The Paperwork Reduction Act to the Rescue

   Posted by: BobMcNeil   in IRS

In preparation for my SECOND meeting with Roger Caris, IRS Revenue Officer, I did some additional research into using the Paperwork Reduction Act of 1980 (Act) as a defense against the Summons Collection Information Statement he issued on September 19, 2007.

The Act sets forth a comprehensive scheme to reduce the federal paperwork burden on the public by requiring an agency to submit any instrument for the “collection of information” – termed an “information collection request” – to the Office of Management and Budget (OMB) for approval before it may collect the information.

The Act applies to “information collection requests” by a federal agency which are defined as “a written report form, application form, schedule, questionnaire, reporting or recordkeeping requirement, collection of information requirement, or other similar method calling for the collection of information.” 44 U.S.C. 3502(11) (1982 ed., Supp. V).

Typical information collection requests include tax forms, Medicare forms, financial loan applications, job applications, questionnaires, compliance reports, and tax or business records.

When OMB approves an information collection request, it issues a control number which is placed on all forms. If a request does not receive OMB approval, it is not issued a control number and the agency is prohibited from collecting the information. See 44 U.S.C. 3504(c)(3)(A), 3507(f) (1982 ed.). In addition, if the agency nevertheless promulgates the paperwork requirement, members of the public may ignore it without risk of penalty. See 44 U.S.C. 3512 (1982 ed.). However, this protection of the public is applicable only to information-gathering rules. Section 3512 provides that “no person shall be subject to any penalty for failing to maintain or provide information to any agency if the information collection request involved . . . does not display a current control number assigned by the OMB.” [See Exhibit B]. The Act allows the public, by refusing to answer these information collection requests, to help control “outlaw forms”.

This was affirmed by the United States Supreme Court in Dole v Steelworkers 494 U.S. 26 (1990) [See Exhibit C], and more recently, by the United States Court of Appeals Tenth Circuit in United States of America v Jimmy C. Chisum, Case #06-7082, filed September 25, 2007 [See Exhibit D].

Neither the “Summons Collection Information Statement” nor the “Collection Information Statement for Wage Earners and Self-Employed Individuals” displays a current control number assigned by the OMB.

Therefore, the Internal Revenue Service is prohibited from collecting the information and I may ignore the request for information without risk of penalty. See 44 U.S.C. 3512 (1982 ed.).

I plan to present Mr. Caris with a 16 page document to that effect when we meet on October 26th.

Click on the following link for information relevant to this blog:
075 RAM Letter to Roger Caris IRS PRA Response to Summons

No direct un-apportioned tax confirmed by the U.S. Supreme Court rulings.

Knowledge is power. Educate yourselves.

This entry was posted on Friday, October 26th, 2007 at 3:16 am and is filed under IRS. You can follow any responses to this entry through the RSS 2.0 feed. You can leave a response, or trackback from your own site.

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