Hoyt Fiasco: $103M Heist + Kevin Brown's Criminal Cover-up
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     Why did the IRS lead prosecuting attorney in the Hoyt case quit in disgust?

The Hoyt Fiasco: Reference Documents

These documents are for your reference. They are not meant as legal advice, nor are they necessarily part of the PDFT legal defense. They are do not necessarily voice the opinions of the PDFT. However, this information may help you and you would not have it if not for the PDFT.

Read this and ask, "Why are Hoyt victims saddled with interest and penalties?"


The documents below may prove useful in your own situation in talking with the IRS, or when writing to legislators for assistance in resolving this mess. It's a good idea to read these and make yourself familiar with the principles involved. If you want to explore a referenced court case further, you can find information at your local law library.

Do not ask the PDFT attorneys about these documents or about these cases. If you wish to use them in a legal effort, please refer to your individual attorney.

  • WSJ-2003-02-12-CowValuations. This shows the fraud that Jay Hoyt committed against his partners (see the related IRS coverup document, IRS-86-FlowThroughOK).
  • 2002-04-08WSJ. Article that show how capricious Congress is about the role of the IRS.
  • 2002-01-07WSJ-CourtCases. IRS lost one court battle after another.
  • 2002-01-09WSJ. It's very hard to work with the IRS and reach a reasonable settlement.
  • Application for Reward. Form 211, to report IRS employees who participated in the fraud.
  • Biven Brief 2002. The original "big case" in the Hoyt Fiasco.
  • Department of Justice Dumb Response. This is the kind of help we get? Isn't the DOJ supposed to enforce the laws, rather than aid in breaking them?
  • Expert Advice No Penalties TaxShelter TaxHotline 2008May. Tax Court ruled that penalties do not apply when people act on expert advice before investing in a business that has tax advantages (very similar to Hoyt Fiasco, in which IRS refuses to reduce or eliminate penalties).
  • Innocent Spouse2002-10-05. The marriages of many Hoyt investors were destroyed by malicious (and often illegal) IRS actions. Those who remarried found their new spouses soon under attack also.
  • Innocent Spouse2002-10-05-Direct From Screen. A variation of the above.
  • IRS-86-FlowThroughOK. IRS assured a taxpayer, in writing, that the Hoyt investment was fine and no personal income tax increase would arise from it. Later, IRS sent that same taxpayer a bill for over a quarter million dollars.
  • IRS Collections Attack On Zeff TheWeek2010-03-12. Yet another example of an agency that is not held accountable for outrageous behavior.
  • IRS Committed Fraud Appeals Court Ruled. Just one of many examples of fraud conducted by the IRS. Sometimes, they actually don't get away with it.
  • IRS Delay Means No Dice. The Hoyt victims are subject to an entirely different "tax code" (one made up just for us), case precedent, laws, and so forth. Where a law or case applies to everyone else, for some reason it doesn't apply to the Hoyt victims. Here's an example.
  • IRS Pays For Document That Didn't Exist. IRS failure to produce gets taxpayer off hook. It seems that nothing but death gets Hoyt victims off the hook.
  • IRS Neglect Not Excusable TaxHotline2008-03. The court declared IRS to be a "sophisticated creditor" and didn't allow IRS to claim its employees' negligence justifies abusing a particular taxpayer. In the Hoyt Fiasco, IRS successfully relied on negligence  to justify overly aggressive actions against the very victims of IRS negligence (IRS also claimed ignorance and incompetence). One set of (harsh) rules for Hoyt victims, another set for everyone else....
  • Must Assess Individual. The IRS claimed it assessed individuals by assessing the partnerships, but such a claim is without merit.

  • Partners Not Liable. The Hoyt investors were a partners, with Jay Hoyt the managing partner who controlled everything. The IRS gave Hoyt a free pass, but then viciously attacked people who were not even liable.
  • Partners Not Liable-2. More evidence of the preceding point.
  • Person With No Authority Not Liable. Jay Hoyt controlled everything, leaving the Hoyt investors with no authority. That means none of them are liable, yet Kevin Brown, a high-ranking manager at the IRS national office, illegally asserts they are. And what Kevin Brown wants, he apparently gets. Regardless of the law, the facts, or the ethics involved.
  • Tax Liens Do Not Help. As common sense would predict, and the Taxpayer Advocate Office has finally asserted, Tax Liens provide a negative financial impact to the government. The reason is the massive, often irreversible, damage they do to the taxpayer. You cannot get eggs from a dead chicken.
  • Taxpayer Advocacy Panel, a citizen's suggestions. Use as basis for your own letters.
  • TMP Conflict Of Interest. Hoyt was the TMP who sold the Hoyt investors down the river, though he had no authority to sign anything. The IRS managed to get around this problem, just as they've managed to ignore other laws and regulations.

