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COMPARED TO THIS, PRIVATE TAX COLLECTION BY PHONE ISN'T SO BAD

September 18, 2007

When the Government really is motivated, it has great power to enforce the tax laws. That's been quite clear ever since President Washington marched an army into Pennsylvania to subdue a revolt over a whiskey tax.

The Internal Revenue Commissioner doesn't raise armies to enforce taxes. He also has other powers that are wisely left unused. Section 7601, for example:

� 7601. Canvass of districts for taxable persons and objects
(a) General rule

The Secretary shall, to the extent he deems it practicable, cause officers or employees of the Treasury Department to proceed, from time to time, through each internal revenue district and inquire after and concerning all persons therein who may be liable to pay any internal revenue tax, and all persons owning or having the care and management of any objects with respect to which any tax is imposed.

(b) Penalties

For penalties applicable to forcible obstruction or hindrance of Treasury officers or employees in the performance of their duties, see section 7212.

Yes, this section authorizes the IRS to go door-to-door and ask whether the household is current on its tax filings. Tax Analysts reports ($link) that this power was used as recently as 1953:

As the sun climbed into the sky on July 29, 1953, Boston commuters made their way to work. For most, it was just another Wednesday, with cloudy skies and temperatures in the mid-80s. But for 280 employees of the IRS, the day was anything but ordinary. With orders from Washington, an army of revenue agents fanned out across the city, knocking on doors and looking for tax delinquents.
The canvass, supervised by New England Regional Commissioner William A. Gallahan, was both simple and systematic. Agents across New England were assigned to particular streets and instructed to knock on the door of every business or residence. When taxpayers answered, they were asked whether they had filed a return for 1952. If yes, then they were asked for proof of payment -- a receipt, perhaps, or a cancelled check.

The canvass was cancelled after the first dozen agents vanished, never to be seen again, right? Well, not exactly:

According to press reports, taxpayers throughout most of New England greeted the itinerant agents with civility, if not enthusiasm. According to Gallahan, most accepted the necessity of such a survey. Rhode Islanders, however, proved troublesome. Agents reported "a good many doors slammed in their faces," according to The New York Times. And some taxpayers were furious. "My husband's in the service," declared one woman as she shut the door. "What more do you want?"

Congress got irate, and soon the "survey" was ended, never to be resumed. The irate Congresscritters were content to criticize the IRS for following a law written by... Congress. They never bothered to actually change the law.

Some things never change.

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