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Show Beaver County Monitor SEPTEMBER 20, 1996 < Continued from oe vemue of any such action shall be the same-as under existing law. The reorganization plans of 1950 & 1952 wire implemented via the intemal Reveme Code of 1954, Volimne 68A. of the Statutes at Large, and codified/as title 26 of the United States Code. Savings statutes have beeninplace since the begiming, but generally not understood by the general population or the legal profession. The: statute set out above is easier to comprehend ‘when references are consolidated! Further, the dependent clause “including trial by jury” relates to a constitutiionally-assured right, not aTemedy, 80 it should be moved tothe proper location in the sentence, Finally, the matter of verme is important as “existing law” is constitutional and commen law indigenous to the several States. In the absence of legitimate federal law which extends to the several States, those who operate under color of law, engage in oppression, extortion, etc., are subject’to the USC §§ 102 & 105. clearly providing the first leg in necessary administrative procedure to determine liability, was addressed at. foundation law of the States. Veme is determined by the law of legislative jurisdiction. ‘The privilege tax is am excise rather than direct tax -- the Sixteenth Amendment, fraudulently pronmigated lengh in Rodkimez v. United States, 629 F Supp.333 (N.D.Ill. 1986). Presuming (1) the Secretary has provided! Citing “including trial by jury” preserves the full slate of due process rights included in Fourth, Fifth, Sixth, in 1913, did not alter or repeal constitutional provisions which require all direct taxes to be'apportioned among: ' the necessary notice, oror(2)/a tegulation prescribes general application which makes any given person liable for Seventh and Fourteenth Amendments to the Constitution for the united States of America and comesponding the several’ States (Constitution, Axticle I §§ 2.3 & 9.4). In Eisner v. Macomber, 252 U.S. 189 (1918),Coppage 2 tax and requires tax retum statements to be filed, cach step in administrative process prescribed by 26 USC provisions in constitutions of the several! States. The: example represents the class, ¥y, Kansas, 236 U. S. 1, andsimmerous decisions©‘since, the United! Sines SuGren Supreme Court has repeatedly affinned §§ 6201, 6212, 6213, 6303 and 6331 nmst be in place for seizure or any other encumbrance to be legal. Additionally, note that, (1) actions may issue against bogus assessments as well as collections, and (2) § 7804(b), that for purposes of income tax, wages and other retams from enterprise of common right are property, not Here again, published im the Federal Register are significant, with provisions af 5 USC § 552 et seq., unlike § 7433, does not presume ‘that the complaining party is a “taxpayer”. Finally, there is 26 CFR, Part 1 income. In fact, retums from enterprise of conmon right are fundamental to| all property, and the sanctity is 44 USC § 1501 et seq, 1 CFR, ChapterI, and 26 CFR, Part 601 all supporting the mandate for regulations to regulatory support for § 7804 where there are no regulations published m the Federal Register in support of § preservedias a fundamental common law principle dating to signing of the Magna Charta in 1215. The nature of be published'in the Federal Register before they have general application. It will be noted by referencing the 7433 (see Parallel Table of Authorities and Rules, beginning on page 751 of the Index volume-to the Code of Subtitles A & C taxes is revealed at 26 CFR § 31.3101-1: “The employce tax is measured by the amount of Parallel Table of Authorities and Rules, beginning on page 751 af the 1995 Index volume’to the Code of Federal Federal Regulations), Therefore, § 7804(b) preserwes rights and determines the nature af civil actions for wages received after 1954 with respect to employment after 1936...” Re} ions, that application by regulation to the several’ States is anly under Title 27 of the Code of Federal Temedies in the several States, When straightened out, applicable portions of § 7804(b) read as follows: page 1. "The importance of making this connection rests om the fact that the Intemmal Reverme Code of 1939 was merely codificationaf the Public Salary Tax Act of 1939. There was no general income tax levied against the population at large in 1939 or since: The Public Salary Tax Act of 1939, whict in the intemal Revemie Code of 1939 incorporated the Social Security tax activated after 1936, was premised on the notion that working for federal sovemmentis a:privilege. Incame and related taxes prescribed in Subtitles A & C af the current Intemal Reverme Code have never been mandatary for anyone other than offiters, agents and employees of the United States, as identified at 26 USC§ 3401(c), and agencies of the United States, identified at § 3401(d), particularized at 5 In other words, the wage is not the object, but merely the measure of the tax. This verbiage constimtes sonmich legalese in an effort to circumvent the duck test, but the fact that taxes collected by the Intemal Reveme Service fall info the excise category was confirmed by the Comptroller General’s repoit following the initial effort to andit IRS (GAO/T-AIMD-93-3). It is fimther suggested at 26 CFR § 106.401(a)(2), where the regulation concedes that, “The descriptive terms used in this section to designate the various classes etaxes are intended only to indicate their general character...” Byreferencing the Parallel Table of Authorities and Rules, cited above, it is found that the definition of “gross income” is still preserved m Section 22 of the Intemal Revere Code of 1939, thus ing the link between the Code of 1939 and Subtitles A & C of the Code of 1954, as amendedin 1986 and since. The intemal Reveme Code of 1939 merely cadified the Public Salary Tax Act of 1939. This link is firther confirmed in Senate Committee On Finance and House Conmnittee On Ways and Means reports on H.R. 8300 (1954, intemal Reveme Code), in which § 22 of the intemal Revemme Code of 1939 and § 61 of the intemal Reveme Code of 1954 (current code) were solidly linked. Both reports stipulate that the current definition of “gross income” is ‘alended to be Constitutional. : unless exchided by law.” An“Act of Congress” is policy, not law, and per definition located in Rule 54, Federal Rules of Criminal Procedure, has only local application in the District of Columbia and other United States territories and insular unless general ion is manifestly Rule 54(c) -- ““Act of congress’ includes any act of Congress locally applicable to and in