IRS Attorneys Caught Deceiving Court

9Th Circuit Court Rules Against IRS - Citing Deception, Misconduct, Withholding Evidence & Fraud on Court

1,300 Airline Pilots Escape Paying $2.6 Billion in Tax Assessments & Penalties

[Dateline - Houston, TX - January 18, 2003] In a Landmark decision, the 9th Circuit Court of Appeals in San Francisco overturned a 1991 Federal court ruling that involved more than 1,300 airline pilots (many based in Houston), who had been found guilty in Federal Tax court, of taking illegal tax shelters, with assessments and penalties that would have totaled more than $2.6 Billion. In the decade old case, the Internal Revenue Service had claimed that the pilots had shammed the IRS by taking improper tax deductions, for a tax-sheltered trust they had established for their children, and for their retirement. Had the ruling not been overturned, most of the defendants would have lost their homes, their life savings and other assets, and become financially bankrupt.

In the twelve page ruling, handed down and filed on Friday, January 17, 2003, Appellate Judge Michael D. Hawkins used such language as deception, misconduct, withholding evidence and Fraud of Court as he described the prosecution of the giant case by IRS attorneys, Kenneth W. McWade and William A. Sims. The case has so embarassed the IRS that Chief Counsel John Williams delivered an apology to the New York Bar Association on January 22, 2003

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This is not the First time Criminal Tax Attorney Michael Minns has Caught the IRS Playing Dirty

Over the past twenty five years, Michael Minns has caught IRS attorneys playing a variety of dirty tricks in order to win their cases - everything from falsifying records to editing interview tapes. Despite all efforts made by Minns to expose misconduct, no disciplinary action has ever been taken against an IRS attorney.  This, he hopes, is about to change.

In the above case, based on court testimony and hard evidence, Minns argued how McWade and Sims had made secret settlements with two of the seven test case petitioners in exchange for their cooperation and assistance in prosecuting the other petitioners. Minns went on to disclose how the IRS attorneys committed Fraud of Court when they did not disclose to the other five petitioners or the court that they had eliminated the tax assessments and penalties of one of the petitioners, and paid the legal fees of the other petitioner's attorney, in exchange for their assistance and testimony. This was while the Petitioner's attorney sat on the defense team at the federal trial. In addition to committing Fraud of Court, the IRS attorneys were made aware of inside defense information and strategies leading to the IRS victory.

Minns contacted the US Tax Court to ascertain what disciplinary action they intended to take against McQuade and Sims. After months of continual requests, the Federal Tax Court advised Minns that no federal action would be taken and any greivances would have to be filed with the appropriate state bar. However, the tax court would not disclose which states McQuade and Sims were licensed, so Minns wrote to the state bars of all 50 states. He finally determined that the attorneys were licensed in Oregon and Arkansas, respectively.   Both state are now taking action on Minns' grievance complaint.

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