Frequently, one result of criminal (and other) tax cases is the frustrated taxpayer’s strong desire to sue the I.R.S. and/or its agents.
This can be done, but it’s a very complicated undertaking, especially because there are several different theories that you can base a lawsuit on. There are other problems, as well. Needless to say, not all of the possible theories have been tested in court. Nor have all the wrinkles of suing the I.R.S. and/or its agents been litigated. But there have been some cases on this tantalizing subject and from them you can begin to learn some of the answers.
Civil Rights Statutes : In the case of Betlygn v. Shy three of a corporation’s employees (doubtless, tax protesters), sought damages for the allegedly illegal withholding of taxes from their paychecks. Named as defendants were the district director of the I.R.S., a revenue agent in his office, and an employee of the corporation that employed the plaintiffs. In essence, the plaintiffs didn’t want their employer to withhold taxes from their wages. The corporation notified the I.R.S., the I.R.S. investigated, and it concluded that the law required that taxes be withheld. The I.R.S. instructed the corporation to withhold, and it did.
As it turned out, only one of the named defendants was properly served with the legal papers: the I.R.S, agent who was sued in his individual capacity not his official capacity.
Plaintiffs sued the agent on the basis of three sections of Title 42 of the United States Code: sections 1983, 1985, and 1986. Here’s what the Court had to say:
Section 1983 provides no cause of action [no claim) against federal officers or private individuals acting under.. . federal law. [A Section 1983 claim must allege violation of state law]. more
