Congress Told of Misdeeds of Overzealous Tax Collectors

Overzealous tax collectors have destroyed lives through arbitrary and erroneous judgments and seizures, witnesses testified Friday in calling on Congress to protect taxpayers from abuses of power by the Internal Revenue Service.

Sen. David Pryor (D-Ark.), who chairs the IRS oversight subcommittee and has proposed legislation, convened the hearing to look into episodes of “harsh, rude and sometimes even brutal treatment” by the IRS, which has the power to seize money and other assets of taxpayers accused of non-payment.

“What I have learned leads me to believe that these days, the IRS . . . suffers from a bully mentality,” Pryor said. “And they do this in the name of compliance.”

The Omnibus Taxpayers’ Bill of Rights Act would “place the taxpayer on equal footing with the tax collector,” said Sen. Harry Reid (D-Nev.).

Thomas Treadway, a Pipersville, Pa., businessman, told the panel: “You are looking at a man the IRS totally destroyed.”

Treadway said his “nightmare” started five years ago when IRS agents began an audit. The IRS proposed a $247,000 assessment, including interest and penalties, against him.

“I refused to accept . . . and the next thing I knew, they had already assessed the tax and started seizure actions.”

In addition, IRS agents seized more than $22,000 from the bank account of Shirley Lojeski, Treadway’s friend and companion, on the assumption that Treadway was giving her money.