force in the District of Columbia, in Puerto Rico, ina territery or in an insular possession.” Where the intemal Revenme Cade of 1954 is concemed (Vol. 68A, Statutes at Large, p. 3), the legislation is in fact styled, “An Act” “To revise the internal reverme laws of the United States.” As demonstrated above, wages and other retums from enterprise af commian right are exempt from direct tax by fimdamental law, and the regulation for the current Intemal Reverme Code definition for “gross income” clearly articulates the fimdamental law exemption. The exemption as it pertains to the several States is demonstrated by referencing the Parallel Table of Authorities and Rules Gndex volume to the CFR, p. 751 ofthe 1995 edition): There are 26 CFR, Part | regulations listed for 26 USC §§ 61 & 62, the latter being the definition for adjusted gross income, but there is no 26 CFR, Part 1 or 3 regulation for 26 USC § 63, the definition for taxable income. While definitions for gross and adjusted gross imcome are clearly dent to the di of taxable income, they have no legal effect if there is no taxing authority —- adjusted gross income. which is not taxable within the several States is of no consequence where the federal tax system is concemed, Forther, on examination of 26 CFR_§ 1.62-1, pertaining to “adjusted gross income”, it is found that subsections. (@)& (b) ae reserved so the published regulation is incomplete, with “temporary” > regulation §1.62-1T serving as the current authority defining “adjusted gross income.” Temporary regulations have no legal effect. Definitions at § 3401, Vol. 68A of the Statutes at Large (the Internal Reverme Code of 1954), make it 301.7207-1 &301.7214-1, etc.). Officers and employees of the United States are specifically identified as being lable at 26 USC § 301.7214-1. ‘The matter of who is required'to register, apply for licenses, or otherwise collect and/ar pay taxes imposed by the Intemal Reverme Code is ultimately and finally put to rest under “Licensing and Registration”, 26 USC §§ 301.7001-1, et seq, Each of the categories so addressed has liability based on some particular taxing statute which creates liability. 8. The Necessity of Administrative Process The requirement for a specific taxing statute, with 26 USC § 6001 making statements, etc., located at 26 USC § 6001: Every person liable for any tax imposed by this title, or for the collection thereaf, shall keep such records, render such statements, make such returns, and\comply with such rules and regulations as the Secretary may fram time to time prescribe. Whenever inthe judgment of the Secretary it ismecessary, he may require any person, by notice served upon such person, or by regulations, tomake such retums, render such statements, or keep such records, as the Secretary deems sufficient to show whether or not such person is liable for tax under this title. The only recards which an employee shall be required’to keep under this section in conection with charged tips shall be charge receipts, records necessary to camply with section 6053(c), and copies of Statements furnished by employees under section 6053(a). ‘The control statute for Subtitle F, Chapter 61, Subchapter A, Part I, conceming records, statements, and special returns, clearly returns the matter to the “employee” defined at § 3401(c), and the “employer” defined at § 3401). in general, however, (1) the Secretary nmst provide direct notice to whomever is required to keep books, recards, etc., as being the “person liable,” ar (2) specify the person liable by regulation. In the absence cfnotice by the Secretary, based an a taxing statute which makes such a:person liable according to provisions Jode] shall be considered to impair any right, [including trial by jury], ar remedy, [***], to recover any intemal 27 CFR, Part 70:26 USC § 6212 Notice of deficiency No Regulation revere Stipulated in United States v, Commmmity TV, Inc., Hassett y. Weich, and other such cases, or regulations which tax alleged to have been eroncously or illegally assessed or ole . The venue of any such action 26 USC § 6213 Restrictions applicable to deficiencies, petition to Tax Court No Regulation 26 USC § 6303 shall be the same as under existing Jaw. specifically set establish general g Tiability, there isno iso liability. Notice and Demand for Tax 27 CFR, Part 53,70 26 USC § 6331 Levy and distraint 27 CFR, Part 70 Sec. 6001 also exempts“cuiployecs” ° Seen mecards except where tips and the like are concemed. This ‘The necessity of due process is implicitly preserved by 28 USC § 2463, which stipulates that ay seizure The assessment authority under 26 USC § 6201, inrelevant part as applicable to Subtitles A & C’taxes, under United States reverie laws will be deemed in the custody of the law and subject solely to di of is with Y rather employees” are required to file are 28 follows: (a) AUTHORITY OF SECRETARY. -- The Secretary is authorized’and required to make the courts of the United States with proper jurisdiction. In other words, even if IRS had legitimate authority in the Tefums, as opposed to paying deducted amounts as income me tax Tetums, constructively demonstrated in a previous quires, and of all taxes (inchidinginterest, ad itional amounts, ad to the tax, several States, the agency would of necessity have to file a civil or criminal complaint prior to gamishment, section of this ad assessable penalties) imposed by this title, or accruingunder any former intemal revenue law, which have seizure or any other action adversely affecting the life, liberty or property of any given person, whether a memorandum and specifically articulated in 26 CFR § 601.104. Clarification via 26 USC § 6053(a) is as follows: beem duly paid by stamp at the time and in the manner provided by law. Such authority shall extend toi and Fourteenth Amendment citizen-subject of the United States or a Citizen principal of one of the several States. (a) REPORTS BY EMPLOYEES. -- Every employee who, in the course of his employment by an employer, include the following: Due process assurances in the Fifth and Fourteenth Amendments do not equivocate -- administrative seizures receives in any calendar month tips which are wages (as defined in section 3121(a) or section 3401(a)) ar which (1) TAXES SHOWN ON RETURN. -- The secretary shall assess all taxes deteomined by the taxpayer ar by the without due process can be equated only to tyranny amd barbarian rule. Further, even regulationsgoveming IRS are compensation (as defined in section 3231(e)) shall eport all such tips im one or more written statements” Secretary as to which retums or lists are made under this title, to his employer