This site was for the sales and support of my information package
"Stop Paying Income Taxes On Your Earnings".
But since I have had so little interest in buying my book/cd
and I believe it is what's best for America
I am just posting it for general consumption.
You know...First Amendment stuff.
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I wrote this, and no one was interested in buying it.
I made signs and stood on the side of the road.
I walked it door to door.
I posted it on E-bay.
Zero sales.
Here's the info for anyone that is interested.
Please discount any mention of the CD.
Yes you can!
Yes it's legal!
Millions have stopped!
Stop paying income taxes and
help the American way survive.
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Pay No Income Taxes on your Earnings
Feel free to go straight to the “Short and Sweet” chapter if you wish. There is
nothing in the preceding chapters you need for it to make sense. But please read
the “Trust Me (not)” chapter first.
To find a chapter, using ctrl /f (or your word search feature) and putting in the
chapter name works best.
Introduction
So you say this is not possible. Well, not you, but that’s what you’ve heard. How
could you get away without paying Income Taxes? Possibly you’ve heard horror
stories about how people have been brutalized by the IRS. Probably second hand
or real old stories, but still. That’s true. But most if not all of the stories involve
people who knew and could prove very little of what they said. Or people who
believed they were liable for income taxes and lied or cheated on their return.
You’ve heard about Al Capone, Willie Nelson and others the IRS has beaten in
court and the media has made a fuss about. There are reasons for these.
You’ve heard that all tax attorneys and accountants will tell you that this is
nonsense. Of course you have to pay income taxes. What else could they say?
Their livelihoods depend on people believing it. This is a large conflict of interest.
And yet you still bought this booklet! Good for you! You still have the capability of
thinking for yourself and not believing everything you’re told without questioning
it. You will need it. Read on and I’ll tell you how not paying income taxes on your
earnings is not only possible, but is legal, better for our country, better for our
children and better for us.
I’m not going to get into the jumble of information and theories on this subject
here. This is for easily verifiable facts. There are hundreds of theories and
opinions. The vast majority of which are irrelevant. Well, not entirely irrelevant.
Interesting, but off the point and of little or no use to you in stopping paying
income taxes on your earnings.
Yes, there is an income tax. And yes, it does apply to some of the earnings of
some people in the United States. What this information is about is helping you to
decide whether it applies to you and your earnings.
If you are an American working outside the country for an organization that keeps
its books and records outside the country and you bring your earnings back into
this country, you may be liable for income taxes on it.
If you are a non-resident alien pretty much all of your earnings are likely subject
to the income tax.
But if you were born in one of the fifty states, live in one of the fifty states and
work in one of the fifty states, you are probably not liable for Federal income
taxes on your earnings.
In fact, I actually believe that you are breaking the law by filing and paying income
taxes if you aren’t liable. You are saying you are someone you are not and
attesting under penalty of perjury to it.
A “Taxpayer”.
A taxpayer is a legal term for an entity that is liable for any Internal Revenue tax.
They don’t mind you breaking the law in this manner when you’re giving them
money. They just don’t like it when you stop. (If you’re not liable for any Internal
Revenue tax, you’re not a “Taxpayer” and the tax laws don’t apply to you.)
I am not a tax protester. I do not condone the non-payment of income taxes
because you don’t like how the money is spent. I pay sales taxes, gas taxes,
property taxes, use taxes and on and on.
I am just not liable for any Federal income taxes on my earnings.
I am not against the government. I am a supporter of all of our governments. I do
not like many of the ways they spend our money but I believe that it has been our
own lack of oversight and vigilance and communication with our government
representatives that has gotten us where were we are today.
Maybe freeing up some of our time by freeing up some of our money will give us
the opportunity to be more vigilant in our oversight of our government servants.
This booklet was researched over a long period of time but it
was written and produced in haste due to my own economic needs and the
economic needs of my fellow Americans due to our current economy. Any
pertinent information that I find that is not included in this booklet or on the CD, I
will post on the website. Any newer versions will include the information on the
CD.
It will also be obvious that I am not an experienced writer or publisher. I’m just
doing the best that I can.
Contents
1. Trust me (not)
2. As American as Apple Pie
3. Objections
4. Short and Sweet
5. What to do
6. Support information
7. References
Stop Paying Income Taxes on your Earnings
1. Trust me (Not)
Why should you trust me? I am just a man who was born in Michigan, works a
regular job and lives and works in California. And the answer to why you should
trust me is…
You shouldn’t. Don’t trust me! You have no good reason to trust me. Why would
you? You would be crazy to trust me on something this important. What are you?
Crazy?
I am not an attorney. I have no legal background. If you were to just trust me on
this, it would be like trusting your local carpenter to fix the electronic fuel
injection on your car. He may or may not know what he’s talking about. But if I
needed that fixed and there was no one else who I could find, I might listen to him
about how it needs fixing and have a frame of reference to do some of my own
research or to talk to someone qualified.
The problem is that to fix this there are so few qualified people that are willing to
risk the wrath of the IRS. Are you afraid of the IRS? I am. Not for taxes but I fully
expect them or some other agency of the government to try to punish me
somehow for writing and selling this booklet.
I have done hundreds and hundreds of hours of research on this subject. (Over a
thousand hours but probably less than two.) I have read things over and over
again trying to find how things connect or can’t be connected. I have been to
websites and bought materials only to find that some of their so called facts were
bogus and taken out of context or didn’t apply. Even then though, some of their
facts were right on the money. I checked out everything I could get my hands on.
But I still don’t want you to trust me.
DON’T TRUST ME !
So who should you trust? Can you trust a Tax Attorney?
Do you trust an attorney to tell you the truth? I don’t. I have had them lie to me on
many occasions. They are only people and have a conflict of interest on the
subject. If people are not liable for income taxes as they say we are, they wasted
their educations and their livelihoods are on the line. Don’t trust them! They
should be helping people stop paying taxes that they aren’t liable for. That’s their
job. Not complying with tax rules that don’t apply to them.
Can you trust an accountant? Even a C.P.A.? No.
Same as attorneys. Even CPAs that have learned the truth still continue to “help”
people pay their taxes. What choice do they have?
On the other hand, I have had a few attorneys and a business associate (who is a
CPA) tell me that they know this to be true but that it isn’t worth it to them to fuss
with. They have arranged their finances so as to pay little or no income taxes in
the first place and they’re not interested in helping others because of the
problems it might cause them.
So who should you trust? Who would you trust? There is only one person that you
can trust on this subject. Trust Yourself.
Check out every thing that I show you. I will show you that your earnings as an
ordinary working American are not taxable as income as you have been lead to
believe.
Then Trust Yourself
It can be complicated. I will uncomplicated it as much as I can.
I will try to make this as understandable as I can. Then you can form your own
opinion and trust yourself.
Hopefully I will take it out of the realm of opinion for you . Opinions are one thing
and beliefs are another. Facts are facts. And making it easier to trust yourself and
do what you need to do to correct this situation in your life is what this booklet
(and CD) is about.
Let’s move on.
Note: Nothing in this booklet constitutes legal advice no matter how
authoritatively it is stated. This information is for your edification and to do with as
you see fit. I would hope that you would use this information as a frame of
reference to talk to someone qualified to help you. And if you find an attorney who
is willing to work with you, I would request that you refer them to me for referral of
others to them.
Stop Paying Income Taxes on your Earnings
2. As American as Apple Pie
What could be more American than fighting for your rights? Especially property
rights. You have the right to your property. Property rights are the most important
of all of the rights that make America what it is. Our rights to Life and Liberty are
dependent on it. What good is your right to life if everything you need to sustain it
can be taken away? Liberty without property rights is not possible. Pursuit of
happiness? Good Luck!
There can be no personal security, let alone any higher needs addressed without
property rights.
The Republic of the united States of America is based on the principle of one
group of people not being able to take from another group of people, (or person)
by virtue of their larger numbers. You cannot vote yourself possession of
someone else’s property.
The Fifth Amendment says that we cannot be deprived of our property without
due process of law. Period. There aren’t any ifs, ands or exceptions. There is no
amendment to it.
Having let ourselves be unlawfully deprived of our property in the past in no way
makes us liable to continue to do so.
The Sixteenth Amendment, which the IRS states as their justification for their
power to tax your paycheck, having been further clarified by Treasury Decision
2313, makes no claim on your earnings. Further, nothing in the Constitution gives
anyone but you the sole right to your earnings. Your earnings are your property.
Without changing the Constitution of the Republic of the united States of America,
no one, and I mean no one, can legally take your property without due process of
law. The Constitution is the highest law in the USA and any law that conflicts with it
is void of substance.
You have been tricked into believing that you are liable for helping pay for
whatever goody-good, save this and that program that some politician can think
of to get elected. Or re-elected.
None of your income tax goes to pay for any of the government services that you
think it does.
(see Ronald Reagan’s Grace Commission Report)
We may have a moral obligation to help others but not a legal one and the way it is
forced upon us makes our country weak. The way it is done by our government
weakens the giver and often makes the recipient even more helpless and
dependent on government charity.
It also weakens the population at large, taking away their opportunity and ability to
give of themselves and feel for others.
