Copy ---

Karen Kline
Santa Fe, NM 87505
                                                                              9/26/96

The Honorable Robert Rubin, Secretary of the Treasury
15th Street and Pennsylvania Avenue NW
Washington, D.C. 20220


Dear Mr. Rubin,

Enclosed please find a copy of my
8/5/96 letter to you. It is a
serious letter, wouldn't you say? Or, did you even read it?

If you did read it, your delay in doing anything with it gives the
impression that you chose to ignore the egregiously misleading
papers the IRS recently sent to me, of which I provided you
copies. Your delay also gives the impression that you chose to
ignore the fact that I am planning to take my life when my
property is foreclosed or I run out of money, each of which events
is directly related to and caused by IRS putting me out of business.

In view of the response I received today
from John Rush, I feel
that your action, apparently limited to forwarding my letter and its
associated documents to him at IRS, is grossly inadequate.

Mr. Rush, IRS, Washington, D.C, writes that he is referring my
complaint to the Regional Commissioner, Western Region. But last
November the Regional Inspector General for the Western Region
wrote the following, “We are referring your information to:
Internal Revenue Service ... Washington, D.C."

If this is not a run-around, then what is?

I wrote to you because the situation with IRS is appalling. I
expected you to do something real. What you have done is
something really appalling.

I would not have written to you if I had not exhausted every other
avenue.

On the other hand, the good thing about the run-around is that it
clearly shows you how severely wrong this system of taxation has
gone.

It occurs to me that I must send copies of Mr. Rush's response,
and the November responses, to everyone to whom I sent copies
of my 8/5/96 and my 8/15/96- 8/18/96 letters to you. Luckily,
today I was able to sell the bracelet I mention in my post script to
60 Minutes, copy enclosed, which means that I will be able to buy
the stamps for this additional mailing.

It is also lucky that I have not yet mailed the last dozen and a half
bound copies of my letters to IRS. It is lucky because this run-
around should be included, and it will be. I'm glad to have
something funny to include. Perhaps the way to liberate Americans
from IRS is to start them laughing at it, that will sure end the fear.

Page 2

Ever hopeful, I will also enclose for you some letters which I
believe may spur you to take needed action, that is, planning to
replace and actually replacing the IRS with a National Sales Tax
with quarterly refunds to low income people. I understand that in
the past the “Treasury Department's testimony before Rep.
Archer's Ways and Means Committee has been much less than
enthusiastic on this topic."

Though Rep. Archer is a friend of the last person for whom I was
able to do a real estate transaction, and Rep. Archer has actually
written back to me, with a true letter, not a form letter, it was not
he who wrote to me the observation that I quoted above. It was a
friend of mine at NTU.

On page two of my
2/2/96 letter to Ralph Castillo, Inspector,
Department of the Treasury, Internal Security, I highlighted the
more salient points, to include: 1 don't have the money to hire a
lawyer to protect myself from IRS, but Mr. Gallo and others can
pay $50,000 at a whack to protect themselves in very specific
legislation to favor their interests." And, "Which brings me to the
problem of Rosemary Abascal and Betsy Donnelly and Jeanne
Kearney, and Damian Akerman, versus IRS as a whole. While I
object to the way these individual people treated me, I believe the
problem was that IRS sanctions their behavior." And,  “When  I
say that I specifically think about how when I sent in my 911
form, I sent a copy of it to Austin and later I sent a copy to IRS in
Dallas, because I was trying to get it to someone impartial, the way
the form itself says it will go to someone impartial. But despite all
my efforts, it did not go to someone impartial." I note that I wrote
in the margins of a September 30, 1994 letter things said by IRS
that were not impartial. They were, "Betsy Donnoly - 505-837-
5756 Says they already have reviewed my application and decided:
they will proceed w/ collection — @ the same time she cannot
answer any questions - for instance what does Mr. Barela mean
when he says my 1984 form reflected no taxes owed - She says
she's reviewed my file many times over the years -- Put me on
hold —" an empty space follows, representing the time on hold,
then, "Problem Resolution Jeanne Kearney made decision to
enforce -- keep on enforcing". What is particularly great about this,
is that it is Jeanne Kearney whose name is on the letter containing
the statement, “The return reflected that she did not owe tax," and
that is the same letter upon which my margin notes are made.
Jeanne Kearney, the letter says, is the person to contact, while
Bernard L. Barela, District Director, appears to have signed the
letter. I sent many copies of that letter, with its margin notes, out
in 1994, along with a letter I wrote that referred to it. I sent you
copies of each. I gave a copy of my letter, printed and highlighted
in 1994, to Ralph Castillo when he was here, and I sent a copy of
another copy printed in 1994 to you, along with a copy of the
letter with the margin notes. Please refer to the
bound copy of
letters for these documents.

Sincerely,
    
              Karen Kline
              Karen Kline



Enclosures:
1.        
 Letter to Robert Rubin, Secretary of the Treasury, dated
8/5/96
2.         Letter from John Rush, Acting Deputy Director, Treasury,
IRS postmarked 9/23/06
3.         Letter to John Rush, Acting Deputy Director, Treasury,
IRS, 9/26/96
4.         
Letter from Richard Leaf, Regional Inspector General,
Western Region, 11/24/95
5.        
 Letter from Richard Leaf, Regional Inspector General,
Western Region, 11/27/95
6.         
Letter to Ralph Castillo, Inspector, Treasury, IRS, dated
2/2/96
7.         
Letter to Donald Skadden, Executive Director, American
Tax Policy Institute, 2/2/96
8.         
Second letter to Ralph Castillo, Inspector, Treasury, IRS,
2/2/96
9.         
Letter to Richard Leaf, Regional Inspector General for
Investigations, dated 12/8/95
10.       
Letter to Valerie Lau, Inspector General, Department of the
Treasury, 10/14/95
11.       Post Script to
60 Minutes, dated 9/25/96




    
Pages 4-7 (Preceding),   Pages 10-11 (Following)
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