Hommel vs. IRS: Post Court Brief, Part 1. Docket number: 23155-14

October 31, 2016 at 5:59 PM

Post Court Brief 10-31-16

1. This case is about the IRS attempting to fraudulently assess a $2 million tax against a man who has nothing. Bankruptcy courts will weigh the merits of that, if this court does not. I have nothing left, but about 25 ounces of gold, down from 50 oz. at the time of court. There is no cash or stocks in any accounts. I have $800 in a TD Ameritrade brokerage account that was not yet seized. I have been under IRS collections efforts for tax years 2007, 2008, 2010 since April, 2014, after the IRS concluded that I owed $2 million for 2009. There was no longer any incentive for me to pay any further tax after that fraudulent assessment. Being under IRS collections means I have lived for 2.5 years now on my savings, which has nearly run out. I could no longer afford my tax attorney from about two years ago, when we notified tax court. I have no ongoing businesses of record. There are no bullion shops any longer; they were closed in Jan., 2014. I only have my online newsletter, but that is nearly defunct, since I have no stocks and cannot own any stocks due to IRS collections efforts. Except that I was paid 10,000 shares of Mines Management for a promotion, and I have that certificate, and that stock is worth about $1/share. I have two cars; a 2008 BMW C300 (KBB value: $6465), and a 2005 Ford Excursion (KBB value: $12,023). These collections of facts, and truthful disclosures, of my remaining assets make quite clear that the IRS assessment was not only fraudulent, but negligent, abusive, irresponsible, and also uncollectible. Because I don’t have $2 million. Nor $4 million. And if I could earn $4 million, why am I not continuing that business? I’m shocked that their final brief before court in May 2016, they ignored my 15 page detailed responses, and falsely claimed in a three page summary that I failed to respond? That showed a pattern of neglect, and abuse and lack of capacity to listen. Why is the IRS wasting the court’s time with an uncollectible assessment? I believe the long IRS response is their last ditch effort to try to limit their obvious liability for harming me with their abuse. So, at this point, I suppose they are not trying to get money from me, (although I’m still unfairly under collections efforts), but rather, they are trying to prevent having to pay through the nose.

2. The IRS audit was conducted in bad faith. In November 2011, I left for rehab after filing my tax return for 2009, the last of my tax returns, all late, from 2006-2010. 2006 was paid in full, and needed no settlement. My tax returns for 2007, 2008, 2010 were all “settled” for three reasons. First, my capacity to file a return based on transaction records is impossible due to issues of ownership of the businesses being owned by other men, and the litigation that was ongoing at the time over those issues. Second, I went to rehab for alcoholism. Third, I did not have the money for the full settlement. The IRS is very understanding when it comes to alcoholism, apparently, and dropped all the late fees on taxes, because I had gone to rehab. This sounds as if I somehow used a loophole to avoid paying taxes. No. The tax settlement was a horrific settlement. I have lost money every year from 2006 until today, ten years later. In 2006, my net worth peaked at $15 million. Today, it’s just over zero. The tax settlement took my net worth from $5 million to zero, by squeezing me of all my liquid assets, and even my non liquid assets. The settlement required me paying about $1 million, and left me with about $600,000 in liquid assets in inventory across two bullion shops, one in Grass Valley, and one in Auburn, and I had remaining taxes to pay of about $200,000, which turned into $600,000 being unpaid for interest for the years 2007, 2008, 2010 stretching out over ten years. $600k minus $600k is zero. I was left with a net worth of zero. I lost a house that was fully paid for at $950,000. I lost a Tahoe Cabin and sold it below market for $450,000. I paid over a million dollars in taxes during years that my total net worth was going down, and I should not have paid anything, because most of the losses took place in the missing year, 2009, in which my losses were fraudulently denied, and denied to be carried over into the other years, as they should have been. I was fraudulently squeezed into paying taxes when I was losing money, under threat that they would simply come in and steal all my inventory, simply because I was behind on filing, because the owners of the businesses were refusing to file taxes. The bad faith of the 2009 audit is made clear in that the late fees for 2009 were already litigated, and penalties already abated and already settled in 2012 when I was in rehab. The IRS has already made note of this, and agreed to waive these late fees for 2009 as well, and now they are claiming late fees once again. Again, this shows bad faith of the IRS in several ways. First, the 2009 audit should never have taken place, because it’s destroying and undoing a previous tax settlement that was settled. Second, they have no business in assessing late fees to begin with since they have already been waived. Third, they have no business waiving the late fees a second time, and then re assessing the late fees once again flip flopping their position on this. How can there be a settlement that is so horrific, and so terrible, that I had to pay nearly $1.6 million in taxes more or less, of which I paid about $1 million, and that left me with a net worth of zero, and then, the come in a say I owe them $2 million more after they break the settlement agreement? How is that a settlement in good faith? It’s as if I was a city, and I was carpet bombed to nothing, and then, after that, they dropped a nuclear bomb on me for good measure. That’s not a good faith settlement, and thus, it’s not a good faith audit in the first place.

