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Show Bearer County Monitor SEPTEMBER 27, 1996 (Public Notice continued from page 5) ‘The importance of making this comnection rests on the fact that the Intemal Revemme Code of 1939 was merely codification of 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, which in the Intemal Reverme Code of 1939 incorporated the Social Security tax activated after 1936, was premised on the notion that working for federal governmentis a privilege. Income and related taxes prescribedm Subtitles A & C of the corrent Intemal Reveme Code have never been mandatory for anyone other than officers, agents and employees of the United States, as identified at 26 USC § 3401(c), and agencies of the United States, identifiedat § 3401(d), particularized at 5’ USC §§ 102 & 105. PAGE 6 Wages)...” The person liable is the employer or the employers, agent, and of particular significance, it is this venue of any such action shall be the same as under existing law. “person” who is subject to civil and particularly criminal penalties (26 CFR § 301.7513-1(f); 26 CER §§ The reorganization plans of 1950 & 1952 were implemented via the Internal Revere Code of 1954, 301.7207-1 & 301.7214-1, etc.). Officers and employees of the United States arc specifically identified as being Volume 68A of the Statutes al Large, and codified as title 26 of the United States Code. Savings statutes have liable at 26 USC § 301.7214-1. been in place since the beginning, but generally not di eae ulation or the legal p The matter of who is required to register, apply for licenses, or otherwise collect and/or pay taxes imposed The statute set out above is easier to comp en Midated. Further, thed a by the intemal Reveme Code is ultimately and finally put to rest under “Licensing and Registration”, 26 USC clause “including trial by jury” relates to a constitutionally-assured nae not a remedy, so it should be - moved §§ 301.7001-1, et seq. Each of the categories so addressed has liability based on some particular taxing statute tothe proper location in the sentence. Finally, the matter of verme is important as “existing law” is constitutional which creates liability. : : andcommon law indigenous to the several States. In the absence of legitimate federal Jaw which extends to the 8, The Necessity of Administrative Process The requirement for a specific taxing stamte, with 26 USC § 6001 several States, those who operate under color of law, engage in oppression, extortion, etc., are subject to the clearly providing the first leg in necessary admmnistrative procedure to determine liability, was addressed at foundation law of the States. Verme is determmed by the law of legislative jurisdiction. oa Tetums, length in Rodignez v. United States, 629 F.Supp!333 (N.D.Ill. 1986). Presuming (1) the Secretary has provided Citing “inchiding trial by jury” preserves the full slate of due process rights included m Fourth, Fifth, Sixth, in 1913, did not alter or repeal constitutional provisions which require all direct taxes to be apportioned among the necessary notice, or (2) a repulation prescribes general application which makes any given person liable for Seventh and Fourteenth Amendments to the Constitution for the united States of America and corresponding the several States (Constitution, Article 1 §§ 2.3 & 9.4). In Eisner v, Macomber, 252 U.S. 189 (1918), Coppage a tax and requires tax retum statements to be filed, cach: step im administrative process prescribed by 26 USC provisions in constitutions of the several States. The example represents the class. ‘The privilege tax is an excise rather than direct tax -- the Sixteenth Amendment, Granny Prommigated vy. Kansas, 236 U.S. 1, and numerous decisions since, the United States Supreme Court has repeatedly affirmed that for purposes of income tax, wages and other retums from enterprise of common right are property, not income. In fact, retums from enterprise of common right are fimdamental to all property, and the sanctity is §§ 6201, 6212, 6213, 6303 and 6331 must 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), Here again, regulations published in the Federal Register are significant, with provisions of 5 USC § 552 et seq., unlike § 7433, does not presume that the complaining patty is a “taxpayer”. Finally, there is 26 CFR, Part 1 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 in the Federal Register in support of § preserved as 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 (sce Parallel Table of Authorities and Rules, beginning on page 751 af the Index volume to the Code of Subtitles A & C taxes is revealed at 26 CFR § 31:3101-1: “The employee tax is measured by the amount of Parallel Table of Authorities and Rules, beginning an page 751 of the 1995 Index volume to the Code of Federal Federal Regulations). Therefore, § 7804(b) preserves rights and determines the nature of civil actions for Regulations, that application by regulation to the several States is only under Title 27 of the Code of Federal remedies in the several States. When straightened out, applicable portions of § 7804(b) read as follows: wages received after 1954 with respect to employment after 1936...” tn other words, the wage is not the object, but merely the measure of the tax. This verbiage constitutes Regulations, or that there are no regulations published in the Federal Register. The following entries, or Nothing in [the Intemal Revemue Zode] shall be considered to impair any right, [including trial! by jury], or remedy, [**"], to recover any internal so much legalese in an effortto circumvent the duck test, but the fact that taxes collected by the Intemal Reveme non-entries, are found: Service fall into the excise ‘was confirmed by the Comptroller General’s report following the initial effort 26 USC § 6201 Assessment authority 27 CFR, Part 70 26 USC § 6212 Notice of deficiency No Regulation reveme tax alleged to have been erroneously or illegally assessed or collected ... The verme of any such action to audit IRS (GAO/T-AIMD-93-3). It is further suggested at 26 CFR § 106.401{a)(2), where the regulation 26 USC § 6213 Restrictions applicable to deficiencies; petition to Tax