William Cooper - HOTT Facts - Expose of IRS Fraudulent Racketeering

8/8/2019 William Cooper - HOTT Facts - Expose of IRS Fraudulent Racketeering

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HOTT - Crisis In Arizona

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Notice to Citizens

United States in default... it's the Law!

P u b lic J u d ic ia l N o t ic e , Pu b lic J u d ic ia l N o t i c e # 2 , andP u b lic Ju d ic ia l N o t ic e # 3 were published in this public forumupon this WebSite for twenty (20) consecutive days. Each hasalso been published in accordance with law in Veritas National

Newspaper, The Round Valley Paper, and many otherpublications throughout the United States of America. The law

requires they be published for only 3 consecutive days or issuesin the media in which they are printed. The United States

including but not limited to the Department of the Treasury, andInternal Revenue Service has defaulted failing to rebut any

allegations of fact in any of these Public Judicial Notices withinthe twenty days allotted. According to Federal Rules of CivilProcedure and attending State rules, "He who remains silent

consents." In accordance with State and Federal Rules of CivilProcedure the allegations of fact in each of these Public JudicialNotices are now PRESUMED FACT. All Citizens may now act in

accordance with these FACTS.

Proof of service is registered on the WebSite server and in the captured files of the

Money Making a

Asset P rotectio

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Statistics for the WebSite program wh ich has registered the download of this entireWebSite by United States government computers including, but not limited to, The

White House, the Department of the Treasury, the Federal Bureau of I nvestigation, theUnited States Posta l Service, the In ternal Revenue Service, the Bureau of A lcohol

Tobacco and Firearms, the Pentagon, the Defense Advanced Research Projects Agency(DARPA), United States Military installations across the nation, and EVERY UnitedStates National Laborato ry including, but not limited to, Law rence Livermore, Los

Alamos, Berkeley, and etc.

The most important texts you w ill ever read in your life. They can set you free.

Public Judicial Notice

Public Judicial Notice #2

Public Judicial Notice #3

These public notices will be construed to comply with provisions necessary to establish presumed

fact (Federal Rules of Civil Procedure, and attending State rules) should interested parties fail torebut any given allegation or matter of law addressed therein. The position will be construed as

adequate to meet requirements of judicial notice, thus preserving fundamental law. Mattersaddressed therein, if not rebutted, will be construed to have general application. A true andcorrect copy of each of these Public Notices is on file with and available for inspection at the

office of VERITAS national newspaper. These public notices address federal jurisdiction, federalauthority, jurisdiction and authority of federal agents, the Constitutionality and lawful character

of the income tax and the Internal Revenue Service, and other agencies of the United Statesgovernment including but not limited to the Department of the Treasury, and legal application of

the Internal Revenue Code.

All the feds have to do to prove us wrong is to successfully rebuteach and every item of these Public Judicial Notices. They will

not because they cannot. We would never have refused to fileand would never have challenged their jurisdiction and authorityunless we were absolutely firm in the belief that we are RIGHTin the law. Every day that passes without a satisfactory rebuttalis a condemnation of the federal government. Help us put the

dragon back in its cage. Can YOU tell us the law that makes YOUliable to file an income tax return? Can YOU define "grossincome" in the law? Can YOU produce the "delegation of

authority" that gives the IRS, or its agents, or its Criminal

Investigation Division the power to investigate, audit, examinerecords, levy, seize, subpoena, arrest, and/or prosecute? Can

YOU define the exact nature of the so-called income tax? If not,and YOU are filing and paying, then YOU are a coward, paying

tribute to YOUR masters in a system ruled by fear andintimidation... it is called EXTORTION in the law... it is the work

of criminals. Wake up America you've been had.



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They Have NO Evidence!

We Are NOT Liable!

IRS - NO Authority - NO Jurisdiction

Internal Revenue Service

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WE WILL PAY YOU

IF YOU CAN PROVE THE

FOLLOWING FACTS TO BE

FALSE

We have conclusive proof that the following FACTS arecorrect. That is why we can say - American citizens and

permanent resident aliens, living and working within the States

of the UnionARE NOT SUBJECT to the filing of an IRS Form

1040 and ARE NOT LIABLE for the payment of a tax on

"income"!!!If this sounds odd to you, read on.

For YEARS, the Internal Revenue Service has RULED theAmerican people in a manner equal only to the Soviet KGB.

FEAR and BLUFF and deception have been the IRS's major

weapons. Americans have been led to believe that they "owe" an

income tax on their earnings; that it is their "patriotic duty" to

pay it, and there is no alternative to the IRS's abuse. Nothing

could be further from the truth! Samuel Adams, the Father of the

American Revolution cultivated and nurtured the theory of the

English philosopher John Locke, that mankind needed no

godlike mortal rulers to care for his every need. Locke and

Adams believed that the common man was perfectly capable of

ruling himself, was entitled to his property, and that property

could only be taxed by government to pay for the legitimate cost

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of government functions - the protection of life and property.

Sam contended: If men, through fear, fraud, or mistake should in

terms renounce or give up any natural right, the eternal law of

reason and the grand end of society would absolutely vacate such

renunciation. The right to freedom being the gift of Almighty

God, it is not in the power of man to alienate this gift andvoluntarily become a slave. FEAR can only prevail when victims

are ignorant of the FACTS. The Bible teaches that God's people

perish for lack of knowledge.

THEREFORE CONSIDER THE

FOLLOWING FACTS:

FACT # 1: Our Founding Fathers created a constitutionalREPUBLIC as our form of government. The Constitution gives

the federal/national government limited powers. ALL powers not

delegated to the United States are reserved to the States

respectively or to the People. The Union was created to be the

servant of the people! The United States Constitution is the

SUPREME LAW of the land. (Article VI, Clause 2.)

FACT #2: The Constitution gives the Congress the power tolay and collect taxes to pay the debts of the government. Provide

for the common defense and general welfare of the United States

subject to the following rules pertaining only to the two classes

of taxation permitted.

1. DIRECT TAXES, which are subject to the rule of

apportionment among the states of the Union.

2. INDIRECT TAXES -- imposts, duties and excises, subject to

the rule of uniformity.

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FACT #3: The government does not allow either one of thetwo classifications to tax CITIZENS or PERMANENT

RESIDENT ALIENS of the United States of America,

DIRECTLY. The intent of the Founders was to keep the

government the servant and to prevent it from becoming the

master. (See Article 1, section 2, clause 3 of the U.S.Constitution.)

FACT #4: The CENSUS is taken every ten (10) years todetermine the number of representatives to be allotted to each

State and the amount of a direct tax that may be apportioned to

each State. This is determined by the percentage its number of

representatives bears to the total membership in the House ofRepresentatives. (Article 1, section 2, clause 3; Article 1, section

9, clause 4.)

FACT #5: It was established in the ConstitutionalConvention of 1787 that the supreme Court of the United States

would have the power of "judicial review". Which is the power

to declare laws passed by the U.S. Congress to be null and voidif such a law or laws was/were in violation of the Constitution.

This was to be determined from the original intent as found in

Madison's Notesrecorded during the Convention, the Federalist

Papers, and the ratifying conventions found in Elliott's Debates.

FACT #6: Due to the characteristics of the SECONDCLASSIFICATION of taxation, the Supreme Court called it an

indirect tax and it is divided into three distinct taxes: IMPOSTS,

DUTIES, and EXCISES. These taxes were intended to provide

for the operating expenses of the government of the United

States. (See Article 1, section 8, clause 1.)

