Talking with a friend about closed circuits got me thinking. Our monetary system is much like a closed loop. And the operation of it; the spinning, throws off great profit for those who set it up. I call it the Christopher Loop (in his honor). Luckily we have an exit ramp.
-
Last edited by marcel; 09-03-26, 05:30 PM. -
Who wants to take a stab at the workflow for those who try to escape the merry-go-round? -
By popular demand...Comment
-
If you are redeeming lawful money (RLM) properly, and keeping a record, then you are redeemed. There is no federal nexus to your income. Enter at upper left.
Info Reports refers to government forms like W2 or 1099 that are intended to report federal income to govt databases. If no reports are generated then there's no record; nothing to correct, you're done. If there are Info Reports filed then the IRS assumes you owe and therefore you should exercise your right to be heard and file a 1040 to correct the record (not shown). The IRS will then process your return and either agree or disagree with you. If they disagree then you'll enter the billing cycle and receive a bill/letter or notice.
Generally, you have 60 days to respond. Your choice here is to: A. Agree & pay (a tax you don't owe), B. Ignore it, or C. Disagree and respond.
Apparently we'll need another flowchart to handle the "Disagree" process.Comment
-
As I see it you have 4 choices:
1. The tax code itself offers several possible solutions to get the IRS to follow the law, to see things your way. Form 843 - Claim for Abatement has worked for some redeemers. There's also the Taxpayer Advocate Service https://taxpayeradvocate.irs.gov And of course, Tax Court.
2. You could respond with a letter explaining why you don't owe the tax.
3. You can simply return the IRS presentments marked "Refusal for Cause" (R4C). This is a non-response response. It's somewhat unpredictable how the IRS will respond to this but in my experience it seems to chill the escalation.
4. If the above fails to give remedy you can always file suit (pro se) against the IRS for their unlawful behavior. Keep in mind you'll likely get a pretend judge with a deviant oath. It's customary to notify the defendant beforehand (30-Day Letter) offering a chance to settle before suit.
Then the IRS decides. If they disagree you'll reenter the Billing Cycle. Sometimes the R4C will get you: "Thank you for your inquiry. We're working on your account. However, we need an additional 60 days to send you a complete response..." I've also seen accounts sent to a third-party debt collector* although you'll still get the annual CP71 notice from IRS showing the balance due. When you get the "We made the changes you requested" letter then it's over - Congrats.
NOTE: Generally the IRS has 10 years from date of assessment to collect. If you can withstand that long in the cycle ... you win.Last edited by marcel; 10-13-26, 12:26 AM.Comment
Comment