on ar before the 10th day following such month. Such statements shail be furnished by conduct acknowledge and therefore preserve Fifth Amendment assurances at 26 CFR § 601.106(f)(1). fimished @)ERRONEOUS! INCOME TAX PREPAYMENT CREDITS. (1) Rule FT. An exaction by the U.S. Govémment, which is not based upon law, statutory or the employee under such regulations, at such other times before such 10th day, and im such fonn and manner, as otherwise, is a taking of property without die process of law, in violation of the Fifth Amendment to the U.S. may be prescribed by the Secretary. amount paid as esti the overstated which is Unraveling § 6001 straightens out the meaning of § 6011, which requires filing retums, statements, etc., by: Constitution. Accordingly, an Appeals representative in his or her conclusions of fact or application of the law, Tetum or which is cee credit or refimd mayy be be assessed by the Secretary im thesame manner as in the stall hew to the law and the recognized standards’ of legal construction. It shall be his or her daty to determine the person made liable (§ 3401(d)), as distinguished from the person required to make returns (payments) at § case of 2 mathematical or clerical error appearing upon the retum, except that the provisians of section the camect amount of the tax, with strict impartiality as between the taxpayer and the Goverment, and without 6012 (§ 3401(©). Even though a person might be a citizen or resident of the United States employed by an 6213(6)(2) (relating to abatement nent ofof mathematical ar clerical error assessments) shall not apply with regard to favoritism or discrimination as between taxpayers. agency of the United States, and thereby be required to return a prescribed amount af United States-source uy assessment under this paragraph. income, he is not the person l Even afficers, agents and employees of United Statles agencies are assured due process where : (6) AMOUNT NOT TO BE ASSESSED. -“method isconcemed (5'USC § 5520a), so the notion that IRS has anthority to execute ganmishment and other seizures via (1)) ESTIMATED INCOME TAX. -- No unpaid amount of estimated income tax required to be paid under the private sectar without due process is clearly absurd. In the English-American lineage, due process has always Section 6654 or 6655 shall be assessed. ‘been deemed to mean tial by jury under rules of the common law indigenous to the several States; the de jure (2) FEDERAL EMPLOYMENT TAX. -- No unpaid amount of Federal unemployment tax for any calendar people of America are not subject to admiralty or adiministrative tribunals. quarter or otlier period of a calendar year, computed as provided in section 6157, shall be assessed. Tnsum, the mandate for due process, meaning initiatives through judicial courts with proper jurisdiction, is clearly (@) DEFICIENCY PROCEEDINGS. -antecedent to imposition af administratively-issued liens, except where licensing agreements obligate assets, or For special rules applicable to deficiencies of income, estate, gift, and certain excise taxes, see subchapter B. seizures, whether by garnishment, attachment of bank aiccounts, administrative seizure and sale of real or private [emphasis added] property, or any other initiative that compromises life, liberty or property. ‘The grant uf assessment authority with respect to taxes prescribed in Subtitles A & C is limited 3, Current Intemal Revere Code & Intemal Revemme Code of 1939 Are Same toprovisions set out above even where the Service might have authority relating to those made liable for the tax, Consult26 USC§ §§ 7851 & 7852 toy verity that the Intemal Reverme Code of 1954, as amended in 1986 and i dat 26 USC § 3401(d). Clearly, retums made either by the agent of the United since, simply reorganized the Intemal Reveme Code off 1939. Read § 78520) & (©), then read the balance of §§ States agency requited to file a retum, or the Secretary, are to be evaluated mathematically, and errors are to be 7851 & 7852 for best comprehension. Regulations, or that there are no regulations published in the Federal Register, The following entries, or Nothing in [the Intemal Revere 292 -entries, are found: 26 USC § 6201 Assessment authority treated as clerical errors, nothing more. The Secretary has no authority to assess estimated ‘The importance of making this connection rests on the fact that the Intemal Reveme Code of 1939 was merely income tax (individval estimated mcome tax at § 6554; corporation estimated income tax at § 6655), or codification af the Public Salary Tax Act of 1939. There was no general imcome tax levied against the population unemployment tax ( § 6157). For all practical purposes, the trail ee ends here. at large in 1939 or since. The Public Salary Tax Actt of 1939, which in the Intemal Revenue Cade of 1939 9. The bmpossibility of Effective Contract/Election incorporated the Social Security tax activated after 1936, was premised on the notion that working for federal In order for there to be an opportunity for a nonresident alien of the United States (a Citizen of poveinmentis a privilege. Income and related taxes presicribed in Subtitles A & C of the current Intemal Reveme Necessity clear that, & 3401(@\(A)), “aresident of a contiguous country who enters and leaves the United States at frequent ane of the several States) to elect to be taxed or treated as a citizen or resident of the United States, one or the intervals...” is anouresident alien of the United States (citizens and residents af the several States included), md the exclusion fram “wages” extends even to citizens of the United States who provide services for employers hoe than the United States or an agency thereaf” (§ 3401(a)(8)(A)). ‘The Employer or Agent is Liable Volune 68A of the Statutes at Large, the Intemal Reveme Code of oe nukes itperfectly clear who is “liable” for payment of Subtitles:A & C taxes: SEC. 3504. ACTS TOBE PERFORMED BY AGENTS. Code have never been mandatory for: anyone other thin officers, agents and employees af the United States, as identified at 26 USC § 3401(¢), and agencies of the United States, identified at § 3401(d), particularized at 5 USE §§ 102 & 105. arbusiness” (performance of the fimctions of a public office (26 USC § 7701(a)(26)). A nonresident alien never The privilege tax is an excise rather than rect tax — the Sixteenth Amendment, fraudulently prommigated in basself-employment income (26 CFR § 1.1402(b)-1(@). In the event that a nonresident alien is an “employee” 1913, didnot alter ar repeal constitutional provisions which require all direct taxes to be apportioned among the (26USC §3401(0)), the “employer” (26 USC § 3401(@) is