approves of the Government attorneys deciding to make their careers by putting innocent citizens in jail.

In fact, perhaps all Americans will recognize that apparently Congress would approve at that point in time of all 102 crimes.

In the next few days the Senate is going to hear their excuses, the same excuses they put in their appeals. I contend there are no excuses, and I would ask, as you listen to their attempting to explain and to excuse these acts, that you imagine being seated next to one of the framers of the Constitution, and listening to these perversions of the rights that they secured for us by defying God and king in 1776. And I would ask you to ask youself, "Would this excuse have sold in Philadelphia in the summer of 1793?"

After you have digested it all, I am sure you will act. I suggest that your shock at the level to which our freedoms in this Nation have degenerated in the interest of collecting taxes will cause you to act with strong action. I suggest it will require corrective actions of Congress, and that Congress supervise those corrective actions. I suggest it will require, at a minimum, the appointment of a special prosecutor empowered to reduce in rank, dismiss from Government service, request appropriate action from associations, the bar association, and in instances of flagrant acts, criminal prosecution.

I suggest that any less remedy would be instantly followed, upon the completion of these hearings, with business as usual at the Department of Justice and at the IRS.

I further suggest that while stopping these acts now is a meritorious event, the prevention of their recurrence is even more important. I think that will require a new law, one that permits the citizens of the United States equal access to the courts against the employees of Government that the Government has against the citizens, a law permitting us to sue an IRS agent or a Department of Justice agent if they break the law or violate the Constitution; because only then are we going to have real protection against violations.

The frequency of an oversight committee or a special prosecutor is not sufficiently frequent that it really instills any fear into would-be overzealous prosecutors or overly ambitious individuals that want to break those laws. And why not?

I am living proof that this Congress has seen fit for a citizen that so much as makes a mistake on his income tax, a civil mistake, to allow the IRS to collect the mistake, plus interest on the mistake, plus a 100-percent penalty on the interest and the principal; and then, the IRS has added to that approximately 140 years potential incarceration, if you make a mistake, and perhaps in some instances where you don't even make one. Why should public servants be held to any less standard-they should be held to higher standards, I might add-than that to which the citizens are held? When the citizens have that sort of recourse that will get their attention. At that point in time the IRS agents and the Department of Justice agents will realize that they, too, can be sent to jail; they, too, can lose their jobs; they, too, can be broken financially by illegal and unconscionable acts.

In summary, I think it is time for a change. I think 102 criminal, oppressive acts later, it becomes a little bit difficult to still adhere to the theory that the "king and the king's men can do no wrong,'

and therefore you cannot sue the king. One hundred and two acts later, it must be obvious that the king's men are doing wrong, and that the king's men will continue to do massive and grievous wrongs until this committee, this Senate, and this Congress say, "No more." I think it is time to return corrective actions and measures to the hands of the citizens of the United States. I think it is time to guarantee that our public servants know that they, too, are subject to the laws of this land. I think it is time that we obey the intent of the Constitution.

That is what I think, and that is what I think all Americans think. In the next few weeks we are going to find out what this Congress thinks.

Thank you.

[Mr. Kilpatrick's written prepared statement follows:]

STATEMENT OF WILLIAM A. KILPATRICK, TO SENATE FINANCE OVERSIGHT SUBCOMMITTE ON INTERNAL REVENUE TAXATION

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Ladies and Gentlemen, I thank you for the opportunity to speak on a subject I believe to be critical to our survival as a free nation. At first blush that may appear to you to be an extreme statement. Το the contrary in consideration of my experience with our tax system over the past 9 years I believe it to be an understatement.

The culmination of this nine year horror occurred in September, 1982 when I was indicted at the request of the IRS by a grand jury whose powers had been unconstitutionally usurped by the Tax Division, Department of Justice. I was indicted for a crime THAT DOES NOT EXIST. I did what I was accused of doing but its not a crime, it was tantamount to being accused of breathing, of being alive, of being a citizen but couched in such ugly terms by the IRS and DOJ. That it was made to appear to be a criminal. By that charge I was held hostage to a possible sentence of 140 years, for a crime that was never committed. All in the interest of collecting taxes that were not owed.

It's almost funny and perhaps 10 years ago before my life was laid waste in this process I would have laughed at such bureaucratic bungling, but 9 years, $6 million in legal fees, witnessing the destruction of my company and the tears of my family later I suppose I've lost a certain amount of my humor.

Now I want to know how.

Now I want to know why.

