Hendrickson v. U.S.
& Hart v. U.S.
CIR victorious in show-down with IRS
After a year-long fight with the IRS over the right of private citizens to publish a book critical of the government, CIR has successfully halted another effort by a government regulatory agency to suppress protected speech. The Department of Justice and the IRS have withdrawn all pending requests for the names and addresses of individuals who purchased books written by two authors critical of the IRS.
CIR defends right to publish
Pete Hendrickson's problems started with a letter from the Internal Revenue Service threatening legal action and demanding to see all of his records about his recently published book on U.S. tax law. The IRS called the book an "abusive tax shelter," a term normally reserved for fraudulent tax schemes. What's more, according to the IRS, Pete's readers were not just some folks who bought a book for $19.95, but "investors" in his "tax shelter." Seeing the absurdity in the IRS's claims, Pete asked CIR to defend his right to publish his book. CIR quickly began work to set the IRS straight.
IRS demands the names of book purchasers
After its initial letter, the IRS stepped up its campaign against Pete. U.S. Marshals showed up at Pete's door step with subpoenas demanding more information, including the names of everyone who had purchased his book. One can only speculate as to the IRS's motives, but what better way to suppress a book than to disclose its readership to the IRS? Unintimidated, CIR continued to defend Pete as he refused to turn over the names.
The legal battle
Facing the IRS summons for Pete and his records, CIR got to work and headed out to California, where Pete's credit card processing company is located. There CIR moved to quash the subpoena of Pete's customer records. Shortly after this, the case was transferred from the IRS to the Justice Department which is charged with defending the government in court. As soon as DOJ saw that the IRS was trying to investigate a book and not a taxpayer it withdrew the government's subpoena of Pete and his documents.
Victory for CIR and the first amendment
The withdrawal effectively ended a year-long legal battle and allowed Pete to continue selling his book. The investigation against Pete ceased without the IRS obtaining his customers' names and addresses. This was a win for CIR's efforts to re-establish a principled conception of the First Amendment - one that protects expression regardless of the point of view.
CIR believes the appropriate forum for contesting Hendrickson's views about the tax code is the court of public opinion. Moreover, to the extent that the IRS believes a taxpayer has filed an incorrect tax return, it has ample authority with which to investigate and pursue an appropriate remedy.
CIR beats back IRS investigation of Idaho man
Phil Hart is an internationally competitive athlete and a member of the Idaho state legislature. He was puzzled one day when he got a letter from the IRS. He was even more perplexed when he read what the letter said: the IRS was "reviewing" his book on the income tax.
Why on earth would an agency meant to collect taxes suddenly go into the business of writing book reviews, Phil wondered. His puzzlement quickly turned to concern, however, when he found out that not only was the IRS reading his book, but they wanted all of his financial records along with the names of everyone who had purchased his book. Worried what this would do to his readers Phil contacted CIR. After a brief legal duel the IRS backed down. It withdrew its requests for Phil's records and the names of his readers.
What do these books say?
Incredibly, the IRS characterized Pete's book as an "abusive tax shelter." Yet the book contains little more than his own postulations about the scope of the U.S. income tax, supported with footnotes and cross-references to the US code and various Supreme Court cases.
Phil's book is similar. Like Pete, he states at the outset that each person should make up his or her own mind. His book then reviews the legal history of the tax code. Neither Pete nor Phil offer instructions on how to file taxes, nor do they advertise their ideas as method for reducing one's taxes. Ultimately, though, the First Amendment protects the right of citizens to publish books regardless of the point of view expressed. The government cannot intimidate and investigate someone solely for expressing a view critical of the government.
CIR and free speech
Not too long ago, most Americans would have agreed that the right of a citizen to petition and criticize the government is at the core of expression protected by the First Amendment. Increasingly, what used to be accepted as a basic constitutional right has come under assault as government agencies and private interest groups have sought to further their agendas by suppressing the expression of points of view deemed hostile to their interests.
Sadly, Pete's and Phil's cases are not unique. Over the past decade, CIR has successfully challenged the selective use of the First Amendment to favor certain ideological and narrow governmental interests:
Read the letters Phil got from the IRS in full:
View important CIR cases concerning freedom of speech
Help CIR protect Freedom of Speech: donate to the cause!
Remember, the Center for Individual Rights is a nonprofit, 501(c)(3) corporation. Your contribution is tax-deductible.
Last revised: 07-Dec-2005