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FACT #7: Duties and imposts are taxes laid by governmenton things imported into the country from abroad, and are paid at

the ports of entry.

FACT #8: The supreme Court says that excises are...taxes

laid upon the manufacture, sale or consumption of commoditieswithin the country, upon licenses to pursue certain occupations

and upon corporate privileges. (See Flint v. Stone Tracy Co., 220

US 107 [1911].)

FACT #9: In 1862, Congress passed an Act (law) to create an"Income Duty" to help pay for the War Between the States. A

duty is an indirect tax, which the federal government cannotimpose on citizens or residents of a State having sources of

income within a State of the Union.

FACT #10: Congress passed an Act in 1894 to impose a taxon the incomes of citizens and resident aliens of the United

States. The constitutionality of the Act was challenged in 1895

and the Supreme Court said the law was Unconstitutional

because it was a DIRECT TAX that was not apportioned as the

Constitution required (See Pollock v. Farmer's Loan & Trust Co.,

157 US 429 [1895].)

FACT #11: In 1909 Congress passed the 16th Amendment tothe Constitution that was allegedly ratified by 3/4 of the States; it

is known as "The Income Tax Amendment".

FACT #12: Some officials within the Internal Revenue"Service," along with professors, teachers, politicians and some

judges, have said and are saying, that the 16th Amendment

changed the United States Constitution to allow a DIRECT tax



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without apportionment.

FACT #13: The above persons are not empowered tointerpret the meaning of the United States Constitution! As stated

above (Fact #5), this power is granted by the Constitution to the

Supreme Court, but limited to the original intent. The SupremeCourt has no power to function as a "social engineer" to amend

or alter the Constitution as they have been doing. A change or

"amendment " can only be lawfully done according to the

provisions of Article 5 of that document.

FACT #14: The U.S. Supreme Court said in 1916 that the16th Amendment did not change the U.S. Constitution becauseof the fact that Article 1, section 2, clause 3, and Article 1,

section 9, clause 4, were not repealed or altered; the U.S.

Constitution cannot conflict with itself. The Court also said that

the 16th Amendment merely prevented the "income duty" from

being taken out of the category of INDIRECT taxation. (See

Brushaber v. Union Pacific R.R. Co., 240 US, page 16.)

FACT #15: After the Supreme Court decision, the office ofthe Commissioner of Internal Revenue issued Treasury Decision

[Order] 2313 (dated March 21, 1916; Vol. 18, January-

December, 1916, page 53.) It states in part; ...it is hereby held

that income accruing to nonresident aliens in the form of interest

from the bonds and dividends on the stock of domestic change

corporations is subject to the income tax imposed by the act ofOctober 3, 1913.

FACT #16: In another Supreme Court decision in 1916, theCourt, in clear language settled the application of the 16th

Amendment. By the previous ruling [Brushaber] it was settled



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that the provisions of the Sixteenth conferred no new power of

taxation. Rather it simply prohibited the previous complete and

plenary [full] power of income taxation possessed by Congress

from the beginning from being taken out of the category of

indirect taxation to which it inherently belonged... (See Stanton

v. Baltic Mining Co., 240 US, 112.)

FACT #17: The United States Constitution gives the nationalgovernment the exclusive authority to handle foreign affairs.

Congress has the power to pass laws concerning the direct or

indirect taxation of foreigners doing business in the U.S. of A. It

has possessed this power from the beginning, needing no

"amendment" (change) to the U.S. Constitution to authorize theexercise of it.

FACT #18: The DIRECT classification of taxation wasintended for use when unforeseen expenses or emergencies

arose. Congress, needing funds to meet the emergency, can

borrow money on the credit of the United States (Article 1,

section 8, clause 2). The Founding Fathers intended that thebudget of the United States be balanced and a deficit be paid off

quickly and in an orderly fashion. Through a DIRECT tax, the

tax bill is given to the States of the Union. The bill is

"apportioned" by the number of Representatives of each State in

Congress; therefore, each State is billed its apportioned share of

the DIRECT tax equal to the number of votes its Representatives

could employ to pass the tax. How the States raise the money topay the bill is not a federal concern (Article 1, section 2, and

clause 3).

FACT #19: In the Brushaber and Stanton cases, the SupremeCourt said the 16th Amendment did not change income taxes to

another classification. So, if the INCOME TAX is an indirect



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EXCISE tax, then how is it applied and collected? According to

the Supreme Court, "Excises are taxes laid upon the

manufacture, sale or consumption of commodities within the

country, upon licenses to pursue certain occupations and upon

corporate privileges; the requirement to pay such taxes involves

the exercise of the privilege and if business is not done in themanner described no tax is payable...it is the privilege which is

the subject of the tax and not the mere buying, selling or

handling of goods." (Flint v. Stone Tracy Co., 220 US, 110.)

QUESTION: If all RIGHTS come from GOD (citizens of the

States retained all RIGHTS except those surrendered as

enumerated in the United States Constitution), and PRIVILEGES

are granted by government after application; THEN what is the

PRIVILEGE that the "income tax" is applied against?

ANSWER: As established in the U.S. Constitution, the federal

government cannot directly tax a citizen living within the States

of the Union. Citizens possess RIGHTS; these rights cannot be

converted to PRIVILEGES by government. The only individuals

who would not have these RIGHTS and liable to regulation bygovernment are NONRESIDENT ALIENS doing business and

working within the United States or receiving domestic source

profits from investments, and United States citizens working in a

foreign country and taxable under TREATIES between the two

governments.

FACT #20: WITHHOLDING AGENTS withhold incometaxes. The only section in the Internal Revenue Code that defines

this authority is section 7701(a)(16).

FACT #21: Withholding of money for income tax purposes,according to section 7701(a)(16), is only authorized for sections:



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1441 - NONRESIDENT ALIENS, 1442 - FOREIGN

CORPORATIONS, 1443 - FOREIGN TAX-EXEMPT

ORGANIZATIONS, 1461 - WITHHOLDING AGENT LIABLE

FOR WITHHELD TAX.

FACT #22: Internal Revenue Manual Chapter 1100Organization and Staffing, section 1132.75 states: The CriminalInvestigation Division enforces the criminal statutes applicable

to income, estate, gift, employment, and excise tax laws

involving United States citizens residing in foreign countries and

nonresident aliens subject to Federal income tax filing

requirements...

FACT #23: The implementation of IRS Treasury Regulation1.1441-5 is explained in Publication 515 on page 2, that "If an

individual gives you [the domestic employer or withholding

agent] a written statement, in duplicate, stating that he or she is a

citizen or resident of the United States, and you do not know

otherwise, you may accept this statement and are relieved from

the duty of withholding the tax.

FACT #24: The ONLY way a United States citizen orpermanent resident alien, living and working within a State of

the Union can have taxes deducted from his/her pay, is by

voluntarily making an application Form SS-5 to obtain a Social

Security Number. Then by entering that number on an IRS Form

W and signing it to permit withholding of "Employment Taxes" --"Form W Employee's Withholding Allowance Certificate"

(emphasis added). That is why the IRS pressures children to

apply for a Social Security Numbers, and for employers to obtain

the voluntary execution of Form W immediately from all those

being hired. However, no federal law or regulation requires

workers to have a Social Security Number or sign a Form W to



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qualify for a job.

