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Dealing with Demands for Payment

The proponent of the rule/claim has the burden of proving the validity of the rule/claim.  

When we get a demand for payment, most people just make assumptions and presumptions when they just automatically accept the following;


  1. that the claimant is, in fact, the ‘holder in due course’ of a bona fide instrument (note, check, contract, mortgage, etc.)
  2. that the original instrument was created in good faith, with clean hands, full disclosure and mutual benefit.
  3. that the claimant has a certified complaint from a damaged party who will testify with first hand knowledge.
  4. that the claimant is a duly formed legal entity
  5. that the claimant is legal and lawful in every respect and has a valid charter, registered properly, is current etc. 
  6. that the claimant is in compliance with the Fair Debt Collections Practices Act
  7. that the claimant is in compliance with the Privacy Act of 1974 
  8. that the claimant is in compliance with state and/or federal statutes relating to collections
  9. that the person making the contact is a bona fide agent for the claimant and is duly authorized
  10. and more…you get the idea.

If any one of these legal ‘inconveniences’ is not in order, the claimant has a serious problem if challenged.  Most people just roll over and start arguing the amount.  As soon as you argue the amount you’ve admitted that the debt/obligation is valid and the only question is ‘how much’?.  You’ve just traversed to their argument and you lose. 

For example:  in the IRS FREEDOM PACKAGE we include the NOTICE OF OFFER OF PERFORMANCE which is used in response to a demand for payment by the IRS.

Again, we don’t argue the amount, as rediculous as it may be.  Don’t traverse to their argument.  We agree to pay and make a CONDITIONAL OFFER.  We’ll pay in full, or make arrangements, provided they can properly establish their legal standing and conformance to a long list of legal requirements which we know they simply cannot comply with.  We give them a certain time to respond, or be in default and they have to accept the fact that they have no claim.  They default.  I give notice of default and give another chance, another 10 days.  Default again.  Send a Notice of Default Absolute.  You’ve just destroyed their claim and if they harrass you any more, you let the tiger out of the cage and go after them looking for blood. $$$$$$  

This is operation of the U.C.C. and merchant law in operation on a daily basis.  What does the IRS do?  They send you a notice and say ‘if you don’t reply in 10 days, we’ll proceed to collection.  Your silence is agreement.  They have contract, and they proceed against you.  You can do the same exact thing.  

It’s the law!  

Learn to deal with this in the IRS Freedom Course in the ADVANCE TRAINING LIBRARIES menu on the left.

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