Tax Guru – Ker$tetter Letter

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Archive for the ‘scams’ Category

Posted by taxguru on September 28, 2009

IRS scam now world’s biggest e-mail virus problem – These phony IRS emails that I mentioned a few weeks ago are still floating around the net.  I have been receiving at least one copy each day since then.  As this article explains, they contain a nasty computer Trojan virus; so be extra careful when encountering these scam emails.    


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You can’t trust government financial predictions…

Posted by taxguru on September 27, 2009

How many people would willingly invest everything they own with someone who has a lengthy track record of being 100% wrong on every single prediction?  Any sane investor would stay miles away from anyone with such a history.  However, that’s the case with anyone who believes a single financial fact touted by our rulers in DC.  

Job losses, early retirements hurt Social Security – This is just one more reminder that, whenever our rulers in DC predict the costs and finances of a government program, they are off by huge magnitudes. The naive way to look at this fact would be to assume that they just made honest miscalculations.  The more realistic assessment is that they lied through their teeth in order to sell the programs, knowing full well that nothing could be done to them when the truth became clear. 

That is exactly what we are facing today.  Every single one of the cost figures being used in the current fight to socialize health care is being intentionally understated so as to con gullible people into accepting it.  By the time the truth emerges that the actual costs are hundreds of times more than promised, just as with Social Security and Medicare, the politicians responsible for selling the programs will be long gone and the people too dependent on it to ever go back.

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New Fake IRS E-mail

Posted by taxguru on September 12, 2009 covers this latest phony email pretending to be from the IRS.  Sherry actually received one of these the other day and wondered if it was real, until I explained that IRS does not send out emails to people.  Their notices are sent via snail mail.

As I advised Sherry, anyone receiving these kinds of emails should forward them to the special IRS email address that was set up to handle this growing problem:

Hopefully, IRS is using these emails to hunt down and nail the scammers who are sending these out.


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Voluntary taxation?

Posted by taxguru on April 24, 2009


Subject: voluntary

so what dose the word voluntary mean in the irs statements? im just trying to understand whats goin on i have done much research and found no law that states we haft to pay taxes please help

Chapter 6200 at 6210 states that… “It is the goal of the Internal Revenue Service to encourage and achieve the highest possible degree of voluntary compliance with the tax laws…”
        Chapter 100 at 110 states that… “The primary mission of the Taxpayer Service is to promote voluntary compliance through education and assistance to taxpayers.”
        In Part VI, under Section 6810-Taxpayer Service, it is stated at (13) 31(1)(f) that… “returns are voluntarily submitted by taxpayers.”

        In Operating Techniques and Reporting Section 6810 at (13) 91(1)(a), the Manual states: “securing a valid voluntary income tax return from the taxpayer…”
        In the Section on IRS Policy Statements at P-4-84, the Manual states: “The purpose of criminal tax investigations is to enforce the tax laws and to encourage voluntary compliance.”

        In the General Section, at 4022.65(3) it is said that… “When a person indicates he/she will voluntarily comply but requests that he/she be served…”

        In the Automated Collection Function Procedures at 5535.4, the Manual states that the IRS may file returns under 6020(b) if the returns are… “not filed voluntarily.”)

        Furthermore, Webster’s Dictionary defines the word voluntary to mean the following:

        Voluntary: brought about by one’s own free choice; given or done of one’s own free will; freely chosen or undertaken; arising in the mind without external constraint; spontaneous; in law, (a) action done without compulsion or persuasion.



Don’t fall into the trap of believing the idiotic argument that paying taxes is completely voluntary.  This bogus claim has long been used by tax protestors, many of who are now in prison for following and encouraging others to use that very tactic.

The IRS language clearly intends for people to voluntarily file tax returns and pay their taxes.  However, that is only half of the story.  If some people do not voluntarily comply, IRS will do it for them and hit those people with severe penalties for noncompliance, including the seizure of all of their possessions and time in prison.

This is no different than how our society handles all crimes.  We are all expected not to drive faster than posted speed limits, not kill other people, not steal things that don’t belong to us, etc, etc.  If we fail to volunteer not to do those things, there are police and a judicial system that will deal with us, with appropriate punishments.

Not filing tax returns and paying everything you owe is considered just as much of a crime as committing murder, and IRS will nail anyone who does not voluntarily comply with those rules.  It is also a fact that accused murderers are allowed more personal rights and protections against improper accusations than are alleged tax cheaters in this country.  IRS is not constrained by any of the constitutional limitations and protections that the police have to deal with. That may not be right, but it is the way things are.

I hope this clears things up for you. The IRS website has a lot of info on this and other similarly ridiculous tax protestor arguments.  Check out Number 6 in this list of IRS’s Dirty Dozen Tax Scams

6. Frivolous Arguments. Promoters have been known to make the following outlandish claims: the Sixteenth Amendment concerning congressional power to lay and collect income taxes was never ratified; wages are not income; filing a return and paying taxes are merely voluntary; and being required to file Form 1040 violates the Fifth Amendment right against self-incrimination or the Fourth Amendment right to privacy. Don’t believe these or other similar claims. These arguments are false and have been thrown out of court. While taxpayers have the right to contest their tax liabilities in court, no one has the right to disobey the law.

Good luck.

Kerry Kerstetter 



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Fonzie Scheme?

Posted by taxguru on February 12, 2009

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Posted by taxguru on February 4, 2009

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Posted by taxguru on January 11, 2009

Fake IRS Emails – has an updated piece about the scam emails that are still going around pretending to be from IRS.  It would really be great to see some news from IRS that they have been able to prosecute the scumbags behind these.


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Madoff Lessons

Posted by taxguru on January 6, 2009

The best learning tool has long been OPM (Other People’s Mistakes) because nobody can live long enough to make them on his/her own.  The recent exposure of Bernie Madoff’s Ponzi scheme should be a good slap across the face to any investor.

From James B. Stewart of the WSJ – The Lessons to Be Learned From the Madoff Scandal.

From Jay Leno via NewsMax

“Congress says they’re looking into the Bernie Madoff scandal. So the guy who made $50 billion disappear, is being investigated by the people who made $750 billion disappear.”

“His family says he suffers from multiple personality disorder. Apparently, every one of them is greedy.”


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Posted by taxguru on January 5, 2009

Why We Keep Falling for Financial Scams – Interesting look at Ponzi and other types of scams that people fall for. 

It should be noted, in the comparisons between Madoff’s Ponzi scheme and the Federal government’s Social Security Ponzi scheme, that “free market” scammers have to be more creative in order to lure in saps voluntarily.  The Feds don’t have to convince anyone that Social Security is a good investment because they have the power to have the IRS stick guns in our faces and force us to pay into their financially insane scheme. 


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No Ponzi Scheme is bigger than Social Security…

Posted by taxguru on December 19, 2008

(Click on image for full size)

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