FACT #25: Karl Marx wrote in his COMMUNISTMANIFESTO, ten planks needed to create a COMMUNIST

state. The SECOND PLANK is A HEAVY OR PROGRESSIVE

INCOME TAX, second only to the ABOLITION OF PRIVATEPROPERTY.

FACT #26: The attorney who successfully challenged theIncome Tax Act of 1894, Joseph H. Choate, recognized the

communist hand in the shadows. He told the United States

Supreme Court, "The act of Congress which we are impugning

[challenging as false] before you is communistic in its purposesand tendencies, and is defended here upon principles as

communistic, socialistic -- what shall I call them -- populistic as

ever have been addressed to any political assembly in the world".

FACT #27: The Supreme Court agreed; and Mr. JusticeField wrote the Court's opinion, concluding with these statements

in intensity and bitterness. Prophetic words: Here I close myopinion. I could not say less in view of questions of such gravity

that go down to the very foundations of the government. If the

provisions of the Constitution can be set aside by an act of

Congress, where is the course of usurpation to end? The present

assault upon capital is but the beginning. It will be but the

stepping-stone to others, larger and more sweeping, till our

political contests will become a war of the poor against the rich;a war growing.

NEED WE SAY MORE?

FACT #28: Internal Revenue Code Section 6654(e)(2)(c)



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(cited fully below) states:...no tax liability...if....the individual

was a citizen or resident of the United States throughout the

preceding taxable year. IRS contends the success of the SELF-

ASSESSMENT system depends on VOLUNTARY

COMPLIANCE -- EVIDENTLY SO! Just how much of the

Communist Manifesto has become part of your daily life?

CONCLUSION OF FACTS:ALL RIGHTS comefrom God. The United States Government can only exercise

powers given to it by "We the People" through the U.S.

Constitution. The "income tax" is an INDIRECT TAX. There is

NO section of law in the Internal Revenue Code (Title 26 USC)

making a CITIZEN or a RESIDENT working and livingWITHIN A STATE OF THE UNION, LIABLE to pay the

INCOME (indirect/excise/duty) TAX.

TIRED OF BEING CONNED &

RAILROADED INTO PAYING TAXES

WHICH YOU DO NOT OWE, TO BE

SQUANDERED BY ARROGANT

BUREAUCRATS?

You are invited to join in a national Fellowship with other

Patriotic Americans whose only goal is to LEARN, REVIVE and

PRESERVE our UNITED STATES CONSTITUTION. The

SAVE-A-PATRIOT FELLOWSHIP was founded to disarm theIRS of its only actual weapon: FEAR. By standing together we

can force these bureaucrats back within the confines of THE

LAW...and arrest the wild rush toward PERPETUAL DEBT and

a TOTALITARIAN SOCIALIST GOVERNMENT IN

AMERICA.

You can serve your country and NOT FEAR reprisals from



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bureaucratic THUGS. The EDUCATION and INSURANCE-

LIKE PROTECTION provided by the SAVE-A-PATRIOT

FELLOWSHIP has been a constant thorn in the side of the IRS

since 1984. Come join with others, who have learned how to

combat the true TAX CRIMINALS!Emailme for more

information on the benefits of membership and copy of ourmembership newsletter Reasonable Action TODAY!

We encourage you to print and distribute these pages to yourfamily, friends, legislators and the PUBLIC AT LARGE. If you

wish to learn more about these facts of law, you may wish to

purchase any of our information resources . These resources arebased on over 25years of legal research.

Are you "self employed"? Did you know what

the Internal Revenue Code says concerning

filing quarterly estimated returns? Read below!

SEC. 6654. FAILURE BY INDIVIDUALS TO PAY

ESTIMATED INCOME TAX.

(e) Exceptions. -

Where tax is small amount. -- No addition to tax shall

be imposed under subsection (a) for any taxable year if the

tax shown on the return for such taxable year (or, if no

return is filed, the tax), reduced by the credit allowableunder section 31, is less than $500.

Where no tax liability for preceding taxable year.--No

addition to tax shall be imposed under subsection (a) for

any taxable year if:

A. the preceding taxable year was a taxable year of 12

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months.

B. the individual did not have any liability for tax for

the preceding taxable year, and

C. the individual wasa citizen or resident of the

United States throughout the preceding taxable year.

(emphasis added)

Thank You

Jim Deal

Exam Certified Independent Representative for the

Save A Patriot Fellowship

[The law says WHA T?! ] [They told the truth!! ]

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[ UNITED STATES CONSTITUTION ] [ GAO AUDITS THE IRS! ]

[ Do you love America? How about the IRS? ] [ Why I did this site ]

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ublic Notice

Notice to CitizensUnited States in default... it's the Law!

Public Judicial Notice, Public Judicial Notice #2, andPublic Judicial Notice #3 were published in this public

forum upon this WebSite for twenty (20) consecutivedays. Each has also been published in accordance withlaw in Veritas National Newspaper, The Round Valley

Paper, and many other publications throughout theUnited States of America. The law requires they be

published for only 3 consecutive days or issues in themedia in which they are printed. The United Statesincluding but not limited to the Department of the

Treasury, and Internal Revenue Service has defaultedfailing to rebut any allegations of fact in any of thesePublic Judicial Notices within the twenty days allotted

According to Federal Rules of Civil Procedure andattending State rules, "He who remains silent consents

In accordance with State and Federal Rules of CivilProcedure the allegations of fact in each of thesePubliudicial Notices are now PRESUMED FACT. All Citize

may now act in accordance with these FACTS.

roof of service is registered on the WebSite server and in the captured files of the Statistics foWebSite program which has registered the download of this entire WebSite by United State

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ublic Notice

government computers including, but not limited to, The White House, the Department of th

Treasury, the Federal Bureau of Investigation, the United States Postal Service, the Interna

Revenue Service, the Bureau of Alcohol Tobacco and Firearms, the Pentagon, the Defense

Advanced Research Projects Agency (DARPA), United States Military installations across th

nation, and EVERY United States National Laboratory including, but not limited to, LawrenLivermore, Los Alamos, Berkeley, and etc.

Public Judicial Noticehis memorandum will be construed to comply with provisions necessary

stablish presumed fact (Federal Rules of Civil Procedure, and attending

tate rules) should interested parties fail to rebut any given allegation ormatter of law addressed herein. The position will be construed as adequat

o meet requirements of judicial notice, thus preserving fundamental law.

Matters addressed herein, if not rebutted, will be construed to have gener

pplication. A true and correct copy of this Public Notice is on file with an

vailable for inspection at the newspaper responsible for publishing the

nstrument as legal notice. The memorandum addresses the character of t

nternal Revenue Service and other agencies of the Department of thereasury, and legal application of the Internal Revenue Code.

