Tax Honesty Primer
[Updated 5-13-09]
Introduction
I am a law-abiding Nontaxpayer, and I don't fear my employees at the IRS.
I don't financially support criminals; I don't allow Nancy Pelosi, Barney Frank, Barry Obama, Harry Reed, and other corrupt scum to skim my checks for their own illicit uses.
As a professional engineer with a small private practice in Texas, I make enough to be a Taxpayer if I wanted to be one, but I’m a law-abiding Nontaxpayer instead.
I've owned marked-up copies of the Tax Code, and have enjoyed studying tax law and history for a decade. I haven't filed IRS forms or paid income taxes in eleven years, after getting nothing but Tax Honesty evasion from these, our employees at IRS:
- Michael Thomas (IRS Austin)
- Nancy Sessions (IRS Austin)
- Beverly Coogan (IRS San Antonio)
- Aaron Hamor (IRS San Antonio)
- R.A. Mitchell (IRS Dallas)
- C. Sherwood (IRS Dallas)
- Grace Metro (IRS Dallas)
- Debra K. Hurst (IRS Dallas)
- Dennis Parizek (IRS Ogden)
- Deborah Egan (IRS Ogden)
- Teresa Webb (IRS Memphis)
- Stephanie Borop (IRS Nashville)
- Queen Vaughn (IRS Nashville)
Why not write to them, certified mail, and ask them what I've demanded of them for years: "Where is the section of law making me legally liable for keeping records, filing returns, and paying your demands?"
Don't hold your breath waiting for an answer. In all the years I've been a law-abiding Nontaxpayer, just like their bosses (my members of Congress), all the IRS operatives listed above have engaged in willful tax honesty evasion, sending one of these bogus non-responses:
1) "we haven't finished our research; we'll get back to you", or
2) "we forwarded your request to the office shown below".
Remember that game from the playground? Hot Potato. In law, it’s called fraud and conspiracy. I refuse to finance more corruption by letting Congress skim my checks. After 11 years of being very vocal with them on this point, D.C. al Qaeda hasn't touched me, my money, or my property. All they've done is committeed two indictable, criminal acts of fraud, according to the Texas Penal Code. But I'll cover that later; let's go one step at a time.
Some People ARE Made Liable in the Code
Notice, I'm not suggesting that there's no law making anyone liable for income tax.
Reading the Tax Code, I can find sections that require a person to keep certain records, file certain forms, etc. IF they live and/or work in D.C., Guam, Puerto Rico, or the Northern Mariana Islands.
Or if they're involved in manufacture or sale of alcohol, tobacco, or firearms. Or if they're an officer or employee of the federal government. Or if they're a nonresident alien or a principal of a foreign corporation with income derived from sources within the United States.
Or if they receive items of taxable income from foreign sources...or foreign mineral income... or income from foreign oil and gas extraction...or income from a foreign controlled corporation as fiduciary agent of the corporation, or from insuring U.S. risks under 26 U.S.C. 953(b)(5).
Or...heh...if they receive items of income from maritime (international) trade in opium, cocaine or other controlled substances. (Now who the heck would report activities like that? Boy howdy.)
Anyway, my point is that Tax Honesty does not maintain that “there's no law!” as the D.C. al Qaeda likes to caricature the demand we make of attempted extortionists at IRS. We simply say that the Tax Code is very specific, and that we OBEY it, and that we make our federal employees obey it also. They use scary letterhead with a little black vulture on it, but paper doesn't frighten a person who has a copy of the Tax Code in hand, and knows how to read the English language.
Tax Honesty is not a 'position', theory, or belief
Every critical point I make in this Tax Honesty Primer is a citation of primary sources: the rulings of the U.S. Supreme Court, citations from the Internal Revenue Code, Code of Federal Regulations, Internal Revenue Manual, Black's Law Dictionary, and Sutherland's Rules of Statutory Construction.
You won't find any theories or my 'beliefs' in this Tax Honesty Primer. You'll find citations of those authorities listed above, and also names and statement on the record from former IRS agents, attorneys, auditors, an IRS Commissioner, and the only official Historian of the IRS in the agency's history.
A few housekeeping points
Before we go into the red-pill adventure in the Tax Code, cases, and supporting evidence and rulings I’ll chase off cockroaches and lazy web-surfers with a few points of housekeeping:
Point #1 Tax Honesty is the opposite of 'tax protesting'; it is responsible citizenship. It's neither anti-government nor anti-tax; rather, Tax Honesty is anti-corruption and anti-terrorist.
Point #2 As a corollary to Point #1, we all agree that lawful taxation is necessary to fund the lawful functions of government.
Point #3 Tax-theory gurus will keep being convicted for selling loopy theories, but Tax Honesty doesn’t support tax-protest theories, theories about the 16th Amendment, theories like "wages aren't income", or 5th-Amendment rights theories. Nontaxpayers don't take "positions" or seek to do away with the Tax Code or the IRS; that's unnecessary. Tax Honesty supports the Federal Tax Code as written.
Point #4 You can find in-depth treatment of specific issues at the links. WhatIsTaxed focuses on data mining the Tax Code and federal regulations, while Synaptic Sparks explains the legal principles of Tax Honesty.
Point #5 If you work in the tax industry (government or private-sector) and want to leave the Axis of Evil, I'm happy to answer your e-mails but don't e-mail to debate me. You’re defending a scam and I took the red pill. Go pound sand.
Your threat "I'll visit you in prison!" is hilarious; of 67 million non-filers, fewer than 250 are even recommended for indictment by IRS annually and they’re people who: 1) demand refunds, 2) file and sign things but then refuse to pay, or 3) follow wacky theories. IRS recommends eight times as many filers for indictment each year, as non-filers. So you’ll visit four of your filer friends in prison before you visit one non-filer like me there.
Learn how your profession has slumped towards Gomorrah in Mike Brewster’s book Unaccountable: How the Accounting Profession Forfeited a Public Trust. If you intend to continue holding clients down while IRS does bad things to them, don't delude yourself that you're an honest professional performing a needed service. That’s baloney.
