From the July 2001 Idaho Observer:

It cannot answer important questions. It simply goes from house to house; from business to business threatening to take peoples' property and put them in jail if they don't pay the protection money they call income tax. Steve Sego and his wife Davina of Rathdrum chose to stand up to the IRS and seem to have battled the federal monster to a standstill. What program did they use? What method do they employ? They confronted the IRS head on, asked the right questions and stood up in truth and faith. The following account should be an inspiration to us all.

One family's confrontation with the IRS

by Steven: Sego

In 1994 I quit filing the Income tax returns and I notified the Tax Commissioner in Washington, D.C., by mail, telling her I was ashamed of her, and that I would no longer be filing tax returns.

I started getting letters telling me of a tax-deficiency, and that I needed to file 1040s. I replied with letters, always in a timely manner, declaring my sovereignty and upholding my Constitutional Rights. Of course, the Internal Revenue Agents were deaf and still kept on a coming. Consequently, the correspondence between them and me has filled seven big notebooks full of documentation.

In my investigations about the income tax I have learned that: (1) the Constitution was God's Law and; (2) The IRS was telling lies.

I made up my mind that I was going to obey God's Law. I bumbled and stumbled and made mistakes, but kept a steady prayer life to my Father in Heaven and observed to do all that I could, by learning the truth and then exercising what I knew to be true.

This has been a learning process and I have made mistakes. But I and my family are living testimonies that by going forward in truth and unafraid will lead to things working out for the best. I know that my knowledge and understanding of the IRS and what the truth really is has grown tremendously, and I am so grateful to my Heavenly Father for that.

In 1998 the IRS recorded in Kootenai County, a “Notice of Federal Tax Lien.” I thought about what was going on and with a little more reading I ran across a document put out by the IRS that said anyone could visit any IRS office and the IRS would be happy to answer tax related questions.

So I did. I decided to go after the IRS and not wait for them to come after me. I called up my friend Herb Miles and asked him if he would you like to go with me to visit the IRS because I had some questions I want to ask them. Herb agreed to meet me at their office. And so began my harassment of the IRS.

Our first meeting

I had come upon some material where it appeared that something had been omitted from evidence, making an incomplete document and I wanted to ask the IRS about it. I wanted to put them on the spot. Herb and I met at the IRS office in Coeur d'alene. We went up to the big steel door. We rang the doorbell, and after a minute a voice on the other side asked who we were and what we wanted. I told them that I was there to see John: Peterson (he is the supervisor for the Coeur d' Alene Office) the voice said just a minute. Pretty soon the door opened and a person opened the door and showed us to a room where we could wait for John: Peterson.

Shortly John: Peterson appeared and asked what this was concerning. I told him that I had some questions. He told me that I needed an appointment, because it was apparent that he didn't know what to do with me on such short notice. However, I pulled out my paper, it being the IRS's own literature, stating that is all I had to do if I had any questions was to just come down to any office of the IRS, and they would be glad to answer them.

I asked him if the paper was true. He said okay what do you want to know. I started asking him questions about the omissions of paragraphs and words from IRS material which made documents incomplete. He didn't want to answer these questions and so he tried to take control of the meeting.

I reminded him that I had called the meeting and that I had the questions and that he needed to provide the answers. He told me that he didn't have to answer any questions. I asked him if the IRS regards themselves as public servants or not. He said that they do. I said if you are the servant then I am the master and you will answer any question that I ask. I also reminded him that if he didn't answer my questions I would keep coming back until I got them answered.

Herb and I had taken recorders, but John: Peterson, would not let us record then, but we scheduled a meeting two weeks later telling him that we would be bringing recorders and witnesses.

John: Peterson, told IRS agent James Mason in Idaho Falls about the visit he received from us. James: Mason called me and said that I didn't need to bother John: Peterson and that If I had any questions concerning my account that I had to deal with him.

He also informed me that he could meet with me on January 7, 1999. I wrote back to James: Mason and told him that I accept the meeting gladly. I also reminded him that I had called the meeting, that he was the servant and that I will be asking the questions. I told him that when he came to be sure and bring some documents with him. I wanted him to produce the contractual agreement that I made with the IRS, if it is true that I do have an account with them. I also wanted him to provide the statute which accompanied the implementing regulations. I added, I will be bringing two tape recorders and three witnesses.

Our second meeting

The meeting took place as planned, and James: Mason for the IRS had his own tape recorder. I piled into him demanding now to produce the documents I had requested that he bring with him prior to the meeting. The only thing that he pulled out was the statute on Individual taxes. I asked him where the contract that I had signed was. He said, it's like this Mr. Sego, if two people get into an accident by one running into another, even though one is clearly at fault, the other has to sue to get justice, there is no contract there. I told him that this is not any accident. When I asked him to provide the implementing regulations for the individual tax statute he told me that he was not going to show me anything more.

I pulled out a copy of 1.1-1 taken from IRC 26, and I asked him if this was the individual tax. He didn't want to answer (but remember the tape recorders were running and I had three witnesses). If he said no, I didn't owe anything, and if he said yes, I still didn't owe him anything. He finally said, yes.

I told him that 1.1-1 is only referenced to Form 6555, Foreign earned Income. He couldn't say anything, he was had. I told him that the 1040 was an illegal form and asked him if he was trying to tell me to do something illegal. Just silence. He insisted that I needed to file 1040 forms. I asked him if it was mandatory to file the 1040s. James: Mason, said yes. I informed him about the head of Alchohol Tobacco and Firearms, under oath in front of the Congress, testified that filing was 100 percent voluntary. I then asked James: Mason, who was lying -- him or the Head of Alchohol Tobacco and Firearms. He said neither was lying. After this he got mad and terminated our meeting. I didn't want to leave, but he insisted.