3. I settled and tried to keep settling with the IRS. The IRS said they would destroy my businesses unless I paid them over a million dollars, and even though I did pay them a million, they destroyed my businesses anyway. How on earth is that good faith actions by the IRS? I settled with the IRS. I was repeatedly told that I could not manage my life, that I had made a mess of it, and therefore, I had to learn guidance from the AA (Alcoholics Anonymous) people. I was taught in rehab and AA to never fight, to always settle, to always just give in, to go along to get along. I was told to make no sudden decisions, to learn to trust others again, to trust the experts. I trusted my tax attorney who told me that if I was overpaying taxes as I felt I was doing, he said my money would be safe with the IRS and that I could get it back by re-filing, or once I filed my losses. This, of course, never happened, and I was betrayed. On what planet should a person who has suffered losses, and therefore have no taxes due, have to pay a million dollars in taxes, and be left with a net worth of zero? Of what benefit is that level of settlement to me? That’s crazy, but I agreed to that horrific level of “settlement” that left me with nothing for the sole reason that “I was an idiot alcoholic” and had to just trust the system and my lawyer. When you agree to pay 100% of your net worth to the IRS in return for late fees being waived, was I somehow cheating the system by agreeing to give the IRS everything? Then, how was I treated after I gave the IRS literally everything? They come back 3 years later, from 2011 to 2014, undo the settlement in place, and falsely claim that I did not lose $800,000 in 2009, (losses which I was waiting for them to apply, and refund to me as my Lawyer said they would do) but rather, they fraudulently claimed I earned $4 million, and have to now pay them $2 million!? Please understand how difficult this has been for me to even cope with this as the reality that has happened to me. To even re-live this trauma to write it up is like being raped over again. But the rape is ongoing every day, because IRS collections have not stopped, and I have no way to earn a living. The trauma makes me lose my train of thought, sorry. 

4. As the author at silverstockreport.com, my musings on free markets and the fraud of paper money, and the benefits and security of gold and silver have brought to me the attention of a lot of tax protesters and tax cases over the years. I have never heard of a case of tax abuse as insanely troubling, as brutal, as horrific, as abusive, and even as hard to believe, as my own. I might not even believe my own story! I might have a tendency to retort, “No, the IRS would never be so abusive as to fraudulently assess someone of earning $4 million when they lost $800,000, that’s impossible.” But that’s exactly what they did!

5. I have tried to settle tax year 2009 before going to tax court! I would have done anything to avoid wasting the court’s time, because that is what I was taught to do, and actually did! So I’m not the unreasonable party in this lawsuit! The problem is that the IRS got very greedy, very negligent, very abusive, very callus, overplayed their hand, and demanded of me what I could not possibly settle to or agree to. How can I agree to give them $2 million I don’t have and never made? Their final settlement offer was to pay them $400,000 for 2009, plus the $600,000 I still owed. This was their final settlement, after over a year of collections efforts, by the time I only had about $200,000 left, back in the fall of 2015, prior to tax court. I thought I was beginning to win at that time. 

6. A month later around Dec., 2015, the IRS was actually listening to my story for once, and they said I should not take that offer, and that they would actually go through my court documents regarding the ownership of R Coin Shop and JH MINT, and that they would give me another settlement offer, a better one. It turns out, they never did give me a better settlement offer, and they never looked at my civil litigation over the ownership of R and JH MINT until the day before tax court! A day before? That shows they were not listening, and just being negligent and abusive.