The annual Tax Terror Season
If you’re still a Taxpayer, you’re terrorised by your employees at IRS because they drag out a few high-profile ‘tax cheat’ trophies every Tax Terror Season (Jan 1- Apr 15). It’s the same idea your CPA or tax preparer uses when they repeat the "death and taxes" line; the tax industry plays good cop to IRS’s bad cop. Your Taxpayer heart pounds, you borrow the money for the next IRS payment, your CPA makes his Lexus payment, and you trudge ahead in the ‘fair share’ line.
Dinosaur governments in the tar pit
According to former IRS Fraud Examiner (now Tax Honesty spokeswoman) Sherry Jackson, there were 67 million non-filers as of 2005 compared with ‘only’ 30 million non-filers by Commissioner Rosotti’s 1998 estimate. That's an astounding growth rate. With an estimated 110 million filers, this means that at least one in three Americans is a no longer underwriting the corrupt Congress’ bailout and check-skimming machine.
As James Davidson and Lord William Rees-Mogg predicted ten years ago in their book The Sovereign Individual -- the internet is making bureaucratic, redistributionist governments unsustainable; the dinosaurs are in the tar-pit.
Today’s financial news signifies the struggle for survival between Taxpayers and Taxspenders; this battle is reaching critical mass in The Age of Obama. In the Bush II era, we saw a massive expansion of the police state, restrictions on liberty of travel, eavesdropping on our calls and emails, and more. Now in the Obama era, we are seeing the total destruction of private property, with nationalisation of major industries.
This is textbook fascism, transmogrifying into socialism (where government owns the means of production). The bloated D.C. al Qaeda must now attempt to stay alive even as millions of Americans per year are becoming Nontaxpayers. Since his election, Obama has made no attempt to hide his socialist plan. Buying and controlling corporate giants using your tax dollars whether you agree with socialism or not! Next, the D.C. al Qaeda will attempt to kill America's small businesses through regulation. Tax Honesty isn't just about me keeping what I earn; it's about defending our way of life and rule of law!
No law makes the average American liable for income tax
Does that fact sound unbelievable? It's been proven beyond reasonable doubt in courts across America over two decades:
Thomas Reeves of Paducah, KY made the same assertion in 1988; the jury acquitted him. Franklin Sanders and (16) co-defendants in the Memphis area made the same assertion in 1991; the jury acquitted them. Gabriel Scott of Fairbanks, AK made the same assertion in 1992; the jury acquitted him. Lloyd Long of Chattanooga, TN made the same assertion in 1993; the jury acquitted him. Frederick and Christopher Allnut of Baltimore, MD made the same assertion in 1996; the jury acquitted them. Gaylon Harrell of Logan County, IL made the same assertion in 2000; the jury acquitted him. Donald Fecay of Detroit, MI made the same assertion in 2001; the jury acquitted him. Vernice Kuglin of Memphis, TN made the same assertion in 2003; the jury acquitted her. Dr. Lois Somerville of Lake Mary, FL made the same assertion in 2003; U.S. District Judge Patricia C. Fawsett acquitted her. Former Treasury Department CID agent Joe Banister made the same assertion in 2005; the jury acquitted him. Attorney Thomas Cryer of Shreveport, LA made the same assertion in 2007; the jury acquitted him.
Don't listen to freeloaders who say that Nontaxpayers don't pay their 'fair share' for roads, schools, and trash pickup. Learn what all those jurors learned: those things are not funded by federal tax revenues.
Do you believe in the Tax Fairy?
The law and the IRS can be left exactly as they are, with just one simple change: IRS employees must obey the law and not commit fraud or extortion. Don’t fall for the politicians’ pitch about a coming solution that they call a 'Fair Tax'; a national sales tax would carry America from the frying pan into the fire.
America's Parasite Sector: IRS is the tip of the iceberg
Ask anyone who invested with Ponzi-scheme huckster Bernard Madoff: the very nature of sucessful fraud is that it does actually defraud. The mark actually believes the fraudster, sometimes for many years.
So this will be weirder than hearing that your spouse of 25 years has been cheating on you since your wedding night...stranger than finding out that your best friend is an axe-murderer. Cognitive dissonance is what happens when everything you ever knew about something is turned upside down.
You may get a bit light-headed and confused; that's normal. When you start considering doing something about it, if you're not very courageous you may get anxiety attacks and lose sleep. That's normal too.
Upton Sinclair said "It is difficult to get a man to understand something when his salary depends upon his not understanding it." Your CPA may refuse to discuss Tax Honesty, threatening "I'll see you in prison!". You'd make threats too, if your professional career was exposed as corrupt.
The defenders of "pay your taxes" are legion. Congress' IRS scam is almost impossible to expose because it feeds a massive parasite population that you've likely never considered. Most of us produce something of use to others, or we fix things, or grow things, or sell useful stuff. But today, there are literally tens of millions of parasite-sector Americans:
- corrupt politicians including federal judges
- their bloated staffs and other bureaucrats
- thousands of gov't contractors employing tens of millions of Americans
- IRS employees
- large accounting firms and individual accountants
- tax law firms and their employees
- tax software companies
- tax training (seminar & publishing) companies
- tax preparation services
- university endowments in tax law & accounting
- tax-deferred investment groups
- tax-shelter mutual funds
- the tax shelter real estate sector
- equipment, vehicle, and aircraft leasing companies
- manufacturers and vendors of all depreciable equipment
- IRS 'workout' services that advertise "we're former IRS agents"
...and the two really big Kahunas:
- America's mortgage industry
- America's non-profit industry, religious and secular
Had you ever seen the connection to all those industries? Not likely. Now you know why you hear "pay your taxes" and "render unto Caesar" from counselors who've enjoyed great public trust and respect. If they run from Tax Honesty, you'll know they don't deserve that trust and respect. They've chosen a parasitic life.