Court No Regulation 26 USC § 6303 suall be the same as under existing law. 26 USC § 6331 Levy and distraint 27 CFR, Part 70 The necessity of due process is implicitly preserved by 28 USC § 2463, which stipulates that amy seizure ‘concedes that, “The descriptive terms used in this section to designate the various classes of taxes are intended Notice and Demand for Tax 27 CFR, Part 53,70 The assessment authority under 26 USC § 6201, in relevant part as applicable to Subtitles A & C taxes, under United States reverme laws will be deemed in the custody af the law and subject solely to di only to indicate their general character...” By referencing the Parallel Table of Authorities and Rules, cited above, it is found that the definition of are as follows: (@) AUTHORITY OF SECRETARY. -- The Secretary is suthorized and required to make the courts of the United States with proper jurisdiction. In other words, even if IRS had legitimate authority im the and of all taxes (inchading interest, additional amounts, additions to the tax, several States, the agency would of necessity have to fille a civil or criminal complaint prior to gamishment, “gross income” is still preserved in Section 22 of the Intemal Reveme Code of 1939, thus cementing the link inquires, between the Code of 1939 and Subtitles A & C of the Code of 1954, as amended in.1986 and since. The Intemal. and assessable penalties) imposed by this title, or accruing under any former intemal reverme law, which have seizure or any other action adversely affecting the life, liberty or property of any given person, whether a Reveme Code of 1939 merely codified the Public Salary Tax Act.of 1939. This link is further confirmed in been duly paid by stamp at the time and in the mammer provided by law. Such authority shall extend to and Fourteenth Amendment citizen-subject of the United States or a Citizen principal of one af the several States. Due process assurances in the Fifth and Fourteenth Amendments do not equivocate -- administrative seizures Senate Conmittee On Finance and House Committee On Ways and Means reports on H.R. 8300 (1954, Internal incinde the following: due process can be equated only to tyramy and barbarian mule. Further, even regulations governing IRS Revesme Code), in which § 22 of the Intemal Reverme Code of 1939 and§ 61 of the Intemmal Revemie Code of (1) TAXES SHOWN ON RETURN. -- The secretary shall assess all taxes detemmined by the taxpayer or by the ‘without conduct acknowledge and therefore preserve Fifth Amendment assurances at 26 CFR: § 601.106(f)(1). 1954 (current code) were solidly linked. Both reports stipulate that the current definition of “gross mcome” is Secretary as to which retumas or lists are made under this title. (3) ERRONEOUS INCOME TAX PREPAYMENT CREDITS: -- If on any retum or claim for refund of income (1) Rule I. An exaction by the U'S. Gowemment, which is not based upon law, statutory or intended to be constitutional, taxes under subtitle A there is an overstatement of the credit for i ome tax withheld at at the source. ror ofof the otherwise, i is a taking of property without due process off law, in violation of the Fifth Amendment to the U.S. ‘This intent is articulated at 26 CFR § 1.61-1(a): “Gross income means all income from whatever source ae amount amount paid as as estimated esti in income tax, the the ‘amount amoun § $0 overstated which is allowed ‘against agai the the tax shown on the ct A dingly, an Appeals rep ive in his or her ‘Iusians of fact or application of the law, unless excluded by law.” shall hew to the law and the recognized standards of legal! construction. It shall be his or her duty to determine An“Act of Congress” is policy, not law, and per definition located in Rule 54, Federal Rules of Criminal reum case ‘of mathematical a or clerical emor ap ag upon the retum, except that the provisions of the correct amount of the tax, with strict impartiality as between the taxpayer and the Government, and without Procedure, has anly local Laas in the District of Columbia and other United States territories and insular teal or clerical error assessmenits) shall not’ ‘apply with regard to favoritism or discrimination as between taxpayers. unless general ih d: Rule 54(c) -- “*Act of congress’ inchides any act 6213(b)(2) (relating to abatement of any assessment under this p: Even officers, agents and employees of United States agencies are assured due process where gamishment of Congress locally applicable to atsin force in the District of Columbia, in Puerto Rico, in a territory or in an (b) AMOUNT NOT TO BE ASSESSED. is concemed (5 USC § 5520a), so the notion that IRS has auithority to execute gamishment and other seizures via insular possession.” Where the Intemal Revemie Code of 1954 is concemed (Vol. 68A, Statutes at Lange, p. 3), the legislation is in (1) ESTIMATED INCOME TAX. -- No unpaid amount of estimated income tax required to be paid under the private sector 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 trial by jury under rules of the common law indigenous to the several States; the de jure fact styled, “An Act” “To revise the mtemal reveme laws of the United States.” tax for any calendar people of America are not subject to admiralty or administrative tribunals. As demonstrated above, wages and other retums from enterprise of common right are exempt from direct (2) FEDERAL EMPLOYMENT TAX. -- No unpaid amount of Federal unemployment or other period of a calendar year, campnted as provided in section section 6157, shall be assessed. Insum, the mandate for due process, meaning initiatives through judicial courts with proper jurisdiction, is clearly tax by fimdamental law, and the regulation for the current Internal Reverme Code definition for “gross imcome” quarter (d) DEFICIENCY PR‘ NGS, -antecedentto imposition of administratively-issued liens, except where licensing agreements obligate assets, ar Glearly articulates the fundamental law exemption. ‘The exemption as it pertains to the several States is demonstrated by referencing the Parallel Table of Authorities For special rules applicable to deficiencies of income, estate, gift, and certain excise taxes, see subchapter B. sciaires, whether