How much more would real charitable organizations receive if so much wasn’t
already taken from the givers.
I know that some still give. Some give till it hurts.
But by and large the vast majority think to themselves that some government
program or other will save people in need. That’s what my taxes are for. Why
should I give more?
You have to be virtually destitute to qualify for many programs (or lie) and if your
situation improves (and you don’t lie), you are disqualified long before you are in
a situation to fend for yourself.
I bet that if the people paying income taxes had this money to work with, there
would be very few truly needy that weren’t so obviously self destructive as to
defy others assistance.
Most people know that the reason that everything the government “helps” us
with costs so much more is because of government involvement in the first place.
I could start stating my discontent of the multitude of government programs that
are stupid, wasteful, ignorant of human nature, ignorant of nature in general, etc.,
but not here. I’ll write my opinions of these things on the CD or the website.
Writing about the things I
don’t like about government spending would take an entire book. Or a set of
books. That’s not what this is about. So let’s get back to the one thing.
How else would this be as American as apple pie?
So many government programs have been authorized in the guise of being “For
the Children”. Lofty goals. Completely beyond the scope of the Constitution but
that’s beside the point.
Take the welfare program. This program may have even initially helped some
people and their children. But since then, having whole generations being raised
on it? And people having babies and not getting married in order to collect it?
You know it did more harm than good. It has cost hundreds of billions, probably
trillions over time. And the people hurt by it will cost America for many
generations.
How many more children has it harmed compared to the number it may have
initially helped?
What would be “American” would be to give people a hand in the form of some
sort of useful work combined with higher skills training and necessary childcare.
Giving a person a genuine opportunity to earn their way and not a crippling
handout is the American way. Governments cannot do this well. (In fairness,
because this program was breaking the bank as it was, they have made some
changes in the right direction.)
If American companies spent less and made more, they could do this better. How
could they spend less and make more? Read on.
Imagine how much less everything would cost if every American company’s costs
were lowered twenty, thirty of forty percent. This is entirely possible when you
consider how much they spend on their own taxes, matching workers taxes, costs
of record keeping and reporting requirements for taxes and the fact that
everything purchased is marked up for those things from their suppliers. Their
selling prices only reflect their “cost of sales”. (An accounting term representing
all costs of producing a product or providing a service.)
Imagine how much less everything would cost without the markup on undue
taxes at every step of the process.
And then imagine how much better it will be for our children when everything
costs less.
And then imagine with everything costing less in dollars but being worth just as
much in the world, how much more competitive the next generations will be on
the world stage.
We could bring back manufacturing to the USA. This, I believe, is necessary to this
country’s future and security.
Why is it necessary?
At this time, only 75% of kids entering high school will finish. Of the kids who
finish, only 30% or so go on to college. It works out to about 78% never go to
college or even could as our colleges are at capacity. And only a percentage of
them will graduate.
What are the rest, the vast majority supposed to do?
Having a manufacturing base would be a nice place to start.
I remember when they started taking shop classes out of the high schools in the
name of encouraging children to get a college education. Wrong headed
thinking.
Manufacturing is the ONLY thing that makes money. Taking something that is
worth a dime, adding labor, and making it into a product worth a dollar is MAKING
MONEY.
Everything else, every service provided is just passing money around. Back and
forth. Some people in services may be getting tons of money but they aren’t
making any. And without someone making some money, there isn’t any to pass
around for services.
This is economics at its simplest. And it was the heart and soul of American
prosperity. So why is American prosperity slipping?
Outsourcing. (A technical term for using other country’s labor.)
One example.
One day in the Orange County Register (my local newspaper),
a company called Conexant was being lauded as one of Orange Counties best
places to work. They had pictures of their happy workers assembling products in
their clean room suits.
The next day in an unrelated article was the CEO of Conexant talking about how
they had already outsourced 60% of their engineering jobs and how they were
working on the rest.
How long till they outsource their manufacturing and assembly?
(If they haven’t started already.) How long till they outsource accounting and
customer service? (Again, if they haven’t already.)
I’ll bet that they would rather keep all of their jobs in the USA. But the “cost of
sales” mentioned earlier are making it necessary to outsource to keep them
competitive in the world market. They have to make a profit or return on
investment after inflation and after taxes for their investors or stockholders or
the company will cease to exist. They also have to compete with other companies
who are dealing with and doing the same things.
What is wrong with this scenario?
American workers in modern manufacturing do not cost that much more than any
other worker in the world. There is simply not that much labor cost that goes into
any mass produced product. It is just a small amount of cost per unit multiplied by
millions of units that make companies look to outsourcing.
I believe that using American workers would even cost less than outsourcing if a
company didn’t have to pay and account for all the undue taxes for them that they
presently do. Doing business half way around the world has many added costs of
its own.
Note for American manufacturers. When you stop paying and matching these
undue taxes and you share this information with your suppliers, everything your
company does will cost less. You will be able to sell your product for much less
and still make more per unit. When every American knows they don’t have to pay
income taxes on their earnings, America will again thrive.
"This is as “American as apple pie.”
What will happen if things stay as they are? With American jobs being outsourced,
what are our children going to do?
This may sound selfish but I am not the only one with this concern. I have two
children in school. What do I tell them to take in college? Engineering is being
outsourced and medicine is on a course to be nationalized. Should I tell them to
be lawyers? (Many legal services jobs are already being outsourced.) Should I tell
them to marry well? (bad jokes) At this time, I think we are still supposed to have
advantages in biological research, general research and development and
tooling manufacturing. There is nothing about these fields that make them
immune. Their time is coming as well.
With hundreds of thousands of engineering and service industry jobs being
outsourced, there will be that many more people vying for the jobs in those fields
we still have left here. We will have college graduates competing for retail jobs
with everybody else. (Not a joke. Already happening.)
I don’t know how the Government of the United States thinks our children are
going to support Social Security and pay back the huge debt that has been left for
them working in the jobs that are still available 10 years from now. I think they are
probably handling this the same way they are handling Social Security. By ignoring
it.
I don’t think it is in our best “National Interests” to continue things as they are.
Change is coming one way or another.
Do you think everything is O.K. with America?
Do you think our children should be made to pay for the Social Security and
Medicare needs of their seniors because the seniors contributions have already
been spent elsewhere for the seniors?
Do you think it’s O.K. for our children to have to pay back $10,000,000,000,000.00
(Ten Trillion Dollars) of debt for benefits already received by their seniors? (At an
estimated average two million dollars lifetime earnings per child, that equates to
five million lifetimes earnings. Not taxes on, but entire lifetimes earnings.)
Our children’s lives have been reduced to what amounts to servitude to their
elders by which they will have to pay back vast amounts borrowed with their
mostly menial jobs. How is what we have done to this point in the best interests of
our children?
What can we do about it? We can deal with this situation ourselves. We can fix our
own government by not paying taxes we are not liable for, thereby making them
make reasonable adjustments in their spending and stop doing what they are
constitutionally not authorized to do. (This includes running up any debt for non-
war purposes.)
We could use the money instead to invest in manufacturing and keep the
corresponding design and engineering jobs in the USA (without paying undue
taxes). This is the way in which our children’s futures are secured. Making
money. (Again, without something making money, there is no money to pass
around for services.)
I understand that there will be consequences and that it will be a messy and
confusing process. Many people will initially go through tough times and great
hardship. But dealing with this in our own time and with our own hardship, facing
up to our own mistakes, paying for our own debts by whatever means necessary
is what is best for our country, ourselves and our children’s future.
This is as “American as apple pie”.
Not to be negative but just to be realistic, our economy in my opinion is on its way
to a collapse. And not for current reasons.
When the balance of Social Security tips and they are paying more out than they
are taking in, this will lead to our government borrowing (or printing) so much
more money as to cause the money we have to be worth less or worthless due to
inflation.
And then as the baby boomers sell off massive quantities of stocks and bonds to
get through their golden years and no one in the younger generations has
significant money to invest, the devaluation of money combined with the
devaluation of the stock market is going to be devastating to this country.
This is as far as I can see a best case scenario of things as they are. Hardship is
coming for us and our children regardless of what we do and especially to the
extent that we do nothing.
Should you trust our government to deal with this? We are already in a recession
with a looming possible depression due to our government “helping” just some
of us with mortgages. I don’t think we can continue to trust them with our futures
when it is so obvious that they can’t handle the present.
Our Federal Government has a three trillion dollar budget and still runs a half
trillion dollar deficit. (Or more with this current government caused crisis.) This
same government thinks it is appropriate to tell us how they are going to fix the
economy (that they broke), fix Social Security (that will soon be broke), make
medical care affordable (which is highly priced because of them), lower gas prices
(not in their control), bring back good paying jobs (lost due to them), and while
they’re at it, police the world (with your tax dollars).
I don’t believe any of it. I don’t trust them with my future, my children’s future or
the future of my country.
Our “National Debt” is now over ten TRILLION dollars.
Is paying for this or for Social Security when it runs dry the best thing for our
children? Or our children’s children? Their children?
There is no Social Security trust fund. The trust fund they talk about is a large part
of our national debt. Are our children supposed to pay back money that was
already taken from us for this purpose and spent on other things?