1. IRS Identity & Principal of Interest

n 1953, the Internal Revenue Service was created by the stroke of a pen

hen the Secretary of the Treasury changed the name of the Bureau of

nternal Revenue (T.O. No. 150-29, G.M. Humphrey, Secretary of thereasury, July 9, 1953). However, no congressional or presidential

uthorization for making this change has been located, so the source of

uthority had to originate elsewhere. Research to which IRS officials have

cquiesced suggests that the Secretary exercised his authority as trustee o

uerto Rico Trust #62 (Internal Revenue) (see 31 USC 1321), and as wil

emonstrated, the Secretary does, in fact, operate as Secretary of the



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ublic Notice

reasury, Puerto Rico.

he solid link between the Internal Revenue Service and the Department

he Treasury, Puerto Rico, was first published in the September 1995 issu

eritas Magazine, based on research by William Cooper and Wayne

entson, both of Arizona. In October, a criminal complaint was filed in th

ffice of W. A. Drew Edmondson, attorney general for Oklahoma, against

nid-based revenue officer, and in the time since, IRS principals have fail

o refute the allegation that IRS is an agency of the Department of Treasu

uerto Rico. In November, criminal complaints were filed simultaneously

ith the grand jury for the United States district court for the District of

orthern Oklahoma, Tulsa, and the office of Attorney General Edmondso

nd both the office of the United States Attorney and IRS principals have

o rebut the allegations in that instance (UNITED STATES OF AMERICA

s. Kenney F. Moore, et al, 95 CR-129C).

y consulting the index for Chapter 3, Title 31 of the United States Code,

nds that IRS and the Bureau of Alcohol, Tobacco and Firearms are not

sted as agencies of the United States Department of the Treasury. The fa

hat Congress never created a Bureau of Internal Revenue is confirmed

ublication in the Federal Register at 36 F.R. 849-890 [C.B. 1971 - 1,698], .R. 11946 [C.B. 1971 - 2,577], and 37 F.R. 489-490; and in Internal Reven

Manual 1100 at 1111.2.

mplications are condemning both to IRS and third parties who knowingl

articipate in IRS-initiated scams: No legitimate authority resides in or

manates from an office which was not legitimately created and/or ordain

ther by state or national constitutions or by legislative enactment. Seeariously, United States v. Germane, 99 U.S. 508 (1879), Norton v. Shelby

ounty, 118 U.S. 425, 441, 6 S.Ct. 1121 (1866), etc., dating to Pope v.

ommissioner, 138 F.2d 1006, 1009 (6th Cir. 1943); where the state is

oncerned, the most recent corresponding decision was State v. Pinckney,

76 N.W.2d 433, 436 (Iowa 1979).



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nother direct evidence of the fraud is found at 27 CFR 1, which

rescribes basic requirements for securing permits under the Federal

lcohol Administration Act. The problem here is that Congress promulga

he Act in 1935, and the same year, the United States Supreme Court

eclared the Act unconstitutional. Administration of the Act was

ubsequently moved offshore to Puerto Rico, along with the Federal Alcohdministration, and operation eventually merged with the Bureau of

nternal Revenue, Puerto Rico, which until 1938, along with the Bureau o

nternal Revenue, Philippines, created by the Philippines provisional

overnment via Philippines Trust #2 (internal revenue) (see 31 USC 132

or listing of Philippines Trust #2 (internal revenue)), administered the

hina Trade Act (licensing & revenue collection relating to opium, cocain

& citric wines). This line will be resumed after examining additional

vidences concerning IRS and Commissioner of Internal Revenue authori

urther verification that IRS does not have lawful authority in the several

tates is found in the Parallel Table of Authorities and Rules, beginning o

age 751 of the 1995 Index volume to the Code of Federal Regulations. It w

e found that there are no regulations supportive of 26 USC 7621, 7801

802 & 7803 (these statute listings are absent from the table). In other wor

o regulations have been published in the Federal Register, extendinguthority to the several States and the population at large, (1) to establish

evenue districts within the several States, (2) extending authority of the

epartment of the Treasury [Puerto Rico] to the several States, (3) giving

uthority to the Commissioner of Internal Revenue and assistants within t

everal States, or (4) extending authority of any other Department of

reasury personnel to the several States.

uthority of the Internal Revenue Service, via the Commissioner of Intern

evenue, is convoluted in regulations, but makes an amount of sense by

ting various regulations pertaining to the Service and application of the

ommissioners authority. General procedural rules at 26 CFR 601.101

rovide a beginning-point:



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(a) General. The Internal Revenue Service is a bureau of the

Department of the Treasury under the immediate direction of the

Commissioner of Internal Revenue. The Commissioner has

general superintendence of the assessment and collection of all

taxes imposed by any law providing internal revenue. The

Internal Revenue Service is the agency by which these functionsare performed...

he fact that there are no regulations extending Commissioner of Interna

evenue, or Department of the Treasury authority to the several States (2

SC 7802(a)), has greater clarity in the light of the general merging of

unctions between IRS and other agencies presently attached to the

epartment of the Treasury. The Commissioner is given responsibility for

suing rules and regulations for the Code at 26 CFR 301.7805-1, with

pproval of the Secretary, but there are no cites of authority for this CFR

ubpart, whether Treasury Order, publication in the Federal Register, or

ven statute cite. In other words, there is no actual or effective delegation

hich vests the Commissioner with significant independent authority whi

might be conveyed to IRS, BATF, Customs or any other Department of th

reasury agency with respect to powers extending to or affecting the sever

tates and the population at large.

he link between IRS and the Bureau of Alcohol, Tobacco and Firearms i

gnificant as the tie with the Bureau of Internal Revenue, Department of

reasury, Puerto Rico, is through this door. Reorganization Plan No. 3 of

940, Section 2, made the following change:

2. Federal Alcohol Administration The Federal AlcoholAdministration, the offices of the members thereof, and the office

of the Administrator are abolished, and their function shall be

administered under the direction and supervision of the Secretary

of the Treasury through the Bureau of Internal Revenue in the

Department of the Treasury.



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gain, the Federal Alcohol Administration Act of 1935 was declared

nconstitutional in 1935, and the operation thereafter transferred off shor

o Puerto Rico. The name of the Bureau of Internal Revenue was changed

he Internal Revenue Service in 1953 (cite above), then the Bureau of

lcohol, Tobacco and Firearms, a division of the Internal Revenue Servic

as seemingly separated from IRS (T.O. 120-01, June 6, 1972). In relevanart, the order reads as follows:

1. The purpose of this order is to transfer, as specified herein, the

functions, powers and duties of the Internal Revenue Service

arising under law relating to Alcohol, Tobacco, Firearms and

Explosives including the Alcohol, Tobacco, and Firearms division

of the Internal Revenue Service, to the Bureau of Alcohol,

Tobacco and Firearms herein after referred to as the Bureau

which is hereby established. The Bureau shall be headed by the

Director of the Alcohol, Tobacco and Firearms herein referred to

as the Director... 2. The Director shall perform the functions,

exercise the powers and carry out the duties of the Secretary and

the administration and the enforcement of the following provisions

of law: A. Chapters 51 and 52 and 53 of the Internal Revenue

Code of 1954 and Section 7652 and 7653 of such code insofar asthey relate to the commodity subject to tax under such chapters.

B. Chapter 61 to 80 inclusive to the Internal Revenue Code of 1954

insofar as they relate to activities administered and enforced with

respect to chapters 51, 52, 53. (emphasis added)

ransfer of functions and duties of IRS to BATF relative to Internal

evenue Code Subtitle F (chapters 61 to 80) is important where the instanmatter is concerned as the only regulations published in the Federal Regis

pplicable to the several States are under 27 CFR, Part 70 and other parts

his title relating exclusively to alcohol, tobacco and firearms matters.