liable for collection and payment of income tax (26 * several States (Constitution, Article 1 §§ 2.3 & 9.4). In Eisner v. Macomber, 252'U.S. 189 (1918), Coppage v. CER § 1.1441-1). Andin order for real property to be treated as effectively comected with a United States trade Kansas, 236 US. 1, andrmmerous decisions since, the United States Supreme Court has repeatedly affirmed that other of a married couple, or the single “individual” making the election, mmst be a citizen or resident of the United States (26 USC §6013(g)(3)). Some party nmst in some way be comected with a “United States trade lengfir incase a fiduciary, agent, or other person has the control, receipt, custady, ar disposal of, or pays the wages of or business by way af election, it mst be located within the geographical United States (26 USC § 871(@). for purposes of income tax, wages’ and other retums from enterprise af common right are property, not income. * axemplayes or group of employees, employed by one or more employers, the Secretary of his delegate, under Provisions cited above preclude any and all legal anthority for Citizens of the several States, ar privately owned infact, retums from enterprise of common right are fimdamental to all property, and the sanctity is preserved as regulations prescribed by him, is authorized to designate such fiduciary, agent, or other person to'perform such «iterprise located in the several States, to participate in federal tax and benefits programs prescribed im Subtitles acts as are required by employers under this subtitle and asthe Secretary or his delegate may specify. Except A&C of the Intemal Revemme Code and companion legislation such as the Social Security Act which provide afondamental common law principle dating to signimg of the Magna Charta in 1215. ‘The sabre of Subtitles A & C taxes is revealed at 26 CFR § 31.310i-1: “The employee tax is measured s may be otherwise prescribed by the Secretary ar his delegate, all provisions of law (including penalties) benefits from the United States Government, which is a foreign corporation to the several States. by the amount of wages received after 1954 with respect to employment after 1936...” conical intespect to an. employer shail be applicable to a fiduciary, agent, or other person so designated, but, Summary& Conclusion Inother words, the wage is not the object, but memely the measure of the tax. This verbiage constitutes so except as so ee bs craployer for whom such fiduciary, agent, or other persan acts shall remain subject "This memorandum is not intended to be exhaustive, but merely sufficient to support causes set muchlegalese in an effort to circumvent the duck testt, but the fact that taxes collected by the Intemal Reveme: to theprovi in respect to empl out separately. The most conspicuous conchisions of law are that Congress never created a Bureau of tntemal Service fall into the excise category was confined by the Comptroller General’s report following the initial effort . liability isi farther clarified at Vol. 68A, Sec. 3402(8): Revemue, the predecessor of the Intemal Revemie Service; Subtitles A & C of the intemal Revenme Code to audit IRS (GAO/T-AIMD-93-3), It is further suggested at 26 CFR § 106.401(a)(2), where the regulation (@ TAX PAID BY RECIPIENT. ~ If the employer, in violation of the provisions of this chapter, fails to deduct prescribe excise taxes, mandatary only for employees: af United States Govemment agencies; the Internal cancedes that, “The descriptive tenns used in this secttian to designate the various classes of taxes are intended snd withhold the tax under this chapter, and thereafter the tax against which such tax may be credited is paid, the Reveme Service, within the geographical United States where the agency appears to have colorable. authority, only to indicate their general character...” 'axso required to be deducted and withheld shall not be collected from the employer, but this subsection shall is ito use judicial process prior to seizing or encumbering assets; and the law demonstrates that people By referencing the Parallel Table of Authorities and Rules, cited above, it is found that the definition of inno case relieve the employer from liability for any penalties or additions to the tax otherwise applicable in of the: several States, defined as nonresident aliens of the self-interested United States in the Internal Revemie “gross income” is still preserved in Section 22 af thie Intemal Reverme Code df 1939, thus cementing the link Tespect to such failure to deduct and withhold. Code, camnot legitimately elect to be taxed ar treated as citizens or residents of the United States. Ifa Citizen between the Code of 1939 and Subtitles A & C of the Code of 1954, as amended in 1986 and since. The Intemal ‘These provisions fram Vol. 68A of the Statutes at Large comply with and verify liability set ont at 26 CFR, of one of the several States works for an of the United States or receives income froma United States Reverme Code of 1939 merely codified the Public Salary Tax Act of 1939. This link is further confirmed in Part 60], Subpart D in general. Further, territorial limits af application are made clear by the absence of “trade or business” ar otherwise effectively connected with the United States, the employer or other third party Senate Commitice On Finance and Honsé Committee (On Ways and Means reports an H.R. 8300 (1954, internal regulations supporting 26 USC §§ 7621, 7802, etc., which are the statutes authorizing establishment of intemal Tesponsible far payment is made liable for withholding taxes at the rate of 30% or 14%, depending on § 61 of the Intemal Revemme Code of revenue districts and delegations of authority to the Commissioner of Interual Reverme' and assistants. The fact classification, and is thus “the person liable” and may be subjectto intemal Reveme Service initiatives, with Reveme Code), in which § 22 of the Intemal Revermue Code af 1939 and 1954 (current code) were solidly linked. Both reportts stipulate that the current definition of “gross income” is that the liability falls to the “employer” (26 USC § 3401(d)) and/or his agent, with no compensation for serving administrative. initiatives where seize and/or encumbrance actions are concemed, subject to judicial intended to be constitutional. 