7. The IRS negligence and abuse as revealed by my cross examination of the man who conducted the “preliminary bank account analysis”, was shocking, as follows: Their tax guy who ran the bank analysis never contacted me. That was admitted to be unusual, which is IRS negligence and abuse. He never contacted any of my managers. IRS negligence and abuse. He never contacted my attorney. IRS negligence and abuse. He never contacted my CPA. IRS negligence and abuse. He said he always, in all the other cases, talks to the people he audits, except us. IRS negligence and abuse. He said he never tried to determine who owned which businesses. IRS negligence and abuse. He said he never tried to determine our average gross profit margins. IRS negligence and abuse. He admitted he never explained how he came up with his numbers. IRS negligence and abuse. While he subpoenaed bank account records, he admitted he never used the subpoena process to obtain any transaction records, nor business ownership records, from any of the businesses involved, in part, because he never cared to determine who the managers were, or who the owners of the business records being audited even were. IRS negligence and abuse. He admitted that his numbers were inadequate, and only “preliminary” bank analysis. IRS negligence and abuse. The IRS guy admitted he provided no explanations for his assessment, nothing that could actually be analysed by me or my attorney. The IRS negligence and abuse were so great, and their analysis so badly presented, it appeared so hopeless to my own attorney, and a second attorney that I contacted, that they both simply advised me to declare bankruptcy, since nobody can ever fight the IRS in tax court, because, in their words, “facts, logic, and reason” don’t matter to the IRS or courts. This is very, very bad. If even tax attorneys are discouraged from taking tax cases, then why is there even a tax court at all? What is the restraint upon the IRS from fraudulently inventing tax liabilities at will on anyone whom they choose to destroy?

8. What did I really lose in 2009? I spent $950,000 on the mint, the machines, the building refurbishing cost, and labor. I thought I could have started up the mint for $350,000, but things take much longer and cost much more than people say. 

9. I spent $250,000 on a ghost writer for a book that was never published. Initially, this was to cost only $100k. Again. I was taken advantage of. I spent $250,000 on miningpedia, programming for a website that was going to automate my up to date listings of mining companies in my Silver Stock Report at silverstockreport.com. It was to be an online wiki, where anyone could make edits. It worked so well, that China was looking at it, and buying up all the top companies, but people, American stock buyers were not using it, and I could find no way to monetize it, or make money from it, and I was too distracted trying to run a mint and two bullion shops, so I shut it down. Sometimes great ideas work differently than you intend for them to work. I spent $150,000 buying the R Coin Shop. That’s $1.6 million I spent, as a rough total. 

10. Other expenses: I spent $100,000 on building an addition to my garage, a 4 foot thick concrete slab underneath 4 large refrigerator sized vaults that were then bolted into a steel frame, inside a large walk in vault room, so they could not even be hauled away. 

11. Primary income: I know I took out $336,000 from one of my accounts. But I lost it in the businesses. I invested it into other men’s businesses.

12. Corroborating evidence: Asset wise, my assets went from 200,000 oz. of silver down to 110,000 oz. of silver in that first year. I estimate the average price of silver at the time was about $15 that year. $15 x 90,000 = $1.35 million. I also lost the $336,000. For a total loss of $1.6 million, about what I lost through easily identifiable spending. Look at that, it balances out and there are two separate ways to come to the losses!

13. Realism of the IRS numbers: The IRS assumes I made $4 million on $10 million worth of transactions, with no expenses, no employees, no start up costs, in my first year of business. I don’t want to ask “Is that remotely realistic”, because of course it’s not. It is therefore not “reasonable”, which they claim is the legal standard they need to live up to upholding. To showcase the absurdity of their assumptions a bit further, let’s examine these big numbers a bit: To do this, at first glance, I would have to sell inventory that cost me $6 million, for $10 million, to pocket $4 million, and have zero expenses. My expenses were $1.6 million, not even including labor, or rent or ads, or anything; that’s just for the minting machines, book, and miningpedia. If the businesses were mine, then wages, rent and ads would be about $1 million of operating costs. JH Mint operating expenses for two shops were as high as $90,000 per month. So, I would have to sell $5 million of inventory for $10 million, with $1 million of expenses to profit $4 million. But in the gold and silver bullion world, the markup is closer to 5%, not 100% as the IRS assumptions would have to be. And these shops did not even belong to me! If I could make $4 million a year, why am I not doing that now? Don’t you think the IRS should have admitted their mistakes by now?