What should we do? As a country? Stop paying income taxes on our earnings if
we aren’t liable for them. Our country should return to how it is constitutionally
set up. For general U.S. Government expenditures over and above what they get
from legitimate taxes and for constitutionally legitimate purposes, they should
collect their money from the fifty states by apportionment. From each state
according to it’s percentage of the population as a whole.
Each state would decide and be responsible for how to pay their share. However
they can. Simple. And how to provide for their needy if they needed to at all would
be their own responsibility.
I believe we can only help ourselves and the only American way to do it is to take
responsibility for our actions and for our own lives. We have to pay for our own
mistakes and not continue to make them. We have to face up to the mess we have
made and not leave it for our children and grandchildren to clean it up or pay for
it.
Imagine a scenario where children are raised by their parents and it only takes
one parent working one forty hour job to provide for the family all that it needs.
(This was common not that long ago.)
Imagine even a decent factory job being enough to buy a home, raise a family, pay
your own medical expenses and save for your children’s educations and your own
and your spouse’s retirement.
Imagine having the time and money to stop and help the needy.
To actually stop and say hey there, can I help you. Can I help you get a job or find
shelter. Are you hungry. How can I help you so you can take care of yourself.
Imagine having enough time and money that you can afford enough of both to
actually care about your fellow human beings, your fellow Americans again.
This is as “American as apple pie.” as you can get.
Imagine a nation full of self reliant, self sufficient, competent, capable and caring
people working together to make their future and their country’s future secure.
Stop paying undue income tax on your earnings.
Help your family and friends stop too.
Then help your friend’s family and friends.
The rest will work itself out.
Stop paying Income Taxes on your Earnings
3. Objections
You will hear and read many objections to your legally stopping payment of
Federal income taxes as you do the research of the facts I have presented. Most
if not all of them will be by people with a conflict of interest. IRS personnel, tax
accountants, tax attorneys, people running a 401-k or a cafeteria plan, etc.
These people have devoted their educations and by way of that their very
livelihoods to the concept of tax compliance without it ever occurring to them to
look into the concept of liability. Helping people file their income tax returns is an
entire industry! You will get no help from these people and they will discourage
you every step of the way.
You will also get negative feedback from old people. Many of them have paid
income taxes their entire working lives and heard horror story after horror story
of the IRS destroying people’s lives.
They also don’t like the idea of someone else “getting away” without paying taxes
they thought they had to pay. Others will think that if people don’t have to pay,
who is going to pay for their old age benefits and government services?
And what about the costs of old age benefits and government services? How are
they going to be paid? These services have their own taxes. As the population
ages and there are fewer contributors, they will lower benefits and raise the age
of eligibility until the programs are as useless as they are unconstitutional. I’m 50
years old and I have no hope of these benefits being worth a damn by the time I
am eligible for them. I just hope they don’t bankrupt the whole country.
Well what do your income taxes pay for?
President Ronald Reagan, not being a career politician, wanted to know how the
government was financed. He wanted to know where all of the money came from
and where all of it was spent. The Grace Commission Report was the result of his
enquiry. According to the Grace Commission Report, not one thin dime of your
income taxes is used to pay for Federal Government services.
What about State and local?
Firemen? Police? Schools? Roads? Nope. Those would be local sales taxes,
property taxes and gasoline taxes, business and franchise taxes, etc. The fact is
that many local taxes have been shifted from their intended purposes.
That is what these local taxes were approved for and intended for by voters. If
they are spending more than that, they will have to make adjustments. If they are
depending on Federal assistance for other programs, they will have to adjust for
that too.
The State of California has shifted the gasoline tax into the general fund for
years and now wants to float bonds to pay for roads. Same for water. I have read
that enough fresh water flows into the ocean from rivers in northern California
every day to supply the needs of the state for a year. Yet southern California still
depends on Colorado River water and the state spends millions promoting
conservation due to shortages. Not too bright. Thirty years of neglect while they
spend the money taken in for other politically expedient purposes. (getting re-
elected)
I sat down one time and thought of over 200 different taxes and fees that we pay.
Drivers license, vehicle registration (200 million registered vehicles), fishing
license, hotel occupancy tax, dog license, and on and on. Enough is enough.
So what do your Federal income taxes get used for? I don’t know. I have read that
it goes to service the national debt. This may be true. But the national debt didn’t
materialize out of thin air. (Or did it?)
It is my opinion that the “pork” that we read about that our government
representatives squabble over is money that was taken in that has no
predetermined purpose. (Taxation without representation.) It is also my opinion
that we could use about a trillion dollars less a year of things like the bridge to
nowhere and paying farmers not to grow crops and the recently discontinued
National Helium Reserve and hundreds or thousands of other things like this.
This may be simplistic or naïve but our government has its nose in many things it
is constitutionally not supposed to be involved in.
Our government is not supposed to be in the charity business making its
donations with money it has forcefully taken from others. It has no Constitutional
authority.
I also don’t believe that our armed forces should be occupying more than half of
the countries of the world. What happened to protecting our borders? National
defense is not policing the world.
It’s my opinion that it’s a mistake to be spending so much money on our so called
National Interests abroad when we aren’t taking care of our National Interests at
home.
Objecting to how the governments of this country spend and overspend the
money they get in taxes is not a legitimate reason to stop paying income taxes or
any taxes. But there is no reason to be giving them money you don’t have to.
Griping about the way things are while contributing to it is a waste of time.
I know many other people have objections to others attempts to stop paying
income taxes. Many of these people are receivers of money from government
programs and people who work for the government. They have legitimate reasons
to be concerned but their concerns and objections are due simply to their conflict
of interest and have no bearing on your liability.
What about all of the jobs that will be lost? All of the tax preparers, Federal
government workers, 401-k plan administrators, CPAs and so on. What will happen
to them? Well, initially nothing.
But as more and more people stop paying as they find out they aren’t liable and
these jobs disappear, they will be absorbed into the workforce. The economy will
grow like a weed without the current taxes strangling it. The accountants can
count up the profits instead of the governments take. Everyone knows that when
they lower taxes business booms. What happens if you eliminate them?
And what about the needy? I believe that the American people would take care of
their needy and could afford to if they weren’t being stripped of the means to do
so. I also believe there would be a lot fewer needy if so many people had so much
more money to spend, save and invest.
Without these undue taxes stifling free enterprise and our resulting economic
growth, American companies would be hiring instead of laying off. Everyone who
wanted a job would have one and we would be encouraging immigration instead
of complaining about it and childcare and on the job training would be the norm.
Like I said before. I don’t know what our Federal income taxes are used for. But
they were not used to pay for government services thirty years ago and I doubt
that has changed.
I can’t think of any legitimate objections to people not paying taxes they aren’t
liable for. The biggest objections I hear have more to do with fear of the IRS.
Historically these are legitimate objections.
The IRS has destroyed many lives for no good or legitimate reason. The majority
of IRS personnel believe what they are doing is honest, upright and just. Of
course some of them are mean as snakes and most believe the law is on their
side. But…
Recent changes in the law have shifted the tide. Computer technology and the
internet have let us examine the tax codes in detail and share what we have
learned.
The Paperwork Reduction Act has made the IRS powerless to overwhelm us into
submission. The recent shifting of the burden of proof in court concerning taxes
has made the IRS think twice and then only go after the uninformed. (A person
who cheats on taxes he is not liable for is woefully uninformed.)
The IRS has lost many cases in court to people who were well informed on the
laws, the tax codes and their rights. Be warned that there are websites showing
people that have lost to the IRS. These are mostly people that were uninformed or
misinformed about the proper way to deal with this. Of course some of them were
people who thought they were liable and were trying to cheat. Many sites are
blatant misinformation. Check EVERYTHING out yourself!
You can stop paying income taxes if you are not liable for them. You should stop
paying income taxes if you are not liable for them. Being an American, you should
stand up and insist that you won’t pay any taxes you aren’t liable for and you as an
American are not liable for income taxes on your earnings. The law and the tax
code are on your side and this makes your position honest, upright and just.
There are and there can be no legitimate objections to Americans not paying any
taxes they are not liable for. The entire concept of the American way of life is
based on each individual’s right to their property and the fruits of their labor.
To object to this is… un-American!
Stop Paying Income Taxes on your Earnings
4. Short and Sweet.
This is the short and sweet version of why you are not liable for income taxes. It
may be 20 pages or so but that’s short on this subject. I have written other
versions that turned out so long and complicated that even I had a hard time
understanding what I was reading. So this chapter is the short version that shows
positively, using the governments own information, that the average American
has no liability to pay income taxes or to file a personal income tax return.
Read this information. Check it out on the internet. Decide for yourself and take
action.
Let’s begin.
The IRS states as it’s authority to tax our so called incomes the 16th Amendment
to the Constitution.
AMENDMENT XVI
Passed by Congress July 2, 1909. Ratified February 3, 1913.
Note: Article I, section 9, of the Constitution was modified by amendment 16.
The Congress shall have power to lay and collect taxes on incomes, from
whatever source derived, without apportionment among the several States, and
without regard to any census or enumeration.