In an interview in the May 25, 1956 issue of U.S. News & World Report, IRS Commissioner T. Coleman Andrews said, “There is a veritable army of people, organizations and businesses with a powerful vested interest in keeping the noses of the rest of us to the grindstone...let no one underestimate the power of the [tax industry].” If anyone should know, it's a Commissioner of the IRS.
EVERY American must obey the law
With respect to the income tax, law means the actual words of the Tax Code; nothing else is law. Not an IRS letter or demand, and not an IRS pamphlet or flyer about "your rights as a Taxpayer". Those are P.R. eyewash from an administrative branch agency, the stimulus gang's bag men. IRS publications have ZERO legal weight. Under our rule of law everyone – including IRS employees – must obey the law. Remember, next time your employees try to terrorise you: it’s a bluff.
AAAaaaauuuuugh!! I can't find my socks!!!
Whether you're a filer or non-filer, you should own a current copy of the Tax Code. Don't waste hundreds of hours being dragged by the nose through Congress's maze of smoke and mirrors; instead:
a) buy a copy of the latest IRC (Thomson Reuters' single-volume is great)
http://ria.thomsonreuters.com/estore/detail.aspx?ID=IR7P&SITE=/taxresearch/federal
b) buy a set of color-coded plastic index tabs
c) go to my website The Tax Code For All (link above) for a list of the mere (124) lines in the Code that specifically indicate activities imposing a legal duty to keep records, file, and pay.
Highlight and tab those sections. Don’t believe the tax industry line about how “huge and confusing” the Tax Code is. Baloney; they just want you to stay scared and confused.
Here's a fitting analogy: when Smith wants to buy some new socks from Sears, does he fall on the floor in a tearful heap wailing "AAAaaaauuuugh!! That confounded 10,000-page catalog!! No American can understand it!! Even the people who wrote it can't give me a straight answer!!! It's HUGE!! Waaaaaaaaaahh!!" ?
Of course not; that would be very silly. Smith just opens the catalog to the page for men's socks, orders what he needs, and treats the gazillions of other things in the huge catalog as if they don't exist. It's the same with laws, including the Tax Code. If a law doesn’t apply to who you are or what you do, then you can treat that law as though it doesn’t exist.
As you'll see the US Supreme Court ruling repeatedly below, and the Internal Revenue Manual demanding of every IRS employee below -- laws of taxation must be clear, and the person from whom a tax is sought must be shown in specific language to be taxable. Everyone else can just leave the big, fat book aside; it doesn't apply to them.
Your CPA or tax preparer, if (s)he is competent and honest, should know that it never has applied to you. But most in ‘the system’ won’t tell you that because they’re like nerds with pocket protectors standing in every aisle at Sears. Huge catalog in hand, their career is showing you what page to look on so you can buy your socks; you figure out the game and they’re out of work. So don’t expect them to support Tax Honesty; we’re all human. Even pirates need to eat.
Like every law, the Tax Code applies to certain subjects only
As you’ll see presently, the U.S. Supreme Court has ruled repeatedly that when a tax law lists some things as taxable, then things NOT listed are NOT taxable.
As you'll see in the many citations below, in American tax law, the law must specifically point out what activities and situations are taxable. With your own copy of the law marked up to show specifically listed taxable activities, you can confirm what the Tax Code requires of a 'taxpayer', and who the law makes a 'taxpayer' -- versus what your CPA, H&R Block guy, or IRS employee claims.
A common response from those in the system when Tax Honesty arises is, "render unto Caesar!”. Fine; but obviously we’re not ancient Rome. Americans are not ruled by Caesars but by Rule of Law...our federal and State Constitutions and all laws made pursuant to those constitutions.
The Internal Revenue Code (26 USC) is the codification of the statutes that establish a legal duty for certain people to keep records, file forms, and pay income tax...but only those people whose activities or situations meet the taxing provisions in the Code. Any person who meets those Tax Code provisions, but refuses to pay the taxes stipulated is properly called a tax evader. On the other hand, anyone not made liable in the Tax Code is a Nontaxpayer, legally free to ignore that law.
IRS Whistleblowers
The Code of Ethics for Government Service requires any government employee or official who obtains evidence of a government violation of law to report the violation, not to cover it up or participate as a conspirator as IRS employees do every day. A government official or employee who violates laws is not to be obeyed but reported for those violations and indicted where applicable.
The IRS has had a few honest and courageous employees over the years. In her sworn testimony before the Senate Finance Committee in 1997, Shelley L. Davis, the only official IRS Historian in the history of that agency, said the IRS is systemically lawless and corrupt. Former IRS employees have learned the truth about Congress’ IRS scam, left the agency and are now spokesmen for Tax Honesty including Treasury and CID agent Joe Banister, IRS agents Clifton Beale and John Turner, IRS fraud examiner Sherry Jackson, IRS attorney Paul Chappell, and IRS auditor Matthew McErlean.
In the same 1956 interview for U.S. News & World Report, IRS Commissioner Andrews said, “I don't like the income tax...every time we talk about these taxes we get the idea of ‘from each according to his capacity and to each according to his needs.’ That's socialism! It's written into the Communist Manifesto... Maybe we ought to see that everybody who gets a tax return receives...a Communist Manifesto with it, so he can see what's happening to him.”
The heart of the trap: “Everybody has to pay their taxes!”
I’m not a tax lawyer, CPA, tax accountant, nor do I offer legal or tax advice. I’m a follower of Christ first, a Texan second and an American third, with a God-given right to speak about politics. By law, government can't restrict that right.
Perhaps your HR manager, CPA, or tax preparer has shown you the Tax Code section, “...every individual having for the taxable year...” and suggests that this means every person that makes money, saying “everybody has to pay their taxes.”
Well, yes and no; it's an ambiguous statement. I do have to pay "my taxes" if that means every tax I owe by law, but I don’t have to pay "my taxes" if that means whatever the tax industry wants me to cough up even if not found in law.