48 “tax collector,” narrows the field to federal govenunent entities as “employers” if for no other reason than the determinations by courts of competent jurisdiction. ‘This intent is articulated at 26 CFR § 1.61-1(a): “Grossincome means Cea source derived, populationat large is not subject to the edict of gavernment officials. As'a matter of course, government cannot | Underpenalties of perjury, per 28 USC § 1746(1), I attest that to the best of my knowledge and understanding, eee where the is d. The subject class that has “liability” for Subtitles all matters of law and fact presented herein are accurate and tre. An “Act of Congress” is policy, not law, and per (definition located m Rule 54, Federal Rules of Criminal 4 A & Ct taxes is the “employer” or his agent, fiduciary, etc., as specified above. will be dto cx ‘with pr necessary to establish ‘Procecire, has only local application in the District off Columbia and other United States territories and insnlar ‘The matter is further clarified in Sections 3403 & 3404 of Vol. 68A, Statutes at Large: fact Rule 301, Federal Rules of Civil Procedure, and attending State mules) should interested parties fail to rebut possessions unless general application is manifestly expressed: Rule 54(c) — ““Act of congress’ incindes any act SEC. 3403, LIABILITY FOR TAX. The employer shall be liable for the payment of the tax required to be any given allegation or matter of law addressed herein. The position will be constmed as adequate to meet of Congress locally applicable to SR af Columbia, in Puerto Rico, ina territory or in an significant, supparting published Parallel application 26USC PREPAYMENT contacting Liberty Township at 8850S. 700:E., Suite 811, Sandy, Utah PZ 84047. ‘The memorandum addresses AMOUNT (a) When used in the regulations in this subpart, the term “State” inclndes the District of Columbia, the suggests that the Secretary exercised his authority as trustee of Puerto Rico Trust #62 (Intemmal Reveme) (see Commonwealth of Puerto Rico, the Virgin Islands, the Territories of Alaska and Hawaii before their admission 31 USC§ 1321), and as will be demonstrated, the Secretary does, in fact, operate as Secretary of the Treasury, as States, and (when used with respect to services performed after 1960) Guam and American Samoa. (>) When used in theregnlations in this subpart, the term “United States”, when used Puerto Rico. in a geographical sense, ‘The solid link between the Internal Reveme Service and the Department of the Treasury, Puerto Rico, was first means the several states (including the Teritaries af Alaska and Hawaii before their admission as States), the District of Cohunbia, the Commonwealth of Puerto Rico, and the Virgin Islands. When used in the regulations inthis subpart with respect to services performed after 1960, the term “United States” also ihcludes Guam and ‘American Samoa when the term is used in a geographical sense. The term “citizen of the United States” includes’ acitizen of the Commonwealth of Puerto Rico or the Virgin Islands, and, effective Jamary 1, 1961, a citizenof publishedin the September 1995 issue of Veritas Magazine, based on research by William Cooper and Wayne Bentson, both of Arizona. In October, a criminal complaint was filed in the affice af W. A. Drew Edmondson, ltomey general for Oklahoma, against an Enid-based reveme officer, and in the time since, IRS principals have fuiled to refute the allegation that IRS is an agency of the Department of Treasury, Puerto Rico. In November, criminal complaints were filed sinmltancously with the grand jury for the United States district court for the Goam ar American Samoa. District of Nathem Oklahoma, Tulsa, and the affice af Attomey General Edmondson, and both the office of the Definition of the terms “‘inciudes” and “including” located at 26 USC § 7701(c) provides the limiting authority UnitedStates Attomey and IRS principals have yet to rebut the allegations in that mstance (UNITED STATES ’ OF AMERICA vs. Kenney F. Moore, et al, 95 CR-129C). The exemption as it pertains to the several Sitates is’(oe ee the Parallel Table of Authorities and Rules (Index volume to the CFR, jp. 751 of the 1995 edition): There are 26 CFR, Part 1 regulations listed for 26 USC §§ 61 & 62, the latter being the definition for adjusted gross income, but there is no 26-CFR, Part | or 31 regulation for 26 USC § 63,, the definition for taxable incame. While definitions for gross and adjusted grossi income are clearly antecedent to the definition of taxable income, they have no legal effect if there is no taxing authority —-adjusted gross income which is not taxable within the several States is of no consequence where: the federal tax system is concerned: Further, on examination of 26 CFR § 1.62-1, pertainimg to “adjusted gross income”, it is found that subsections (@) & @) aereserved so the published regulation is imcomplete, with “temporary” regulation§ 1.62-1T serving as the current authority defining “adjusted gross income.” Temporary regulations have no legal effect. Definitions at § 3401, Vol. 68A of the Statutes at ‘Large (the Internal Revere Code of 1954), make it clear that, (§ 3401(a)(A)),“a resident ofa contiguous country who enters and leaves the United States at frequent intervals...” is anonresident alien of the United States ((citizens and residents of the several States inchided), and the exclusion fram “wages” extends even to citizens: af the United States who provide services for employers “other than the United States or an agency thereat” (§ S401@K)(A))._ which the above definitions, beyond constructive application, are subject to: 4. The Employer or Agent is Liable (ce) INCLUDES AND INCLUDING. -- The tenms “inchides” and “including” when used in a Bycomsulting the index for Chapter 3, Title 31 of the United States Code, one finds that IRS and the Buredu of Volume 68A of the Statutes at Large, tec inte reves Code of 1954, makes it definition contained in this title shall not be deemed to exclude other things otherwise within the meaning of the Alcohol, Tobacco and Firearms are not listed’as agencies of the United States Department of the ‘Treasury. The perfectly Clear who isi “liable” for payment of Subtitles A & C taxes: fact that Congress never created a “Bureau of Intemal Revere” is confirmed by publication in the Federal tem defined. SEC. 3504. ACTS TO BE; PERFORMED BY AGENTS. Registerat 36 FR. 849-890 [C.B. 197]- 1,698], 36 F.R. 11946 [C.B. 1971- 2,577], and 37 F.R. 489-496; and ‘Two pnnciples of law clarify definition intent: (1)' The example represents the. class, and (2) that which isnot Incase a fiduciary, agent, or other person has the control, receipt, custody, ar disposal af, or pays the wages of namedis tended to be «mitted. In the definition of “United States” and “State” set out above, all examples are in intemal Reverme Mammal 1100 at 1111.2. avemployee or group of employees, sarap ‘One OF more employers, the Secretary of'his delegate, under a are condemning both to IRS and third