[Congressional Record Volume 141, Number 1 (Wednesday, January 4, 1995)]
[Extensions of Remarks]
[Page E8]
From the Congressional Record Online through the Government Publishing Office [www.gpo.gov]


                          IRS BURDEN OF PROOF

                                 ______


                      HON. JAMES A. TRAFICANT, JR.

                                of ohio

                    in the house of representatives

                       Wednesday, January 4, 1995
  Mr. TRAFICANT. Mr. Speaker, last year, I introduced H.R. 3261 to 
protect taxpayers from capricious behavior by the Internal Revenue 
Service. Today, I am again introducing this bill to ensure American 
taxpayers get a fair shake in tax court. Too often, the IRS is an 
agency out of control; too many Americans fear the IRS and that's 
wrong.
  Mr. Speaker, my bill has three sections to protect Americans from IRS 
abuses. First, damages paid to the taxpayer are increased from 
$100,000, current law, to $1,000,000. Second, the Internal Revenue 
Service must notify the taxpayer promptly in writing upon request as to 
the specific implementing regulations that they are found liable for. 
No more ambiguous computer generated letters using code numbers. No 
more unprepared confrontations with the IRS. These two seemingly 
innocuous sections of my bill are extremely vital and will go a long 
way in rebuilding the American people's faith in our Government.
  The last part of my bill is the most important: it shifts the burden 
of proof from the taxpayer to the IRS in civil tax cases. Under current 
law, if the IRS accuses someone of tax fraud, which could be an honest 
mistake on the 1040 form, he or she must prove his or her innocence in 
civil court, the IRS does not have to prove your guilt. An accused mass 
murderer has more rights than a taxpayer fingered by the IRS. Jeffrey 
Dahmer was considered innocent until proven guilty. Mom and Pop small 
business owners, however, are not afforded this protection.
  Mr. Speaker, during the last session, I highlighted the need for this 
legislation on the House floor by reading letters and cases I have 
received from people around the country. You may remember the case of 
David and Millie Evans from Longmont, CO. The IRS refused to accept 
their cancelled check as evidence of payment even though the check bore 
the IRS stamp of endorsement. Or how about Alex Council, who took his 
own life so his wife could collect his life insurance to pay off their 
IRS bill? Months later, a judge found him innocent of any wrongdoing. I 
have heard hundreds of stories of IRS abuses like these on radio and 
television talk shows. Thousands of Americans have written to me 
personally with their horror stories.
  Opponents argue that my bill will weaken IRS's ability to prosecute 
legitimate tax cheats. This bill will not affect IRS's ability to 
enforce tax law, it only forces them to prove allegations of fraud. My 
bill will ensure that IRS agents act in accordance with the standards 
of conduct required of all Department of Treasury employees and the 
Constitution of the United States of America where you are innocent 
until proven guilty.
  Mr. Speaker, I urge all Members to cosponsor my new bill. It will be 
my No. 1 legislative goal for the 104th Congress. All I seek is 
fairness for the American people.


                          ____________________