Chapter 10 of the TRUTH!
A lot of people have gotten into trouble and incurred heavy fines by using, so called, tax protester arguments or frivolous arguments. There are even fines up to $10,000 and 1 year in prison, for filing fraudulent returns. So you want to make sure that you don't use any of those techniques. And you don't need to. Only those who don't know the law use silly arguments or file false returns.
I will examine only the most popular arguments, the ones that get you in the most trouble. A lot of these arguments have been rejected by the courts as frivolous, even some that aren't frivolous. These arguments are usually presented as a basis for the reason that someone is not taxable.
(1) Paying income tax is voluntary.
If you are exercising a government privilege, i.e. claiming
U.S. citizenship, or using the postal service, then the income
tax is mandatory. What IS voluntary is whether or not you engage
in the privilege. This is a variation of: individuals are
not required to file tax returns. If you are exercising
a corporate privilege, or are a U.S. citizen, then you ARE required
to file a return.
(2) The 16th Amendment was not properly ratified and is therefore invalid.
The 16th amendment did not change anything in the first place,
so what difference does it make if it was properly ratified or
not? If the 16th amendment WAS properly ratified, would you be
taxable then? The 16th Amendment did not NEED to be ratified.
because it was passed under martial law.
(3) The authority of the United States is confined to the District of Columbia.
This is false, because under a declared national emergency
(martial law), their jurisdiction extends to all 50 states, which
are incorporated into the United States and are under their jurisdiction.
For income tax purposes, this is true. The IRS code applies to
D.C. and the U.S. territories and possessions.
(4) I am a nonresident alien and not subject to income tax.
Nonresident to what? If you are a U.S. citizen, then you are a resident of the corporate United States. The Latin word res means property. A U.S. citizen is the presumed property of the government. And their property is always within their jurisdiction. This argument IS frivolous when used in an income tax context. In a non-income tax context it doesn't matter. Nonresident is defined as, "One who does not reside within the jurisdiction in question; not an inhabitant of the state of the forum." (Black's Law Dictionary 6th Ed.) Even if you WERE a nonresident, you would still be liable for a tax, IF you were exercising a taxed privilege. IRC section 871 imposes a tax on the taxable income of all nonresident aliens with income connected to a trade or business within the United States.
(5) I am not a 'person' subject to taxation under the Internal Revenue Code.
The definition of person includes most everyone , so if you are not a person, then what are you? Many people argue that the word 'person' means only artificial entities like corporations and trusts. It does. But, is it the fact of whether or not you are a 'person' that makes you taxable? No. Exercising a corporate privilege is what makes you taxable.
(6) I am a free born, sovereign, state Citizen, not subject to taxation.
You are NOT a free, sovereign, state Citizen, you are a U.S.
citizen. You contracted to be a U.S. citizen. You are property
of the government. You acquired this status through contracts
with the federal government. Until you break those contracts,
you are not free, or sovereign. So if you are a U.S. citizen,
and you claim to be a state Citizen, that would be a frivolous
argument. It would not be frivolous after
you have expatriated back to American Citizen.
(7) The income tax is a direct tax which is invalid absent apportionment.
Almost right. Direct taxes DO have to be apportioned, but the income tax is NOT a direct tax. The claim that the tax is a direct tax is what makes the argument frivolous. The income tax applies to corporate income upon which an indirect excise tax has been imposed.
(8) No statutory authority exists for imposing an income tax on individuals.
Totally false! The government definitely has statutory authority
to impose an income tax, both direct and indirect. We Americans
gave them that power in the constitution. BUT, we also limited
that authority with the tax clauses in the constitution. Presently
the federal government has imposed a corporation tax on anyone
who has corporate status, such as a U.S. citizen.
(9) The Commissioner of Internal Revenue, and his employees, have no power to issue summons, liens and levies because of invalid or nonexistent delegations of authority.
If there are statutes allowing summons, liens and levies, than of course they have the power. The big question here is, against whom can they use this power? This power IS exercisable against U.S. citizens, without regulations, because he is government property. Regulations ARE needed to tax non-government property within their jurisdiction.
(10) Tax forms are not valid because they do not have OMB numbers or have not been published in the Federal Register.
Again, if the forms did have OMB numbers, or were published in the Federal Register, then would you be taxable? Tax forms only apply to those who are liable for taxes. Also, this requirement does not apply to government employees.
(11) The term 'income' as used in the tax statutes is unconstitutionally vague and indefinite.
Many people claim that only gains and profits are taxable.