ceed who knowingly participate im | IRS-initiated of federal States, and are exctusive of the several States,with the transition of Alaska and Hawaiifrom the d by him, is fe Sich fidiciary, agent, or other person to perform such Tesides in or from anoffice which was not legitimately created and/or incinded to the excluded class proving’ the point: This isremforced by the absence of le gets as:are. required by employers under Pe acer and as the Secretary or his delegate may specify. Except eral coneetote cartes alata coal ‘See’ variously, United States which extend authority to establish revere: districts in the several States (26 USC § 7621), antharity for the cardio cing aie ae AS may be otherwise prescribed by the Secretary ci his delegate, all provisions of Jaw (ncliding penalties) 113. U.S. 425, 441, 6 S.Ct. 1121 (1866), ete., daeaag dats Department of the Treasury [Puerto Rico] in the several States (26 USC § 7801), and no grant of delegated Gemmane, 99 U.S. 508 (1879), Nortonv. applicable inrespect to an employer shall be: applicable to a fiduciary, agent, or other person so designated, but, 1006, 1009 (6th Cir. 1943); where the state is concemed, the most recent suthority for the Commissioner of Intemal Revenue, assistant commissioners, or other Department cf the Treasury to Pope v. Commissioner, 138 F.2d1¢ except as so ee employer for wham such fiduciary, agent, or other person acts shail remain subject corre: decision was State y. Pinckney, 276 N.W.2d 433, 436 (awa 1979). personnel (26 USC § 7802 & 7803). to the: pr icalble in respect ta ‘employ Another direct evidence af the fraud is found at 27 CFR. § 1, which prescribes te eee te The liab S. Lack of) ions General Application of Tax Here again, the Parallel Table of Authorities and oe at Vol. 68A, Sec. 3402@: i pants under the Federal Alcohol Administration Act. The problem here is that Congress pronmilgated Rulesis useful as it demonstrates that Subtitles A & C taxes do not have general application within the several scoumug (@TAX PAID BY RECIPIENT. -- If the employer, in violation of the provisions of this chapter, fails to deduct States and to the population at lange. The regulation for 26 USC § 1 refers to 26 CFR § 301, but that amounts the Act in 1935, and the same year, the United States Supreme Court declared the Act unconstitutional. and wathhold the tax under this‘ chapter, and thereafter the tax against which suck tax may be credited is paid, the toa dead end -- there is no regulation under 26 CFR, Part 1 or 31 which would apply to the several States and Administration of the Act was subsequently moved offshore to Puerto Rico, along with the Federal Alcohol taxso required to be deducted and withheld shall not be collected from the employer, but this subsection shall. the Population at large: Farther, there are no supportive regulations at all for 26 USC §§ 2 & 3, and of Administration, and operation eventually merged with the Burean of Intemal Reveme, Puerto Rico; which until inno case relieve the employer from liability foramy penalties or additions to the tax otherwise applicable in HOT Supporting corp income tax, 26 USC § 11, as applicable to the 1938, along with the Bureau of Intemal Reveme, Philippines, created by the Philippines provisional eovernment Tespect to, such failure to deduct and withhold. seven States. : via Philippines Trust #2 Gntemal revere) (see 31 USC § 1321 for listing of.Philippines ‘Trust #2: Gintemal ‘These provisions from Vol. 68A of the Statutes at Large comply with and verify liability set ont at 26 CFR, Where the instant matter is cancemed, regulations supporting 26 USC § 6321, liens for taxes, and§ 6331, revenue), administered the China Trade Act Gicensing 8& TEVEHIEcollection relating to opium, cocaine & citric Part 601, Subpart D im general, Further, territorial limits of application are made’ clear by the absence of levy aad distraint, are under 27 CFR, Part 70. The importance here is that Title 27 of the Code of Federal wines). This line will be resumed after ing IRS. and’ C iS i of Supporting 26 USC §§ 7621, 7802, etc., witich are the statutes establishment of intemal Regulations is exclusively under Burean of Alcohol, Tobacco! and Firearms administration for Subtitle E and intemal Revemse authority. reveme districts and delegations of authority to the Ciommmissioner of Intemal Reveme and assistants. The fact related taxes; There: are no comesponding regulations for the Intemmal Reveme Service, im 26 CFR, Part 1 or 31, Further verification that IRS does not have lawful! authority in the several States is found in the Parallel Table ttat the liability falls to the “employer” (26 USC § 34(01(@)) and/or his agent, with no compensation for serving witich extend comparable authority to the several States and the population at large: of Authorities and Rules, beginning on page 751 of the 1995 Index volume to the Code of Federal Regulations. as“tax collector,” narrows the field to federal government entities as “employers” if for no isthe aan ‘Thenecessity of ‘being published!im the Federal Register is variously prescribed im the Administrative twill be found that there are no regulations supportive af 26 USC §§ 7621, 7801, 7802 & 7803 (these stamte population at large is not subject to the edict of government officials. As a matter of course, 2 Procedures Act, at 5 USC § 552 et seq,, and the Federal Register Act, at 44 USC § 1501 et seq, Of particular listings are absent from the table). In other words, no regulations have been published in the Federal Register, compel pefannance where the general population is concemed. The subject class:that has Tiahilag? fx Subtates note, it is specifically set out at 44 USC § 150S(a), that when regulations are not published in the Federal extending authority to the several States and the population at large, (1) to establish reverme districts within the A & C taxes is the “employer” of his agent, fiduciary, etc., as specified above. Register, application of any given statute is:exclusively to agencies af the United States and officers, agents and seyeral States, (2) extending anthority of the Department of the Treasury [Puerto Rico] ta the several States, (3) ‘The matter isfirther clarified in Sections 3403 & 3404 of Vol. 68A, Statutes at Large: employees of the United States, thus once again confirming application of Subtitles A é C tax demonstrated giving authority to the Conmissioner of Intemal Revemme and assistants within the several States, or (4) extending SEC. 3403. LIABILITY FOR TAX. The employer shall be liable for the payment af the tax required to be above. Further, the need far regulations is detailed m 1 CFR, a 