14. A realistic estimate of the other men’s bullion business gross profits on the IRS assumption of gross trading volume of $10 million, is as follows. Gold and silver bullion sell very close to the underlying gold and silver spot prices, with wholesaler supply markups that range from 1-13% depending on the product; the most expensive, being closer to 13% over spot at wholesale, is silver eagles, which have new minting costs, and double wholesale dealer costs, delay costs, and are often sold out which pushes up the price. The two retail coin shops in question would add 5% on top of that. Gross profits, before any expenses, would be $500,000 on $10 million of trades. After $1 million of operating expenses, there would be a $500,000 loss on operating costs! But the shops also did cash only transactions. The shops would sell gold for cash. The shops would sell silver for cash. The shops would buy silver for cash. The shops would buy gold for cash. None of that shows up in a bank transaction analysis. I have heard horror stories of businesses that refuse to do business in cash, so that everything can be accounted for, specifically to help with the IRS and audits, and then the IRS comes in and assumes they must have done 30% more business in cash, and then lays an assessment based merely on assumption, and it’s up to the businessman to prove he never did any cash business. This is absurd! This absurd case was used by my second tax attorney to tell me why it’s pointless to go to court, because you can’t prove a negative, and the burden of proof is all wrong. This bad process basically gives the IRS total power to claim any sort of tax liability they want, and needs to be challenged and stopped. In my case, the IRS wrongly assumed the shops never did any cash business, even though the shops obviously did, which further goes to show the total ineptitude of their audit, because the shops obviously ran a cash based business and never tried to hide that fact. The IRS is simply ignoring reality, and making up wildly wrongheaded assumptions, that are obviously unrealistic, abusive and negligent! And furthermore, attributing ownership of the shops to me, when other men were the owners.

15. What were the shops realistic total trading volume? I don’t really know, because I did not own the shops and was not responsible for the accounting or taxes, which is why I settled my lawsuits with the men who owned the businesses. Also, this explains why I settled with the IRS, which the IRS should never have undone and breached by the IRS with their fraudulent audit to begin with. The R Coin shop was an established business. I am somewhat familiar with the approximate business volume; the managers who ran it claimed it had a total business volume of about $800,000 each month, with that mostly being two way volume, both buying and selling. However, I did not benefit from that, as I did not even recover the investment of buying the shop, nor did I recover all of the bullion inventory in the shop, so there were no profits for me. I took the extra money they gave me, $15,000 a month, with $50,000 bonus every 3 months, and put that towards bullion inventory at JH Mint, which I also did not own at the time, and the inventory there continued to shrink, as it was a start up and had no pre existing established client business volume. 

16. What was JH MINT trading volume? It was very low. JH MINT opened in September, 2009. The first month was next to nothing, and the first few months were very little. My recollection is that it took about 2-4 months to get to $400,000 per month in total business volume, and in the beginning the shop was losing money on wages so fast. I know, unlike the IRS, that the first year in a retail business takes time to get established. Nobody’s gold coins smell better than anyone else’s, that’s what makes gold so awesome, it’s fungible, easily tradable and exchangeable for any other piece of gold, no matter where you buy it, it’s always good. (Counterfeits, the exception, of course.). So, from September, to December, 4 months, the total business volume might have been about half a million dollars or less. However, even this little should be discounted, as the ownership of this shop was contested by D B, to whom I had to agree he owned the shop during that time, in our settlement offer. So, this should be counted as zero income for me.

17. What about personal trading volume from my garage over the internet on seekbullion.comin the first part of the year? D B was my manager from the beginning. I believe he owns that, and the trading records for that time, too. I challenged my own CPA about how and why they would include any business transaction volume at all on my tax return. He said we had to include something, otherwise it would make no sense and the IRS would not accept it. It’s like we began battling IRS false assumptions that had not even been made at the time! Something is wrong with how taxes are assessed and collected in this nation! I’m just pointing out the crazy problems that I encountered in my own personal experience.

18. I did not have any trading volume. Two other men owned the businesses. They used my inventory, silver, cash, and gold, for their businesses. My investments failed, and in addition to whatever I lost by investing into two coin shops that were not mine, I lost $1.6 million in 2009. I know I can’t claim the entire loss that year, since the minting machines and start up costs get amortized and depreciated over time.

19. I did take out about $336,000 from my IRA account. This should have been my primary, and only income, listed for 2009, but my accountant did not list it at all. This was my mistake. I assumed that my accountants would see it on my bank statements, and they did not. It was not hidden, it was in the bank statements. I was under severe threats by the IRS at the time to get my returns in promptly, otherwise they were going to storm the businesses and steal all the cash gold and silver, even though it as the first years in business it was suffering losses due to startup costs. It was a month late past their new deadline. One reason it was late is that I sent it back to my CPA because of a big mistake in the inventory I remember finding. They were trying to tell me it did not matter, since we could always refile. But we never did. Maybe that’s part of the problem of triggering the audit, a tax return a month late? I delayed checking in to rehab for a month over this, so I know it was a month late. Anyway, the $336,000 from my IRA went right into the cash hungry business building of JH MINT; the mint had operating costs, 3 employees, and no production of anything at all, except maybe 5000 oz. of silver over 4 years, which was one single day’s orders in early 2009. The IRS has previously agreed that this source of “income” was not “income” since it was lost into the business, and they had previously already agreed to that, and now they are claiming it as income once again. Unrealistic. Abusive. Negligent.