However, the charade doesnt end there. In Reorganization Plan No. 1 of

965 (5 USC 903), the original Bureau of Customs, created by Act of

ongress in 1895, was abolished and merged under the Secretary of the



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reasury.

n a Treasury Order published in the Federal Register of December 15, 19

he Secretary of the Treasury used something of a slight of hand to confus

matters more by determining, The term Director, Alcohol, Tobacco, and

irearms has been replaced with the term Internal Revenue Service.

bviously, it is impossible to replace a person with a thing when it comes

dministrative responsibility. However, the order demonstrates that IRS a

ATF are one and the same, merely operating with interchangeable hats.

herefore, definitions and designations applicable to one are applicable to

he other.

n definitions at 27 CFR 250.11, the following provisions are found:

Revenue Agent. Any duly authorized Commonwealth Internal

Revenue Agent of the Department of the Treasury of Puerto Rico.

Secretary. The Secretary of the Treasury of Puerto Rico.

Secretary or his delegate. The Secretary or any officer or

employee of the Department of the Treasury of Puerto Rico duly

authorized by the Secretary to perform the function mentioned ordescribed in this part.

n the absence of any other definition describing revenue officers and agen

he Secretary, or the Department of the Treasury, definitions above are

niformly applicable to all IRS and BATF departments, functions and

ersonnel. In fact, it will be found that even petroleum tax prescribed in

ubtitle D of the Internal Revenue Code applies only to United Stateserritorial jurisdiction exclusive of the several States and to imported

etroleum. BATF has authority only with respect to firearms, munitions,

tc., produced outside the several States and the first sale of imports.

he two delegations of authority to the Commissioner of Internal Revenue

hus far located tend to reinforce conclusions set out above. Treasury



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epartment Order No. 150-42, dated July 27, 1956, appearing in at 21 Fed

eg. 5852, specifies the following:

The Commissioner shall, to the extent of the authority vested in

him, provide for the administration of United States internal

revenue laws in the Panama Canal Zone, Puerto Rico and the

Virgin Islands.

n February 27, 1986 (51 Fed. Reg. 9571), Treasury Department Order N

50-01 specified the following:

The Commissioner shall, to the extent of authority otherwise

vested in him, provide for the administration of the United States

internal revenue laws in the U.S. Territories and insularpossessions and other authorized areas of the world.

o date only three statutes in the Internal Revenue Code of 1986, as

urrently amended, have been located that specifically reference the sever

tates, exclusive of the federal States (District of Columbia, Puerto Rico,

uam, the Virgin Islands, etc.): 26 USC 5272(b), 5362(c) & 7462. The f

wo provide certain exemptions to bond and import tax requirementselating to imported distilled spirits for governments of the several States

nd their respective political subdivisions, and the last provides that repor

ublished by the United States Tax Court will constitute evidence of the

eports in courts of the United States and the several States. None of the

hree statutes extend assessment or collections authority for IRS or BATF

ithin the several States.

RS is contracted to provide collection services for the Agency for

nternational Development, and case law demonstrates that the true

rincipals of interest are the International Monetary Fund and the World

ank (Bank of the United States v. Planters Bank of Georgia, 6 L.Ed

Wheat) 244; U.S. v. Burr, 309 U.S. 242; see 22 USCA 286, et seq.). In ot

ords, IRS seemingly provides collection services for undisclosed foreign



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rincipals rather than collecting internal revenue for the benefit of

onstitutional United States government operation. To date, IRS principa

ave failed to dispute the published Cooper/Bentson allegation that the

gency, via these foreign principals, funded the enormous tank and milita

ruck factory on the Kama River, Russia.

The Internal Revenue Service, a foreign entity with respect to the severa

tates, is not registered to do business in the several States. 2. Preservation

Due Process Rights

he Internal Revenue Service has for years been protected by statutory

ourts both of the United States and the several States, with the latter

perating in the framework of adopted uniform laws which ascribe a fede

haracter to the several States. Both operate under the presumption ofongress Article IV jurisdiction within the geographical United States (th

istrict of Columbia, Puerto Rico, etc.), both accommodate private

nternational law under exclusively United States treaties on private

nternational law, and both operate in the framework of admiralty rules t

mpose Civil Law (see both majority & dissenting opinions variously, Ben

Michigan, U.S. Supreme Court No. 94-8729, March 4, 1996) , which is

epugnant to both state and national constitutions (see authority ofepartment of Justice as representative of the Central Authority

stablished by U.S. treaties on private international law at 28 CFR 0.49;

lso, conflict of law as a subcategory to statutes in American

urisprudence). However, this house of cards will shortly fall as Cooperat

ederalism, known as Corporatism well into the 1930s, has been thorough

ocumented and is rapidly being exposed via state and United States

ppellate courts and in public forum.

n reality, the Internal Revenue Code preserves due process rights, but th

atute has been dormant until recently:

[Sec. 7804(b)] (b) PRESERVATION OF EXISTING RIGHTS

AND REMEDIES. -- Nothing in Reorganization Plan Numbered



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26 of 1950 or Reorganization Plan Numbered 1 of 1952 shall be

considered to impair any right or remedy, including trial by jury,

to recover any internal revenue tax alleged to have been

erroneously or illegally assessed or collected, or any penalty

claimed to have been collected without authority, or any sum

alleged to have been excessive or in any manner wrongfullycollected under the internal revenue laws. For the purpose of any

action to recover any such tax, penalty, or sum, all statutes, rules,

and regulations referring to the collector of internal revenue, the

principal officer for the internal revenue district, or the Secretary,

shall be deemed to refer to the officer whose act or acts referred to

in the preceding sentence gave rise to such action. The venue of

any such action shall be the same as under existing law.

he reorganization plans of 1950 & 1952 were implemented via the Intern

evenue Code of 1954, Volume 68A of the Statutes at Large, and codified

tle 26 of the United States Code. Savings statutes have been in place sinc

he beginning, but generally not understood by the general population or

gal profession. The statute set out above is easier to comprehend when

eferences are consolidated. Further, the dependent clause including tria

y jury relates to a constitutionally-assured right, not a remedy, so it shoe moved to the proper location in the sentence. Finally, the matter of ven

important as existing law is constitutional and common law indigenou

o the several States. In the absence of legitimate federal law which extend

o the several States, those who operate under color of law, engage in

ppression, extortion, etc., are subject to the foundation law of the States.

enue is determined by the law of legislative jurisdiction.

iting including trial by jury preserves the full slate of due process righ

ncluded in Fourth, Fifth, Sixth, Seventh and Fourteenth Amendments to

onstitution for the united States of America and corresponding provision

n constitutions of the several States. The example represents the class.

dditionally, note that, (1) actions may issue against bogus assessments as



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ell as collections, and (2) 7804(b), unlike 7433, does not presume that

he complaining party is a taxpayer. Finally, there is 26 CFR, Part 1

egulatory support for 7804 where there are no regulations published in

he Federal Register in support of 7433 (see Parallel Table of Authoritie

nd Rules, beginning on page 751 of the Index volume to the Code of Fede

egulations). Therefore, 7804(b) preserves rights and determines theature of civil actions for remedies in the several States. When straightene

ut, applicable portions of 7804(b) read as follows:

othing in [the Internal Revenue Code] shall be considered to impair any

ght, [including trial by jury], or remedy, [***], to recover any internal

evenue tax alleged to have been erroneously or illegally assessed or collec

The venue of any such action shall be the same as under existing law.

he necessity of due process is implicitly preserved by 28 USC 2463, whi

ipulates that any seizure under United States revenue laws will be deeme

n the custody of the law and subject solely to disposition of courts of the

nited States with proper jurisdiction. In other words, even if IRS had

gitimate authority in the several States, the agency would of necessity ha

o file a civil or criminal complaint prior to garnishment, seizure or any

ther action adversely affecting the life, liberty or property of any givenerson, whether a Fourteenth Amendment citizen-subject of the United

tates or a Citizen principal of one of the several States. Due process

ssurances in the Fifth and Fourteenth Amendments do not equivocate --

dministrative seizures without due process can be equated only to tyrann

nd barbarian rule. Further, even regulations governing IRS conduct

cknowledge and therefore preserve Fifth Amendment assurances at 26 C

601.106(f)(1).

