 
the Son of Sam, good enough for the four terrorists who blew up the 
World Trade Center, then it is good enough for mom and dad in a Federal 
proceeding with a Federal appointed judge, because there is no such 
thing as civil fraud. Fraud is a criminal act.
  Is this going to kill collections for the IRS? No. The IRS calls 
about an education account or an exemption, the taxpayer must answer. 
We know that. But when it goes to court for tax fraud or tax evasion, 
the burden of proof, ladies and gentlemen, shall be on the IRS, and 
that is where it should be.
  H.R. 3261 is the bill. Discharge Petition No. 12. A dozen. Discharge 
Petition No. 12. That is needed to be signed by 218 Member of this 
Congress, so that it comes out of the wastebasket in some of the lower 
intestines of the Capital and be brought to the House floor where the 
people govern, the people draft our laws, the people are the boss, and 
people should take their Government back and forget all the fancy 
rhetoric.
  This is exactly the place to start. H.R. 3261. Discharge Petition No. 
12.
  Mr. COLLINS of Georgia. If the gentleman will yield, I commend the 
gentleman for his bill. I have signed Discharge Petition No. 12. I 
encourage other colleagues to sign Discharge Petition No. 12, because I 
feel, as the gentleman from Ohio, people should be innocent until such 
time as the IRS proves that they have committed fraud. It should not be 
left up to the individual. I commend you, sir.
  How many do you have now who have signed that petition?
  Mr. TRAFICANT. Approximately 85 who have signed the discharge 
petition, the last I have heard.
  Mr. COLLINS of Georgia. Due to the new rules, will those names be 
published, so we can encourage others or have constituency encourage 
others?
  Mr. TRAFICANT. Well, I have not published any names, and I am hoping 
not to do that. But if the point comes we are running out of time, I 
may decide to do that.
  But I am not surprised. Mac Collins, that you have signed, and I wish 
that everybody around the country would recognize it is going to take a 
little bit of strength to sign that discharge petition. The trouble is, 
Mr. Collins, not everybody exhibits the same type of strength and 
fortitude that you have here in the Congress.
  This is not an easy thing to do, but this is an important thing to do 
for the American people. And that is why people like yourself are going 
to have to give me a hand, Mr. Collins, because it don't look good 
without your help.
  Mr. COLLINS of Georgia. Well, I am very willing to help the 
gentleman. I can appreciate his concern and reserve about publishing 
names. I commend the gentleman, if it comes down to it, on behalf of 
the American people, that the gentleman is willing to take that step.
  Mr. TRAFICANT. I appreciate it, Mr. Collins. I think Mr. Collins' 
record speaks for itself. He didn't have to make that statement today.
  H.R. 3261, Discharge Petition No. 12. Mom and dad are citizens and 
mom and dad should be innocent until proven guilty as well. Discharge 
Petition No. 12. Members must sign it so it can come to the floor. 
Discharge Petition No. 12.

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