Pre tax court

I started requesting my files from the IRS under the Freedom of Information Act. The IRS had created an account for me showing that all of the money I had earned, originated out of the Virgin Islands. My wife had received a letter before this, telling her that her account had been changed, and that now she owed half of what I owed. They of course were trying to get to my family. The very next letter she received, was a notice of intent to levy. They obviously had failed to follow their own procedure, and knowing that the whole thing can be thrown out because of this violation, we were talked into filing an appeal to the tax court.

The Tax Court was held April 10, 2000, but about two days prior, we agreed to meet with the IRS to try and resolve the Tax Court issues as requested by the Tax Court Judge. So we did.

In attendance for the IRS was Senior Special Investigator Gerry: Morgan, and IRS Attorney Thomas: Tomashek. For our side was, myself and my wife, Davina.

My wife and I went in acting as though we were anxious to cooperate, and as though we wanted get the issues settled. The way we were received was with great excitement and with relief that we were finally broken down enough to give in. We were actually on a fishing expedition. Gerry: Morgan admitted that the reason that we were targeted in the first place is that an anonymous caller had pointed us out. He also said that if we hadn't ever owned any land that we would not have been bothered. He showed me every business transaction that I had ever made, and explained how I had made it. He also admitted that I wasn't hiding anything, so therefore, wasn't subject to tax evasion. Thomas: Tomashek stated that if we were serious about wanting to get this situation resolved that we should file 1040 forms to show our intent. Gerry: Morgan, told me that Davina didn't need to, but that I should come down to the IRS office in Coeur d' Alene the following Monday and that I could file 1040s and that somebody would be glad to help me. He said, “Davina you can stay home, is all we need is Steven.”

He told me to come to the office on Monday and bring my own envelope, my own stamps and that I was to address the envelope myself, put my own stamps on it, file, sign, drop the forms in the envelope, and seal it myself and then he would accompany me to the post office and watch me drop it in the mail.

He then asked me if I wanted to pay state taxes. I said of course not. He said, well, if you do it the way I said, then you won't have to pay state taxes. Davina asked him how that worked. He said, by doing it the way he suggested I could avoid state taxes, and that I could trust him.

As we were getting ready to leave the meeting, I told the IRS that I knew how it justified its proceeding against me. I say I am sovereign, but because I work for a corporation, the IRS treats my wages as Foreign Earned Income. They both agreed, “that's right.”

After we had gone out of the Federal building where the meeting was held, I asked my wife, if she realized that Gerry: Morgan and Thomas: Tomashek had tried to set me up and send me to prison on two felonies. She was almost sick when she came to the realization.

Tax court

At Tax Court on April 10, 2000, we appeared for only to contest the deficiency notice to my wife, which she did not receive. The witness for the IRS was a mail lady who supposedly had delivered the notices of certified mail to our mail box. When it was our turn to question the witness, she said that she remembered delivering us the notices back in 1997, but she could not remember the names of the roads that she supposedly drives every day. There were two notices for two certified letters, the first notice was supposedly signed by her, but hadn't any signature or writing at all. The second, she testified, “this is my signature” and the letters were “RIS”. Her name is Linda: Vezina, which doesn't match the initials at all.

When we were done questioning the witness, the judge told us that if either of us wanted to say anything that we would have to be sworn in under oath and take the stand. We knew that if we wanted our story out that one of us would have to take the stand and one of us would have to ask the questions. Davina, decided that she would rather take the stand, and so, was sworn in.

I asked her questions and in the process, were able to show how the IRS had fabricated everything to do with the Notice of Deficiency that was supposedly sent. We used things that the IRS Attorney had said in our meeting, prior to the Tax Court, against him. I do not believe the IRS were ready for what they got. After the testifying, the Judge admitted that it was obvious that Davina didn't receive a deficiency notice, but that she would review the evidence and make a ruling later. The ruling later, however, was in favor of the IRS.

Before the Tax Court had started, I had requested a transcript of the proceedings. When the transcript had finally been sent to us, on review, I noticed that vital information had been omitted from the transcript. The part where Linda: Vezina, testified that her signature was on the attempted delivery notices, was missing. I immediately sent for a copy of the tape from the transcribers, located in Stockton, California. Their professional name or business is V/ARS, Inc.. They notified me that the written word would serve me better and that they do not keep the tapes, but get rid of them. I have requested the tape another time. I just happened to have two witnesses in the court on that day, to prove the truth, plus I immediately made out affidavits and have sent them to the congressmen and women.

I heard nothing from the IRS until June 18, 2001, when James: Mason and John: Peterson showed up at my door. I saw them coming and went out to meet them. James: Mason asked, “are you Mr. Sego?”

I said, “yes.”

He said, we are going to seize your property soon if you don't cooperate. I ordered him to leave, before he could say anything more. He stuttered and said, “okay.” They turned around and left. As they were turning, I said, “and don't come back, the only thing you are going to get is a law suit slapped on you so fast it won't quit.”

They didn't say another word. I believe that the reason they came at that time is because, they thought my wife and family was home, alone, and they intended to intimidate her.

I know that we can prevail, by holding up God's Law and maintaining true principles.

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