The object of this amendment in Article1, section 9 of the Constitution reads:
No Capitation, or other direct, Tax shall be laid, unless in Proportion to the
Census or enumeration herein before directed to be taken.
This was confusing to many at the time and due to a court decision (Brushaber vs.
Union Pacific) in 1916, Treasury Decision 2313 was issued to clarify the effect of
the 16th Amendment.
Treasury Decision 2313 said, in effect that;
…income accruing to nonresident aliens in the form of interest from the bonds
and dividends on the stock of domestic corporations is subject to the income tax
imposed by the act of October 3, 1913.
(See Treasury Decision 2313 on CD)
(losthorizons.com disputes this for some reason. Arguing that because it doesn't
say ONLY non-resident aliens that it applies to everyone AND nonresident aliens.
Hogwash. Right in the title above to collectors of internal revenue. It ONLY
concerns nonresident aliens.)
There are other taxes that people are liable for but this is the group and the
object that the 16th Amendment pertains to so it seems that the IRS has never
really had the authority to subject your earnings to the income tax in the first
place.
Most people are confused as to what “Income” means. They refuse to define it so
I can only assume that it means what it says.
Something that comes in. An income tax is a tax on something or someone coming
in. A tax on importing. (An item coming in) A tax on investment. (a foreign person’s
money coming in). A tax on a foreign person’s earnings. (a foreign person coming
in) A tax on an American’s foreign earnings. (their money coming in)
This is just how it looks to me and everything I have read agrees.
An American’s earnings from working in the U.S.A. is not taxable income. (But if
you live in one state of the USA and work in another, your earnings may be
considered taxable income to your home state.) The words are often misused to
describe all monies people get. How can I just say that your earnings are not
taxable income? Liability.
Most people, especially tax professionals, when they are looking into taxes are
looking at how to avoid this tax or how to minimize that one. Loopholes and
deductions. They have studied taxes up and down but they have never looked
into liability.
This is what they would have found if they had.
In the Code of Federal Regulations, Title 26, at section 601, you will find the
Statement of Procedural Rules for the Internal Revenue Service. These are the
rules “In general” that guide the actions of the IRS. I don’t think the people that
work for the IRS have looked into the subject of liability any more than the
average American.
I would also like to remind you at this time that the workers at the IRS are people
just like you and me. Americans just trying to make a living. Fallible, human, and
doing what they think is the right thing to do to provide for themselves and their
families. Don’t hold what they do against them.
In the introduction to the Rules and Procedures for the Internal Revenue Service
at 26 CFR Sec. 601.101 (a), you will find what entities the IRS has authority to tax.
(CFR is the United States Code of Federal Regulations. See References.) It states
in pertinent part:
The Director, Foreign Operations District, administers the internal revenue laws
applicable to taxpayers residing or doing business abroad, foreign taxpayers
deriving income from sources within the United States, and taxpayers who are
required to withhold tax on certain payments to nonresident aliens and foreign
corporations, provided the books and records of those taxpayers are located
outside the United States.
This goes very well with my income equals coming in explanation.
What this says to me is that only the entities listed are the “taxpayers” to which
the entire tax code applies. Only people or entities that are liable for the taxes the
IRS collects are “taxpayers”.
Here’s the definition of taxpayer from the United States Code.
26 USC Subtitle F, Chapter 79, Sec 7701 (Definitions)
(14) Taxpayer
The term “taxpayer” means any person subject to any internal revenue tax.
These are the only entities listed. And this compares very well to the limitations
clarified by Treasury Decision 2313. (Read the whole thing.) That is all the
authority they have regarding “Income Taxes”.
Note that Americans are included in the section as “taxpayers residing or doing
business abroad”. The entire tax code as it concerns income taxes apply only to
the entities and circumstances as described in the introduction to the “Rules and
Procedures” for the IRS.
Why is there no mention of the so called incomes of people living and working in
the
U.S.A. in any way? We are not liable! If our earnings, the pay or compensation we
receive for working in the USA were the main focus of Internal Revenue taxes as
most of us assume and believe, wouldn’t that rate a mention?
What about the interest or dividends of stocks on domestic corporations owned
by citizens of the USA? Or the rents received by property owners? Interest on
your savings account? So called profit or “Capital Gains” from selling your house?
There are no taxes on any earnings for any American working or investing within
this country mentioned. Without it there can’t be any Internal Revenue tax liability.
It goes on to say that the Director, Foreign Operations District, shall be known
simply as the Director? Why is there no mention of a Domestic Operations District
or Director, Domestic Operations District?
Good questions. Here is something to show that what it says is what it means and
nothing more.
_______________________________________________________________________
In connection with liability for Federal Income Taxes, the U. S. Supreme Court said:
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)
_______________________________________________________________________
It really doesn’t get any clearer than this. If it doesn’t mention you or your
earnings specifically then it doesn’t apply to you. Period. It can not imply or
insinuate.
Every tax has to have very specific rules. What, where, when, how, who’s liable
and how to account for it.
This Supreme Court decision is the key.
The IRS has extended their provisions, by implication, beyond the clear import of
the language used and enlarged their operations so as to embrace matters not
specifically pointed out.
Everything else I will show you is in support of this.
First example. What happens if you don’t file a return?
If you do not file a return, The IRS assumes you are a “taxpayer” and eventually
files one for you if they have reason to.
Why would they do this? Why would they assume you are a taxpayer? Because
either you or a responsible person signed you up with Social Security. Because
you had assumed you were liable for income taxes and had filed a return before.
Or because someone who has paid you had unknowingly assumed that this
payment constitutes taxable income and has filed an information return attesting
to it (a 1099 or a
W-2 or whatever), believing that otherwise it would count as taxable income for
them.
So what happens then?
If you don’t file (and someone has sent in a 1099 or a W-2 etc.), the IRS uses the
authority of Internal Revenue Code section 6020(b) to file one for you.
IRC Sec. 6020
(b) Execution of return by Secretary
(1) Authority of Secretary to execute return
If any person fails to make any return required by any internal revenue law or
regulation made thereunder at the time prescribed therefor, or makes, willfully or
otherwise, a false or fraudulent return, the Secretary shall make such return from
his own knowledge and from such information as he can obtain through testimony
or otherwise.
This is called a “Substitute for Return” or SFR and this is the ONLY section of the
code with this authority.
When you look into this, you find that they have no authority to do this for a 1040
return. On their own current website it lists the returns that may be filed by them
under this program. It’s not easy to find. It’s in the Internal Revenue Manuals.
[5.1] 11.9 (05-27-1999)
IRC 6020(b) Authority
1. The following returns may be prepared, signed and assessed under the
authority of IRC 6020(b):
A. Form 940, Employers Annual Federal Unemployment tax Return
B. Form 941, Employers Quarterly Federal Tax Return
C. Form 942, Employers Quarterly Tax Return for Household Employees
D. Form 943, Employers Annual Tax Return for Agricultural Employees
E. Form 720, Quartely Federal Excise Tax Return
F. Form 2290, Heavy Vehicle Use Tax Return
G. Form CT-1, Employer’s Annual Railroad Retirement Tax Return H.
H. Form 1065, U.S. Partnership Return of Income
This applicable section of the Internal Revenue Manual is currently in section
5.18 Liabilty Determination and if you read it you will see that the only things
mentioned that they can do an SFR (Substitute for Return) for are business
returns.
They softened the language using the term “usually prepared” in the newer
version instead of the term “may be prepared” in the older version but now they
actually say it only applies to business returns.
I will include the corresponding Delegation Order which gives this section of
code its authority on the CD. Note that the only authority they have is for the
returns listed which are business returns.
If they have no authority to do an SFR for you, then how could you be an entity
liable for filing one? You can’t! If you were an entity or person who is liable, they
would certainly have an easily applied and lawful method of forcing you to pay
them but they use this system of doing an SFR for you for not filing a 1040 return.
Please note that the average person working for the IRS doesn’t know any more
about this than you did before you started reading about it here and at this time
their SFR program is automated.
I know that the IRS knows about this though. I personally have sent them this
information many times. Their computer or Automated Collection System should
not even be able to send out an SFR for any return not listed above.
This would be an example of the IRS extending their provisions, by implication,
beyond the clear import of the language used and enlarging their operations so
as to embrace matters not specifically pointed out.
So what do they do with this substitute return?
They file this return for you for $0.00. They then add an addition to the tax and
penalties. Then they go after this money with their misapplied authority of levy
and distraint shown next. After filing a Notice of Lien with the county, they send
you a Notice of Intention to Levy. They do this prior to sending out notices of levy
to others.
NOTE: If you get a notice of lien, apparently you have a set number of days to
dispute it with your county. Their notice of lien is not a lien! It is only a notice. But
if you do not dispute it with your county, their acceptance of it "perfects" it and it
stands as a REAL lien.
There are groups that are fighting this practice on a county by county basis but it
is a slow process.
Moving on...
On a Taxpayer’s Copy of Notice to Levy there is the section of the code that they
say gives them authority to do what they’re doing.
