[Jim Cane]

Over reaching by the IRS - what are their rights to do this?

Well, just don't say anything about it, or you'll be audited and maybe do jail time. "Stroke of the pen...kinda cool." ~ William Jefferson Bush

[sanchmo]

zeugma has it right - government agencies don't have Rights. People have rights. Government agencies have Authority (granted to them by the people) and Power (what it can actually get away with).

This is certainly a case of the guvt extending its Power over the Rights of its citizens, above & beyond the Authority granted it.