What does Figure 23-2 show us? Delegation Order 182. Look familiar? DO 182 was covered in chapter 8.
The explanatory comments following DO 182 are even more interesting. "The IRM restricts the broad delegation shown in figure 23-2, for revenue officers, to employment, excise, and partnership tax returns because of CONSTITUTIONAL ISSUES." I think there's a slight mis-statement there. If there is a "CONSTITUTIONAL ISSUE" for a revenue agent to execute a specific return, it's going to be a "CONSTITUTIONAL ISSUE" for anybody else to execute that specific return also.
If anybody from the IRS fills out a Form 1040 based upon compensation for labor, they are enforcing a direct - unapportioned tax. In chapter 3 you read that the 16th Amendment does not allow a direct - unapportioned tax. In chapter 4 you read that a tax that can not be legally ducked is a direct tax.
Please note the statement under the yellow highlighted text in the image above: "(You have already studied audit referrals as a means to enforce compliance on income tax returns.)" Point of logic: How does a non-existent document (an un-executed i.e. un-prepared and un-filed Form 1040) get audited?
| au·dit n. 1.
An examination of records or financial accounts to check their
accuracy. 2. An adjustment or
correction of accounts. 3. An
examined and verified account. --au·dit
v. au·dit·ed, au·dit·ing, au·dits.
--tr. 1. To examine, verify, or correct
the financial accounts of: Independent
accountants audit the company annually. The IRS audits questionable income
tax returns. --intr.
To examine financial accounts. American Heritage Electronic Dictionary. |