IRS Money Laundering Scheme Exposed By Veteran

Freedom Outpost ^ | June 21, 2013 | Dean Garrison

[EXCH54FE]

According to USC, Title 38, §5301 Veteran‘s disability benefits are exempt from all taxes and/or any other form of withholding. The IRS cannot touch this money and creditors cannot either.

Payments of benefits due or to become due under any law administered by the Secretary shall not be assignable except to the extent specifically authorized by law, and such payments made to, or on account of, a beneficiary shall be exempt from taxation, shall be exempt from the claim of creditors, and shall not be liable to attachment, levy, or seizure by or under any legal or equitable process whatever, either before or after receipt by the beneficiary.

I am not an attorney but it sounds to me like these funds cannot be touched by creditors or the tax man. Well… that was the understanding of Kevin Lake as well but he found out that the IRS has found a way to ignore the law. This is from Kevin Lake’s column on Freedom Outpost:

A couple of months ago, when I logged into my online bank account to make sure that my VA disability check had been deposited (I am a 60% disabled veteran of the Iraq War) I saw red and a negative balance, beside which read the word “hold.”

I called my bank and was informed that the IRS had sent a letter demanding that the bank take all of the available funds out of my account on the first day of the month and then wire them to them. The bank gave me a telephone number at which to call the IRS. After being placed on hold for a very long time- long as in a biblical age- I finally spoke with an agent.

[EXCH54FE]

We face an ever growing frustration in this country as more and more government agencies and officials are not willing to abide by the laws as they are written

[American in Israel]

And a growing frustration as thieves loot the treasury and out pockets and thumb their noses at the laws of the land.

[E. Pluribus Unum]

LESSON: If you piss off a Democrip, you can expect the IRS to trump up a reason to seize all your assets.

[MeganC]

The IRS has lost its moral authority and should be dissolved.

[Jim Robinson]

Damned right! Shut the fascists down!

[Louis Foxwell]

The IRS never had any moral authority. It is and has always been a protection racket.

[USS Johnston]

More and more government agencies and officials are not willing to abide by the laws as they are written.

Is it ok to admit we are now officially a fascist Banana Republic?

"Your 0dingaCare papers can be filled out just up the ramp. The subdermal ID chipping is a simple process."

[stephenjohnbanker]

” The IRS never had any moral authority. It is and has always been a protection racket.”

Correct

[cherry]

I find a lot of "disabled" vets and others to not be that disabled, so its hard to work up a lot of pity.....just saying....

I wish the VA and the DOD would be a little more strict on handing out pensions and then I suppose, the IRS wouldn't have to stoop to these tactics...

[knarf]

8 posts and no one asked ...

.. and the bank gave it to them ?

or is the FBI able to hack into banks and their private accounts ?

[aft_lizard]

No offense..but its not up to you to determine their level of disability. Its an earned right that VA docs have determined to meet the level of compensation. Its not like the SSDI...it is alot harder to get certain levels of disability. Either way the point of the article is that the IRS tried breaking the law by stealing federally protected money.

[CivilWarBrewing]

I wonder if the IRS treats conservatives differently than liberals when it comes to such matters. Moreover, does the SSA grant disability to conservatives? I would be curious to see the list of SSD recipients by voter registration status.

Illegal aliens have the advantage when applying for entitlements.. Food stamps, welfare; no questions asked. Didn't the Boston bombers get food stamps and welfare? These are 0bama's 'Democrat voter recruitment programs', so I would imagine conservatives are given a tough time throughout the process. The immigration reform Bill is nothing but a 'Democrat voter recruitment program'. The GOP are total buffoons for not seeing it. IDIOTS, ALL OF THEM.

[MeganC]

“I wish the VA and the DOD would be a little more strict on handing out pensions and then I suppose, the IRS wouldn’t have to stoop to these tactics...”

Sorry, not playing. If disability fraud is going on then it needs to be addressed separately and by the VA, not the IRS. There is a law in place the prohibits the IRS from doing what they did in this case and THERE’S NO EXCUSE FOR A LAW ENFORCEMENT AGENCY THAT WILLFULLY VIOLATES THE LAW.

People like that are properly called CRIMINALS.

I personally see no difference whatsoever between a thug beating up a veteran in the street and stealing their money and the IRS arrogantly doing the same thing with some politically motivated and perverted interpretation of the law.

Again, there is no excuse for the IRS violating the law and I am deeply concerned about your values that you would entertain and advance the kind of moral relativism that most people on FR protest thousands of times per day.

[stephenjohnbanker]

” is the FBI able to hack into banks and their private accounts ? “

In this day and age, probably.

[aft_lizard]

Also there are miles of difference between pension and compensation. There is non service connected pension through the va and retirement pension through the DOD. VA compensation ranges anywhere from 10percent for minor injuries to 100 percent plus SMCs for severely disabled. Individuals who earned that during service and often during a deployment.

[PapaBear3625]

.. and the bank gave it to them ?

How many bank managers do you think are familiar with the law regarding vet disability money?

How many bank managers do you think would be willing to tell the IRS to go to hell, for the benefit of a customer?

[PeterPrinciple]

Payments of benefits due or to become due under any law administered by the Secretary shall not be assignable except to the extent specifically authorized by law, and such payments made to, or on account of, a beneficiary shall be exempt from taxation, shall be exempt from the claim of creditors, and shall not be liable to attachment, levy, or seizure by or under any legal or equitable process whatever, either before or after receipt by the beneficiary.

---

Does cash retain its identity once in the general fund of a bank?

[colorado tanker]

You need to go the whole article. The IRS was not grabbing his veterans benefits. The IRS was garnishing his bank account because they thought he had an unpaid tax bill. They were in error and refunded the money.

Once exempt funds are placed in a general bank account, a creditor can garnish them for a debt.

[NCDragon]

“I find a lot of “disabled” vets and others to not be that disabled, so its hard to work up a lot of pity.....just saying....” “I wish the VA and the DOD would be a little more strict on handing out pensions...”

Although I am familiar with some of the con-men and women you mentioned ...I for one would GLADLY give back the pittance that the VA has “determined” that I am eligible for... in return for having an undamaged back, a lack of constant pain and a perpetual weather forecaster (arthritis)... just saying. :)

[pabianice]

This is nothing new.

Some years ago I was hospitalized for three months and then out of work for several years of recovery. Two years later the IRS audited me, saying that I had not reported any income for the last three months of the accident year. I showed-up with my accountant and a copy of my hospital record. In what has to be an epic moment in IRS history, the agent leaned over the desk, right in my face, and sneered, "That's your story." In the end I had to meet with or fax records to the IRS 13 times over the next two years. In the end, they made me pay "back taxes" and fines on money I never made. The coda was that they then lost most of my financial records when I asked for them back and told me to get lost. I couldn't afford to appeal.