(It’s on the back)
Internal Revenue Code (IRC) or United States Code (USC)
Sec. 6331 LEVY AND DISTRAINT
(b) Seizure and sale of property
The term "levy" as used in this title includes the power of distraint and seizure by
any means. Except as otherwise provided in subsection (e), a levy shall extend
only to property possessed and obligations existing at the time thereof. In any
case in which the Secretary may levy upon property or rights to property, he may
seize and sell such property or rights to property (whether real or personal,
tangible or intangible).
This is slight of hand. It looks real. It looks like they have the authority to take
anybody’s property. But what they don’t show you is the part of the section that
shows you who this section applies to.
Why do they show you sub-paragraph (b) and not (a)?
Because it doesn’t apply to you. Keep reading.
An exerpt from Sec. 6331 (a) shows to whom Sec. 6331 (b) applies.
Please be vigilant. Look it up and read the entire section to prove to yourself that
I am not taking this out of context.
Sec. 6331 (a) Authority of Secretary
…Levy may be made upon the accrued salary or wages of any officer, employee,
or elected official, of the United States, the District of Columbia, or any agency or
instrumentality of the United States or the District of Columbia, by serving a notice
of levy on the employer (as defined in section 3401(d)) of such officer, employee,
or elected official.
Using this on ordinary working Americans would be a clear example of the IRS
purposely extending their provisions, by implication, beyond the clear import of
the language used and enlarging their operations so as to embrace matters not
specifically pointed out. Remember what the court decision I showed you said.
Read it again.
_____________________________________________________________________
In connection with liability for Federal Income Taxes, the U. S. Supreme Court said:
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)
_____________________________________________________________________
And notice that section 6331 (a) does not say that levy may ALSO be made on
them. Just that they are the object of this section.
Also note that the Federal Government workers listed are Americans and may be
liable for some taxes but not “Income Taxes” on their earnings here and certainly
not for filing an income tax return.. (They may even be liable for income taxes due
to their working in a posession of the United States (a Federal Building) and living
in the United States of America but I doubt the Federal Government would come
clean on that.) I will show this later
Go to these government websites and read these sections for yourself. Keep in
mind that when the term “includes” is used that it only includes those persons or
things listed and nothing else!
In addition, on the back of the Notice of Levy, there is a Special Rule for Banks.
This is your protection from levy by your bank if they receive this notice and they
write you telling you that they are seizing your property.
SEC. 6332. SURRENDER OF PROPERTY SUBJECT TO LEVY
(c) Special Rule for Banks
Any bank (as defined in section 408 (n)) shall surrender (subject to an attachment
or execution under judicial process) any deposits (including interest thereon) in
such bank only after 21 days after service of levy. (emphasis mine)
If you receive this notice from your bank, you have the time to show them what’s
right. That you aren’t the subject of the levy. (see IRC Sec 6331 (a))
And even if you are, that there is no “attachment or execution under judicial
process” (court order).
If they continue to levy you after you have shown them that the IRS has no
authority to levy you or that there is no attachment or execution under judicial
process (they don’t include one), you have legal justification to sue the bank for
the money. Or if the bank prefers, the legal costs of getting your money back from
the IRS due to their ineptitude.
I can only imagine what that would cost.
In the past, lacking the information access we have now, banks and other
financial institutions would automatically comply with this notice. Some of them
now notify the IRS themselves about the deficiency of the notice without even
contacting you.
The next thing to show you is how obvious it is that the average ordinary working
American is being tricked into paying. If you work for someone else, they probably
had you fill out a W-4. On this form, you filled out your name, address, Social
Security number and number of exemptions, signed it and gave it back.
Nearly all companies and places of business have been tricked into believing
they are “Employers” and that they are required to have this form filled out in
order to hire you as an “Employee”. These false beliefs have been exploited for
many years. This is what they ignorantly or intentionally teach in our colleges as
factual.
I have heard that they even teach this and a basic course on how to fill out and
file a return in high school now. In fact the term “Employer” is clearly defined and
does NOT include most companies.
For instance, for the Department of Labor, “Employer” is defined as any employer
or any group or association of employers engaged in an industry affecting
commerce. (29CFR Sec.401.5)
This is actually explained and means in effect that if the people working at this
company were to strike, and that their stoppage of work kept other peoples
property from being transported across state lines, (regulating Interstate
Commerce for which the US Government does have authority) this company
would be an employer under the Department of Labor’s definition. Trucking
companies, airlines, railroads, busses and ships.
For FICA, the definition of “Employment” says “within the United States. See that
definition. IRC 3121 (e) (2). You’ll laugh.
Maybe others I can’t think of, but not the local manufacturing company or the
local services provider. And not the company making the product and having it
shipped.
No one else is subject to the Department of Labor’s authority.
We will get to the definitions of “Employee” and “Employer” for tax purposes in a
minute but just note that working for someone does not automatically make you
an employee or them an employer for tax purposes. For these tax purposes, the
terms are very limited.
Getting back to the W-4 you filled out and gave back to your so called “Employer”
….
All U.S. Government collections of information forms are required by law to state
the section of the code that gives them the authority to require this information.
This is called the “Privacy Act and Paperwork Reduction Act Notice”. (These forms
are also called ICRs or Information Collection Requests.)
A W-4 states this as its authority to require this information.
The Internal Revenue Code requires this information under sections 3402(f)(2)(A)
and 6109 and their regulations.
Now if you go to this first section listed of the Internal Revenue Code, you will find
the following.
(The second section only has to do with the necessity of identifying numbers for
the first section.)
IRC Sec. 3402(f)(2)(A)
On commencement of employment
On or before the date of the commencement of employment with an employer, the
employee shall furnish the employer with a signed withholding exemption
certificate relating to the number of withholding exemptions which he claims,
which shall in no event exceed the number to which he is entitled
Now this sounds compelling enough. Doesn’t it?
As far as you know you are an “Employee”, you work for an “Employer” (and what
you earn is considered “Wages”).
Let’s look a little deeper.
The commonly accepted word for someone who works for someone else is
“Employee”. And the commonly accepted word for who they work for is their
“Employer”. In addition, most people think that the money they make is “Wages”.
This is of course to comply with the Internal Revenue Code sections on the
Collection of Income Tax at Source on Wages.
But an interesting thing about these codes is that when a word is defined by the
code, that word’s meaning no longer means what it meant in every day usage. It
now has a legally distinct meaning for this one chapter, paragraph, section, title or
whatever. It says “for the purposes of this _________.” ( pick one ).
The definitions of “Wages”, “Employee” and “Employer” for section 3402 are in
section 3401. (Definitions)
Which reads in part,
IRC Sec. 3401
(a)Wages
…For purposes of this chapter, the term "wages" means all remuneration (other
than fees paid to a public official) for services performed by an employee for his
employer, including the cash value of all remuneration (including benefits) paid in
any medium other than cash… (emphasis mine)
So “Wages” are all remuneration paid by an “Employer” to an “Employee”, in any
medium…other than cash.
(Other than cash….hmmmm….interesting…)
Further down the list you find the definition of “Employee”.
IRC Sec. 3401
(c) Employee
For purposes of this chapter, the term "employee" includes an officer, employee,
or elected official of the United States, a State, or any political subdivision
thereof, or the District of Columbia, or any agency or instrumentality of any one or
more of the foregoing. The term "employee" also includes an officer of a
corporation.
Note for people that think they are officers of a corporation because they have
incorporated their small business and may be liable for this that there is no
mention of them in the authority to levy section 6331 (a).
Are you an “Employee”? I didn’t think so. (And even if you are, read on.) Do you
work for an “Employer”? Probably not. Note that except for an officer of a
corporation, there is no mention of anything except government workers.
The next one defines “Employer”.
IRC Sec. 3401
(d) Employer
For purposes of this chapter, the term "employer" means the person for whom an
individual performs or performed any service, of whatever nature, as the
employee of such person, except that – (continues with irrelevance.)
So if you’re not an “Employee” you don’t work for an “Employer” and you don’t
make “Wages” as defined. Any one of these would make you not liable for this
“Collection of tax at source on wages”. Or the stated purpose of the W-4.
NOTE: If you ARE an "Employee", don't lose hope...Read on.
All of these say “for the purposes of this chapter”.
These three all apply to Title 26, Subtitle C, Chapter 24 of the Internal Revenue
Code. Chapter 24 is the only chapter on the “Collection of Income Tax at Source
on Wages” and Subtitle C is not “Income Taxes” at all. It is “Employment Taxes”.
Income tax is Subtitle A.
Employment taxes are Social Security and Medicare taxes (FICA), Federal
unemployment tax (FUTA), and Federal income tax withholding, but not Federal
income tax.
None of these apply to you unless you are an “Employee” working for an
“Employer” making “Wages” within the “United States” as defined in their
separate codes. (The definition of United States for Social Security, FICA and FUTA
actually exclude the fifty states by excluding Alaska and Hawaii since their
admission as states. More on this subject on the CD or the website.)
So if the only chapter there is on the collection of income tax at source on wages,
by definition, does not include you, can you still believe that you or your earnings
are the object of these taxes?
But if you ARE an “Employee”, you may be liable for the other “Employment
Taxes”. This includes Social Security, Medicare, FUTA and Federal income tax
“withholding” if you are liable.
But it doesn’t make you liable for income taxes on your earnings.
