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, 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 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
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
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
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.