The tax industry continues to push the lie that the Tax Code reads like the Revenue Act of 1894:
"There shall be assessed, levied, collected, and paid annually upon the gains, profits, and income received in the preceding calendar year by every citizen of the United States . . . from any profession, trade, employment, or vocation carried on in the United States or elsewhere, or from any other source whatsoever, a tax."
Can't be any more all-encompassing than that, right? The Tax Code would be about one page long...everybody has to pay! But as former Idaho Rep. Phil Hart explains in his book Constitutional Income: Do You Have Any? the present income tax scheme was devised by a very sneaky Congress after the Supreme Court ruled that the language above was unconstitutional (in fact, the high court forced Congress to return what it had collected from the people under the 1894 act).
To hide the truth -- that very few occupations trigger a Tax Code liability section -- the crooks in Congress have made the Tax Code huge and complex. Still, beneath those tens of thousands of pages of gobbledygook the Code is very limited in its scope – just as the framers meant internal taxation to be. It only applies to activities specifically called out in the law; to persons having taxable income. Persons made liable for an income tax in the Code are better known as Taxpayers.
“The revenue laws apply to taxpayers, and NOT to nontaxpayers. No procedure is prescribed for nontaxpayers. Congress does not assume to deal with nontaxpayers, neither are they the subject of nor object of revenue laws.” Economy Plumbing & Heating v. U.S., 456 F.2d. 713
How the entrapment scheme works
How could so many people be so blind to fraud and theft of this magnitude? In the first place, I’ve shown you how many industries and careers are in cahoots pushing the propaganda. Parasites need to eat just like productive people do.
The top ranks of media are in league with friends in Congress; the lower ranks are terrorised of being ruined by IRS. So a lot of people are insisting that paying income taxes is a legal duty.
“Our system of taxation is based upon voluntary assessment and payment, not upon distraint.” Flora v. United States, 362 U.S. 176 (1960)
What does that ruling mean?
I think those who claim income tax is voluntary are reading too much into the decision in Flora. Obviously, for anyone whose activities are specifically listed in the Tax Code, paying income taxes is not voluntary.
I was flabbergasted when I discovered the practical meaning of the court's words in Flora. For 20 years I really had been volunteering. I was defrauded and terrorised by Congress and the tax industry. Some activities are listed in the Code as having a legal duty to keep records, file, and pay, but engineering isn't listed anywhere. I was just self-assessing and signing promissory documents under penalty of perjury without ever seeing a copy of the Code, much less reading it. I was just doing what everybody else did.
If the court meant to convey in Flora that once I self-assess, sign under penalty of perjury, and mail the tax return that I owe what I promised...the court didn't bother to mention that this is government fraud and entrapment. I guess I helped destroy our Constitutional Republic by funding criminals for 20 years; so for the past eleven, I've been atoning for my abdication.
So what made me a Taxpayer all those years?
First I had to ask myself: was I a Taxpayer? That may seem like a silly question, but it's the first critical lynch-pin upon which Congress had been hanging my checkbook for 20 years.
The Internal Revenue Code defines taxpayer as “any person subject to any internal revenue tax” at 26 USC 7701(a)14, and as “any person subject to a tax under the applicable revenue law” at 26 USC 1313(b).
I could never find a section of the Code making me subject to the tax. After over a dozen demands, all of those IRS employees listed by name above refused to supply me with any part of the Code showing a section of law establishing a legal duty in the Code for an engineer (or almost anybody else, for that matter).
The 'Taxable Income' position
Some books and websites teach the "taxable income" line of inquiry, and in fact that line of reasoning was what led former Treasury agent Joe Banister to leave the IRS.
But I didn't want to play Congress' semantic games: taxable income is defined in terms of “adjusted gross income” in Section 63..."adjusted gross income" is defined in terms of a “taxpayer” in Section 62a...and Section 6012(a) reads, “Returns with respect to income taxes under subtitle A shall by made by . . . every individual having for the taxable year gross income,” etc. “Individual” is defined in the regulations...and to have a “taxable year” one must be not only an "individual", but a “taxpayer” according to Section 441(b)(1). Boy howdy; the whole line of reasoning is a spaghetti-bowl maze!
Remember, if you're a corrupt member of Congress trying to raise trillions per year in a bottomless pork-fest you must make the law totally confusing. You MUST confuse the target so he'll just give up, sigh, self-assess, and pay. The whole game is to keep your victim confused. And believe me, Congress does a VERY good job of it.
Anyway...we're back to looking for who is a Taxpayer; where does the law impose a legal duty on me where I live, doing what I do for a living? Can't my average IRS employee just show me THAT?
26USC A(1)(A)(I)(1)...the favorite semantic trap
Most HR managers make a very short discussion out of it; they trot out the very first sentence in the body of the Tax Code...Subtitle A, Chapter 1, Subchapter A, Part I, Section 1:
“There is hereby imposed on the taxable income of every married individual...” .
Well, that sure was easy! Everybody owes "their taxes"! Right?
No. I saw that the Supreme Court ruled that a universal tax was unconstitutional and made the corrupt Congress return what it had collected under that unconstitutional "everybody owes" language. So they had to go a different route; they chose miles of convoluted word games.
Words in law mean things. Or to put it another way, definitions in laws sometimes have a very different meaning from what that same word means in conversation. Politicians are very tricksy that way! So even though I didn't really need this point to prove the thesis, I took another step down the rabbit hole to see how the Congress defined individual in it's little Tax Code trap...
Hmmmm...it didn't. Well, but the Federal Regulations do define individual:
26 CFR 1.1441-1 Requirement for deduction and withholding of tax on payments to foreign persons.
(c) Definitions
(3) Individual.
(i) Alien individual. The term alien individual means an individual who is not a citizen...
(ii) Nonresident alien individual. The term nonresident alien individual means a person described in section 7701(b)(1)(B), an alien individual who is...
****
Just aliens. It only talks about foreign persons.