(1) Rule I. An exaction by the U.S. Government, which is not

based upon law, statutory or otherwise, is a taking of property

without due process of law, in violation of the Fifth Amendment to

the U.S. Constitution. Accordingly, an Appeals representative in

his or her conclusions of fact or application of the law, shall hew to



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the law and the recognized standards of legal construction. It shall

be his or her duty to determine the correct amount of the tax, with

strict impartiality as between the taxpayer and the Government,

and without favoritism or discrimination as between taxpayers.

ven officers, agents and employees of United States agencies are assured

ue process where garnishment is concerned (5 USC 5520a), so the notio

hat IRS has authority to execute garnishment and other seizures via the

rivate sector without due process is clearly absurd. In the English-

merican lineage, due process has always been deemed to mean trial by ju

nder rules of the common law indigenous to the several States; the de jur

eople of America are not subject to admiralty or administrative tribunal

Where officers, agents and employees of the Internal Revenue Service areoncerned, there can be no plea of ignorance concerning the necessity of d

rocess as the Handbook for Revenue Agents, at paragraph 332: (1),

rovides the following:

During the course of administratively collecting a tax, an occasion

may arise where service of a levy or a notice of levy is not

adequate to seize the property of a taxpayer. It cannot beemphasized too strongly that constitutional guarantees and

individual rights must not be violated. Property should not be

forcibly removed from the person of the taxpayer. Such conduct

may expose a revenue officer to an action in trespass, assault and

battery, conversion, etc.

he provision acknowledges the Supreme Court decision in Larson v.omestic and Foreign Commerce Corp. 337 U.S. 682 (1949).

n sum, the mandate for due process, meaning initiatives through judicial

ourts with proper jurisdiction, is clearly antecedent to imposition of

dministratively-issued liens, except where licensing agreements obligate

ssets, or seizures, whether by garnishment, attachment of bank accounts



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dministrative seizure and sale of real or private property, or any other

nitiative that compromises life, liberty or property.

. Current Internal Revenue Code & Internal Revenue Code of 1939re Same

onsult 26 USC 7851 & 7852 to verify that the Internal Revenue Code 954, as amended in 1986 and since, simply reorganized the Internal

evenue Code of 1939. Read 7852(b) & (c), then read the balance of

851 & 7852 for best comprehension.

he importance of making this connection rests on the fact that the Intern

evenue Code of 1939 was merely codification of the Public Salary Tax A

f 1939. There was no general income tax levied against the population atarge in 1939 or since. The Public Salary Tax Act of 1939, which in the

nternal Revenue Code of 1939 incorporated the Social Security tax

ctivated after 1936, was premised on the notion that working for federal

overnment is a privilege. Income and related taxes prescribed in Subtitle

& C of the current Internal Revenue Code have never been mandatory for

nyone other than officers, agents and employees of the United States, as

dentified at 26 USC 3401(c), and agencies of the United States, identifiet 3401(d), particularized at 5 USC 102 & 105.

he privilege tax is an excise rather than direct tax -- the Sixteenth

mendment, fraudulently promulgated in 1913, did not alter or repeal

onstitutional provisions which require all direct taxes to be apportioned

mong the several States (Constitution, Article I 2.3 & 9.4). In Eisner v

Macomber, 252 U.S. 189 (1918), Coppage v. Kansas, 236 U.S. 1, andumerous decisions since, the United States Supreme Court has repeatedl

ffirmed that for purposes of income tax, wages and other returns from

nterprise of common right are property, not income. In fact, returns from

nterprise of common right are fundamental to all property, and the sanc

preserved as a fundamental common law principle dating to signing of t

Magna Charta in 1215.



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he nature of Subtitles A & C taxes is revealed at 26 CFR 31.3101-1: T

mployee tax is measured by the amount of wages received after 1954 with

espect to employment after 1936...

n other words, the wage is not the object, but merely the measure of the t

his verbiage constitutes so much legalese in an effort to circumvent theuck test, but the fact that taxes collected by the Internal Revenue Service

all into the excise category was confirmed by the Comptroller Generals

eport following the initial effort to audit IRS (GAO/T-AIMD-93-3). It is

urther suggested at 26 CFR 106.401(a)(2), where the regulation concede

hat, The descriptive terms used in this section to designate the various

asses of taxes are intended only to indicate their general character...

y referencing the Parallel Table of Authorities and Rules, cited above, it

ound that the definition of gross income is still preserved in Section 22

he Internal Revenue Code of 1939, thus cementing the link between the

ode of 1939 and Subtitles A & C of the Code of 1954, as amended in 1986

nd since. The Internal Revenue Code of 1939 merely codified the Public

alary Tax Act of 1939. This link is further confirmed in Senate Committe

n Finance and House Committee On Ways and Means reports No. H.R.300 (1954, Internal Revenue Code), in which 22 of the Internal Revenu

ode of 1939 and 61 of the Internal Revenue Code of 1954 (current code

ere solidly linked. Both reports stipulate that the current definition of

gross income is intended to be constitutional.

his intent is articulated at 26 CFR 1.61-1(a): Gross income means all

ncome from whatever source derived, unless excluded by law.

n Act of Congress is policy, not law, and per definition located in Rule

4, Federal Rules of Criminal Procedure, has only local application in the

istrict of Columbia and other United States territories and insular

ossessions unless general application is manifestly expressed: Rule 54(c)

Act of congress includes any act of Congress locally applicable to and in



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orce in the District of Columbia, in Puerto Rico, in a territory or in an

nsular possession.

Where the Internal Revenue Code of 1954 is concerned (Vol. 68A, Statute

arge, p. 3), the legislation is in fact styled, An Act To revise the intern

evenue laws of the United States.

s demonstrated above, wages and other returns from enterprise of comm

ght are exempt from direct tax by fundamental law, and the regulation f

he current Internal Revenue Code definition for gross income clearly

rticulates the fundamental law exemption.

he exemption as it pertains to the several States is demonstrated by

eferencing the Parallel Table of Authorities and Rules (Index volume to tFR, p. 751 of the 1995 edition): There are 26 CFR, Part 1 regulations list

or 26 USC 61 & 62, the latter being the definition for adjusted gross

ncome, but there is no 26 CFR, Part 1 or 31 regulation for 26 USC 63, t

efinition for taxable income.

While definitions for gross and adjusted gross income are clearly antecede

o the definition of taxable income, they have no legal effect if there is noaxing authority -- adjusted gross income which is not taxable within the

everal States is of no consequence where the federal tax system is

oncerned.

urther, on examination of 26 CFR 1.62-1, pertaining to adjusted gross

ncome, it is found that subsections (a) & (b) are reserved so the publishe

egulation is incomplete, with temporary regulation 1.62-1T serving ahe current authority defining adjusted gross income. Temporary

egulations have no legal effect.

efinitions at 3401, Vol. 68A of the Statutes at Large (the Internal Reven

ode of 1954), make it clear that, ( 3401(a)(A)), a resident of a contiguo

ountry who enters and leaves the United States at frequent intervals.., is



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onresident alien of the United States (citizens and residents of the severa

tates included), and the exclusion from wages extends even to citizens

he United States who provide services for employers other than the Unit

tates or an agency thereof ( 3401(a)(8)(A)).

