WTP's ex-exempt status

[Nikki]

If anyone knows a freedom-oriented attorney who'd be willing to do some pro bono (odds of getting paid are slim to none) work, please have them contact Bob:

IRS – Next Steps

With so much taking place, it is truly unfortunate that this situation comes now. Perhaps that is exactly what was planned. Whatever the case, we are ready to see it through. We are especially grateful for our WTPC members across America and those who participated in CC2009, who continue on with tireless energy and efforts, even as we deal with these issues here. The Creator works in wonderful ways.

We have notified the IRS that we will be asking the US District Court to overturn IRS’s revocation of WTPF and WTPC’s exempt status and the conversion of our Form 990 tax returns to Form 1120 tax returns. We need to identify an attorney to represent the organizations, as Bob is not permitted to do so.

I wonder why none of the attorneys who have worked with Bob in the past want to step up to the plate for this one, Perhaps something along the line of the rats and the sinking ship?

[Famspear]

Tax exempt status revoked? My, my, what a surprise.

[fortinbras]

In reporting this revocation, Schulz tell his acolytes about how his 2001 hunger strike procured a promise of a hearing (actually, briefing, by DOJ lawyers - and without participation by IRS) on the IRS (actually, about the tax laws generally), which, at the time, Schulz depicted as putting the IRS and the Tax Code "on trial" ....

http://www.wethepeoplefoundation.org/UP ... 08-pg2.htm

.... and goes on to claim that Schulz's organization hosted this event and beamed it out for two full days.

Following a 21-day hunger-strike in the summer of 2001, which, thanks to the assistance of Congressman Roscoe Bartlett, finally secured the written commitment of the DOJ and IRS Commissioner to conduct a public People’s hearing on the tax fraud, WTP hosted the 2-day People’s “Truth in Taxation” hearing which was webcast live – along with full documentary evidence, in its entirety, to thousands across the nation.

Except those of us who aren't brain-damaged can remember that the Congressman who arranged this briefing and the Dept of Justice that was supposed to participate (not the IRS) cancelled it completely because Schulz was telling his followers to delay sending in their tax returns, "Don't File Before the Trial".

[Judge Roy Bean]

A really stupid part of all of this is I suspect most of the people who would want to donate to WTP wouldn't be in a position to deduct it.

[Famspear]

More detail from the We the People Foundation, apparently back on March 8, 2010:

......For the collective and unrelenting efforts of Bob Schulz over the past years to revive and defend the Constitution (with no personal benefit or salary), the IRS has now moved again to abuse the tax laws to inflict further unjust injuries against the WTP organization, impede its essential work, and silence our messages of Accountability, Resistance and the fundamental Rights of the People.

On January 27, 2010, the IRS served Notice upon WTP Foundation that it had retroactively revoked, back to 2003, its corporate 501(c)3 “tax-exempt” status.

IRS also provided notice it is preparing to execute levies against the Foundation for (alleged) past-due (alleged) tax deficiencies arising out of the (alleged) administrative revocation.

The facts do not add up. The organization passed two IRS audits with flying colors (IRS was hoping to find something but failed to) and has followed all compliance requirements through each year, without any contrary response from the IRS. WTP has never altered from its dedicated purpose as an educational foundation under its 501(c)3 charter. The sister organization, the WTP Congress, has likewise acted within the definition of its 501(c)4 charter.

Just after CC2009, in early December, questions about WTP’s status were actually raised by two individuals from Illinois who claimed they had been told about this change of status by the IRS before they had even informed Bob. When Bob called the IRS to find out if something was going on that he needed to know, the IRS person could not answer him and said someone higher up would have to call him back. The information came in late January.

In the defense of WTP, Bob is now going to challenge the revocation and is preparing to file the legal papers which will begin that process.

Is this conflict all about Bob and the Foundation or is this more about you and I, about our Individual Rights, about our Constitution, and the Rights of those who will come after us?