20. The IRS continues their abuse, as they seem to want to claim I earned all sorts of imaginary profits from businesses that were not mine, (I was forced to agree in lawsuits that not only those businesses were not mine, but also that the profits of those businesses were not mine) and the IRS wants to exclude me from deducting the costs of those businesses as well. How find and dandy and utterly “self serving” of them! Fine. Is this one area we can agree? Let’s agree then to exclude both the profits and operating expenses of businesses that were not mine.

21. Can the IRS force me to break the law? It is now ILLEGAL for me to provide transaction information for businesses that are not mine. If the IRS wants to look at the transaction records of the businesses that legally belong to other men, they are free to do so, there is nothing stopping them from auditing M V and D B and issuing them subpoenas for transaction records. I cannot be required by unreasonable, abusive, inept, and negligent IRS agents to break the law and start presenting transactions of the businesses of other men as if they were mine. That would be illegal. My inability to break the law cannot be construed as my negligence. The IRS’s demand that I break the law showcases their abuse and negligence!

22. Was I negligent in any way? I actually did break the law in my attempt to recover a business that I claimed was stolen. I was charged, and convicted with kidnapping and carrying a loaded weapon, in my attempt to make a citizen’s arrest of the men managing the R Coin Shop. I did all I could, including break the law, and I still could not obtain the transaction records of a business that the law, police officers, the district attorney, the jury, all found and determined belonged to other men. My actual legal negligence is limited primarily to claiming that I owned a business that I could not prove I owned, and ultimately, I was forced by the legal system to agree I did not own it.

23. I know the judge has ordered me to show the expenses of what the money went to, for the first part of the year in 2009. There are many problems with this approach, the first of which is that it may well be illegal for me to do so. I cover this in more detail in point 57 below. Just because I have some limited knowledge of what money was spent for, does not mean I can lawfully claim those deductions of businesses that have been already ruled on, as not being owned by me. 

24. This is all very confusing for me, too. In court, I would often say both Rockin Coin shop and JH MINT during the times of question in 2009 were my businesses, because I spent the money to buy them and found them, but the reality is that the legal ownership has legally changed, and it is difficult for my traumatized brain to catch up to the legal reality. This legal change of ownership of those businesses, that loss, has been very emotionally traumatic for me and hard for me to accept. But it’s the legal truth. But the legal truth is hard for me to accept, but accept it, I must. The legal truth, is the new truth, the opposite of the truth I used to believe, but the new truth nevertheless, and a truth that I have to learn to live with. Thus, the IRS and Tax Court have to live with it too. I did not own those businesses in 2009. I’m sorry if my lack of clarity on these matters has confused the court about this in any way.

25. In my confusion, I have made the analogy that stock holders do not file taxes for the corporations, not even if they have the controlling share. This means that the tax liability on businesses owned by fiduciary managers, it’s the fiduciary manager’s job to file the taxes. While this is correct, it confuses the issue. The conclusion of the matter is that even if I did own the businesses in question, such as like owning the stock, as it turned out, I had to admit that I didn’t even own the businesses. The other analogy I used is what if an Autistic child inherited money, and had his money managed by fiduciary managers for him, because he was inept? My ineptness was my alcoholism. It could have even been laziness. Or it could have been for the sake of efficiency. Or it could have been because I wanted to concentrate on marketing my book. Or raising my child. Or promoting miningpedia. Or go sailing around the world. It does not matter what my motivation was. It’s a legitimate thing to have other people manage money and businesses for you. Or what if I was a generous and overly trusting philantropist who lent my silver and gold that was sitting in the vaults doing nothing, to men who would help the world with it? Either way, my motivations, and the story concocted by the owners of other businesses are a non issue, a side issue, not relevant. Unfortunately, I was forced by the legal system to admit that R Coin Shop and JH MINT belonged to other men in 2009. The IRS and tax court have to agree as well, this is not an option, you have no choice in the matter. 

26. That still leaves me with $1.6 million in start up expenses and losses, for the minting machines, for miningpedia, and for my book; losses that nobody else claimed. In this light, my 2009 tax return showing my $800,000 loss was very reasonable. 