4. The Employer or Agent is Liable

olume 68A of the Statutes at Large, the Internal Revenue Code of 1954,

makes it perfectly clear who is liable for payment of Subtitles A & C tax

SEC. 3504. ACTS TO BE PERFORMED BY AGENTS. In case a

fiduciary, agent, or other person has the control, receipt, custody,

or disposal of, or pays the wages of an employee or group of

employees, employed by one or more employers, the Secretary ofhis delegate, under regulations 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 his delegate, all provisions of law

(including penalties) applicable in respect to an employer shall be

applicable to a fiduciary, agent, or other person so designated,but, except as so provided, the employer for whom such fiduciary,

agent, or other person acts shall remain subject to the provisions

of law (including penalties) applicable in respect to employers.

he liability is further clarified at Vol. 68A, Sec. 3402(d):

(d) TAX PAID BY RECIPIENT. -- If the employer, in violation ofthe 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 tax so required to be deducted and

withheld shall not be collected from the employer; but this

subsection shall in no case relieve the employer from liability for

any penalties or additions to the tax otherwise applicable in



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respect to such failure to deduct and withhold.

hese provisions from Vol. 68A of the Statutes at Large comply with and

erify liability set out at 26 CFR, Part 601, Subpart D in general. Further,

erritorial limits of application are made clear by the absence of regulation

upporting 26 USC 7621, 7802, etc., which are the statutes authorizing

stablishment of internal revenue districts and delegations of authority to

ommissioner of Internal Revenue and assistants. The fact that the liabili

alls to the employer (26 USC 3401(d)) and/or his agent, with no

ompensation for serving as tax collector, narrows the field to federal

overnment entities as employers if for no other reason than the

opulation at large is not subject to the edict of government officials. As a

matter of course, government cannot compel performance where the gene

opulation is concerned. The subject class that has liability for Subtitles

& C taxes is the employer or his agent, fiduciary, etc., as specified above

he matter is further clarified in Sections 3403 & 3404 of Vol. 68A, Statut

t Large:

SEC. 3403. LIABILITY FOR TAX. The employer shall be liable

for the payment of the tax required to be deducted and withheldunder this chapter, and shall not be liable to any person for the

amount of any such payment. SEC. 3404. RETURN AND

PAYMENT BY GOVERNMENTAL EMPLOYER. If the

employer is the United States, or a State, Territory, or political

subdivision thereof, or the District of Columbia, or any agency or

instrumentality of any one or more of the foregoing, the return of

the amount deducted and withheld upon any wages may be madeby any officer or employee of the United States, or of such State,

Territory, or political subdivision, or of the District of Columbia,

or of such agency or instrumentality, as the case may be, having

control of the payment of such wages, or appropriately designated

for that purpose.



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he territorial application, and limitation, is made clear by definitions in

itle 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 Commonwealth of Puerto Rico, the

Virgin Islands, the Territories of Alaska and Hawaii before their

admission 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, means the several states

(including the Territories of Alaska and Hawaii before their

admission as States), the District of Columbia, the Commonwealth

of Puerto Rico, and the Virgin Islands. When used in the

regulations in this subpart with respect to services performed

after 1960, the term United States also includes Guam and

American Samoa when the term is used in a geographical sense.

The term citizen of the United States includes a citizen of the

Commonwealth of Puerto Rico or the Virgin Islands, and,

effective January 1, 1961, a citizen of Guam or American Samoa.

efinition of the terms includes and including located at 26 USC

701(c) provides the limiting authority which the above definitions, beyon

onstructive application, are subject to:

(c) INCLUDES AND INCLUDING. -- The terms includes and

including when used in a definition contained in this title shall

not be deemed to exclude other things otherwise within themeaning of the term defined.

wo principles of law clarify definition intent: (1) The example represents

he class, and (2) that which is not named is intended to be omitted. In the

efinition of United States and State set out above, all examples are o

ederal States, and are exclusive of the several States, with the transition o



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laska and Hawaii from the included to the excluded class proving the po

his conclusion is reinforced by the absence of regulations which extend

uthority to establish revenue districts in the several States (26 USC 762

uthority for the Department of the Treasury [Puerto Rico] in the several

tates (26 USC 7801), and no grant of delegated authority for the

ommissioner of Internal Revenue, assistant commissioners, or otherepartment of the Treasury personnel (26 USC 7802 & 7803).

. Lack of Regulations Supporting General Application of Tax

Here again, the Parallel Table of Authorities and Rules is useful as it

emonstrates that Subtitles A & C taxes do not have general application

ithin the several States and to the population at large. The regulation for

SC 1 refers to 26 CFR 301, but that amounts to a dead end -- there isegulation under 26 CFR, Part 1 or 31 which would apply to the several

tates and the population at large. Further, there are no supportive

egulations at all for 26 USC 2 & 3, and of considerable significance, no

egulations supporting corporate income tax, 26 USC 11, as applicable t

he several States.

Where the instant matter is concerned, regulations supporting 26 USC 321, liens for taxes, and 6331, levy and distraint, are under 27 CFR, Pa

0. The importance here is that Title 27 of the Code of Federal Regulation

xclusively under Bureau of Alcohol, Tobacco and Firearms administratio

or Subtitle E and related taxes. There are no corresponding regulations f

he Internal Revenue Service, in 26 CFR, Part 1 or 31, which extend

omparable authority to the several States and the population at large.

he necessity of regulations being published in the Federal Register is

ariously prescribed in the Administrative Procedures Act, at 5 USC 552

eq., and the Federal Register Act, at 44 USC 1501 et seq. Of particular

ote, it is specifically set out at 44 USC 1505(a), that when regulations ar

ot published in the Federal Register, application of any given statute is

xclusively to agencies of the United States and officers, agents and



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mployees of the United States, thus once again confirming application of

ubtitles A & C tax demonstrated above. Further, the need for regulation

etailed in 1 CFR, Chapter 1, and where the Internal Revenue Service is

oncerned, 26 CFR 601.702.

he need for regulations has repeatedly been affirmed by the Supreme

ourt of the United States, as stated in California Bankers Assn. v. Schul

16 U.S. 21, 26, 94 S.Ct. 1494, 1500, 39 L.Ed.2d 812 (1974):

ecause it has a bearing on our treatment of some of the issues raised by t

arties, we think it important to note that the Acts civil and criminal

enalties attach only upon violation of regulations promulgated by the

ecretary; if the Secretary were to do nothing, the Act itself would impose

enalties on anyone ... The government argues that since only those whoiolate regulations may incur civil and criminal penalties it is the regulatio

sued by the Secretary of the Treasury and not the broad, authorizing

anguage of the statute, which is to be tested against the standards of the 4

mendment...

ecause there is a citation supporting these statutes applicable under Title

f the Code of Federal Regulations, it is important to point out that, Eachgency shall publish its own regulations in full text, (1 CFR 21.21(c)), w

urther verification that one agency cannot use regulations promulgated b

nother at 1 CFR 21.40. To date, no corresponding regulation has been

ound for 26 CFR, Part 1 or 31, so until proven otherwise, IRS does not ha

uthority to perfect liens or prosecute seizures in the several States as

ertaining to the population at large.