If I wasn't self-employed, I'd show that to my HR manager and she'd say, “Don't look there, you ninny; that says ‘foreign persons’ in the heading”. Yeah, I know; but find any other place in the Tax Code or Federal Regulations that defines individual.
It doesn't exist.
I used search engines on the Tax Code and Federal Regulations; it was easy online. I used the government's own websites, and I also used http://www.whatistaxed.com/ to go through the data mining exercise. Again: I found that I didn't even need any of this to prove to myself beyond reasonable doubt that I was never a Taxpayer except by fraud, coercion, and government entrapment: when I self-assessed and signed, I became just what I said I was under penalty of perjury...a "Taxpayer".
Who must provide Form W-4 or W-9?
Which payors are required by law to obtain a W-4, W-9, or a TIN? I looked in 26 CFR (Title 26, Code of Federal Regulations) and I found out who has a legal duty to furnish a number in response to such a request:
26 CFR 301.6109-1 (c)
If the person making the return, statement, or other document does not know the taxpayer identifying number of the other person, and such other person is one that is described in paragraph (b)(2)(i), (ii), (iii), or (vi) of this section, such person must request the other person's number. The request should state that the identifying number is required to be furnished under authority of law.
(b)(2)(i): A foreign person that has income…
(b)(2)(ii): A foreign person that has a U.S. office or…
(b)(2)(iii): A nonresident alien treated as a resident…
(b)(2)(vi): A foreign person that furnishes a withholding certificate...
*****
I noticed something familiar...there it was again: they're all foreign persons.
The Rabbit-Trails Go On Forever
These are just a few of the semantic traps; you'll usually follow the rational trail from Tax Code A(1)A(I)(1) onward and you'll get stuck right about at "taxable income" or at "gross income". As I said, I didn't need to play the semantic maze to know that I was free (the US Supreme Court ruled that, several times and it's well-settled law).
But I did follow ALL the Tax Code rabbit-trails on the Whatistaxed.com data-mining site. It walked me through the "gross income" bunny-trail and the other two that I just mentioned. That website discusses every data-mining nugget in the text of the Code and CFRs; it's an exhaustive analysis.
But as I'll show shortly, the US Supreme Court has reiterated many times: you're free unless your work is found listed in the Tax Code. Tax law must be clear; when it isn't, the benefit of the doubt goes to the citizen. It was initially VERY hard to believe, but it really turned out to be that simple. Like the Bernie Madoff Ponzi scheme: it always looks obvious after you solve the crime.
Out of us 67 million non-filers, the IRS hauls two or three high-profile citizens into court each year. They always pick citizens who follow silly theories, and who attempt to get juries to see the semantic traps that Congress built in the law. Most juries won't follow the maze, and most folks will be envious of the wealthy star or starlet who demanded a multi-million-dollar tax refund anyway. It's easier and safer to just obey the law as written.
I looked at all the things shown as taxable in the Code, and demanded that my employees at IRS show where I was made taxable. They can't, so I'm not a subject of that law. That's well-settled law spanning a century.
Other free Tax Honesty (a.k.a. Civics) websites
Several free Tax Honesty websites like this one are available so you won't have to replicate the thousands of hours we've invested studying and digging through the history, civics, law, and cases. I can vouch for at least three other sites:
http://www.originalintent.org/
http://www.whatistaxed.com/
http://www.synapticsparks.info/
All three are comprehensive and free. Dave Champion also runs Nontaxpayer.org, a consulting service to help you answer IRS letters and get your financial affairs in order after you’ve determined for yourself that you’re a Nontaxpayer (as the name implies, they only serve Nontaxpayers). Dave also has a radio show online; his archives are linked above.
Once you're familiar with the facts on those sites and you have your own marked-up copy of the Tax Code, you'll have what you need to establish beyond reasonable doubt what the law requires of you. Be willing to invest a little effort in your freedom, and in America's REAL War on Terror.
Above all, be willing to speak fearlessly to friends, family, and neighbors about Congress' crimes. (But don’t do this until you’re firm on the facts and law or you’ll be embarassed by a DC al Qaeda operative yelling "I'll see you in prison!" in public. Remember, his career on the line.)
The law has ALWAYS been on your side
In our system of self-government, We the People are the 'authorities' over the bureucrats and public servants. In America, it's every citizen's duty to know enough of the law and the basic workings of our constitution to keep government honest and to put crooked government actors in prison.
As you read through the rulings below, notice that the federal courts have been on our side all along. I could have been free years earlier, had I known to read federal tax law and case rulings. Instead, I was terrorised by the tax industry and even by pastors and others whose revenues are tied to tax writeoffs.
So who exactly does owe income taxes?
“The individual, unlike the corporation, cannot be taxed for the mere privilege of existing. . . . The individual's rights to live and own property are natural rights for the enjoyment of which an excise cannot be imposed.” Redfield v. Fisher, 292 P. 813, 135 Or. 180, 294 P.461, 73 A.L.R. 721 (1931)
To show a duty for an income tax, the government must first show a statute taxing some activity in which the citizen is engaged; some privilege whose use the citizen enjoys. Common knowledge – the old ‘everybody knows’ doctrine – can't create legal duty; only operation of law or contract can do so.
“The taxpayer must be liable for the tax. Tax liability is a condition precedent to the demand. Merely demanding payment, even repeatedly, does not cause liability.” Boathe v. Terry, 713 F.2d 1405, at 1414 (1983)
I always went back to this whenever I felt state-sponsored terror welling up inside me again. No matter how angry and terroristic they get, IRS can't create liability for you. Incidentally, they're usually very nice, even when making lawless demands. Remember that these folks are your employees. They're not a judicial body; they're an administrative agency that Congress uses to skim almost three trillion dollars per year off the productive sector. About $2 trillion in individual income tax receipts, and another trillion per year in direct and indirect costs of 'compliance', preparation, and avoidance.
