IRS Information
Technology Does Not Meet Legal ‘Rules of Evidence’ Requirements
How to Beat the IRS
(audio archive on Freedom's Radio)
“Deficiencies remain concerning (1) material weaknesses in
internal control over… information security, (2) a significant deficiency in
its internal control over tax refund disbursements, (3) a noncompliance with
the law concerning the timely release of tax liens, and (4) financial
management systems’ lack of substantial compliance with FFMIA requirements.”
- GAO
Audit Report, IRS Fiscal Years 2010-2011
This program is worth listening to:
On the calendar, click on the program for Thursday,
September 19, 2013, then click on the link in blue to activate the player.
Scroll to the 30 minute point to bypass introductory stuff. The speaker is
introduced as “Mr. Smith”, but he is really Red Beckman, who appears regularly
on “Walls in Your Mind” on BlogTalkRadio (see below from a recent email).
Red Beckman worked with Bill Benson in performing the
research that proved that the Sixteenth Amendment was never legally ratified.
In this presentation on Freedom’s Radio, Red explains how
the computer-generated transcripts introduced into evidence by the IRS at due
process hearings or in Tax Court, do not, according to repeated General
Accounting Office reports, meet required legal standards for accuracy,
trustworthiness, reliability, and data security. Accordingly, by objecting to
these IRS transcripts and having them disallowed as evidence of record, a
defendant will have removed the only evidence the IRS can present, thereby
effectively destroying the IRS case.
Go to the 55 minute point on the recording to hear Red
describe exactly how this objection should be made.
Here are several links to examples of GAO reports describing
the many problems with the IRS information technology system. As Red explains,
IRS computers are not capable of automatic calculation of individual income tax
data. All such calculations are made by hand by IRS agents and the results
manually entered into IRS computers. This brings into sharp focus the
well-known observation that no two IRS agents are likely to achieve the same
result on any set of input data for an individual income tax return.
******************************************************************
FINANCIAL AUDIT – IRS’s
Fiscal Years 2011 and 2010 Financial Statements
What
GAO Found
“In
GAO’s opinion, IRS’s fiscal years 2011 and 2010 financial statements are fairly
presented in all material respects.
However,
serious internal control and financial management systems deficiencies
continued to make it necessary for IRS to use resource-intensive compensating
processes to prepare its balance sheet. Because of these and other internal
control, compliance, and system-related deficiencies, IRS did not, in GAO’s
opinion, maintain effective internal control over financial reporting as of
September 30, 2011, and thus did not have reasonable assurance that losses and
misstatements material to the financial statements would be prevented or
detected and corrected timely.
During
fiscal year 2011, IRS continued to make strides in addressing its deficiencies
in internal control. For example, to address its information security
deficiencies,
IRS formed cross-functional working groups to identify and remediate specific
at-risk information security control areas and made improvements in
several system-level information security controls.
However,
deficiencies remain concerning (1) material weaknesses in internal control
over unpaid tax assessments and information security, (2) a significant
deficiency in its internal control over tax refund disbursements, (3) a
noncompliance with the law concerning the timely release of tax liens, and
(4) financial management systems’ lack of substantial compliance with FFMIA
requirements. The continuing material weakness in internal control over unpaid
tax assessments results primarily from IRS’s reliance on financial management
systems that do not substantially comply with FFMIA requirements and that
affect IRS’s ability to produce reliable financial statements without
significant compensating procedures.
IRS’s
continued material weakness in information security controls limit IRS’s ability to
provide reasonable assurance that (1) the financial statements are fairly
presented; (2) financial management information relied on to support day-to-day
decision making is current, complete, and accurate; and (3) proprietary
information processed by these automated systems is appropriately safeguarded.
These issues increase the risk of inappropriate access, alteration, or
abuse of proprietary
IRS programs
and
electronic data and taxpayer information.
Further,
during fiscal year 2011, IRS continued to face management challenges in
developing and institutionalizing the use of financial management information,
specifically cost- and revenue-based, outcome oriented performance information,
to assist it in making operational decisions and measuring the
effectiveness of its programs.
Sustained
management efforts will be necessary to build on the progress made to date and
to fully address IRS’s remaining internal control, compliance, and systems
deficiencies and remaining financial management challenges.”
________________________________________
“Also in fiscal year 2007, IRS continued to have a
material weakness in internal control over information security. In particular,
it had deficiencies in its controls over access to the automated systems and
software applications it relies upon to process its financial transactions,
produce its internal and external financial reports, and safeguard related
sensitive infiltrations. As result, IRS was limited in its ability to
provide reasonable assurance that (1) its financial statements, taken as a
whole, were fairly presented; (2) the financial information IRS relied on to
make decisions on a daily basis was accurate, complete, and timely, and (3)
proprietary financial and taxpayer information was appropriately safeguarded.”
*****************************************************************************
Information on Red
Beckman:
What Matters More, The Power to Elect or
the Authority to Hold Bad Politicians
Accountable?
If The People realized that the authority
delegated to government is but a fraction of the authority held and reserved by
The People, and they realized that The People could set up People’s
Boards of Government Review to oversee ALL
government activity for the purpose of holding Elected, Appointed and
Commissioned government actors accountable to their Oaths of Office, then is
it possible that the solution has always been in the hands of The People?
Terry Dodd, Red Beckman and Dr. Kate
invite you to listen in, chat and call in.
Show Link for this show: (Thursday night, 9 to 11 p.m.
Eastern, 7 to 9 p.m. Mountain)
CALL IN NUMBER: 347-838-9176
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