by gantishment, attachment of bank accounts, administrative seizure and sale of real or private property, or any other initiative that compromises life, liberty or property. and Rules (index volume to the CFR, p. 751 of the 1995 edition): There are 26 CFR, Part 1 regulations listed (enuphasis added] ‘The grant of assessment authority with respect to taxes prescribed in Subtitles A & C is limited for 26 USC §§ 61 & 62, the latter being the definition for adjusted gross come, but there is no 26.CFR, Part 1 or 31 regulation for 26 USC § 63, the definition for taxable income. : : toprovisians set out above even where the Service might have authority relating to those made liable for the tax, Consult 2 26 USC §§ 7851 & 7852toy verify | that the intemal Reverme Code of 1954, asamended in 1986 and specified at 26 USC § 3401(d). Clearly, retums made either by the agent of the United since, simply reorganized the Internal Revemme Code of 1939. Read § 7852(b) & (¢), then read the balance of §§ While definitions for gross and adjusted gross income are clearly dent to the definition of taxable imcome, they have no legal effect if there is no taxing suthority -- adjusted gross income which is not taxable States agency required to file a retum, or the Secretary, are to be evaluatedmathematically, and errors are to be 7851 & 7852 for best comprehension. 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 Reverme Code of 1939 was merely within the several States is of no consequence where the federal tax system is concemed. af the Public Salary Tax Act of 1939. There was no general income tax levied against the population Further, on examination of 26 CFR § 1.62-1, pertaining to “adjusted gross income”, it is found that subsections income tax (individual estimated mcome tax at § 6554; corporation estimated income tax at § 6655), or codification umemployment tax ( § 6157). For all practical purposes, the trail effectively ends here. at large in 1939 or since. The Public Salary Tax Act of 1939, which in the Internal Reverme Code of 1939 {a) & (b) ate reserved so the published regulation is complete, with “temporary” regulation § 1.62-1T serving 9. The Impossibility of Effective Contract/Election incorporated the Social Security tax activated after 1936, was premised on the notion that working for federal as the current anthority defining “adjusted gross income.” Temporary regulations have no legal effect. In order for there to be an opportunity for a nonresident alien af the United States (a Citizen of govermentis a privilege. Income and related taxes prescribed in Subtitles A & C ofthe current Intemal Revere Definitions at § 3401, Vol. 68A of the Statutes at Large (the Internal Reverme Code of 1954), make it ane of the several States) to elect to be taxed or treated as a citizen or resident of the United States, one ar the Code have never been mandatory for anyone other than officers, agents and employees of the United States, as clear that, (§ 3401(@X(A)), “aresident of a contiguous country who enters and leaves the United States a other of a married couple, or the single “individual” making the election, nmst be a citizen or resident of the identified at 26 USC § 3401(c), and agencies of the United States, identified at § 3401(d), particnlarized at 5 intervals...” is a nonresident alien of the United States (citizens and residents of the several States inchuded), and the exchision from “wages” extends even to citizens af the United States who provide services for employers United States (26 USC § 6013(g)(3)). Some party nmst in some way be connected with a “United States trade USC §§ 102 & 105. arbusiness” (performance of the functions of a public office (26 USC § 7701(a)(26)). A nonresident alien never ‘The privilege tax is an excise rather than direct tax —- the Sixteenth Amendment, fraudulently prommigated in “other than the United States or an agency thereof” (§ 3401(a)(8)(A)). 1913, did not alter or repeal constitutional provisians which require all direct taxes to be apportioned among the 4, The Employer or Agent is Liable Volume 68A of the Statutes at Large, the Intemal Reveme Code of has self-employment income (26 CFR § 1.1402(b)-1(d)). In the event that a nonresident alien is an “employee” 1954, makes it perfectly clear who is “liable” for payment of Subtitles A & C taxes: SEC. 3504. ACTS TO BE Q6USC § 3401(c)), the “employer” (26 USC § 3401(d)) is liable for collection and payment of income tax (26 several States (Constitution, Article I §§ 2.3 & 9.4). In Eisner v. Macomber, 252 U.S. 189 (1918), Coppage v. CER§ 1.1441-1). And in order for real property to be treated as effectively connected with a United States trade Kansas, 236 US. 1, andmmmerous decisions since, the United States Supreme Court has repeatedly affirmed that PERFORMED BY AGENTS. for purposes of income tax, wages and other retums from enterprise af common right are property, not income. Incase a fiduciary, agent, or other person has the control, receipt, Giaedy, or disposal of, or pays the wages of or business by way of election, it nmst be located within the geographical United States (26 USC § 871(d). cited above preclude any and all legal anthority for Citizens of the several States, or privately owned Infact, retmms from enterprise of common right are findamental to all property, and the sanctity is preserved as an employee or group of employees, employed by one or more employers, the Secretary of his delegate, under Provisions in the several States, to participate in federal tax'and benefits programs prescribed in Subtitles a fundamental common law principle dating to signing of the Magna Charta in 1215. regulations prescribed by him, is authorized to designate such fiduciary, agent, ar other person to perform such etterprise located The nature of Subtitles A & C taxes is revealed at 26 CFR § 31.3101-1: “The employee tax is measured acts as are required by employers under this subtitle and as the Secretary or his delegate may specify. Except A&C of the Intemal Revemie Code and companion legislation such as the Social Security Act which provide as may be otherwise prescribed by the Secretary ar his delegate, all provisions of law