That is true and applies only to corporate income. The Supreme
Court has defined income in many cases. But, even if income was
defined in great detail, would that make you taxable? Is the tax
on income itself, or on a privilege that produces income? You
already know. But remember, since all income is 'presumed' to
be from a corporate business activity, the legal definition of
income only applies to this income and no other. Since the U.S.
citizen is a corporate citizen, with corporate status, then his
income would be taxable, from whatever source.
(12) I am free born, (or white, or not a U.S. citizen, or not a 14th Amendment citizen) and therefore I am not subject to income tax.
Yes, frivolous arguments, coming from a U.S. citizen! Instead of looking at the reasoning behind these arguments, we must first ask ourselves the question: What makes your income taxable? Is it who he IS, or is it what he DOES? Even if you are a sovereign, that does not make you nontaxable. A sovereign individual can still be taxable because he/she delegated the power to tax income to the government. Income can be taxed 2 ways. First, with an indirect excise tax on profit and gains received from taxed privileges, and second, with a direct tax with apportionment on sovereigns, for income from property and rights. Once you can prove that you are not a 14th amendment citizen (U.S. citizen) then your personal income is not taxable. Details on how to do that coming up!
(13) The Common Law protects my rights.
Many protesters go to court and claim that they cannot be fined or taken to court because the common law protects them. This can be answered with a Supreme Court case:
U.S. v. Cruikshank 92 US 542 (1876) . . .the common law is not a source of jurisdiction in the circuit courts, nor in any other Federal Court. Circuit courts have no common-law jurisdiction of offenses of any grade or description; and it is equally clear that the appellate jurisdiction of the Supreme Court does not extend to any case or any question, in a case not within the jurisdiction of the subordinate Federal Courts.
Common law is different from statutory law. And the courts
today deal only in statutory law. Statutory law is really just
admiralty/military law and is administered today as the civil
law under the national emergency/martial law that we have been
under since 1933. But remember, there is a way to tell what kind
of court you are in. The next time you are in a courtroom, look
at the flag. If there is a gold fringe around the edge of the
flag, then you are in a military courtroom, under the admiralty
jurisdiction of the corporate United States. Common law is the
unwritten laws of a society, based on the 10 Commandments. It
is just the accepted values of a society. There are no longer
any common law courts. They disappeared in 1933. But the principle
was replaced with Public Policy!
(14) The filing of an income tax return violates my Fifth Amendment right not to incriminate myself.
The Fifth Amendment provides that no person shall, in any criminal case, be a witness against himself. Advocates of this argument claim that if they file a return, the information on that return can be used in a criminal case against them, therefore they cannot be 'required' to file a return. This is a correct argument, if you are a sovereign, or a criminal (but not if you are a U.S. citizen), but it is not what makes you taxable or not. If there was no 5th Amendment, then would you be required to file a return? Again, the filing of a return is not what makes you taxable or not. The 'imposition' of a tax is what makes you taxable. If a tax IS imposed on your income, then you are required to file a return, 5th Amendment or not. But remember, filing a return WILL make you liable for a tax, even if you are not liable statutorily! Also remember, the 5th amendment does not apply to U.S. citizens. The 14th amendment applies to U.S. citizens. The 5th amendment applies only to American Citizens.
(15) The 13th Amendment prohibited slavery.
The 13th amendment prohibited involuntary slavery! You have volunteered to be a slave when you contracted for U.S. citizenship. The basic claim here is that the requirement for keeping records, filing information returns, and the paying of tax in general is a form of slavery. In my opinion, this is correct. Subjects of the government, receiving privileges from the government, are in my book, putting themselves in voluntary slavery. The 13th Amendment prohibits forced slavery. Everyone who has a job is a voluntary slave. The government can treat you like a slave, because you are their property! All voluntary slaves are taxable. If you were forced to work, and forced to accept income against your will, then this argument would be valid against slavery, but not against taxes.
(16) The IRS is a private corporation with no authority to tax.
This is an almost correct argument. The IRS is a government agency, under the Department of the Treasury, but it does not have authority to tax. But, they DO have authority to COLLECT tax! Only Congress has authority to impose a tax. If Congress used private companies for the collection of tax, would that eliminate the tax itself? NO. In reality, the IRS is just a collection agency for the Federal Reserve, which is a private corporation, not part of the government. .
(17) Gold and silver are the only true money, and only gold and silver can be constitutionally taxed, so if I receive federal reserve notes I did not receive any taxable income.
