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From: eder@ssc-vax.UUCP (Dani Eder)
Newsgroups: net.legal,net.taxes
Subject: Re: Fraud & the IRS?
Message-ID: <180@ssc-vax.UUCP>
Date: Wed, 6-Jun-84 14:20:10 EDT
Article-I.D.: ssc-vax.180
Posted: Wed Jun  6 14:20:10 1984
Date-Received: Thu, 7-Jun-84 19:10:58 EDT
References: <376@teldata.UUCP>
Organization: Boeing Aerospace, Seattle
Lines: 32

6 June 1984

	Unfortunately, I moved recently, and my files on the IRS are
still boxed, but here is what I understand about the subject from memory.

     The IRS wants you to believe the 'Privacy Act and Paperwork Reduction
Act Notice' found in the instructions to the form 1040 fulfills the
statutory requirements.  The notice is written in such a way as to mislead
the average individual.  Find a copy of it from any recent year.  Read it
very carefully and see where it says 'your response under these sections
is mandatory'.  It refers to sections of the law, I think Internal Revenue
Code of 1954 sections 6001 and 6011.  The text of these sections say
something about 'persons required to file returns' but do not say who
is required to file.  It gets complicated.  
     Turning to the question of penalties, they are required to tell you
what the panalties are for not giving the required information (i.e. file
return).  This is supposed to be in specific terms.  As examples, look
at a form W-4, it lists a $500 fine for false information.  Look at a
draft registration form, it says $10000 fine and 5 years in jail for
failure to register.  What does the notice say?  Something vague about
'penalties may be assessed'.
     About the next to last paragraph of the notice, read what it says
about "If you do not file a return".  It says they disallow deductions
from the return.  What return?  You didn't file one! Well, in the 
Internal Revenue Code, section 3201 or 3301 (I'm doing this from memory)
it says the Secretary of the Treasury has to file a return for you if
you do not file one.
     If you want further information, send me mail, and I'll dig up my notes.

Dani Eder / ssc-vax!eder / Boeing Aerospace Company