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A lot of folks have been misled about IRS "agency" status by a misunderstanding of events in Diversified Metal Products, Inc. v. T-Bow Company Trust, et al.
In that case, the Dept. of Justice argued that the IRS is not an "agency of the United States Government". This declaration has been widely bruited about as supporting the absurd notion that the IRS doesn't really exist, or is only a part of the Puerto Rican bureaucracy, or is merely a private outfit based in Baltimore, or similar nonsense.
However...