Gncluding penalties) benefits fram the United States Goverment, which is a foreign corporation to the several States. by the amount of wages received after 1954 with respect to employment after 1936...” In other wards, the wage is not the object, but merely the measure of the tax. This verbiage canstifutes so applicable inrespect to an employer shall be applicable to a fiduciary, agent, or other person so designated, but, Summary & Conclaston This memorandum is not intended to be exhaustive, but merely sufficient to support canses set tmchlegalese in an effort to circumvent the duck test, but the fact that taxes collected by the Intemal Reveme except as so provided, the employer for whom such fiduciary, agent, or other person acts shall remain subject out separately. The most conspicuous conclusions of law are that Congress never created a Bureau of Internal Service fall into the excise category was confirmed by the Comptroller General's report following the initial effort to the provisions of law (inchiding penalties) applicable m respect to employers. Revenue, the predecessor of the Intemal Revere Service; Subtitles A & C of the Intemal Reverme Code The liability is further clarified at Vol. 68A, Sec. 3402(d): 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 of United States Goverment agencies; the Intemal concedes that, “The descriptive terms used in this section ito designate the various classes of taxes are intended only to indicate their general character...” aad withhold the tax under this chapter, and thereafter the tax against which such tax may be credited is paid, the Reyeme Service, within the geographical United States where the agency appears to have colorable authority, By referencing the Parallel Table of Authorities and Rules, cited above, it is found that the definition of tax so required to be deducted and withheld shall not be collected from the employer, but this subsection shall isrequired to use judicial process prior to seizing or encumbering assets; and the law demonstrates that people in no 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 Intemal Revere “gross income” is still preserved in Section 22 of the Inttemal Reverme Code of 1939, thus cementing the link Code, cannot legitimately clect to be taxed or treated as citizens or residents of the United States. If a Citizen between the Code of 1939 and Subtitles A. & C of the Code: of 1954, as amendedin 1986 and since. The Intemal Tespect to such failure to deduct and withhold. ‘These provisions from Vol. 68A of the Statutes at Large comply with and verify liability set out at 26 CFR, of one of the several States works for an agency of the United States or receives income from a United States Revenue Code of 1939 merely codified the Public Salary Tax Act of 1939. This link is further confirmed in Part 601, Subpart.D in general. Further. territorial limits of application are made clear by the absence of “trade or business” or otherwise effectively connected with the United States, the employer or other third party Senate Conamitiee On Finance and House Committee On Ways and Means reports an H.R. $300 (1954, Internal regulations supporting 26 USC §§ 7621, 7802, etc., which are the statutes authorizing establishment of intemal responsible for payment is made liable for withholding taxes at the rate of 30% or 14%, depending on Revemie Code), in which § 22 of the intemal Reveme Code of 1939 and§ 61 of the Intemal Reverme Code of seveme districts and delegations of authority to the Commissioner of Intemal Reveme and assistants. The fact classification, and is thus “the person liable” and may be subject to Intemal Revenue Service initiatives, with 1954 (current code) were solidly linked. Both reports 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 cancemed, subject to judicial intended to be constitutional. by courts of competent jurisdiction. as “tax collector,” narrows the field to federal goverment entities as “employers” if for no other reason than the determinations ‘This intent is articulated at 26 CFR § 1.61-1(a): “Gross iciome means all income from whatever source derived, unless excluded by law.” populationst large is not subject to the edict of goverment afficials. As a matter of course, goverment cannot Under penalties of perjury, per 28 USC § 1746(1), I attest that to the best of my knowledge and understanding, all matters of law and fact presented herein are accurate andtme. ~ An “Act of Congress” is policy, not law, and per defimition located in Rule 54, Federal Rules of Criminal compel pafomance where thegeneral population is concemed. The subject class that has “liability” for Subtitles ‘This memorandun will be construed to comply with provisions necessary to establish presumed Procedure, has only localeplcnet in the District ofColumbia and other United States territories and insular A & C taxes is the “employer” or his agent, fiduciary, etc., as specified above. fact Rule 301, Federal Rules of Civil Procedure, and attending State rules) should interested parties fail to rebut unless general ap d: Rule 54(c) -- ““Act of congress’ inclndes amy act The matter is further clarified in Sections 3403 & 3404 of Vol. 68A, Statutes at Large: any given allegation or matter of law addressed here. The position will be construed as adequate to mect " of Congress locally applicable to andi in force in the District of Colunibia, in Puerto a ina territory of in an SEC. 3403. LIABILITY FOR TAX. The employer shall be liable for the payment of the tax required to be insular possession.” deducted and withheld under this chapter, and shall not be liable toany persdi for the amount of any such requirements of judicial notice, tims preserving fundamental law. Matters addressed herein, if not rebutted, will be construed to have general application. A true and correct copy of this Public Notice may be inspected by Where the Intemal Revere Code of 1954 is concemed (Vol. 68A, Statutes at Linge, Pp. 3), the legislation is in a , contacting Liberty Township at 8850 S. 700 E, Suite 811, Sandy, Utah PZ 84047. The memorandum addresses fact styled, “An Act” “To revise the imtemal revere lawrs of the United States.” oo RETURN AND PAYMENT