Now I want to know what is being done to correct such an atrocity in this nation because my experience is not an isolated event, to the contrary it is quite common. Others in this land have been convicted or in terror of the awesome power of the government have confessed quilt in plea bargaining to this noncrime. Some have served time in prison.

I appear before you in coat and tie rather than prison garb, for one reason. I was blessed!

The Lord blessed me with a wife and children that loved me, believed in me, and stood by me.

I was blessed with a body that survived the stress of the ordeal without succumbing to stroke, ulcers or cardiac arrest.

Probably, most important, I was blessed with the $6 million necessary to pay the legal fees to defend myself until the truth could come out.

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I would suggest to any American that if you are short any of those blessings that you become very concerned about what is going on in the U.S. today in the name of Tax Collection.

That begs the question How? How could this happen to citizens of this bastion of freedom, in this land of adherence to Magna Carta, the Constitution and the Bill of Rights.

I can tell you, because I lived it. In 1977 I was in the capital formation/tax shelter business.

And at this point let's get something straight, tax shelters are not created by evil men, with green eye shades, in smoke filled back rooms they are created with the best of intentions, rightly or wrongly concieved, right here in the hallowed halls of Congress. The only thing we people in the legitimate shelter business do is exactly what you pass laws to encourage us to do.

In 1977 I presumed that when the Congress passed a bill and the President signed it into law that the law said what it meant, and meant what it said.

I presumed that if the combined wisdom of 535 members of Congress and one President decreed that the energy crisis was of sufficient magnitude to warrant the granting of tax benefits to individuals investing in alternative energy, coal or research and development of coal for its conversion into a gaseous or liquid fuel that such investors in such endeavors would receive such promised tax benefits. As I said I presumed Congress meant what it said and said what it meant.

I was defrauded. Together with 1700 of my investors and thousands of other Americans I was defrauded by this government. Not by a misdirected individual, but by the planned systematic effort of the IRS. The plan was conceived at the top, directed by middle management and implemented by the field forces of the IRS. To promise a future benefit in return for a current act with no intention of delivering the future benefit is fraud and we were defrauded.

If Dave Stockmen is never right about another thing in his life he was right on point when the said, "If employees of government were held to the same standards as we hold the citizens, we would all be in jail."

But of course that is not how it works.

The way it works is the government commits the crime and if the citizen victim objects, the government puts the victim in jail. That's right, through the IRS, we the victims are framed for the very crime the IRS commits.

And both of the Federal Judges in my case, Kane and Winner, have determined it to be a "pattern". I say it's worse, I say

it`s beyond just a pattern it is

"pandemic", in the IRS and DOJ

and the record in my case proves it.

That is the truly unique thing about my case is we were able to obtain documents that most victims never see. Those documents clearly demonstrate that it is a pattern, they reveal the 102 acts, the crimes that must be committed, the constitutional rights that must be violated and the rules of law that must be trampled in order to convict the victim of the government's crime.

It started with an amazing 16 page document from the head of the IRS Criminal Investigation Division (CID) to an Assistant Attorney General of the United States, entitled "Request for Grand Jury". The first 10 1/2 pages of this document explains how the IRS has been unable to find any way to deny my investors their legal deductions, and concludes with the admission, "...therefore, it must be obvious that it would be extremely difficult to make a case by civil or administrative methods". I might add the "civil method" is the only legal method available to collect "civil tax".

The last 5 1/2 pages are entitled, "How to use the Grand Jury". Those pages explain how the IRS wants the DOJ to illegally and unconstitutionally use the criminal grand jury to help it collect the civil tax dollars that the first ten pages had just demonstrated that the citizens didn't owe. If that is hard to believe read it for yourself. After you cut through the legaleze that is exactly what it says. The sender really wanted the receiver to perform an illegal act for an illegal purpose and illegally send me to jail in order to scare my investors into paying the taxes they did not owe.

For the next few years after these two senior IRS and DOJ officials jointly agreed to break the law and violate the constitution, their middle management and field workers were busy with more mundane duties, little things like;

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1. Putting IRS agents in the Grand Jury as special agents, Tricking defense witnesses into thinking their testimony was not needed, not wanted, and no longer requested (Quintella), 3.

Issuing arrest warrants to U.S. Customs for other defense witnesses against whom no charges existed in order to make certain they didn't enter the US to testify (C.S., Gill, Alberga),

4. Threatening defense witnesses with loss of job and personal indictment if their testimony was displeasing (Bell, Hjorth, Birchal, 23 pocket immunity letters),