If you aren’t an “Employee”, you are NOT liable for “Employment Taxes” which
include Social Security, Medicare, FUTA and Federal income tax withholding.
Which means that if you aren’t an “Employee”, you shouldn’t be paying and are
not liable for these other taxes either.
I asked once how to get out of the Social Security program in a phone call. She
told me there was no way out. But if I wanted to stop contributing to it I was
advised by a Social Security supervisor to simply stop paying into it!
Special Note: The only way you can be an “Employer”, and have authority and be
liable for collecting these taxes involuntarily from others according to these
definitions is to be….
“The United States Government”.
Otherwise if these definitions do not specifically describe you as an “Employer”
you are basically stealing from your workers. You have no authority to withhold
from your workers (notice I didn’t say “Employees”) and you have no liability to
keep books and records, file returns, match Social Security payments, pay FUTA,
withhold taxes or make payments for any “Employment Taxes”.
It is my opinion that to do so without the authority of the law is to commit a
criminal act.
It is often said that ignorance of the law is no excuse. What are you going to do
now that now that you know?
Look up “Withholding agent” in the tax code for proof that only foreign entities
are liable for withholding for income taxes.
It is in the Internal Revenue Code Section 7701(a)(16).
(16) Withholding agent
The term "withholding agent" means any person required to deduct and withhold
any tax under the provisions of section 1441, 1442, 1443, or 1461.
(All of these sections involve foreign entities and nonresident aliens.)
Next. And this is POSITIVE PROOF that you can’t be liable for filing an income tax
return. (You couldn’t file a legally approved form for income taxes even if you
wanted to.)
Because…
There is no approved form for the filing of income taxes on your earnings due to
26CFR Sec. 1.1.1 “Income Taxes”. (The taxes that you have been paying).
Repeat.
There is NO approved form for the filing of income taxes due to 26CFR Sec. 1.1.1
“Income Taxes”.
All forms for the collection of information have to be approved by the Office of
Management and Budget (OMB) due to the Paperwork Reduction Act. If no form is
approved, the lack of an approved form may be used as a complete defense as to
why something wasn’t complied with.
This is a very real protection that has been used successfully in court. (Look this
up)
Paperwork Reduction Act of 1980. Title 44 US Code.
Sec. 3512. Public protection
A. Notwithstanding any other provision of law, no person shall be subject to any
penalty for failing to comply with a collection of information that is subject to this
chapter if--
i. the collection of information does not display a valid control number assigned
by the Director in accordance with this chapter; or
ii. the agency fails to inform the person who is to respond to the collection of
information that such person is not required to respond to the collection of
information unless it displays a valid control number.
B. The protection provided by this section may be raised in the form of a
complete defense, bar, or otherwise at any time during the agency administrative
process or judicial action applicable thereto.
This protection just mentioned in paragraph B can and has been used
successfully in court. I would hazard a guess that it has been used successfully
many times before it got to court.
See for yourself the list of approved forms at 26CFR Sec. 602.101.
In this section, the IRS states their own responsibility to comply with the
regulations of the OMB (Office of Management and Budget) due to the Paperwork
Reduction Act of 1980. The Paperwork Reduction Act by the way was in direct
response to complaints concerning how the IRS used to bury people in
paperwork. Yes, it used to be worse than it is now.
The IRS took five years to comply. And when they finally did, the proper form
listed for the payment of income taxes due to CFR 26 Sec. 1.1.1 was not a 1040.
The only form I have personally seen listed was form 2555 Foreign Earned Income
used until the early nineties.
The first thing at the top of the list of approved forms is 1.1(h)-(e) (Which
involves estates and trusts. Something a foreign person may be liable to pay
taxes on). But there is no approved form for 1.1.1. which is for income taxes.
The form shown for 1.1(h)-(e) is not a 1040.
The IRS has had 28 years to comply with this and simply submit a proper form for
approval for “Income Taxes” for people’s earnings in the USA. Why have they
been unable to do this?
You as an American are not and cannot be liable for a tax on your earnings within
your home state which is covered by the protection of the Constitution of the
Republic of the united States of America.
Again, you may be liable for state income taxes if your earnings come from
outside the state. All of the fifty states are sovereign and basically foreign nations
to each other except as they are united and protected as one nation under our
Constitution and Declaration of Independence. (I have read International
Agreements between the states in the Code of Federal regulations.)
I have recently come across a copy of the Internal Revenue Code of 1939. Many
places in the current code refer to this and to the Internal Revenue Code of 1954.
This is what a person (or individual) was liable for in 1939.
Internal Revenue Code of 1939
INFORMATION AND RETURNS 437
SUBCHAPTER B—DETERMINATION OF TAX LIABILITY
SEC. 3611. RETURNS EXECUTED BY TAXPAYER.
When not otherwise provided for—
(a) PREPARATION.—
(1) BY TAXPAYER.—It shall be the duty of any person made liable to any special tax
or other tax imposed by law, to make a list or return, verified by oath, to the
collector or a deputy collector of the district where located, of the articles or
objects, including the quantity of goods, wares, and merchandise, made or sold
and charged with a tax, the several rates and aggregate amount, according to the
forms and regulations to be prescribed by the Commissioner, with the approval of
the Secretary, for which such person is liable.
This is followed by sections on additions to the tax, penalties, authority to do a
substitute return etc, just like today’s regulations. Does this make any mention of
your earnings from working at your job? No? Mine either.
Remember what I said about the income tax being a tax on something or
someone coming in? These are the things.
There are many things that are taxable for many reasons. If you are distilling
alcohol or manufacturing cigars for instance. If you are importing just about
anything. If you are manufacturing things for export. There may or may not be a tax
or liability for these things at any given time. Generally alcohol and tobacco are
heavily taxed and regulated.
If you were importing or exporting something, that something would generally
have a very specific tax and rate of tax. Tariffs, duties, imposts, etc.
This is the “Income Tax” that sent Al Capone to prison. Importing alcohol and not
paying the “Income Tax” due.
This is one of the tricks over time that has been perpetrated on the American
people. The wording was changed or some wording was left out so as to “enlarge
their operations so as to embrace matters not specifically pointed out”.
Remember that phrase?
In the 1939 Internal Revenue code section shown, there is no mention of your
earnings, no mention of interest on your bank account or dividends of stock, no
mention of gifts or inheritance, no mention of profits or capital gains or any of the
things for which you are currently charged a misapplied “Income Tax”.
Doesn’t the IRS say that the present day income tax on your earnings is due to
the 16th Amendment in 1913? Why is there no mention of that in this section in
1939? Because you weren’t liable then, and you aren’t liable now.
So, in review:
1. The IRS has never had authority to tax your earnings due to the
16th Amendment as they claim, due to Treasury Decision 2313.
2. The IRS has no authority to do a Substitute for Return for you due to Section
6020(b) as they claim.
3. The IRS has no power of levy and distraint (they can’t take your money or
property) due to the authority of section 6331 as they claim (Unless you match the
description of 6331(a), but there’s hope for you too. Read on.)
4. You aren’t an “Employee”, you don’t work for an “Employer” and you don’t
make “Wages”. Your earnings, not “Wages” aren’t the object of the “Employment
Taxes” regulations or the object subject to the “Withholding of tax at source on
wages”. (Unless you match the description of 6331(a), but again there’s hope for
you too concerning your income taxes.)
5. There are no approved forms for the filing of “Income Taxes”. And lack of a
form approved by the OMB can be used as a complete defense. (Can and has.)
The 1040 is NOT an approved form for
26CFR Sec. 1.1.1. Income Taxes.
Note that this last one, #5 applies to people subject to employment taxes as well.
There is no approved form for filing an individual income tax return for Federal
Income Taxes due to 26CFR Sec. 1.1.1 “Income Taxes”.
A 1040 is NOT an approved form for filing an income tax return for your earnings.
The IRS has had 28 years to comply with the Paperwork Reduction Act on this and
has been unable to do so. Why? Many reasons. But what is relevant is the fact
that they haven’t.
Who is required to file a form 1040 U.S. Individual Income Tax Return? I don’t
know for sure. I would have to assume that since the 1040 is mentioned as the
correct form to file for the earnings of foreign persons in Treasury Decision 2313
that they are. I had even thought that the person or entity withholding the taxes
was responsible for paying them and filing a return as TD 2313 says.
But certainly, an American working in the USA is not.
Another problem for the IRS.
A 1040 has an OMB number of 1545-0074. And there are over 120 listings of form
1545-0074 at 26CFR Sec.602.101 where the control numbers for collections of
information for the IRS are listed.
But I have recently noticed that many form numbers have been changed and at
least ten forms have this same number.
This cannot be legal by any means. A form 1040 U.S. Individual Income Tax Return,
form W-4 Employee’s Withholding Allowance Certificate and a form 2555 Foreign
Earned Income are all OMB number 1545-0074. So are forms 4852, 1040NR, W-4s
S, V and P, W-5 and W-7. A 1040NR by the way is for ‘Non-resident Aliens”. These
forms deal with different entities and situations.
I can’t believe the OMB approved ten or more forms with the same number. Some
of them very recently had different numbers. The W-4 changed in 2006.