Remember, the IRS can't write laws. Like you and I and every member of Congress, they must obey laws. That is a very good thing, when you learn the law. So let's keep going down that rabbit trail. Let’s see who the Tax Code says has to file returns:
Section 6012. Persons required to make returns of income.
“(1)(A) Every individual having for the taxable year a gross income of the exemption amount or more...”
Oh brother; there's the word games again. We already saw what individual means; it's defined in the CFR as aliens so that's the legal definition for purposes of income taxes. But since 'taxpayer' is defined in 7701(a)14 as one who is ‘subject to any internal revenue law’ the easiest thing is to just find a section or sections of the Tax Code making some people subject to it, right? That has to be so, since the Supreme Court ruled that according to the Constitution, everybody can't be subject to it.
Certain activities and categories of residency do have a liability to keep records, file forms, and pay, according to the Tax Code. I want this to be very clear, because it’s the critical point you’ll have to remember as often as you discuss Tax Honesty with those who want to keep the scam alive. Some people are indeed made subject to the Tax Code...not everyone is made subject.
This means that the Tax Code is definitely constitutional, contrary to what some 'tax protestor' theories claim.
If I could find things that make a person into a ‘taxpayer’ as defined in the Internal Revenue Code, I'd discover what's taxable income. In my 11 years digging around in the Tax Code, I found a number of privileged activities and situations:
- If I live in D.C., Guam, Puerto Rico, or the Northern Mariana Islands;
- If I'm involved in manufacture or sale of alcohol, tobacco, or firearms;
- If I'm an officer or employee of the federal government;
- If I operate a merchant vessel;
- If I'm a nonresident alien or a principal of a foreign corporation with income derived from sources within the United States;
- If I'm a resident alien lawfully admitted to a State of the Union, the District of Columbia, or an insular possession of the United States;
- If I entered a voluntary withholding agreement for government personnel withholding either as an ‘employee’ (3401(c)) or an ‘employer’ (3401(d)) (See 26 CFR §31.3402(p)-1);
- If I’ve ever been notified by the Treasury Financial Management Service that I was responsible for administration of government personnel withholding (26 U.S.C. § 3403), or have applied for and received a Form 8655 Reporting Agent Authorization certificate;
- If I'm an officer or employee of the Treasury or any bureau of the Dept of the Treasury subject to IRS authority related to submission of collected taxes delegated by Treasury Order 150-15;
- If I receive items of taxable income from foreign sources;
- If I receive foreign mineral income;
- If I receive income from foreign oil and gas extraction;
- If I receive income from a China Trade Act corporation;
- If I receive income from a foreign controlled corporation as fiduciary agent of the corporation;
- If I receive income from insurance of U.S. risks under 26 U.S.C. 953(b)(5);
- If I receive taxable items of income from operation of an agreement vessel under section 607 of the Merchant Marine Act of 1936, as amended;
- If I receive items of income from a public works contract subject to Federal income and Social Security tax withholding;
- If I own stock in, do business with, or have anything else to do with a corporation in which the [Federal] United States of America owns stock. (See notes following 18 U.S.C. § 1001. Chapter 194, 40 Stat. 1015);
- If I receive wages, remuneration, or other compensation as an officer or employee of an oceangoing vessel construed as an American employer;
- If I receive gambling winnings from the District of Columbia or insular possessions of the United States;
- If I receive items of income from maritime (international) trade in alcohol, tobacco or firearms;
- If I receive items of income from production and/or distribution of alcohol, tobacco or firearms in the District of Columbia or insular possessions of the United States;
- If I receive any items of income from activities taking place within an “internal revenue district” as such districts have been established under authority of 26 USC 7621 (U.S. Customs ports);
- If I receive items of income from maritime (international) trade in opium, cocaine or other controlled substances.
********
So far, I haven't found engineering in there anywhere. In fact, I haven't found the activities of the average American living and working in one of the 50 States. Yeah, if I owned stock and made income from foreign oil & gas exploration or the like...or if I distilled and/or sold liquor...or if I sell or manufacture guns or ammo, etc. then I would. If I worked on a merchant vessel, then I do...and so on. But I don't do any of the things listed in the Tax Code; the vast majority of us don't.
I repeatedly demanded any citation of law from IRS and my representatives in Congress, that makes me a Taxpayer as defined in law. Year after year, I only got evasion from my public employees. So I’ve remained a Nontaxpayer ever since.
This is not a “position” or a "tax protestor theory"; it’s facts and law. Just as I don't care about laws on bulk pesticide disposal, nuclear powerplant operation, or airline pilot recurrent training standards, I don't care about the Tax Code's huge size or complexity because it doesn't apply to me. I do buy a new copy every other year and mark it up, but that's just to see if perhaps they've added engineering as a subject of the tax. Nope; so far, they haven't.
Let me reiterate this point again, for the third time because it's the heart of Tax Honesty and you'll have to always remember it when you hear all the 'tax protestor' theories: the Tax Code DOES make some people subject to an income tax; it DOES make some people into Taxpayers. I've just shown you a long list and if you dig, you may find a few more.
But I'm not on that list. I'm a law-abiding, free, happy Nontaxpayer.
Black's Law Dictionary Agrees...
Black’s Law Dictionary defines the legal principle inclusio unius est exclusio alterius as dictating that “where law expressly describes a particular situation to which it shall apply, an irrefutable inference must be drawn that what is omitted or excluded was intended to be omitted or excluded.”
We see there are many sections of the Code describing 'particular situations to which it shall apply' and since I can find nothing showing that my activities are taxable, “an irrefutable inference must be drawn” that my income is not taxable.
...and the U.S. Supreme Court agrees...
“Keeping in mind the well-settled rule that the citizen is exempt from taxation unless the same is imposed by clear and unequivocal language, and that where the construction of a tax law is doubtful, the doubt is to be resolved in favor of those upon whom the tax is sought to be laid.” Spreckels Sugar Refining Co. v. McClain, 192 U.S. 297 (1904) [Emphasis added.]