BY GOVERNMENTAL EMPLOYER. the character of the Intemal Revere Service and other agencies of the Department of the Treasury, and legal As demonstrated above, wages and other retums fram enterprise of common right are exempt from direct If the employer is the United States, ar a State, Territory, or political subdivision thereof, or the District of application of the Internal Reverme Code. tax by fimdamental law, and the regulation for the current! Intemal Reverie Code definition for “gross come” Cohunbia, or any agency or instrumentality of any one or more of the foregoing, the retum of the amount deducted and withheld upon any wages may be made by any afficer or employee of the United States, or af such State, Testitary, or political subdivision, or of the District of Columbia, ge ech seeey 1 dea as the case tay be, having control af the payment ofsuch wages, or appropriately designated for that The territorial application, and limitation, is made clear by definitions in Title 26 of the Code of Federal Regulations, as follows: § 31.3121(3)-1 State, United States, and citizen. (a) When used in the regulations in this subpart, the term “State” includes the District of Columbia, the 1. IRS Identity& Principal of Interest in'1953, the Intemal Reverme Service was created by the stroke ofa'pen when the Secretary of the Treasury changed the name of the Bureau of Internal Revere (T.O. No. 150-29, G. M. Humphrey, Secretary of the ‘Treasury, July 9, 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 which IRS officials have acquiesced suggests that the Secretary exercised his authority as trustee of Puerto Rico Trust #62 (intemal Revenue) (see Commonwealth of Puerto Rico, the Virgin Islands, the Teritories af 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, Puerto Rico. as States, and (when used with respect to services performed after 1960) Guam and American Samoa. (b) When used in the regulations in this subpart, the term “United States”, when used in'a geographical sense, ‘The solid link between the Internal Reveme Service and the Department of the Treasury, Puerto Rico, was first published in the September 1995 issue of Veritas Magazine, based on research by William Cooper and Wayne means the several states (including the Territories of Alaska and Hawaii before their admission as States), the District of Cohmmbia, the Commonwealth of Puerto Rico, and the Virgin Islands. When used in the regulations Betitson, both of Arizona. In October, a criminal complaint was filed im the affice of W. A. Drew Edmondson, attomey general for Oklahoma, against an Enid-based reveme officer, and in the time since, IRS principals have inthis subpart with respect to services performed after 1960, the term “United States” also includes Guam and ‘American Samoa when the tenm is used in a geographical sense. The term “citizen of the United States” inchides failed to refute the allegation that IRS.is an agency of the Department of Treasury, Puerto Rico. In November, criminal complaints were filed simultaneously with the grand jury for the United States district court for the acitizen of the Commonwealth of Puerto Rico or the Virgin Islands, and, effective Jamary 1, 1961, a citizen of District of Nortthem Oklahoma, Tulsa, and the office of Attommey General Edmondson, and both the office of the Guam or American Samoa. ‘i United States Attamey and IRS principals have yet to rebut the allegations in that instance (UNITED STATES Definition of the terms “includes” and “including” located at 26 USC § 7701(c) provides the limiting authority OF AMERICA vs. Kemey F, Moore, et al, 95 CR-129C). which the above definitians, beyond constructive application, are subject to: By consulting the th index forChapter 3,3; Title 31 of the United States Code, one finds that IRS and the Burean of (c) INCLUDES AND INCLUDING. -- The temus “inchides” and “incinding” when used in a definition contained in this title shall not be deemed to exchide 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 fact that ‘Congress never created a “Burean of Internal Revemie” is confirmed by publication im the Federal tem defined. Register at 36F.R. 849-890 [C.B. 1971- 1,698], 36 FR. 11946 [C_B. 1971- 2 577], and 37 F.R. 489-490; and ‘Two panciples of law clarify definition intent: (1) The example represents the class, and (2) that which is not in Intemal Revere Mammal 1100 at 1111.2. amedis intended to be omitted. In the definition of “United States” and “State” set out above, all examples are Implications are condenming both to IRS and third parties who eet participate mIRS-mitiated - of federal States, and are exclusive of the several States, with the transition of Alaska and Hawaii from the included to the exchided class proving the point. This conclusion is reinforced by the absence of regulations Scams: No legitimate antharity resides im or emanates from an office which was not legitimately created and/or which extend authority to establish'revenne districts in the several States (26 USC § 7621), authority for the ordained either by state or national constitutions or by legislative enactinent. See variously, United States v. et ¢,, daimg ~ Department of thé "Treasury [Puerto Rico] in the several States (26 USC § 7801), and no grant of delegated Germane, 99 U.S. 508 (1879), Norton v.Shelby County, 118 U.S. 425, 441, 6S.Ct. 1121 (1866), etc., for the Commissioner of Intermal Reveme, assistant commissioners, or other ee of the Treasury ioto Pope v.