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When an effort to fight taxes reaches the end of the road

April 14, 2010

It took a long time, but the IRS efforts to collect 1999 taxes from a Spirit Lake, Iowa man are finally scheduled to bear fruit a week from Friday. That's when the IRS is to auction two motorcycles and two cars once owned by unwilling taxpayer Michael Alan Reed. Some background from the court case allowing the IRS to seize the vehicles:

In 1999, defendant Reed sent a letter and affidavit to the IRS contesting the applicability of federal income tax to him. Also in 1999, defendant Reed sent to the IRS a "Non-Negotiable Bill of Exchange" in the purported amount of $51,635,000. Along with the "Non-Negotiable Bill of Exchange", defendant Reed sent a copy of his birth certificate, indicating that he was born in the United States, driver's license, and social security card.

This somehow failed to make the IRS go away, and in the end the IRS ended up seizing the four vehicles. If it were me, I'd miss this one the most:

1947 Indian Chief, VIN CDG5320

No, I don't ride motorcycles, but that's still a sweet bike. If you are more of a Harley kind of taxpayer, there's also this:

1991 Harley "softtail"

All of which teaches a sad but important lesson: there is an income tax. No matter how convincing Irwin Schiff, William Benson, or the other tax protest scholars might sound when they say there is no income tax, the federal judges, federal Marshals, IRS collection guys, and the federal prison wardens are all sure that there is one. Mr. Reed has learned the hard way whose views count.

Prior coverage: Losing your ride, the IRS way.