27. About the minting machines. The IRS did a personal visit to JH Mint, specifically for the purpose of viewing the existence of the mint, to verify it as an expense, because it was a rather large expense, $950,000. They visited the mint. With my attorney present. The conversation lasted about 1.5 to 2 hours. I mostly talked about my legal battles with the R Shop, and also JH Mint, but with a bigger focus on R. I gave him a tour, explaining what each of about 10 machines do, that part takes about 5-10 minutes. Then, 6 months later, the auditor turned around, and claimed that the $950,000 was not an expense, but rather, “barter income”. What the hell on planet earth is wrong with those people at the IRS? It’s an expense! AN EXPENSE. He saw the machines! I don’t understand how this can be even a topic for discussion up for debate! No wonder my lawyer gave up. Perhaps he smelled a witch hunt of IRS destruction coming my way, and perhaps didn’t want to get caught in the crossfire? This is the very definition of abuse, negligence, and unreasonableness. If it isn’t, what is?

28. The IRS has been caught red handed in abusing conservative groups, very specifically, those organizations supporting Ron Paul have had their tax exempt status delayed, and denied. The IRS has had its budget slashed because of this abuse. This is exactly the kind of “punitive damages” that courts would issue, in that the size of a punitive ruling award depends not on the size of harm inflicted, but on the size of the entity committing the gross abuse; a penalty large enough that the entire organization would feel it, to act as a teaching method and deterrent to future abuses.

29. As stated in this article here: House bill cuts IRS funding, cutting funding by more than 10% below Obama’s requested numbers!

30. Quotes from article above: “The House Appropriations Committee on Tuesday released legislation that cuts overall funding to the Internal Revenue Service (IRS) while maintaining spending levels aimed at improving the agency’s customer service. 

The fiscal 2017 financial services measure provides $10.9 billion for the IRS, a cut of $236 million below last year’s enacted level and $1.3 billion below President Obama’s budget request.

The bill maintains $2.1 billion for taxpayer services and an additional $290 million to improve customer service, such as phone and correspondence response times, fraud prevention and cybersecurity. “The IRS has been plagued in recent years by the inappropriate actions of its employees and political leadership, resulting in the waste of taxpayer dollars and in unjust treatment and targeting of certain ideological groups,” the committee said in releasing the bill.”

31. I am a key person in the conservative movement. I promoted Ron Paul early in his first run for President. Not only promoted, but perhaps inspired. This story might amuse the court. In 2007, I was at a libertarian conference hosted by Lew Rockwell. I was a cheeky young multi millionaire at the time and a bit arrogant. I asked the panel of libertarians a hard question that I knew they might have trouble with, since not all of them were rich like me. See, my wealth made me arrogant. I asked, “Since Libertarian political views teach that in a more libertarian world, the economy would be far better off, and thus, people in general would be far richer, it stands to reason that knowledge of Libertarian principles would more surely enable those who know about them to become rich, and it further stands to reason that we who know about libertarian ideas ought to be rich as good examples, so can you explain how you personally used libertarian ideas and values to become rich?” Well, one man on the panel had an interesting answer. He replied, “Well, I actually left my lucrative practice of medicine delivering babies to pursue a career in politics, precisely because I wanted to expose and promote libertarian values to more people, thinking this would be more important than growing rich.” So, in thinking about this, I then asked him a follow up question after the panel discussion. I asked, “When are you going to run for President?” He replied, “I don’t really think I can win, it seems the nation is not yet ready for a libertarian President.” I replied, “Didn’t you get into politics to reach more people with the Libertarian message? If you ran for president, you would certainly reach far more people with the message. And in that sense, you can’t lose.” A month later he ran for president for the first time. That man’s name was Ron Paul. After that, I made a $2000 donation to his campaign, and promoted him at Silver Stock Report. 

32. I endorsed Ron Paul very early, in April, 2007:

33. My point is that at court, I revealed the abuse, neglect, and unreasonableness of the IRS audit. I did not reveal why. I like finding reasons why. It is very likely that the IRS has likely targeted me for abuse, because of my political support of Ron Paul. 

34. I feared bringing this up in court for several reasons. I feared I would sound like a crazy conspiracy theorist. I feared the IRS would simply deny it. I suspected that if I was targeted, none of the employees used in targeting me would have any knowledge of this. I did not know how to expose it, or if it would be prudent to do so. I feel more bold today, because I simply feel stronger, and I have nothing left to lose.