¥. Commissioner, 138 F.2dit1006, 1009 (6th Cir. 1943); where the state is concemed, the most recent corresponding Hecision was State v. Pinckney, 276 N.W.24 433, 436 (awa 1979). personnel (26 USC § 7802 & 7803). ‘Another direct evidence of the fraud is found at 27 CFR § 1, which prescribes basic requirements for 5, Lack of Regulations General Application of Tax Here again, the Parallel Table of Authorities and its under the Federal Alcohol Administration Act. The problem here is that Congress promulgated Rulesisuseful as it demonstrates that Subtitles A & C taxes xes do not have general application within the several Securing pemits States and to the population at large. The regulation far 26 USC § 1 refers to 26 CFR § 301, but that amounts the Act m 1935, and the same year, the United States Supreme Court declared the Act unconstittional. Administration of the Act was subsequently moved affshare to Puerto Rico, along with the Federal Alcohol to@dead end -- there is no regulation under 26 CFR, Part 1 or 31 which would apply to the several States and * the population at large. Further, there are no. supportive regulations at all for 26 USC §§ 2 & 3, and of Administration, and operation eventually merged with the Bureau of Intemal Reveme, Puerto Rico, which until 1938, along with the Bureau of Intemal Reverse, Philippines, created by the Philippines provisional government considerable significance, no regulations supporting corporate come me 26 USC § 11, as applicable to the via Philippines Trust #2 (internal revemie) (see 31 USC § 1321 for listing of Philippines Trust #2 (intemal several States. Tevemic)), administered the China Trade Act Gicensing © Reverie collection relating to opium, cocaine & citric ‘Where the instant matter is concemed, regulations supporting 26 USC. § 6321, liens for taxes, and§ 6331, after ing IRS and C ssi levy and distraint, are under 27 CFR, Part 70. The importance here is that Title 27 of the Code of Federal wines). This lie will be resumed Regulations is exchsively under Bureau of Alcohol, Tobacco and Firearms administration for Subtitle E and Intemal Revere authority. relatedtaxes. There are no corresponding regulations for the intemal Revemie Service, m 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 of Authorities and Rules, beginning on page 751 of the 1995 Index volume to the Code of Federal Regnlations. which extend comparable authority to the several States and the population at large. ‘The necessity of regulations being published in the Federal Register is variously prescribed in the Administrative Itwill be found that there are no regulations suppartive of 26 USC §§ 7621, 7801, 7802 & 7803 (these statute 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, “ note, it is specifically set out at 44 USC § 1505(a), that when regulations are not published in the Federal extending authority to the several States and the populatian at large, (1) to establish reveme districts within the Register, application of any given statute is exclusively to agencies af the United States and officers, agents end several States, (2) extending authority of the Department of the Treasury [Puerto Rico] to the several States, (3) employees of the United States, ts once again confining application of Subtitles A & C tax demonstrated ‘giving authonity to the Commissioner of Internal Revemie and assistants within the several States, or (4) extending of any other Department of Treasury persomel to the several States. above. Further, the need for regulations is detailed in 1 CFR, Chapter 1, and where the Intemmal Reveme Service authority Authority of the Internal Revenue Service, via the Commissioner of Intemal Reveme, is convolited in is concemed, 26 CFR § 601.702. ‘The need for regulations has repeatedly been affirmed by the Supreme Court of the United States, as stated in California Bankers Ass’n. y. Sctmitz, 416 U.S. 21, 26, 94.S.Ct. 1494, 1500, 39 L.Ed.2d 812 (1974): “Becausesitithas has aa bearing on (on our treatment of same of the issuesTaised by the parties, we think it important to note that the Act’s civil and criminal penalties attach only upon violation of regul: d by the Secretary, if the Secretary were to do nothing, the Act itself would impose no penalties on anyone.” Because there is a citation supporting these statutes applicable under Title 27 of the Code of Federal Regulations, it is important to point out that, “Each agency shail publish its own regulations in full text,” (1 CFR § 21.21(c)), with further verification that one agency cannot use regulations promulgated by another at 1 CFR § 21.40. To date, no comespanding regulation has been found for 26 CFR, Part 1 or 31, so until proven otherwise, IRS does not have authority to perfect liens or prosecute scizures in the several States as pertaining to the population at large. 6.2 eee of Authority Regulations pertaining to seized property are found at 26 CFR § 601.326: Part 72 of Title 27 CFR contams the regulations relative to the personal property seized by (fficers af the Intemal Revere Service or the Bureau of Alcohol, Tobacco and Firearms as subject to forfeiture as being used, or intended to be used, to violate certain Federal Laws, the remission or mitigation of such forfeiture: and the administrative sale or other disposition, pursuant to forfeiture, of such seized property other thanfireanns seized under the National Fireamns Act and fireanns and amnumition seized under title 1 of the Gun Contral Act of 1968. For disposal of firearms and ammmmition under Title 1 of the Gun Control Act of 1968, see 18 U.S.C. 924(d). For disposal of explosives under Title XI of Organized Crime Control Act of 1970, see 18 fimished oP length significant, supporting published neque « provided RETURN. PREPAYMENT retum claim the Tetum assessed Secretary AMOUNT BE INCOME FE i eR SEC. 3504, ACTS TO BE PERFORMED BY AGENTS. Kay incase a fiduciary, agent, or other person has the control, receipt, custody, or disposal af, or pays the wages of an employee or group of employees, employed by ane ar mare employers, the Secretary of his delegate, under tegulations prescribed by him, is authorized to designate such fiduciary, agent. or other person to perform such acts as are required by employers under this subtitle and as the Secretary or his delegate may specify. Except as may be otherwise prescribed by the Secretary or hiss delegate, all provisions of law Gncludmg penalties) applicable in respect to an employer shall be applicable to a fiduciary, agent, or other person so designated, but, except as So pravided, the employer for whom such fiduciary, agent, or other persan acts shall remain subject to the provisions of law (inchiding penalties) applicable i respect to employers. specified order trade located A&C Summary @ TAXPAID BY RECIPIENT. -- If the employer, in violation of the provisions of this chapter, fails to deduct and withhold the tax under