Anyone hear that the IRS is Down? : LUSENET : TimeBomb 2000 (Y2000) : One Thread

I post this with trepidation given that this is second hand -sent to me via email. I figured if any group could come up with an answer - it would be this one. Anyone? Anyone?

Is there any truth to this rumor?

Goodyear, Arizona (near Phoenix) As significant as the Waco revelations may be, Chris Stark has raised the question of why now? Why not a year and a half ago, when the information first (allegedly) became available? He ties it, tentatively, to the candidacy of George W. Bush, Jr. I consider it far more likely that it is a smokescreen to distract the media from what may be the biggest story of all: It appears the Internal Revenue Service is "down". So far I have about a quarter-ton of anecdotal evidence to indicate the IRS computers are either down across the board or, alternatively, they have simply lost access to their taxpayer database. The latest indication arrived yesterday in the form of a typewritten letter on blank paper (no IRS letterhead; no standard IRS computer format) advising me (without going into details) that "It will take us about three weeks to retrieve (the information you request) together with any audit reports." This is the third manually-typed letter I have received from the IRS in the last month. The information I requested should be staring them in the face from their computer screen. It _was_ staring them in the face from their computer screen, along with several other pieces of information they still haven't picked up, prior to July 1st, which was the beginning of their fiscal year 2000. Since July 1st, they have claimed to have no record of it -- I had to provide them with copies. And now they want three weeks to retrieve the information I just gave them. The anecdotal evidence does not derive entirely from _my_ interaction with the IRS. Ever heard of the IRS returning a check to a known "tax protester"? It has now happened to an individual in New Mexico, with the comment that the IRS "has no record" of any tax liability involving that individual. Numerous contacts with the IRS by other people with whom I am in communication have resulted in what amounts to pure-dee "stonewalling". The IRS has no information about someone; the taxpayer has to provide the information the IRS should have already had, and then the IRS comes back with a dismissive answer designed to keep the taxpayer on hold for another three-four weeks. This appears to be a holding operation, as though the IRS is waiting for some other element to position itself, as though "when TSHTF what we do here won't matter any more". The Department of Justice may also be "down", or otherwise distracted: My lawsuit against the IRS had a hard deadline for the Department of Justice last Thursday. They failed to meet it. They failed to call me and request an extension. I haven't heard from them. The IRS being down, if it is down, is a you-bet National Security Issue. I figure the "STUFF" is going to hit the FAN sometime within the next 30 seconds to 30 days. WACO is being used as nothing but a temporary distraction, in my view, to keep us from paying attention. Keep your powder dry.

-- April (, September 07, 1999


Well that would certainly be an interesting development if true.

-- Dog Gone (, September 07, 1999.

Quit smiling so loud...

All progress is experimental.

-- no talking please (, September 07, 1999.

I've been trying to get a written hardcopy of amount of back taxes owed for 3 months now and keep on getting the beurocratic brush off.

We haven't sent a payment in since June and have not recieved the normal letter yet.

It sure would be a nice present from Santa for my past taxes to vanish! Oh I'm getting tinglely all over just thinking about it!

-- I owe I owe (so off to, September 07, 1999.

Well, I have a confession. I "forgot" to claim "a few thousand" dollars that I made doing some "part-time" consulting a few years ago. I have an "installment plan" with the IRS. I was on the phone with them on Friday to get a current balance. Heard the clicking keys, and the number agrees with mine. <:(=

-- Sysman (, September 07, 1999.

We heard about 2 1/2 weeks ago that the IRS was down. But they may be back up by now. They've been known to dilly-dawdle taxpayer time away. After all, they get that much more interest on the extortion fees they stiff you with aka illegal taxes.

-- Ashton & Leska in Cascadia (, September 07, 1999.

Sorry, they aren't all the way down. I just called to check on my installment account, HOWEVER, the amount they show as my last installment, is a wee-bit-less than what I sent. And he kept having to leave the phone to check on something. He is out of Dallas. I finally hung up. Why bring anymore attention to my debt? :)

-- C. Robbs (, September 07, 1999.

I love the IRS, but I sort of like to ignore them. I figure come next April, we'll see what gives. Anyway, I haven't made much this year, believe me.

-- Mara Wayne (, September 07, 1999.

sigh.....They still owe me thousands from the 1998 tax year. i have to send them a gazillion pieces of info to prove i really have a child and he's mine- this is a teenager btw- not a new kid for sure...

I guess even if i send all the info- they'll never process it in time now........sure coulda used the money though...

-- farmer (, September 07, 1999.

Farmer, I had to prove my child was my child once, and the Social Securty Office would not accept a birth certificate as proof! Talk about a mess. I finally told the director of the state office I made a mistake, the child was not my child afterall, I did not know how I ended up raising her for 13 years and I would appreciate it if they would find out who she really belonged to. The next week the papework went through.

-- Carol (, September 07, 1999.

The IRS Y2K mess is the Fedgov's dirty little secret.

The Republicans will be proposing a flat tax/sales tax beginning next January.

Everybody is laughing now. We will see if they are laughing in January.