It is clear we either stand together now and see these things through or we will suffer more and more oppression.

There may be some of you who decide not to support WTP or Bob any longer when you hear this news, though such a reaction seems hardly possible to us anymore. We are living in a time when we are not backing away from Truth or letting someone else handle the tough stuff. This is our test as much as it is his.

The Government, and the main-stream media, have tried to make Bob and the organization look controversial. They have attempted to marginalize our work and clarion call for Constitutional Order. Bob and WTP are often help high by the establishment as the “anti-government radical tax protestors.” We are now standing up to that definition loudly and clearly.

As you know better than all, WTP has been anchored in the CONSTITUTION. If that is “anti-government” what does that tell you?

Bob has never been intimidated by those who have tried to stop him from standing against those who would usurp the authority of the Constitution. WTP has acted within the system - professionally, rationally, intelligently, and always peacefully.

He has never given up and is not about to begin to do so now.

Finally, Bob has NEVER told anyone not to pay their taxes. He has done his research, looked at the evidence, asked the questions and demanded that government examine the issues -- the evidence surrounding the ratification of the 16th Amendment, the legal meaning of the word “income,” the changes in the tax code, the effect of employer withholding -- all things we should all be doing en masse now. Perhaps the coming weeks will attract additional interest in our research and repeated efforts to secure Redress as we move toward April 15th.

Over years, Bob and many others in America have paid a stiff price for exercising their free Speech and Petitioning our servant government for answers to our compelling questions and demanding that these issues be publicly examined and Redress secured. The Government’s failure to do so, is in fact, an act of tyranny that the People must not tolerate.

Before this week is up, WTP’s response to the IRS’s revocation will be filed in District Court in Washington, D.C. We will keep you posted every step of the way. For those reading this update who are actively involved in any of WTP’s projects, please carry on and see them through. If you are not yet involved, your support is needed and most welcomed.

The fight for Liberty is now upon us.

(bolding added)

http://www.wethepeoplefoundation.org/UP ... 08-pg2.htm

[LPC]

Well, it's about time.

But there are several things about Schulz's version of events that puzzle me:

1. How could Schulz not have known that the IRS was contemplating revoking the tax-exempt status of his organizations? Would his constant refusals to supply information to the IRS, and his perpetual adversarial posture, have prevented him from getting communications from the IRS or understanding what was happening?

2. Along the same lines, wasn't there any opportunity for an administrative appeal? It seems odd that the IRS would issue a final determination without giving Schulz a chance to seek internal review.

3. If the IRS decided to revoke exempt status back in January, why hasn't it been published in the Internal Revenue Bulletin? (From the language of the announcements in the Bulletin, it looks like the IRS announces revocations immediately, even though a challenge can be filed in court.)

4. How could the IRS issue a notice of intent to levy, or even a demand for payment, without first issuing a notice of deficiency? The only thing I can think of is that the revocation of exempt status triggered an assessment of employment taxes which exempt organizations might not have been required to pay, because there is no notice of deficiency procedure for payroll taxes. (Although as the treasurer of both a church and a secular charitable organization filing payroll tax returns, I don't think that exempt status has much to do with payroll taxes.)

Also: It's not clear to me that revocation of exempt status would result in any tax liability for the corporations themselves, because most of their revenue was in the form of gifts, which should be excluded from gross income. But Schulz might be facing additional income tax liabilities if payments by the organizations were deemed to be income to him (which could also explain an assessment of payroll taxes).

[LPC]

Another observation: Schulz's claim that his organizations were audited twice and passed each audit with "flying colors" is probably delusional. He might have been asked questions, and might have provided answers, and then assumed from the IRS's silence that everything was cool, even though it wasn't.

[notorial dissent]

Since when does any one capable of actually stringing a coherent thought together take anything Bob, or his sock puppet organizations, says as based even remotely on reality? When in fact you can generally count on whatever is claimed to be the exact opposite from reality. The IRS doesn't generally audit NP's unless there is some question about their honesty.