35. Further evidence I was targeted by the IRS: This would include the totality of how the IRS has handled my entire case. It is clear they never attempted to win their case, otherwise they would have been a lot more reasonable at every stage, and would have conducted a reasonable and remotely defensible audit in the first place. They only attempted to abuse me. They were continuing to demand transaction records for businesses that were not mine in the final filings right up until the court date. They refused to address any of my answers to the issues of the case, and lied to the court falsely claiming I never answered, in their final brief before court. After court, the IRS wrote up a very intimidating looking 40+ page summary, siting two pages of prior legal references most of which I feel have very little to do with my case. They are desperate to salvage a win at the last minute, seeing how badly it all went in court. They ignored all of my cross examination, and refuted none of it. They continue to claim it’s my job to rebut, and then proceed to ignore all my rebuttals and falsely claim I’ve rebutting nothing of their horrifically bad assumptions. They cite prior cases to show the IRS has the authority to audit, and conduct a reasonable estimate of my taxes due, but they never to show that any of their ineptness was remotely reasonable. The IRS’s authority to audit is not in question in this case. They try to paint me as negligent, but I was the most diligent I could be, even going so far as to commit illegal acts to claim ownership of of a business that was not mine, I could not have done more. It seems as if the IRS has the automatic win, for the entire time as long as they continue to abuse a taxpayer. Justice takes a very long time, and until a ruling has been ruled, or perhaps even after a ruling, the IRS could continue to abuse me. The IRS has shown horrible judgment in trying to defend a preliminary bank analysis, by spending enormous sums on many attorneys, and never attempted to get the very basic questions about the ownership of the businesses answered. I continued to tell the IRS about the nature of the business disputes that were the subject of this audit, and it always just fell on deaf ears at the IRS. The IRS first admitted in writing the nature of the business disputes with R and JH Mint for the first time in 2015! That’s 6 years after the audit year of 2009! That’s 5 years after the confrontations in 2010! The IRS’s bad handling of my audit at every step of the way is so confusing and hard to understand, except in the light of the fact that they were abusing me on purpose, because of my support of Ron Paul.

36. There is another reason I may have been targeted for destruction of the IRS. I have publicly exposed Barack Obama. 

Businessman asks how president can issue orders ‘if he is not qualified’
Read more at http://www.wnd.com/2009/07/105271/#k03CW4zZJqMAq8aj.99

$100,000 Reward for Proof of Obama’s “natural born citizen” status.

37. Is me being a “birther” applicable? It might provide the court with a reasonable explanation for why the IRS has been so abusive and unreasonable in my case. My article on Obama took place in 2009, the year of the audit. I was more interested in writing a newsletter, than operating coin shops, especially since I could not be at two places at once!

38. Is this reasonable that the IRS may have noticed this, or that someone else did, who then ordered the IRS to abuse me, as the IRS targeted Ron Paul groups? The offer of my reward spread in a viral way, appearing also at freerepublic.comliveleak.comthesteadydrip.blogspot.comcitizensagainstproobamamdeiabias.wordpress.comdemocraticunderground.comtheobamafile.comreddit.com, and I’m sure many other places, that’s just on the first page at a google search for “jason hommel offers $100,000”. I can’t find a reference for it now, but I do remember that my offer even made it to the Colbert Report, who mocked it, of course, but that was a comedy show. I remember they did not use my last name. So, a google search for “jason hommel colbert report” brings up nothing. I think they wanted to mock the concept, without giving me or my argument any free publicity. My offer even got so far as to get a mention in Jeromy Corsi’s book “Where’s the Birth Certificate?” published in 2011, page 349, as follows:

“July 28, 2009 — $100,000 offered for proof of eligibility
Jason Hommel… announces he’s offering a reward of $100,000 for proof that Obama is a “natural born” citizen of the United States and, therefore, eligible to be president.

39. That I’m a Ron Paul supporter and birther is not evidence. I have no evidence that those are the reasons that I have been targeted by the IRS for abuse and harassment. I was never at any secret meetings where Obama or anyone else gave any order to anyone saying “Ruin Jason’s life by using the IRS”. Of course, it would be unreasonable to suggest that’s the level of proof that I would need for my suspicions to be correct that I was targeted by the IRS. Sometimes, all we have is circumstantial evidence for things. 

40. I might have been targeted by the IRS merely for advocating silver and gold, or for any other conservative and truthful thing I may have written.

41. This is not a trial of whether or not I was targeted by the IRS. This is a trial of the veracity of the IRS audit. The IRS audit was so abusive, and so badly done, and so far off the mark, it is almost beyond belief, including even my own. In light of the high degree of probability that I was targeted because I was a birther or Ron Paul supporter, who were targeted, then the level of insanity of the IRS abuse fits into a context that makes more sense.