-- cgbg jr (, September 07, 1999.

The IRS is in big trouble. Whether it is happening now or happening later hardly matters. It all amounts to one thing. No taxes = no infrastructure = Big Mess = Buy beans & ammo

-- R (, September 07, 1999.

Two related items:

1. I just saw a TV ad today sponsored by a tax accountant firm announcing that the IRS is NOW negotiating down back taxes due of all kinds for a limited time. The firm wants to represent those who could take advantage of this limited time offer.

2. My mother just received a third quarter filing form for the first time EVER, even though she's been retired for years and has filed quarterly the whole time. Why didn't they send her the first and second quarter forms, too??? Why just this time??? Why now??

Both these events would be consistent with a massive IRS computer problem.

-- Y2K Pioneer (, September 07, 1999.

* * * 19990908 Wednesday

This could be an item of confusion...

Sunday, September 5, 1999 Published at 19:10 GMT 20:10 UK


"Millennium bug taxes taxman"

< >

Article begins ...

"A computer system used to chase unpaid taxes is not yet millennium bug compliant, the Inland Revenue has admitted.

The system concerned collects tax and National Insurance from businesses. New software was due to be installed this month, but will now not be ready until the end of November."

< snip >

Regards, Bob Mangus

* * *

-- Robert Mangus (, September 08, 1999.

Here is my fear - they knew it wouldn't be fixed so they have spent their time putting together the "value added tax" which, I have been told is Clinton's favorite idea. I'm not sure I understand the way it works but it is in place and ready to be implemented quickly. If the IRS has been down (or dying) since July at the fiscal year turnover, and they have managed to keep this fact under raps, they won't have much trouble putting a new "better" system in place - under raps. I have no link to back this - it's just rumor.

Is there anyone who can explain the "value added" tax system? I hear it is quite sinister.

-- April (, September 08, 1999.

Y2K Pioneer... regarding your mother and the "3rd quarter filing form," I just received the exact same thing, yet I have NEVER filed quarterly taxes.

I promptly threw it away and forgot about it. I'm not even half way to retirement age, so I am not sure if her age has anything to do with it.

My $0.02 FRN worth.

-- Jay (, September 08, 1999.

A value added tax is the same as a sales tax in my understanding. In Canada we have the GST. In Great Britain they have the VAT.

IMHO, it would make a lot of sense to scrap the complex tax system we have and replace it with a Sales tax of some type. Imagine, only one type of tax (more or less).

Also I rather doubt whether IRS problems would be as simplistic as saying they are either UP or DOWN. Surely there are hundreds or thousands of databases and systems that they use. The degree of problems encountered will vary depending on which particular systems go down and how important those systems are. If the number and degree of severity is high enough it is possible that they may choose to implement a much simpler tax system such as a sales tax.

However don't expect that they will come clean and admit exactly what degree of problems they are having. National security would be affected if they were to do that and there is no advantage in tempting millions of taxpayers not to send their money in!

-- Craig (, September 08, 1999.

Sometimes I forget what a powerful tool the net is - just went to and typed in "Value Added Tax" This is what I got - (I don't think I like it)

A summary of the VALUE ADDED TAX proposal


The value added tax is similar to the national sales tax, however, instead of implementing one tax of a certain percentage at the time of retail sale, there is a smaller tax, proposed at 5%,added each time the product is resold or when value has been added. For example a tax is added when a product is passed from a manufacturer to a wholesaler, and again from the wholesaler to the retailer. Most products would be priced higher than they are today because the cost of goods would include this built in tax. The Value added tax proposal is sponsored by Representative Sam Gibbons of Florida and Senator Ernest Hollings of South Carolina.


A 5% tax is levied at each stage of production of goods. The total tax is built into the cost of goods Exports are not taxed. All imports are taxed. It allows multiple rates and exemptions on goods from other countries. This form of tax is used by many other industrialized countries currently. No tax forms or tax returns will be needed for individuals. It would eliminate the need for the IRS. ( I like that part) The cost of compliance is estimated at nearly $5 billion per year, about a hundred times less than the current system.


It would be similar to the National Sales tax, but it would be more complicated to administer and collect. It would also tax food and medicine as does the national sales tax.

-- April (, September 08, 1999.

Before everyone gets all excited about Ntl sales tax, VAT, flat tax, you might determine what is authorized by the Constitution. All the gimmicks proposed do not address the fact that the Fed's hand is too deep into your pockets. The country got along with the money it needed from Constitutionally authorized taxes for about 100 years plus. Remember "expenses rise to meet income."

-- A (, September 08, 1999.

Y2K Pioneer,

I received the same forms, and was a little puzzled since they usually are mailed out for the full year in Feb. or Mar.

The only difference I could detect was the small amount of color on the form being yellow (indicating the tax year I think), but I will look more closely now.

The timing could relate to the upcoming due date for the filing this month. The changeover to a new computer system may have necessitated a different form.

-- nothere nothere (, September 08, 1999.

hmmm- Carol- that's an idea. maybe I should just ask them to send me a bus ticket for him-

-- farmer (, September 08, 1999.

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