“In the interpretation of statutes levying taxes it is the established rule not to extend their provisions, by implication, beyond the clear import of the language used, or to enlarge their operations so as to embrace matters not specifically pointed out. In case of doubt they are construed most strongly against the government, and in favor of the citizen.” Gould v. Gould , 245 U.S. 151 (1917) [Emphasis added.]
“In view of other settled rules of statutory construction, which teach that a law is presumed, in the absence of clear expression to the contrary, to operate prospectively; that, if doubt exists as to the construction of a taxing statute, the doubt should be resolved in favor of the taxpayer...” Hassett v. Welch., 303 US 303, 82 L Ed 858. (1938) [Emphasis added.]
These Supreme Court rulings demand that in determining tax liability, government must apply the same rule used in every American court: the presumption of innocence. According to the high Court, one assumes nothing to be taxable until finding in law what is specifically indicated to be so.
...and Sutherland's Rules agrees...
Recognised as a core text on statutory construction by the American Bar Association, Sutherland's Rules of Statutory Construction is a ten-volume exhaustive resource providing all the acknowledged principles of American statutory interpretation.
In Sutherland 66:1 entitled "Strict Construction of Statutes Creating Tax Liability" we read the following, which is precisely in line with the rulings of the Supreme Court just noted:
[I]t is a settled rule that tax laws are to be strictly construed against the state and in favor of the taxpayer. Where there is reasonable doubt of the meaning of a revenue statute, the doubt is resolved in favor of those taxed. Revenue laws are considered neither remedial statutes, nor laws founded upon any public policy, and are therefore not liberally construed. [Emphasis mine.]
...and the Internal Revenue Manual agrees
Even an unsigned, computer-generated demand for money can be extortion. When you demand to see the law you're violating or a law that supposedly made you owe a tax, the IRS operative must obey his/her operations manual and show you the law:
4.10.7.1 Overview.
Examiners are responsible for determining the correct tax liability as prescribed by the Internal Revenue Code. It is imperative that examiners can identify the applicable law, correctly interpret its meaning in light of congressional intent, and, in a fair and impartial manner, correctly apply the law based on the facts and circumstances of the case.
4.10.7.2 Researching Tax Law.
Conclusions reached by examiners must reflect correct application of the law, regulations, court cases, revenue rulings, etc. Examiners must correctly determine the meaning of statutory provisions and not adopt strained interpretation.
4.10.7.2.1.1 Authority of the Internal Revenue Code.
The Internal Revenue Code is generally binding on all courts of law. The courts give great importance to the literal language of the Code.
If a section of law actually existed, how long would that take to dig up? A minute or two. Instead, if you ask that question of the IRS, I believe you'll see the pattern of evasion that I showed you earlier when I demanded to see the law I was violating. They just pass the hot potato from one regional office to another, like bullies in a playground. Every evasive non-response I received to my certified mail demands was additional evidence that they're engaged in willful evasion of law and of their operations manual.
I sent all correspondence by certified mail. I kept hard copies and offsite electronic backups of everything.
I don’t taunt government employees anymore because it will only hurt the Tax Honesty cause. I want to be polite and factual, but also as firm as any employer should be when dealing with employees whose managers are instructing them to commit acts of fraud and terrorism.
The critical tactical point is this: if we’re ever going to reverse the cancerous growth of the corrupt socialist State, every citizen should be willing to pay any amount due by law. If that amount is zero then I had to be willing to pay zero because only by starving corruption will we ever bring government back within the limits set by the Constitution. Money talks.
I doubt that chasing thugs is a wise use of time, but if I had wanted to go after extortionists at IRS just for grins, I'd have begun by using this section of the Tax Code, since their manual says they MUST show the law under which they're trying to shake me down for cash. If they can't show the law, they're doing the extortion thing:
Section 7214(a) Offenses by officers and employees of the United States
Any officer or employee of the United States acting in connection with any revenue law of the United States (1) who is guilty of any extortion or willful oppression under color of law; or (2) who knowingly demands other or greater sums than are authorized by law ... upon conviction thereof shall be fined not more than $10,000 or imprisoned not more than 5 years, or both.
You are Hereby SUMMONED (...by Muffy the Cat)
Once I learned not to fear scary letterhead with no law, the fraudsters started looking pretty silly.
For instance, I learned that an IRS ‘summons’ is just a piece of paper, of no legal consequence, as the federal courts ruled in 2005:
“...absent an effort to seek enforcement through a federal court, IRS summonses apply no force to taxpayers, and no consequence whatever can befall a taxpayer who refuses, ignores, or otherwise does not comply with an IRS summons until that summons is backed by a federal court order…[a taxpayer] cannot be held in contempt, arrested, detained, or otherwise punished for refusing to comply with the original IRS summons, no matter the taxpayer's reasons, or lack of reasons for so complying.” U.S. 2nd Appellate Court- Schulz v. IRS (2005)
As a Texan, I can get a 4-count indictment on IRS employees
Here in Texas, we have it best of all. Texas law stipulates that it's a criminal offense every time the IRS sends a supposed ‘summons’ or anything else that can be construed by the citizen as originating from the judicial branch; that's the first criminal count for an indictment:
Texas Penal Code CHAPTER 32. FRAUD
32.48. SIMULATING LEGAL PROCESS.
(a) A person commits an offense if the person recklessly causes to be delivered to another any document that simulates a summons, complaint, judgment, or other court process with the intent to:(1) induce payment of a claim from another person; or (2) cause another to: (A) submit to the putative authority of the document; or (B) take any action or refrain from taking any action in response to the document, in compliance with the document, or on the basis of the document. (e) Except as provided by Subsection (f), an offense under this section is a Class A misdemeanor. (f) If it is shown on the trial of an offense under this section that the defendant has previously been convicted of a violation of this section, the offense is a state jail felony.
The laws of Texas provide for a second count on the criminal indictment of IRS employees when they filed a "Notice of Federal Tax Lien" in our Texas county records. As I learned, it was no legal lien at all! It was just teams of administrative employees, committing fraud by their manager's orders:
Texas Gov't Code § 51.901.
