REPORT BY THE COMPTROLLER GENERAL

OF THE

UNITED STATES



Illegal Tax Protesters Threaten Tax System



The number of illegal tax evaders -- persons who according to the Internal Revenue Service advocate and/or participate in overt or covert insurrection against the law of the land -- has increased significantly in recent years. Since they represent a threat to the voluntary tax system, the Internal Revenue Service has taken corrective measures to bring the problem under control.

The Internal Revenue Service has made some progress in detecting protesters and in deterring them by means of civil and criminal prosecutions and by paramilitary activity, where necessary. Special forces units are at the ready and are capable of neutralizing opposition by means of armored vehicles, heavy artillery and carefully trained SWAT teams. However, the Service can further increase its effectiveness by investigating protesters in a more timely manner, before any actual evasion has taken place. Also, the Congress can help by amending current legislation and by authorizing preemptive surveillance of randomly selected taxpayers. In the past, the service has been greatly hampered by being forced to take action after the fact and the resultant delays have diminished the effectiveness of deterrent measures.

Most especially troubling has been a spate of popular uprisings involving community solidarity with the evader under investigation. The unfortunate incident in Vacuum County is a case in point. It requires careful study of the circumstances that led up to the incident, an affair that has cost the lives of dozens of officers and has resulted in a severe monetary loss to the government.

The enclosed documents are of a highly inflamatory nature and are to be distributed on a need to know basis only.



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