A variation of this is that federal reserve notes are only taxable when converted to gold and silver. Again, the basic question: If you were paid in gold or silver, would your income THEN be taxable? Only after a tax was imposed on your income! Gold and silver are property. Using Federal Reserve Notes is a privilege. The income tax is on privileges. When you get paid, you are paid in Federal Reserve Notes, not real money. You are accepting IOU's, which you trade for other IOU's. They are never redeemed for gold and silver. If you were a corporate mining company, and you only received gold and silver as your income, then your income would be taxable, because it is the corporate privilege that is taxed. Taxable income is gross corporate income minus deductions. Also remember, FRN's (Federal Reserve Notes) are the private property of the corporation called United States. Using these notes to conduct your business is a corporate privilege.
(18) If I file an IRS form W-8 (Certificate of Foreign Status) this creates the status of 'foreign exempt', and then my income is not taxable.
The W-8 form, like the W-4 form, is an IRS form. ALL IRS forms are for 'taxpayers'. This form merely places you in the category of 'exempt' taxpayer. You do not want to be in ANY taxpayer category! Sovereigns do not file ANY IRS forms. A W-8 form can be used to show your non-taxable status to an employer or to a bank, but it is not filed with the IRS. This form is for American Citizens, not for U.S. citizens.
(19) If you place your property in a trust, then the IRS cannot touch it.
This is partially true. Most trusts ARE taxable, because they
are statutory trusts, formed by U.S. citizens under their
master's laws. A U.S. citizen CANNOT create a 'Common Law Trust'
, 'Pure Trust', or 'Unincorporated Business Organization'. An
American Citizen CAN! The tax laws only apply to 'taxable' trusts,
and a sovereign "Pure business trust" IS nontaxable,
because it does not come under the tax laws. A Pure Trust is a
contract and the government cannot impair the obligation of contracts
formed by American Citizens. They CAN regulate contracts formed
by U.S. citizens.
(20) Filing a 1040 NR (Non Resident Alien) tax return, makes my income non-taxable because it is foreign to the United States.
If you file a 1040 NR return, the IRS will fine you $500 for
filing a frivolous return, if you are a U.S. citizen. This argument
is also based on the false premise that the United States is only
Washington D.C. We now know that Washington D.C.'s jurisdiction,
for U.S. citizens, extends to all the 50 states, under
martial law. So if you are a U.S. citizen, residing in one of
the 50 states, you are not foreign to the U.S. By the way, according
to the legal definition of non-resident alien, as an American
Citizen, you ARE a non-resident alien in relation to the corporate
United States jurisdiction. Are you an American Citizen, or a
(21) The income tax is based on the Public Salary Tax Act of 1939 and applies only to government employees.
This is partly true. The Public Salary Tax Act IS part of the Internal Revenue Code, and it DOES apply only to government employees. But ALL U.S. citizens ARE government property, employed for the government's benefit. But this Act is only a part of the code, not the whole code. Remember that the income tax is on corporate income, and as the title implies, the Public Salary Tax Act is authorizing a tax on the privilege of being a corporate public employee. When imposed! None has been imposed! Nothing more.
This is clarified a little in Title 4 United States Code Section 111 - Income Tax.
State, and so forth, taxation affecting Federal areas: taxation affecting Federal employees; income tax. The United States consents to the taxation of pay or compensation for personal services as an officer or employee of the United States, a territory or possession or political subdivision thereof, the government of the District of Columbia, or an agency or instrumentality of one or more of the foregoing, by a duly constituted taxing authority having jurisdiction, if the taxation does not discriminate against the officer or employees because of the source of the pay or compensation.
Since working for the government is a privilege, the government has consented to the taxing of this privileged income, if it is ever imposed by a duly constituted taxing authority having jurisdiction! And all U.S. citizens are government employees! The Public Salary Tax Act gives that jurisdiction. But a tax would still have to be 'imposed' first. None has been imposed.
(22) Filing a UCC-1 lien protects you from ALL civil and criminal charges that may be made against you.
False. All this does is makes your straw man's property, and the straw man himself, your property. A straw man and a U.S. citizen are one and the same. All the laws still apply when you enter the government's jurisdiction. If you, as the sovereign, go out and rob a bank, you will still be prosecuted and will still go to jail. You entered their jurisdiction. The straw man's (U.S. citizen) whole purpose is for the sovereign American to operate in the government's commerce jurisdiction without incurring taxes on his property or income. If a U.S. citizen files a UCC-1 lien against his alleged straw man, he is in reality filing a lien against himself, which is not valid against a creditor! The correct procedure is to expatriate from U.S. citizen status and repatriate as your true American Citizen status. Details in the last chapter!
(23) IRC section 861 states that only foreign earned income is taxable to U.S. citizens.