this chapter, and thereafter the tax against which such tax may be credited is paid, the taxso required to be deducted and withheld shall not be collected from the employer; but this subsection shall mono case relieve the eraployer from liability for any penalties or additions fo the tax otherwise applicable in tespect to such failure to deduct and withhold. ‘These provisions fram Vol. 68A. of the Statutes at Large comply with and verify liability set out at 26 CFR, Part 601, Subpart D in general. Further, territorial limits of application are made ‘clear by the absence of population Published Beaver County Monitor September 20,273 and October 1996 PAYMENT GOVERNMENTAL ‘Treasury authority to the several States (26 USC § 7802(a)), has greater clarity in the light of the general merging of functions between IRS and other agencies presently attached to the Department of the Treasury. The ‘Commissioner is given responsibility far issuing rules and regulations for the Code at 26 CFR’§ 301.7805-1, with approval of the Secretary, but there are no cites of authority for this CFR subpart, whether Treasury Order, publication in the Federal Register, or even statute cite. In other words, there is no actual or effective delegation which vests the Commissioner with significant independent authority which might be conveyed to IRS, BATF, Customs or any other Department of the Treasury agency with respect to powers extending to or affecting the several States and the population at large. a paid announcement This 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 day September 1996 added defendant Federal law " The link between IRS and the Bureau af Alcohol, Tobacco and Fireanns is significant as the tie with'the Burea of ktemal Reverme, Department of the Treasury, Puerto Rico “IN THE UNITED STATES DISTRICT COURT FOR THE DISTRICT OF UTAH CENTRAL DIVISION” chunped Case No. 2:96 CV-0675-B crossreferenced to Department of Treasury OMB mumbers published in the Federal Register, November 1995, of for foreign application. The “notice of levy” instrument forwarded to various third parties isi not a “levy” which warrants surrender Gf property. The intemal Revemie Code, at § 6335(a), defines the “notice” instrument by use -- notice is to be ee a Dictionary, 6th Edition, and other law dictionaries. Use of the “notice of levy” instrument to effect seizure is fraud by design. Properuse of the “notice” process, administrative gamishment, et al, is specifically set out in 5 USC § $514, as being applicable exclusively to afficers, agents and employees of agencies of the United States (26 USC § S401(0). Even then, however, the process must comply with provisions of 31 USC § 3530(d), and standards set forth in §§ 3711 & 3716-17. in accordance with provisions of 26 CFR, Part 601, Subpart D, the employer, meaning the United States agency the employee is employed by, is responsible for pranmlgating regulations and carrying out gamishment. ‘1, Liability Depends on a Taxing Statute z ~ General demands for filing taxretums, production of records, examination of books, imposition and payment of tax, etc., are of no consequence to the point a taxing statute (1) defines what tax is on August on, Legal the BAF 1996, pending against administrating officers Beaver County. Signed and Notarized under penalty perjury 18th day September, 1996. Govern yourselves accordingly. bem imposed, andi (2) the basis of liability. In other words, even if the Intemal Reveme Service was a legitimate agency of the United States Department of the Treasury and had authority im the several States, the Service would have to be specific with respect to what tax was at issue and would have to demonstrate the tax by citing a taxing statute with the necessary elements to establish that any given person was obligated to pay any given tax. ‘This mandate has been clarified by the courts mimerous times, with the matter definitively stated by the Tenth Circuit Court of Appeals in United States v. Community TV, Inc., 327 F.2d 797, at p. 800 (1964): Without question, a taxing statute mmst describe with same certainty the transaction, service, ar object to be taxed, and in the typical situation it is consted against the Govemment. Hassett v. Welch, 303 U.S. 303, 58 S.Ct. 559, 82 L.Ed.858. nee ‘The liability is further clarified at Vol. 68A, Sec. 3402(@): assessment and collection of all taxes imposed by any law providing internal revemie. The Internal Reverme Service is the agency by which these functions are performed... The fact that there are no regulations extending Commissioner of Internal Revemme, or Department of the oe org EMPLOYMENT TAX. perfectly clear who is “liable” for payment of Subtitles A & C taxes: US.C. 844(0). served to whomever seizure has been executed against after the seizure is effected. In short, the notice merely conveys information, it is not cause for action. The term “notice” is clarified by definition ii Black’s Law memorandum EMPLOYEES. receives clearly articulates the fundamental Jaw exemptian. The exemption as it pertains to the several States is demonstrated by referencing the Parallel Table of Authorities and Rules (index volume to the CFR, p. 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 mcume, but there is no 26 CFR, Part 1 or 31 regulation for 26 USC § 63, the definition for taxable income. While definitions for gross and adjusted gross incame are clearly antecedent to the definition of taxable income, they have no legal effect if there is no taxing amthority -- adjusted gross income which is not taxable within the several States is of no consequence where the federal tax system is concemed: Further, on examination of 26 CFR § 1.62- 1, pertaining to) “adjusted pross income”, it is fomd that subsections (a) & () are reserved so the published is with “temporary lation § 1.62-1T serving as the current authority defining * “adjusted gross income.” Temporary regulations have no legal effect. Definitions at § ath Vol. 68A of the Statutes at Large (the Intemal Revere Code of 1954), make it clear that, (§ 3401(@)(A)), “a resident of a contiguous country who enters and leaves the United States at frequent intervals...” is a nawesident alien of the United States (citizens and residents of the several States included), and ithe exclusion from “wages” extends even to citizens of tthe United States who provide services for employers “other than the United States or an agency thereaf” (§ 34:01(a)(8)(A)). 