42. I understand I am not to introduce evidence after trial. Again, I’m not presenting evidence that I was targeted, because it is impossible for me to determine if that is true. I’m presenting circumstantial facts of my story for due consideration by the court. I was ordered by the court to tell the narrative of my story. That I was a Ron Paul supporter, and a birther is MY story. That the IRS abused conservative Tea Party Ron Paul supporters is public record. This fits in line with the orders by the court to tell what I believe happened to create this crazy mess for the court to sort out. In the end, it is not up to me to explain IRS insanity and abuse. In the end, no matter how the court rules, even if I do get compensated for this IRS abuse, I will still have to live with what the IRS has done to me, and make sense of it in my own way. 

43. Are people compensated when authorities use fabricated evidence against them? Yes. 

Man to receive $16 million after fabricated evidence sent him to prison for 27 years
Washington DC to pay sum to Donald Eugene Gates, who was freed in 2009 after DNA exonerated him of murder and rape of college student

44. The IRS fabricated evidence, by using unreasonable assumptions from looking only at bank statements, an admittedly incomplete analysis, that I had income of $4 million and fabricated evidence that I owned businesses that did $10 million of transactions. Neither were true.

45. I demand compensation, and protection from further abuse from the IRS as follows:

46. I want a court order, forbidding the IRS from ever auditing or tax assessing me ever again, and to trust that I will file taxes voluntarily, or never again, at my sole discretion. Just as people obtain protection orders from abusers, such as ex husbands or ex wives, I want a restraining order protecting me from the IRS.

47. I have suffered from this IRS abuse. The psychological counselor I visited for post traumatic stress disorder (PTSD) understood that what I’m suffering was like PTSD, but worse, since the source of my stress is ongoing and I can’t make it stop because of wrongful, ongoing IRS collection efforts. She said it was like I’m a rape victim who is continually being raped, but it’s a ongoing financial rape. She said it would be very difficult, if not impossible to recover from PTSD regarding this, since it’s not “POST”, meaning “after”. It’s ongoing. I’m an ongoing traumatic stress disordered person. I’m enraged. I’m distracted. I’m suicidal. I seek escape. I seek delay. I seek distraction. I have sleep deprivation. I have night sweats. I have disordered thoughts. I lose direction to where I’m trying to go when driving. I step on the gas really hard in anger when driving sometimes, although I’ve gotten that somewhat under control. The ways I’ve been counseled to try to deal with this ongoing madness is to seek ways to relax, and to seek ways to actively think about this trauma while relaxed. Psychologists did not have anything that worked. Naturopaths did not have anything to offer. What has worked the most for me is iodine. In February 7th, 2016, I discovered iodine. Taking an iodine supplement allowed me to be able to think about the trauma of the IRS without getting too crazy mad, for the first time ever. I was having up to 100 or more suicidal thoughts per day prior to Feb. 7th. On Feb. 7th, the suicidal thoughts receded to about once or twice a week. I’m surprised that my brain chemistry could have changed so much. While my symptoms of anger and sleep deprivation have gone down due to high dose iodine therapy, other things have not. I still have what psychologists call “learned helplessness”. This is the biggest thing hurting me right now. Because nothing I have said to the IRS has mattered to them. I feel like I should not even try. This partly explains my delay in responding; they are traumatizing me even now in their last response with their continued abuse, insolence, ineptitude, failure to listen, negligence, and unreasonableness. When I first looked at it, I knew I would have to rebut a few of their claims. I needed to calm down, to refocus, to write my own summary of this case, without being forced into a corner responding to so many of their false claims one by one in a disordered list that makes cohesive sense. I have learned helplessness now also with making money. What’s the point of amassing a fortune if the IRS can just swoop in and take it all away on their assumptions that you have to prove wrong in court in a process that takes 7 years? I want to be very clear on this point here, because it is a very important point. So, please pause and think about this one. What are profits in the capitalist system? Profits are the incentive, the work incentive to be productive. The IRS has destroyed any remote possibility of not only profits, but saving any profits. The IRS process is abusive! How is that process going to change, even if I got a favorable ruling on the evidence unless I got a restraining order? And what about my trauma? A reasonable person not affected by my trauma might have the callus opinion, but this IRS abuse cannot be expected, Hommel’s situation was extremely rare! But for me, this abuse has not been rare, it’s my life! But what about the rest of society? How would they be protected from this form of IRS abuse in the future? Cutting the IRS budget in a punitive swipe as congress has done is certainly nothing that could prevent future abuses on others. I can only imagine how hard this is to read, for a variety of reasons, both the length, and the trauma, the unfairness that is evident. Please imagine how hard it is to write, when the person writing is suffering from both excessive anger, and learned helplessness. I need a break from this myself, before I get back to how to compensate me for my suffering besides a restraining order on the IRS.
Part 2 follows: https://revealingfraud.com/?p=32

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