1, qnd where the Intemal Reveme Service’ authority of any other Department of Treasury persamel to the several States. deducted and withheld under this chapter, and shall not be liable to any person for the amount of any such is concemed, 26 CER § 601.702. Authority oft the Internal Revemme Service, via the Commissioner of Internal Revemie, is convoluted in payment. ‘The need for regulations has repeatedly been affirmed by the Supreme Court of the United States, as ‘Tegolations, but makes an amount of sense by citing various regulations to the Service and application SEC. 3404. RETURN AND PAYMENT BY GOVERNMENTAL EMPLOYER. stated in Califomia Bankers Ass’n: v. Sciuiltz, 416 US. 21, 26, 94 S.Ct. 1494, 1500, 39 L-Bd.2d'812 (1974): of the Commissioner’s authority. General procedural miles at 26 CFR § 601.101(a) provide a beginning-point: F the employer is the United States, ar a'State, Teuritory, or political subdivision thereof, or theDistrict of “Because it ins a bearing on our treatment of same of the issues raised by the parties, ‘we think it important to (@) General. The intemal Reveme Service is a bureau of the Department of the Treasury under the immediate Columbia, or any agency or instrumentality of any one ar:more of the foregoing, the retum. of the amount deducted note: that the Act’s civil and criminal penalties attach only upon violation of regul: d by the direction of theC of Intemal Revere. The Commissioner has general superintendence of the and withheld upon any wages may be made by any afficer ar employce of the United States, or of such State, Sceretary; if the Secretary were to do nothing, the Act itself would impose no penalties on anyone.” assessment and collection of all taxes imposed by any law providing intemal reverse. The Intemal Revemme: Territory, or political subdivision, or of the District of Columbia, or of such agency or istrumentality, as the case Because there is a citation supporting these statutes’ applicable under Title 27 of the Code of Federal Service is the agency by which these fimctions are performed... may be, having control of the payment of such wages, Gr appropriately designated far that purpose. itis important to point ont that, “Each agency shall publish its own regulations in full text,” (1 CFR. The fact that there are no regulations extending Commissioner of Intemal Reveme, or Department of the The territorial application, and limitation, is made clear by definitions in Title 26 of the Code: of Federal § 21.21(¢)), with further verification that one agency cannot use regulations prommlgated by another at 1CFR. ‘Treasury authadity to the several States (26 USC § 7802(a)), has greater clarity in the light of the general merging hegulations, as‘follows: § 31.3121(3)-1 State, United States, and citizen. $21.40; To date, no comesponding regulation has been found for 26 CFR, Part 1 or 31, so until proven otherwise, of fimetions between IRS and other agencies presently attached to the of the Treasury. The @) When used in the regulations’ in this subpart, the term “State” includes the District of Columbia, the IRS docs not have authority to perfect liens or prosecute seizures in the several be as pertaining to the Commissioner is given responsibility for issuing miles and regulations for the Code at 26 CFR § 301.7805-1, with Commonwealth of Puerto Rico, the Virgin Islands, the: Territories of Alaska and Hawaii before their admission population at large. approval of the Secretary, but there are no cites of authority for this CFR subpart, whether Treasury Order, States, and (when used with respect to services performed after 1960) Guam and American Samoa, 6, Misapplication of Authority publication imthe Federal Register, ar even statute cite. In other wards, there is no actual or effective delegation 0) When used in the regulations in this subpart, the term “United States”, when used in geographical sense, Regulations pertaining to seized property are found at 26 CFR§ 601.326: which vests the Commissioner with significant mdependent authority which might be conveyed to IRS, BATF, means the several states (including the: Territaries af ‘Alaska . and Hawaii before their admission as States), the ’ Part 72 of Title 27 CFR contains the regulations relative to the personal property seized by Customs or any other Department of the Treasury agency with respect to powers extending to ar affecting the District of Cohunbia, the Commonwealth of Puerto Rico, and the Virgin Islands. When used in the regulations officers of the Intemal' Revere: Service or the Bureau of Alcohol, Tobacco and Firearms as subject ta forfeiture several States and the population at large. inthis subpart with respect to services performes after 1960, the term“United States” also includes Guant and as being used, or intended to be used, to violate certaim Federal Laws; the remission or mitigation’of such ‘The link between IRS and the Bureau of Aicohol, Tobacco and Fireanns is significant as the tie with the “American Samoa when the term is used in a geographical sense. The term “citizen of the United States” includes forfeiture; and the administrative sale or other disposition, pursuant to forfeiture, of such seized property other Barean of intemal Reverme, Department of the Treasury, Puerto Rico, is through this door.Reorganization Plan acitizen of the Commonwealth of Puerto Rico or the Wirgin Islands, and, effective Jamary 1, 1961, a citizen'of thanfireamms seized under the National Firearms Act and firearms and ammunition seized under title 1 of the Gun No. 3) af 1940, Section 2, made the following change: Guam or American Samoa. Control Act of 1968. For disposal of firearms and ammmumition under Title 1 of the Gum Control Act-of 1968, see § 2. Federal Alcohol Administration The Federal Alcohol Administration, the offices of the members thereof, Definition of the terms “includes” and “including” located at 26 USC § 7701(c) provides the limiting uthority 18 ULS.C. 924(@). For disposal of explosives under Title XI of Organized Crime Control! Act af 1970, see 18 and the office of the Administrator are abolished, and their function shall be administered under the: direction and which the above definitions, beyond constructive application, are subject to: USC. $44(c). / supervision of the ey of the: ey through the Bureau of Intemal Reveme in the Department of the © INCLUDES AND INCLUDING:— The terms “inchides” and’“inclading” when used in a definition ‘The only other comparable authority tins far found pertains to windfall profits tax on petroleum: Treasury: ' contained’ in this title shail not be deemed to exchnde other things otherwise within the meaning of the tern (26CFR. § 601.405); but ance again, application is not supported by regulations applicable: to the several States Again, the Federal Alcohol A Act of 1935 was declared dined! Two of law clarify defini intent: (1) The example represents the class, and (2) that which and the population at large. in 1935, and the operation thereafter transfered aff shore’ to Puerto Rico. The name of the Bureau of intemal is not named is intended to be omitted. in the defimition of “United States” and:“‘State” set out above, all Where the mandate for filing 1040 retums is concemed, the only regulatory reference ‘presently known is Revenue was changed to the intemal Reveme Service in 1953 (cite above), then the Bureau of Alcohol, Tobacco camples are of federal States, and are exclusive of the: several States, with the transition af Alaska and Hawaii at 26 CFR. § 601.401(d)(4), and this application appears related to “employees” wha work for two or more and Fireamns, a division of the Internal Revenme Service, was seemingly aeitee eS (T.O. 120-01, June fiom the included to the excluded’ class proving the: point. This conclusion is reinforced. by the absence af “employers”, receiving foreign-eamed income: effectively comnected! to the United States. The: mandate is 6, 1972). Inrelevant part, the order reads as follows: mgalations which extend authority to establish xevemne. Glistricts im the several States (26 USC § 7621), authority mentioned in instructions applicable to United States citizens and residents of the: Virgin Islands, but to date has 1. The purpose of this order is to fu: the Department af the Treasury [Puerto Rico] in the several States 26 USC § 7801), and no grant of eee ee ee ASSESSED. ESTIMATED INCOME 6654 FEDERAL EMPLOYMENT fact styled, “An Act” “To revise the internal revere laws of the United States. if the employer is the United States, or a State, Territory, or political subdivision titereaf, or the District of the: character of the Intemal Reveme Service and other agencies of the Department of the Treasury, and legal As demonstrated above, wages and other retumms from enterprise af common right are exempt from direct Cohmbia, or any agency ori of any one or more of the foregoing, the retam of the amount deducted application of the Intemal Reveme Code. tax by fimdamental law, and the regulation for the cumrent imemal Revenue Cade definition for “gross income” and withheld upon suy wages may be made by any afficer or employee of the United States, or of such State, 1. IRS Identity & Principal of Interest clearly articulates the fimdamental Jaw exemption. ‘Tesxitory, of political subdivision, or of the District of Columbia, or of such agency or instramentality, as the case. In 1953, the Internal Reveme Service was created by the stroke of a pen when the Secretary af the Treasury d the name of the Bureaw of intemal Revemme (T.O. No. 150-29, G. M. Humphrey, of the may be, having control of the payment of such wages, or appropriately designated for that purpose. The territorial application, and limitation, is made clear by definitions in Title 26 of the Code of Federal ‘Treasury, July9, 1953), However, no congressional or presidential authorization for making this change has been » located, so the source of authority had to originate elsewhere. Research to witich IRS officials have acquiesced Regulations, as follows: § 31.3121(3)-1 State, United States, and citizen. retum subtitle deducted and withheld under this chapter, and shall not be liable to anypersén for the amount of any such requirements of judicial notice, thns preserving fundamental law. Matters addressed herein, if not rebutted, will insular possession.” payment. be construed to have general application. A true and correct copy af this Public Notice may be inspected by Where the Intemal Revere Code of 1954 is concenned (Vol. 68A, Statutes at Large, p. 3), the legislation is in SEC. 3404. RETURN AND PAYMENT BY GOVERNMENTAL EMPLOYER. PAGE 8 ea Government. Hassett v. Welch, 303 U.S. 303, 58 S.Ct. 559, 82 L.Bd'858. In other words, to the point Service personnel produce the statute which mandates a certain tax and which Specifies,“... the transaction, service, or abject ta be taxed...” the burden af proof lies with the Govermnent, with the consequence being that no obligation or civil or criminal liability can ensue to the point a taxing stamte that meets the above requirements is in evidence. ‘This conclusion is supported by the statute which provides the underlymg requirements for keeping records, Wages) ” The person liable is the employer or the employers, agent, and of particul itis this “person” who is' subject to civil and particularly criminal penalties (26 CFR § 301.7513-1(f); 26 CFR §§ required unemployment eens authority limited retums Tequired pees opportunity Citizen citizen “individnal” citizen trade self-employment nonresident CFR ao aPeee A&C benefits thee “tade Tesponsible employer withholding eae presented This is a paid announcement and not to be construed as a reflection of the editorial policy of the Beaver County Monitor PUBLIC NOTICE AFFIDAVIT Notice hereby given any person participating plunder any deplorable confiscating personal properties individual members Fraternity Preparation commonly know Vance Springs on 28 day September 1996 added defendant Federal law “IN THE UNITED STATES DISTRICT COURT FOR THE DISTRICT OF UTAH CENTRAL DIVISION” Case No. 2:96 CV-0675-B pending against on August 1996, administrating officers Beaver County. Signed and Notarized under _26USC penalty perjury 18th day September, 1996. Govern yourselves accordingly. insofar distraint, Be ae ee steerer production Chairman examination th even demonstrates the operating NOT ARY : OGDEN W ERAUT Wiasmead Commins andi NO ees Storetory of: Legal Administrator for Fraternity of Preparation Regulations, SALT comesponding PU SEO en cot CH UA Sax0 Leas econds, ecsed) cone firearms: ee PUBLIC. NOTICE September 1996 PLEA FOR HELP from TONY HAMILTON dispasal enacts AMO), Planters tubers listed oe opposed memorandum EMPLOYEES. samender Th instrament Ditionary, Unraveling meaning requires seizure repugnant colby known Depends REMEDIES: and(2) September 1996. and Pupose Commumity ~~ petitioner Tony Hamilton hereby requests any participant willing come Vance Springs, Utah and participate harvest may reap portion bounty harvest which potato crop on property known Vance Springs, Utah. Ne imposed deemed Farming Steward and General Farming Agent The Fraternity Preparation Vance Spring, Utah The petition hereby comes request help harvesting potato crop has been planted and need harvest. The harvest commence on 28th day G 4 Hewebl ——~Hamilton |