FRAUDULENT DOCUMENT OR INSTRUMENT.
(c)For purposes of this section, a document or instrument is presumed to be fraudulent if: ...(2) the document or instrument purports to create a lien or assert a claim against real or personal property or an interest in real or personal property and: ... (B) is not created by implied or express consent or agreement of the obligor, debtor, or the owner of the real or personal property... (C) is not an equitable, constructive, or other lien imposed by a court with jurisdiction created or established under the constitution or laws of this state or of the United States.
Although it was not technically harming me, the IRS employees refused to play ball and get that NFTL fraud out of my county records, so Texas law gives me a third count for a criminal indictment against the agency:
Texas Penal Code CHAPTER 32. FRAUD.
32.49. Refusal to execute release of fraudulent lien or claim.
(a) A person commits an offense if, with intent to defraud or harm another, the person:(1) owns, holds, or is the beneficiary of a purported lien or claim asserted against real or personal property or an interest in real or personal property that is fraudulent, as described by Section 51.901(c), Government Code; and (2) not later than the 21st day after the date of receipt of actual or written notice sent by either certified or registered mail, return receipt requested, to the person's last known address, or by telephonic document transfer to the recipient's current telecopier number, requesting the execution of a release of the fraudulent lien or claim, refuses to execute the release on the request of: (A) the obligor or debtor; (B) any person who owns any interest in the real or personal property described in the document or instrument that is the basis for the lien or claim. (b) A person who fails to execute a release of the purported lien or claim within the period prescribed by Subsection (a)(2) is presumed to have had the intent to harm or defraud another. (c) An offense under this section is a Class A misdemeanor.
It appears to me that under Texas law, IRS commits a crime every time it files a ‘Notice of Federal Tax Lien’ against a Texan. If a court didn't issue a judgment, then no lien can exist. Period. A 'notice' is NOT a lien.
Bankers, employers, and mortgage companies in Texas should know the law. Instead, they let Texans be terrorised by Penal Code criminals operating under color of law! And of course, like the guards in the Nuremberg trials, IRS employees should not be allowed to plead that they were just following orders. Ignorance of the law is no excuse for serial fraud and terrorism!
The fourth fraud count on the criminal indictment I can ask the Grand Jury for is the IRS "team signature fraud". After looking at over a dozen of them from different people, I found another agency fraud tactic: every NFTL is signed in ink by one person using only first initial, and a second person's full printed name appears below the signature. I believe their upline manager covers their tails; if caught, both operatives can deny having actually filed the fraudulent 'lien'. They can blame the other and both evade the law.
In case four counts of criminal fraud is not enough, I may find that the IRS operatives I've been dealing with are operating under false names like mafia and terrorist operatives do.
I know the U.S. Supreme Court has ruled on this issue, government employees defrauding citizens. They have zero tolerance for it:
"This is the approach that has been taken by each of the Courts of Appeals that has addressed the issue: schemes to defraud include those designed to deprive individuals, the people...of intangible rights such as the right to have public officials perform their duties honestly. See, e. g., United States v. Clapps, 732 F.2d 1148, 1152 (CA3 1984); United States v. States, 488 F.2d 761, 764 (CA8 1973)." McNally v. United States 483 U.S. (1987) at 358.
If I hadn't started reading a little law and doing a little digging, I would have been defrauded all my working life and the court couldn't have helped me if I hadn't made copies of everything and seen what the IRS makes it's employees do. I knew that before they could take any of my stuff, the crooks had to file that bogus ‘lien notice’. I filed a public complaint right away when IRS tried to steal from me that way. I filed an Affidavit of Material Facts (see a sample below) with our county clerk.
Every point in a signed, notarised affidavit that is not specifically answered is established in the record. I was then on the record that I only signed as ‘Taxpayer’ under penalty of perjury all those years out of ignorance and coercion.
Since then, I've informed my clients and the attorney for my bank that filing an NFTL is a criminal act in our State. Perhaps after some IRS operatives are wearing orange jumpsuits and leg shackles, employers and banks in Texas will stop colluding with them.
I sent my bank a certified letter informing them that if a fraudster claims funds in my account, I'll demand my full deposits from the bank or the FDIC just as if any other criminal stole my funds on deposit.
Whew! Finally Done
You now know that Tax Honesty is not a “position” or opinion, or theories. It's facts and a century of settled law. I've posted the resource links that I've used for follow-up, and a single-volume Tax Code costs about $110.
I've never been harmed by IRS or had anything taken by the agency – and there are millions like me. I believe that every IRS employee should be given the benefit of the doubt at least at first; I think most of them are fine, honest people working for much less honest managers, and for a VERY corrupt Congress. I don't think any Taxpayer doubts that now!
If this interests you, then go and verify claims made by both sides, Tax Honesty and the D.C. al Qaeda. Decide for yourself if you really think the Tax Code establishes a legal duty for you to re-fill politicians’ cocktail glasses and build their trust estates. If you think so, by all means do it.
The misunderstood 'executioner'
If you tell the truth, obey the law, and force your employees to do the same, you’ll discover that we’ve always had liberty but were just defrauded by corrupt government and a corrupt parasite tax industry and even the parasitic non-profit industry.
The average IRS employee -- always caricatured with a black hood and an executioner's axe -- is getting a bum rap, in my view. I think top management is probably wicked, but the average IRS employee is just trying to do a good job for a state-sponsored terrorist. I always try to convince them to leave their life of crime, and I occasionally get silly or creative but I will not be abusive until I know that an IRS employee is wicked. I believe that most of them aren't.
Hard times lie ahead for people who don't know how to produce something of value; this is true worldwide. If America rises from her socialism, profligacy, and abdication of citizen duties, the parasite sector will shrivel up accordingly, and that will be painful for some.
But America is still the greatest nation on earth, and I thank God every day that I live here. You should too.
posted by DMZuniga at 3:54 PM