I believe this is blatant fraud. Changing the numbers on forms after some other
form has been approved for the purpose. This is only my opinion of course. But
when you see a form approved by the OMB in 26CFR Sec 602.101, for a purpose
you should be relatively certain that it is a single form and not one of ten
unspecified forms.
Form 2555 Foreign Earned Income (the only thing listed in the IRS Rules and
Procedures introduction for which a citizen could be liable for income taxes
shown earlier), was the form listed as being the correct form for complying with
26CFR Sec. 1.1.1, Income Taxes as recently as the mid nineties and is no longer
listed.
Confuse you too? It’s supposed to confuse you. It’s one of their tools. Like fear
and intimidation!
Fear and intimidation are the IRS’s two biggest weapons to get you to comply with
filing forms and paying this tax. But I don’t believe people are afraid or intimidated
as much as they are confused about how to defend themselves and fight back.
If only someone would write out exactly how to do it and why they would be in the
right if they did. Hmmm…..
Moving on…
Regarding “Self Employment” taxes. If you think you are “Self Employed”, you
should read up on it. I can’t imagine any situation where you could be employed
by yourself after reading what employer and employee means but despite that, the
only taxes that apply to the self employed are Social Security and a Hospital Tax.
(It says in addition to other taxes, but does not specify what they are.) What’s a
Hospital tax?
To find out if you are “Self Employed”, you go to IRC Sec 1402. These are the
definitions for Chapter 2 Tax on Self Employment Income. At 1402 (a) you see that
to have applicable (taxable) earnings you have to be in a “Trade or Business”.
At the definition of Trade or Business 1402 (c), it refers you to section 162 where
the only entities listed are lobbyists, State Legislators and United States armed
forces reserves.
Another place in the code defines trade or business as performing the functions
of a public office. (IRC7701(a)(26))
Unless this describes what you do, you aren’t self employed.
So there you have the proof, easily verified, that you don’t have to file a return or
pay income taxes on your earnings. Short and sweet. But that’s not all there is on
the subject of WHY you don’t have to file.
Last but not least, there is the subject of whether or not having to file a 1040 is a
violation of your Fifth Amendment right against self incrimination. This is a bit
complicated and is covered by someone else’s website. (He seems to think it’s
simple.)
I recently learned of this and the sheer volume of information necessary to cover
this is beyond the scope of this booklet. Please go to “What to do” to find out
about this and other ways of stopping without risking SFRs, liens, levies and
leaving yourself liable for unnecessary unpleasantness.
I have included attachments showing the full text of the items that I have used
“in part” to show that their meanings were not changed by taking them out of
context on the CD and I have included where to find them in the references
section.
The CD also has a ton of general information on it as well. Don’t rely on it. Check
out everything you read on your own. Some of this extra info on the CD is
included for general education on the subject. (The Great IRS Hoax) It is a few
years old and some of the links no longer work. Though much of the information is
excellent, on anything like this large compilation of information on The Great IRS
Hoax, some of it is going to be innacurate, misleading or wrong for you and your
situation.
Again check everything out on your own.
Read on to find out what to do.
Stop Paying Income Taxes on your Earnings
5. What to do
I had an idea of how to stop filing and paying income taxes but on further
examination and second thought, I have decided to include all the methods I can
come up with including sending you to other references for information. The
The first three methods are ways the IRS says are illegal. Maybe they are but they
are ways that are currently being used by people lacking any better knowledge on
the subject or the time and money to deal with it. And as far as the IRS is
concerned, any aversion to doing anything they don't like, they're going to call
illegal. There's tens of thousands of pages of rules. Many conflicting. You couldn't
comply if you wanted to.
Anyway, again, I don't endorse the first three methods.
The first method involves risking too much time and legal trouble and putting
your property at risk of being levied. It is also possibly the only honest, truthful
and legal way to deal with it. If you are not liable for “Employment Taxes”, there is
no reason you should have to pay them or fill out a form for the withholding of
them.
This method involves canceling your W-4 (and if your so called employer balks)
through the legal process if need be, not filing a 1040 and then responding to
deficiency notices with much of the information I have presented showing how
they have no authority to do an SFR or levy and how there is no acceptable form
for filing a return accompanied with legal opinion letters by practicing attorneys.
(Bill Conklin’s specialty is responding to deficiency notices. He’s mentioned later.)
With this method, you keep all your money in your paycheck including other
“Employment Taxes” and they are no longer allowed to use your Social Security
number for any reason. But…You may lose your job for this or for “other reasons”
and you may eventually have to endure the IRS trying to seize your property or
levy your accounts even though you have shown them they have no authority to
do so and you may have to eventually defend your position in court.
It’s strange how the most honest way is so hard. This method in today’s system isn’
t very doable unless you work for a mom and pop organization that is also
learning or aware of the information presented here.
The second method is to refuse to put a Social Security number on your W-4. The
company you work for will try to demand it. Be firm. Have them contact the IRS.
There is a form for them to file or they simply have to sign a statement or affidavit
saying that they asked for it and you refused to provide it. The IRS will accept this.
(from what I have heard) This is doable. This is probably the easiest way to deal
with the whole thing. Without your SSN, they can’t withhold anything because
there is no way for them to forward it. Your company also does not have to match
anything.
You shouldn’t need to file a return after a full year of going with this method
because your company can’t file a W-2 without your Social Security number. (I don’
t know if they can even file a W-2 the first year once you have rescinded use of
your SSN.) With no earnings falsely reported as taxable income, there is no
reason for the IRS to come after you for not filing. (They probably will in time for
filing in previous years, but if no one has sent in a W-2 or 1099, they have no basis
to try to assign penalties or interest.)
If your company tries to report it somehow without a Social Security number you
may have to file a return (also without a Social Security number) while
simultaneously disputing that the earnings are taxable income (see the last
method), but I don’t see how they could do that without any tax ID number. (This
paragraph is a fictitious situation but I can imagine it happening with a stubborn
accountant trying to justify his or her existence with the IRS helping.)
Or there is the “Exempt” method. This is the easiest but possibly the riskiest way
to deal with it. This method is for people who have no time or money to deal with
the first method (and possibly risking a period of not working) or work for a
company with a lazy or stubborn accountant who refuses to do the second
method. They may say this is illegal (The IRS). But if your company won’t accept a
W-4 without your SSN then this is just your response to their illegal act.
With this method, you simply fill out a new W-4 with Exempt. They no longer take
out state or Federal income taxes. They still take out the other Federal
“Employment Taxes” and whatever other state taxes but no state or Federal
income taxes. You wouldn’t file a 1040 and you would have no obligation to if you
based it on the fact that there is no acceptable form to file a return (mentioned
later), or 5th Amendment concerns (also mentioned later}.
With this method you will always be on the defensive but it may get you by and
give you time to deal with this in a more effective and direct manner later.
Many say this is trouble. May be true but so is sleeping in your car.
The acceptable ways.
But if you are better off and you can afford to continue as
you are for a while (you were going to anyway), your interests may be better
served by going to www.anti-irs.com and downloading Bill Conklin’s e-book. “Why
no one is required to file tax returns”.
In it he explains why no one is required to file a 1040 on
Fifth Amendment grounds against self incrimination. He also explains a legal
method to get through this situation without risking seizure of your property.
This basically involves doing as you’re doing and having taxes taken out of your
check. Then filling out a 1040 but not signing it and getting attorney opinion
letters showing that you can’t sign it without giving up your 5th Amendment right
against self incrimination. (He even gives the IRS power of attorney to sign it if
they can show that it can be signed without giving up this right.) And then when it
can’t be accepted after six months, going through the process of getting your
money back.
Sounds complicated but since you have paid or had withheld all taxes, they have
no reason or stated authority to try to lien or levy anything. (Note that it seems
this method only works if you have prepaid all undue taxes.)
It’s weird but this seems to me to handle your income taxes and employment
taxes in a direct and positive manner.
NOTE: I have seen a website page for tax personnel with suggestions of ways to
trick you out of using this Fifth Amendment defense. (lost the link, sorry) One way
I can remember is if you readily give them access to your books and records, they
can argue that you really do assume that you are liable because you wouldn't
bother to keep books and records if you didn't.
People fall for this, ignoring the fact that tax liability and their Fifth Amendment
right against self incrimination are separate things.
The winner.
The last, and possibly the best way to deal with this is to follow the path laid out in
the book “Crack the Internal Revenue Code” available at losthorizons.com.
In this method, you file a 1040 with a zero amount shown. Normally people have
gotten in hot water by doing just that but the difference is that you dispute
whatever 1099s or W-4s or whatever other information return someone else has
sent in virtually testifying under penalty of perjury that you have been paid
taxable income.
The fact that someone has mistakenly testified that you have received taxable
income by filing W-2s or 1099s makes all the difference.
If you don’t dispute it and dispute it correctly, it stands as fact.
But if you dispute it correctly from what I understand, all of the withheld income
and employment taxes are returned.
And again, if you have already paid into the withholding, they have no authority or
reason to want to lien or levy anything.
