If the IRS Comes Knocking, Keep Quiet and Call Your Lawyer

This story is chilling, but it has lessons for us all.

A Marion, Ohio tax preparer received a house call from an IRS agent who claimed his name was “Bill Haus.” The agent said he was there to make inquiries about an estate tax return the preparer had filed and said that the estate owed a “substantial amount” to the IRS.

The preparer gathered records from the home files and showed that the tax returns had been filed properly. Then “Bill Haus” revealed that he was really there to inquire about the decedent of the estate, not the estate itself.

The tax preparer called her lawyer who told the IRS agent to leave the house immediately. Haus then told the lawyer, “I am an IRS agent, I can be at and go into anyone’s house at any time I want to be.” Haus finally left, but not before threatening the tax preparer with bank account freezes and liens on her property if she did not settle the amounts due within two weeks.

The story gets worse. The taxpayer called the police to report the incident. The police called the IRS at which point it was revealed that the IRS agent’s real name was not Bill Haus (that was an alias used to deceive the taxpayer). The article has additional details that are as scary as what’s described here.

Fortunately, the matter has now been taken up by a House of Representatives investigatory committee in Washington that is digging into the matter.

Here are a few practical tips for everyday Americans. Government agents do not have a right to enter your home at any time without a warrant. If an agent shows up at the door, ask to see a warrant. If they don’t have one (with the right name and address), tell them to go away, shut the door, and call your lawyer.

Even a so-called “no knock” warrant backed up by a SWAT team requires at least one knock on the door, although it’s usually delivered lightly at 3:00 am when the target is in his pajamas and fast asleep until the door is smashed in.

Agents cannot use an alias unless they’re doing investigatory work, also backed up by a warrant. The problem in this case is that the taxpayer thought the agent was a “nice guy” and she could clear the matter up quickly. In fact, the agent was a liar dealing in bad faith and ended up threatening consequences that could lead to financial ruin as a way to get at the taxpayer’s clients.

Government agents are getting more fascist and ruthless by the day. They don’t deserve the benefit of a doubt. The best defense is to know the law and have a good lawyer on speed dial. If you don’t have a lawyer, call the local police.

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