The Chairman’s Report June 23, 2023

  • by:
  • Source: FAIRtax
  • 06/23/2023




We know that there are two types of people who dislike the IRS and the income/payroll tax—men and women.  

We all know that there has to be a better way to fund the federal government and a growing number of Americans agree that the better way is the FAIRtax.

However, until we replace the corrupt and broken income/payroll tax system with the FAIRtax, Americans have a right to expect that the IRS and its employees will be held to same legal and ethical standards that they enforce on the rest of us. 

However, a recent case indicates that the IRS seems to believe that it can ignore laws that get in its way.

The case reported in the June 5, 2023 Political Weekly Tax is about the IRS backdating documents.  Backdating is when you sign and date a legal document to make it look like you signed it earlier than you actually did.  For example, if you sign your income tax return on May 15, 2023 but date the return indicating that you signed it on April 15, 2023 so you can avoid late filing penalties, this is backdating and illegal—a felony.  

Here are some of the key points:
  • LakePoint Land Group is a partnership that claimed tax breaks for land conservation deals—a benefit provided by the Internal Revenue Code. (Land conservation is where taxpayers purchase a property and then donate it to a non-profit that will conserve it.  In that case, the donor receives a tax deduction for the donation.)
  • The IRS assessed penalties of $38 million in unapproved partnership deductions for the donation of land to a non-profit because they believed that the land was valued improperly.
  • LakePoint refused to accept the penalty assessment and brought the matter to the U.S. Tax Court.
  • LakePoint was presented with a document allegedly signed in July of 2016 by an IRS supervisor which was required in order for the IRS to assess the penalties against LakePoint.
  • LakePoint attorneys discovered that this was a lie.
  • The supervisor actually signed the document in February of 2017 but dated it as if he signed it in July of 2016—backdating the document.
  • Even though the LakePoint attorneys informed the IRS attorneys about the backdating, attorneys for the IRS still failed to notify the Tax Court of the backdating.  The IRS then doubled down and submitted sworn declarations to the Tax Court that there had been no backdating.
  • In an April motion with the Tax Court, the IRS finally admitted to the error but said it was unintentional, adding that the “commissioner expresses his contrition and apologizes to the Court and to petitioner for this error.”
  • It is clear that the signing of a fraudulent document as part of an audit by anyone in the government is no joke: it constitutes a felony.


How can deliberately backdating a legal document in an effort to deceive the court be “unintentional”?

Claiming that the backdating was an unintentional error was clearly an attempt by IRS attorneys to shield IRS employees from criminal prosecution because you must have “intent” to commit an act that breaks the law.  

Are the attorneys saying that the IRS employees were too stupid to understand that their actions were wrong and that they had no intent to break the law?

If the employees are truly that stupid, how can they be trusted to audit U.S. taxpayers?

Can you imagine what a judge would do to any of us if we admitted that we falsified the date we signed a critical document in an effort to mislead the court? This is a crime—a felony.

The judge would ask the criminal authorities to prosecute us.  If we were employed by a responsible employer—not the government, we would be fired.

However, it appears that the standards that would apply to you and me don’t apply to IRS employees.  So far, no one in this case has been terminated or referred to the authorities for prosecution.

How much longer will the D.C. establishment ignore the obvious—the income/payroll tax system and the IRS are broken and cannot be fixed.

How much longer will we tolerate the D.C. establishment’s refusal to do the right thing because of their greed and desperate desire to control us?

How much longer will Americans tolerate not knowing the true cost of the federal government that the income/payroll tax hides and the FAIRtax shows on every receipt?

Congress and D.C. know that there is a better alternative—the FAIRtax.

Instead of spending time doing endless hours of paperwork that don’t create anything of value to yourself, your family or the nation, why not eliminate the unnecessary waste?

Many in D.C. oppose the FAIRtax because it would transfer power from the government to the people, while at the same time, giving the people a better chance of succeeding on their own.

Isn’t it time to end this ludicrous tax collection system and the IRS?

When the FAIRtax is enacted, there will be no need to fear being audited by the IRS because there will be no more IRS.  

Under the FAIRtax, there will be no more tax returns.  We will pay our taxes when we make retail purchases of new goods and services.
There is going to be a vote on the FAIRtax in the House of Representatives.  McCarthy and the other elites didn’t want it, but it was forced on them.

We now have the opportunity to force all Members of the House to show where they stand.  They can:
  • Vote for the present income/payroll tax system or for the FAIRtax.
  • Support the corrupt income tax and the IRS or eliminate them.  It can’t be any simpler than that.
  • Hide the true cost of their government or pass the FAIRtax and show everyone the true cost of government on each retail receipt.
  • Support the largest transfer of power from government to the people, the FAIRtax, or not.
If Members think that the FAIRtax needs to be changed, then they can propose the change.  Don’t let them reject the entire bill because it has a “flaw” that can be easily addressed.  

Please stand with us and demand that your representative support a much fairer, much simpler and much more efficient way to fund the government—the FAIRtax!

There are no tax returns to file and no records to keep.  We pay our federal taxes when we make retail purchases of new goods and services, and there is no need for the IRS.  If you sell a used couch or used jet ski online, there is no FAIRtax due on that transaction.

The FAIRtax will allow us to TAKE BACK CONTROL.

The income/payroll tax system is broken and no longer working—we can’t repair it but we can replace it with the FAIRTAX!
We all should remember Edmund Burke’s warning that applies to our efforts to TAKE BACK CONTROL,
“Nobody made a greater mistake than he who did nothing because he could do only a little.”
We should also remember this quote from George Orwell's 1984, which, if we do nothing, may foretell your and your children's future:
“If you want a picture of the future, imagine a boot stamping on a human face—forever.”
We can write letters and make calls to our elected representatives and attend Zoom town hall meetings demanding that if they really want to allow Americans to “TAKE BACK CONTROL”, the first step is to eliminate the income/payroll tax system and enact the FAIRTAX!

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