4, The Employer or Agent is Liable Volume 68A of the Statutes alt Large, the Intemal Revenne Code of 1954, makes it but makes an amount of sense by citing various regulations pertaining to the Service and application of the Commissioner’s authority. General procedural rules at 26 CFR § 601.101(a) provide a beginning-point: ® General. The intemal Revemme Service is a bureau of the Department of the Treasury under the immediate of the C of Intemal Revere. The Commissioner has general superintendence of the ‘The only other comparable authority tims far found pertains to windfall profits tax on petroleum (26 CFR § 601.405), but once again, application is not supported by regulations applicable to the several States and the population at large. Where the mandate for filing 1040 retums is concemed, the only regulatory reference presently known is at 26 CFR § 601.401(d)(4), and this application appears related to “employees” who work for two or more “employers”, receiving forcign-eamed income effectively comected to the United States. The mandate is snentioned in instructions applicable to United States citizens and residents of the Virgin Islands, but to date hasnot been located elsewhere. Reference OMB mumbers for § 601.401, listed on page 170, 26 CFR, Part 600-End, stipulated Chairmag . of Administrator Fraternity NOTARY 3. of for Preparation OGDEN W KRAUT NOTARYPUR Rs UTAH some why In other words, to the point Service personnel produce the statute which mandates a certain tax and which oe UT specifies, “... the transaction, service, or object to be taxed...” the burden of proaf lies with the Government, with the consequence being that no obligation or civil or criminal liability can ensue to the point a taxing statute that C417) meets the above requirements is in evidence. This conchision is supported by the statute which provides the underlying requirements for keeping records, 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 Tecards, render such statements, make such returns, and comply with such rules and regulations as the Secretary tpay from time to time prescribe. Whenever in the judgment of the Secretary it is necessary, he may require any person, by notice served upon such person, or by regulations, to make 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 connection with charged tips shail be charge receipts, records necessary to comply with section 6053(c), and copies of statements fumished by employees under section 6053(a). ‘The control statute for Subtitle F, Chapter 61, Subchapter A, Part I, concemmg records, statements, and special retums, clearly retums the matter to the “employee” defined at § 3401(¢), and the “employer” defined at § 3401(d). In general, however, (1) the Secretary must provide direct notice to whomever is required to keep books, records, etc., as being the “person liable,” or (2) specify the person liable by regulation. In the absence of notice by the Secretary, based on a taxing statute which makes such a person liable according to provisions stipulated in United States v. Comnumity TV, Inc., Hassett v. Welch, and other such pened ees PUBLIC NOTICE September 286, ae, or regulations which specifically set Set e establishggeneral liability, thereSno is n0 liability. Sec. 6001 also exempts“ “employees” from keeping Tecords except where tips and the like are concemed. This S| with that “employ rather than “employees” are required to file Telums, as opposed to paying deducted amounts as income tax returns, constructively demonstrated in a previous section of this taemorandom and g articulated in 26 CFR § 601.104. Clarification via 26 USC § 6053(a) is as follows: (a) REPORTS BY EMPLOYEES. -- Every employee who, in the course of his employment by an employer, Teceives in any calendar month tips which are wages (as defined in section 3121(a) or section 3401(a)) or which are compensation (as defined in section 3231(e)) shall report all such tips in ane or more written statements fumtished to his employer on or before the 10th day following such month. Such shall be 1996. PLEA FOR HELP from TONY HAMILTON Farming Steward and General Farming Agent ad i ote ead scents surrender ~The furnished by the employee under such regulations, at such other times before such 10th day, andm such form and manner, as may be prescribed by the Secretary. Unraveling§ 6001 straightens ont the eeeof§ 6011, which requires filing retums, Statements, ¢tc., by the person made liable (§ 3401(d)), as distinguished from the person required to make repims (payments) at § 6012 (§ 3401(c)). Even though a person might be a citizen or resident of the United States employed by an agency of the United States, and thereby be required to retum a prescribed amount of United States-source income, he is not the persan liable under § 6011 and attending regulations. The “method of Sait toeaning assessment” prescnibed at 26 USC § 6303 is therefore dependent on the taxing statute and must rest on authority specifically conveyed by a taxing statute which prescribes liability where the Secretary (1) has provided specific lnreality, notice, inchiding the statute and type of tax being imposed, or (2) supports assessment by regulatory application. In the absence of one or the other, an assessment by the Secretary is af no consequence as it is not legally 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 September 1996 and 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. ee obligating. The requirement for the Secretary to provide notice to whomever is responsible for collecting tax, keeping records, etc., is clarified at 26 CFR § 301.7512-1, particularly (a)(1)(), relating to “employee tax imposed by section 3101 of chapter 21 (Federal Insurance Contributions Act),” and (a)(1)(ii), relating to “income tax required to be withheld on wages by section 3402 of chapter 24 (Collection of Income Tax at Source on Without deemed Community Y bawells(te G an Harv iton |
