Resources
The IRS, Abuse of Power, and Why Tax Court Matters
In this clip, tax attorney John Hyre explains why the US Tax Court is the real safeguard for business owners. Independent, professional, and focused on the law as written, it is the final check on IRS overreach and the foundation behind defendable tax strategy.
Video Transcript:
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retired people from the IRS. They won’t
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talk when they’re there, but when they
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retire, they tell me how I had a manager
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tell me that to fire someone at the IRS,
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she had to take halfime off, bring in a
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manager to do half her job because she
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spent half her time for weeks trying to
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fire somebody.
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Wow.
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And for some pretty blatant stuff.
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Okay.
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Um so it’s and you’ve read in the papers
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some of the abuse that’s going on. It’s
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a lot more commonplace than you think.
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these, for example, they’re showing up
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when somebody gets on TV
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uh with policies they don’t like and
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then an agent coincidentally shows up at
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their house that day.
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Yeah.
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Um the way to deal with that is, thank
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God for the tax court. This is something
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unique about the IRS. I wish we had it
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for every agency. The US tax court is an
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independent court.
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The EPA court is not an independent
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court. It’s not even a real court. It’s
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a kangaroo court run by the EPA and by
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their employees. And guess which way
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they rule?
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Yeah.
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You know, same thing with Department of
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Labor. Same way with a bunch of other
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agencies. The tax court is completely
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independent, filled with professionals,
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professionals who brookke no nonsense
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from anyone. Not the IRS attorneys, not
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the taxpayers attorneys. And that’s our
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ultimate check because one thing I like
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about the tax court, they follow the
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Scalia version of if you’re into
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constitutional law,
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they believe in reading the law and
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applying it as it’s written, even if it
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makes no sense. And their response is,
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“If it makes no sense, go talk to your
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congressman.” Because in a republic, the
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legislature makes the laws, which by the
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way, in our country, the legislature
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does not make most of the laws anymore.
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I’d say they make about 10% of the law.
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The agencies make about 90% of the law.
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The courts make some percentage. Um,
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Congress makes actually very little law.
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But the tax court has an integrity of
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it’s not our job to pass laws we like
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through the court system. Mhm.
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It’s our job to simply interpret the law
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and enforce it. And they do it and
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they’re pretty honest and they are a
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massive check on the IRS which is
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desperately needed given some of the
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things that have been going on over
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there.