According to news articles posted on the internet in May 2010, agents from the U.S. Postal Inspector and the Internal Revenue Service (IRS) raided the offices and home of a prominent Twin Cities real estate developer May 18. The federal agents issued search warrants at Ned Abdul’s offices at Butler North and his home in Deephaven, Minnesota. Abdul’s Minneapolis holdings include the Lumber Exchange building, the Whitney Hotel, and two nightclubs. TV crews on the scene claimed to have seen the federal agents carrying out boxes of files from Abdul’s Swervo Development Corporation in downtown Minneapolis.
Most of you who live in or around the Minneapolis areas of Minnesota probably recognize this story.
What is interesting about this story is the fact the IRS was involved with the investigation of this local company. Typically, the U.S. Postal Service and the IRS investigate such things as financial fraud and tax issues, but nevertheless, of such notoriety is what makes all the horror stories about the IRS jump to life.
In our modern society, the IRS has come a long way to help bridge the gap between the old IRS horror stories that use to dominate local tax stories to a more gentle approach of education. Our government, along with the rest of us, has recognized how complicated our system of tax collection really is. The new approach is helping but not necessarily alleviating all the problems. Probably the most important rights you have is being able to be represented when the need arises. Even though the IRS has come a long way in trying to work with the common tax payer, they still have unparalleled authority when it comes to implementing the law. Paying your income taxes is the law despite what many believe or have said. The Sixteenth Amendment to the Constitution was ratified in 1913 giving Congress the power to “lay and collect taxes on incomes, from whatever source derived, without apportionment among the several States, and without regard to any census or enumeration.”
With current stories like this one in Minneapolis still hitting the news upon occasion, the IRS still has a long way to go in alleviating its negative images. We do not know all the details to this particular incident in Minneapolis that was reported in the news, but we do know you have protected rights by law that are recognized and posted on the IRS website. You, as a United States taxpayer, have the right to:
- be treated professionally, fairly, promptly, and courteously by IRS employees and Private Collection Agencies contacting you on behalf of the IRS;
- disagree with your tax bill;
- meet with an IRS manager if you disagree with the IRS employee who handled your tax case;
- appeal most IRS collection actions;
- have your case transferred to a different IRS office if you have a valid reason;
- be represented by someone when dealing with IRS matters; and
- receive a receipt for any payments you make.
Even though our government is trying to bridge the gap between taxpayers and itself, scenes like these in Minneapolis will hopefully be the exception to the rule. For what ever reasons, some of you will still have problems and misunderstandings with the IRS that seem to be unsolvable. When this happens, you are going to need legal counsel from a tax attorney. If you believe you have unresolvable problems with the IRS, it is your right by law to be represented. So, if you live in or around the areas of Minneapolis, Minnesota, contact us today at and we will get you in touch with a tax lawyer in your area who will be able to help you answer all the questions you may have about tax law.