Here are some philosophically-related documents. If the government is so desperate for money, why not cut back on regulations instead of focus on wiping out innocent victims of a scam abetted by federal employees?

  • CostOfRegulationsTheWeek2008-01.pdf. Want to save a billion dollars, which can then be taxed at 30%? No problem. Just reduce the thousands of pointless regulations that afflict businesses. By eliminating regulations, Congress could have the benefits of a tax increase without the pain of one.
  • Cost of federal income tax system. This doesn't include actual taxes--just the cost of the system. If sending to a legislator, you may want to point out the tremendous waste of resources being used to crush the victims of the Hoyt Fiasco. Note: the federal income tax is just one of many federal taxes and not nearly the largest one that the typical citizen pays. Of course, for Hoyt victims, it's not 15% or 25% of income--it's a theft tax (not passed by Congress) that amounts to 20 thousand percent or more of the victim's wages.

Search www.irs.gov for these items

Request items for criminal investigations

This Hoyt fiasco would not exist, if not for criminal acts on the part of individual IRS employees. Here are some documents you can use to seek justice:

  1. Form 4930, CID investigation report.
  2. Memorandum of case strengths & weaknesses.
  3. Form 3714, Subject Investigation Analysis Guide.
  4. Form 4135, Criminal Investigation Control Number.
  5. Form 6544, Request for Cooperating Examiner.
  6. Memo to collection & examination personnel.
  7. Form 9131 Request for Grand Jury Investigation.
  8. Exhibits supporting Form 9131 request.
  9. Assistant U.S. Attorney Support Letter.
  10. District/Regional Counsel letter authorizing grand jury.
  11. Form 9510 Grand Jury Access List (if Form 9131 is not used).
  12. Assistant United States Attorney letter authorizing grand jury controls - Form 4135.
  13. Form 9984 case notes.
  14. Affidavit (testimony) verifying probable cause (18 U.S.C. 3045; Rule 3, Federal Rules of Criminal Procedure).
  15. Form 5546 (C), Examination Return Charge-Out.
  16. 6754, Examination Classification Checksheet.
  17. Form 2797 Referral Report of Potential Criminal Fraud Cases

Material relating to assessments 

The IRS is enforcing collections of taxes, interest, and penalties against people who have never been assessed for Hoyt-related taxes This violates the Internal Revenue Code. These documents pertain to assessment:

  1. Assessment certificate that includes taxpayer name (not partnership name) and identification number (not partnership number), the character of the tax, the applicable tax period, the date assessed and the signature of the assessment officer. See 26 CFR 301.6203-1. There should be separate assessment certificates for tax principal, interest, and penalties for each calendar year.
  2. Supporting documents for the assessment. See 26 CFR 301.6203-1.
  3. Form 8278, Computation of Assessment of Miscellaneous Penalties.
  4. Form 2859, Request for Quick or Prompt Assessment or Index File.
  5. Form 2644, Recommendation for Jeopardy/Termination Assessment.
  6. Form 3198, Special Handling Notice.
  7. Form 5147, IRDS Transaction Record.
  8. From 4338 and/or Form 4338A.
  9. Form 9494, Request for Assessment of Liability for Excise Tax.
  10. Form 53, Report of Currently Not Collectible Taxes.
  11. Form 3870, Request for Adjustments.
  12. Form 5344, Interest accounting.
  13. Form 5403, Interest accounting.
  14. Form 5734, NMF Voucher.
  15. Form 720 NMF assessment.
  16. Form 5734 (direct assessment cases).
  17. Form 6335 verification.
  18. Form 2467 & return to which it is attached.
  19. Form 3539, Block Control Number listing.
  20. Form 813 Document Register.
  21. Form 5600, Statutory Notice Worksheet.
  22. Form 6754, Examination Classification Checksheet.
  23. Form 5345, Examination Request Master File.


Last updated: Friday, October 09, 2020

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Disclaimer: The facts represented here are as accurate as a reasonable investigation can determine. Mindconnection hosts this site at no charge to the Hoyt victims, to expose this miscarriage of justice.