This is debatable and a confusing issue. Sec 861 lists sources of gross income from within amd without the United States, that are treated as income. A U.S. citizen, who lives in Colorado, and makes his living exclusively in Colorado, has foreign earned income, because Colorado is a foreign jurisdiction to the corporate United States, therefore this income is taxable to a corporate U.S. citizen. Let's look at the basic regulation for income tax.
26 CFR 1.1-1 Income Tax on individuals.
(a) General rule. (1) Section 1 of the Code imposes an income tax on the income of every individual whom is a citizen or resident of the United States and, to the extent provided by section 871(b) or 877(b), on the income of a non-resident alien individual. The tax imposed is upon taxable income . . .
(b) Citizens or residents of the United States liable to tax. In general, all citizens of the United States, wherever resident, and all resident alien individuals are liable to the income taxes imposed by the Code whether the income is received from sources within or without the United States.
I think that pretty much answers the question. Notice that the tax is imposed on the income, NOT on the individual! But the real question is: Did you have 'income', as defined by the Supreme Court? And was this corporate income received by you as a U.S. citizen or resident? Remember, the corporate U.S. government consists of D.C. and the possessions, not the 50 republic states. If you do not live in one of these corporate jurisdictions, you are not a resident.
That gives you an idea of the most popular tax protester arguments.
Many of these arguments are popular with the patriot movement. Many of the arguments are half true. But when presented as a half truth, they are also half false. If the IRS and the courts are going to nit pick, then you need to have your facts straight or they will eat you alive. STAY OUT OF THEIR JURISDICTION!
If you do have dealings with the IRS, or the courts, and use valid tax arguments, they will try to twist your arguments into one of the frivolous arguments above, so they can rule against you. And they will do it blatantly, because they cannot beat you otherwise.
The IRS may try to contact you by phone to see why you did not file a return. They will ask you a lot of questions to try to get information on your income, employment, bank accounts, etc. DO NOT GIVE ANY INFORMATION! You will merely be reinforcing their presumption that they are talking to a U.S. citizen with corporate income. Any information you give over the phone can be twisted and then used against you. Remember, they are working on 'presumption'! Then it is your word against theirs. Make them put everything in writing and reply in writing. That way the name they are making a claim against is documented. And send anything important or time sensitive, by certified mail with return receipt. Otherwise they may just throw it away and claim they never got it. Most of the correspondence you receive from the IRS is just to see how much you know about the law. If you reply to any inquiry with frivolous arguments, or protests, you shoot yourself in the foot. Instead provide documentation that shows you are an American Citizen, not a U.S. citizen, and had no 'income' as legally defined, and will have no income in the future. Ask for proof of their claim and jurisdiction. If they cannot provide proof, then they are in dishonor, not you. That does not mean they will leave you alone! Their main job is to separate you from your money, any way they can! Yes, they can use guns, and you can not! But they do go after the easy prey first. Make your financial house difficult to break into.
The IRS is looking for tax protester arguments when they talk to you. They look for key words like 'sovereign', 'non-resident alien', 'tax exempt,' 'unconstitutional' etc., to place you in the protester category. Don't argue with them! Just present the facts, ask them for their authority and jurisdiction, and let them be. Don't kick a sleeping dog!
Most of the tax protester arguments are really half truths. They are just presented poorly because they do not understand the basis of the income tax, and do not know how to claim or exercise their inalienable rights.
The IRS can no longer classify you as a tax protester due to the Tax Reform and Restructuring Act of 1998. But don't use tax protester arguments. You don't need to. Reclaim your inalienable rights as an American Citizen!
Remember, you are NOT protesting any tax. On the contrary, you want the Constitution, the Supreme Court decisions, the UCC, and the tax laws, ALL upheld and enforced according to the limitations placed upon them. The tax laws are being administered by 'presumption' and 'implications' to income that is not taxed. You must demand that your sovereign status and contracts be upheld, AFTER you properly reclaim them!.
If at all possible, do not talk to IRS agents on the phone. They will twist what you say into a tax protester argument, and then it is your word against theirs. Make them contact you in writing, so you know exactly what they want, and so you can determine what entity they are making a claim against. And you can respond in writing with exactly what your position is. Many people have learned this the hard way. After all, government agents never lie, and you always do, according to the IRS. If you DO talk to an agent be very careful.
After you reclaim your inalienable rights,, there is no need to make any arguments or protest at all. Most frivolous arguments are made by those who do not understand the law. And since the laws are so complex, we have all probably made frivolous arguments on the road to the TRUTH.
Arguments are usually made when you are on the defensive. Whenever you receive any correspondence with the IRS, go on the offense, and let them know exactly what your status is. No arguments are needed.
Table of Contents / Chapter 11