LARGE NOTE: I don’t know the consequences of any of these methods when it
comes to Social Security, unemployment or disability benefits. I don’t know how
they could still be used with the methods that let you keep or get back all of the
income and employment taxes paid. For me, although I am already vested with
Social Security after paying into it for so many years, I don’t have any illusions
about it still being solvent in fifteen or twenty years.
And since I work for myself, I don’t have illusions of having any other Federal or
state government benefits. You should think this through on how this affects you.
There are actually other methods, some of which are on the CD, such as filing a
1040 NR (nonresident alien) and attaching form W-2c disputing your earnings as
being taxable income, etc. But some of them are way, way out there. Be careful.
I am trying to motivate you and not confuse you or make this out to be some kind
of conspiracy theory or anti-American nonsense. Most people in America have
every right to keep 100% of their earnings and nothing could be more American.
Use whatever bits and pieces you need to assure yourself but don’t get
intimidated by the complexity of it. If you aren’t liable for a tax, don’t pay it.
I am motivated by many of my friend’s situations.
For example, some single part time fathers trying to survive after taxes and child
support are taken out of their paychecks is ridiculous. Since they still have to
provide for their children during their time with them, some of them have lost
custody because of their inability to provide for themselves and their children
after taxes.
Or just middle class families. Anyone struggling with basic needs. Food, shelter,
clothing, transportation. Some of them are on the verge of living in their cars.
I know that the name of this chapter is “What to do” and I’m sending you to buy
someone else’s information for the best ways to do it. I apologize for this but I
have my reasons.
One reason is that I only found these two as I was writing this and after all of the
research I have done over the years, these seem to be the most reasonable and
workable while you avoid risking the wrath of the IRS collectors. But I can’t give
away the product of other peoples work. That would be un-American! (and illegal)
Another is that I want this to work well for as many people as possible. If I screw
up describing their excellent research and methods and people use it and get
hurt, it may set back not only those people but the greater number of their
followers.
I hope that I have shown you conclusively that you aren’t liable for income taxes
on your earnings. There is more info in the support chapter and the CD. The
website will have information that isn’t in this booklet or on the CD. Act like an
American. Land of the free and home of the brave. Stand up for yourself. You
have every right!
Stop Paying Income Taxes on your Earnings
6. SUPPORT INFORMATION
So how then did the income tax on people’s earnings get started? This is my
account to the best of my understanding.
It was a dark but very patriotic time in American history.
We were in the middle of World War II and to pay for this war the Victory Tax was
implemented and everyone being so patriotic was willing if not eager to help pay
for the cost of the war.
They actually have the Constitutional authority to do this (Article 1, section 8.) for
only two years.
The Victory tax paid off the costs of the war in two years and was then repealed.
This was not well known and people continued to pay.
The government, having just had its revenue go from 45 billion to 90 billion just
continued to accept and accommodate.
Prior to this time the government was financed entirely by taxes on imports and
other legitimate taxes.
This is of course oversimplified. My meaning was to show you how there could be
a tax in place that the government is reluctant to give up. Especially since it has
grown into the hundreds of billions.
But that you are not legally required to continue to contribute.
The IRS uses Al Capone as their poster boy (yes they have posters of him on their
walls) for the enforcement of income taxes. We have all heard the story or have
seen a movie about how he was sent to prison for not paying his income taxes.
Al Capone was convicted of not paying the importing fee, the tariff, duty, impost
or whatever on the alcohol that he was bringing in to the country (Importing). The
“incoming” tax or “income tax”.
Not a tax on how much money he earned but a tax on the item that he was
importing. What does that have to do with you? How can they even call this tax
and the tax on your earnings the same thing?
I don’t know how they got Willie Nelson but I know the type.
He may or may not have believed he was liable but I can almost hear him
say…Just pay the bastards and get em off my back!
The IRS, from time to time, makes a big deal out of some unknowing, lawyer
trusting celebrity. Willie Nelson, Wesley Snipes, whoever they can get on the
news to show you how YOU must be liable. These people have no knowledge of
their situation and their celebrity status makes the IRS that much tougher on them
so as to use them as examples. How and where they earned their money may have
actually made them somehow liable. (But I doubt it.)
In the past the vast majority of people that got into tax trouble are people who
believed that they were liable and then cheated on what they believed were their
obligations.
The people that go to jail are taken for wire fraud, mail fraud, perjury or for
withholding others taxes and not paying them over to the IRS. (Outright theft)
There are no laws in the U.S. criminal code for the non-payment of income taxes.
(Are taxes a civil matter?)
For there to be anything criminal involving an individuals income taxes there has
to be “Willful” intent. That means that they have to prove that you believed what
you were doing was wrong or illegal and you still did it. Do you still believe you
are liable?
There are issues about how the 16th Amendment was never ratified. This is
irrelevant as Treasury Decision 2313 clarified the effect of the16th Amendment
showing that only foreign entities were subject to income taxes on their earnings.
The definitions of “United States” for FICA, FUTA and Social Security not only do
not include the fifty States of the Republic of the united States of America, they
specifically exclude Alaska and Hawaii since their admission as states.
20CFR Sec. 404.2(c)(5) Social Security
26CFR Sec. 31.3121 (e)-1(b) FICA
26CFR Sec. 31.3306 (j)-1(b) FUTA
They specifically include United States possessions though explaining my
previous statement regarding where Federal Employees work.
As recently as 1997 the burden of proof in court concerning the IRS and income
taxes was reversed. Before that time, the IRS could accuse you of a crime that
didn’t even apply to you.
If you couldn’t or didn’t prove it didn’t apply to you, you were convicted of the
crime and fined or jailed. No one knew any better. Now, like anything else, they
have to prove your guilt (and for crimes, willful intent) instead of you having to
prove your innocence.
Millions of Americans pay no income tax on their earnings.
There are (or were) many other publications like this. Many of them are no longer
available because their writers or publishers have been stopped by the IRS
and/or the Federal Government because they don’t want you to have this
information or anything like it.
(For obvious reasons.)
As you get deeper into this subject, you will find that there are many conspiracy
theories and weird justifications presented by all kinds of sources for not being
liable or not paying income tax. Check them out on your own. And don’t fall for tax
avoidance schemes like putting money in weird trusts and such.
Remember that your interest in this subject does not make you a “tax protester”
or a “tax resister”. On the contrary, it just makes you
a person who is trying to comply with misunderstood laws that are in your favor
and stop paying taxes you aren’t liable for.
And Trust Yourself. I know this can be hard to do. This subject has been twisted
and misinterpreted by all sides and the tax codes written and rewritten so as to
seem to include you when they don’t.
Give Treasury Decision 2313 a good reading and you will see that the taxes a
foreign person really is liable for are the taxes you have been falsely held liable.
The taxes on income of course originally meant the taxes on things coming in.
Products, people, money or whatever. It seems to have been bastardized and
perverted to seem to mean just about anything. A mis-informed accountant will
tell you that if you find five dollars on the sidewalk you have to report it. This is
nonsense.
My niece had a friend in college who argued with me about the liability of income
taxes. She wore me out by just being adamant in her position. It turned out that
her entire position without so much as opening a book or reading a word was
based on a college professor telling her it was so. (Never mind his obvious
conflict of interest.) She was a smart, passionate young woman who was adamant
in her beliefs, no matter how misconstrued.
(I hope she gets a nice cushy government job.)
The point of the last two paragraphs is don’t waste your time and energy talking to
or arguing with people who don’t share your interest or seem to have already
made up their minds on the subject. Just let them be the last ones to figure it out.
(Pretty mean huh?)
Along with the support information for previous chapters I will include many
things that I haven’t mentioned on the CD. Some of them are excellent. I started
writing them here but it added too many pages and I didn’t have room to do them
justice. Many simple sections of code used up two or more pages here. They are
better on the disc because I can hi-light pertinent parts. I will also put other
things I have and new things as I find them on my website.
Check everything out on your own. (Don’t trust me. Trust yourself.)
And just for fun, read the Declaration of Independence and the Constitution from
time to time. It’s good for you.
Relax….breath…don’t take it too seriously.
It’s only money.
Oh yeah, and freedom…the pursuit of happiness…
your children’s future…the future of mankind…
Postscript: Can you do this in a book? Who cares. As I said before
I don’t know what I’m doing writing a book. I know the information but I don’t know
how to arrange it or express it or the best way to present it. I have even
purposely left out items so as not to upset or confuse you. I have written and
rewritten this information at least 20 times trying to make it easier to understand
but at some point you just have to go with what you got. If you can help make this
better, I would appreciate your input. And if you are an attorney who is willing to
do your homework and represent people with tax liability issues, I would be
interested in talking to you and referring to you anyone interested in your
services.
Stop Paying Income Tax on your Earnings
7. References
For the Code of Federal Regulations
www.access.gpo.gov/nara/cfr/cfr-table-search.html
For the Internal Revenue Code
www.fourmilab.ch/ustax/ustax.html
For the Internal Revenue Manual
www.irs.gov/irm/index.html
For Bill Conklin’s e-book
www.anti-irs.com
For Crack the Internal Revenue Code
www.losthorizons.com
For this Booklet
www.djaco.com
Contact info.
David Austin
P.O. Box 367
Garden Grove
California
92842