6. Misapplication of Authority

egulations pertaining to seized property are found at 26 CFR 601.326:

art 72 of Title 27 CFR contains the regulations relative to the personal

roperty seized by officers of the Internal Revenue Service or the Bureau



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lcohol, Tobacco and Firearms as subject to forfeiture as being used, or

ntended to be used, to violate certain Federal Laws; the remission or

mitigation of such forfeiture; and the administrative sale or other

isposition, pursuant to forfeiture, of such seized property other than

rearms seized under the National Firearms Act and firearms and

mmunition seized under title 1 of the Gun Control Act of 1968. For dispof firearms and ammunition under Title 1 of the Gun Control Act of 1968

ee 18 U.S.C. 924(d). For disposal of explosives under Title XI of Organize

rime Control Act of 1970, see 18 U.S.C. 844(c).

he only other comparable authority thus far found pertains to windfall

rofits tax on petroleum (26 CFR 601.405), but once again, application i

ot supported by regulations applicable to the several States and the

opulation at large.

Where the provision for filing 1040 returns is concerned, the key regulato

eference is at 26 CFR 601.401(d)(4), and this application appears relate

o employees who work for two or more employers, receiving foreign

arned income effectively connected to the United States. The option of fil

1040 return for refund is mentioned in instructions applicable to United

tates citizens and residents of the Virgin Islands, but to date has not beenocated elsewhere. Reference OMB numbers for 601.401, listed on page

70, 26 CFR, Part 600-End, cross referenced to Department of Treasury

MB numbers published in the Federal Register, November 1995, for

oreign application.

he fact that 1040 tax return forms are optional and voluntary, with speci

pplication, is further reinforced by Delegation Order 182 (reference 26FR 301.6020-1(b) & 301.7701). The Secretary or his delegate is

uthorized to file a Substitute for Return for the following: Form 941

Employers Quarterly Federal Tax Return); Form 720 (Quarterly Federa

xcise Tax Return); Form 2290 (Federal Use Tax Return on Highway Mo

ehicles); Form CT-1 (Employers Annual Railroad Retirement Tax

eturn); Form 1065 (U.S. Partnership Return of Income); Form 11-B



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Special Tax Return - Gaming Services); Form 942 (Employers Quarterly

ederal Tax Return for Household Employees); and Form 943 (Employer

nnual Tax Return for Agricultural Employees).

he notice of levy instrument forwarded to various third parties is not a

levy which warrants surrender of property. The Internal Revenue Code

t 6335(a), defines the notice instrument by use -- notice is to be served

homever seizure has been executed against after the seizure is effected. I

hort, the notice merely conveys information, it is not cause for action. Th

erm notice is clarified by definition in Blacks Law Dictionary, 6th

dition, and other law dictionaries. Use of the notice of levy instrument

ffect seizure is fraud by design.

roper use of the notice process, administrative garnishment, et al, ispecifically set out in 5 USC 5514, as being applicable exclusively to

fficers, agents and employees of agencies of the United States (26 USC

401(c)). Even then, however, the process must comply with provisions of

SC 3530(d), and standards set forth in 3711 & 3716-17. In accordan

ith provisions of 26 CFR, Part 601, Subpart D, the employer, meaning th

nited States agency the employee is employed by, is responsible for

romulgating regulations and carrying out garnishment.

ven if IRS was the agency responsible for collecting from an employee,

ue process would be required, as noted above, so authority to collect wou

nsue only after securing a court order from a court of competent

urisdiction, which in the several States would mean a judicial court of the

tate. In law, however, there is no authority for securing or issuing a Noti

f Distraint premised on non-filing, bogus filing, or any other act relating he 1040 return. See United States v. ODell, Case No. 10188, Sixth Circui

ourt of Appeals, March 10, 1947. In G.M. Leasing Corp. v. United States

29 U.S. 338 (1977), the United States Supreme Court held that a judicial

arrant for tax levies is necessary to protect against unjustified intrusions

nto privacy. The Court further held that forcible entry by IRS officials on

rivate premises without prior judicial authorization was also an invasion



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rivacy.

7. Liability Depends on a Taxing Statute

eneral demands for filing tax returns, production of records, examinatio

f books, imposition and payment of tax, etc., are of no consequence to the

oint a taxing statute (1) defines what tax is being imposed, and (2) the baf liability. In other words, even if the Internal Revenue Service was a

gitimate agency of the United States Department of the Treasury and ha

uthority in the several States, the Service would have to be specific with

espect to what tax was at issue and would have to demonstrate the tax by

ting a taxing statute with the necessary elements to establish that any giv

erson was obligated to pay any given tax.

his mandate has been clarified by the courts numerous times, with the

matter definitively stated by the Tenth Circuit Court of Appeals in United

tates v. Community TV, Inc., 327 F.2d 797, at p. 800 (1964):

Without question, a taxing statute must describe with some certainty the

ransaction, service, or object to be taxed, and in the typical situation it is

onstrued against the Government. Hassett v. Welch, 303 U.S. 303, 58 S.C59, 82 L.Ed.858

n other words, to the point Service personnel produce the statute which

mandates a certain tax and which specifies, ... the transaction, service, or

bject to be taxed.., the burden of proof lies with the Government, with t

onsequence being that no obligation or civil or criminal liability can ensu

o the point a taxing statute that meets the above requirements is in eviden

his conclusion is supported by the statute which provides the underlying

equirements for keeping records, making statements, etc., located at 26

SC 6001:

very person liable for any tax imposed by this title, or for the collection



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hereof, shall keep such records, render such statements, make such retur

nd comply with such rules and regulations as the Secretary may from tim

o time prescribe. Whenever in the judgment of the Secretary it is necessa

e may require any person, by notice served upon such person, or by

egulations, to make such returns, render such statements, or keep such

ecords, as the Secretary deems sufficient to show whether or not sucherson is liable for tax under this title. The only records which an employe

hall be required to keep under this section in connection with charged tip

hall be charge receipts, records necessary to comply with section 6053(c),

nd copies of statements furnished by employees under section 6053(a).

he control statute for Subtitle F, Chapter 61, Subchapter A, Part I,

oncerning records, statements, and special returns, clearly returns the

matter to the employee defined at 3401(c), and the employer defined

3401(d). In general, however, (1) the Secretary must provide direct notic

o whomever is required to keep books, records, etc., as being the person

able, or (2) specify the person liable by regulation. In the absence of not

y the Secretary, based on a taxing statute which makes such a person liab

ccording to provisions stipulated in United States v. Community TV, Inc

Hassett v. Welch, and other such cases, or regulations which specifically s

stablish general liability, there is no liability.

ec. 6001 also exempts employees from keeping records except where ti

nd the like are concerned. This is consistent with constructive

emonstration that employers rather than employees are required to

le returns, as opposed to paying deducted amounts as income tax returns

onstructively demonstrated in a previous section of this memorandum an

pecifically articulated in 26 CFR 601.104. Clarification via 26 USC 053(a) is as follows:

(a) REPORTS BY EMPLOYEES. -- Every employee who, in the

course of his employment by an employer, receives 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



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section 3231(e)) shall report all such tips in one or more written

statements furnished to his employer on or before the 10th day

following such month. Such statements shall be furnished by the

employee under such regulations, at such other times before such

10th day, and in such form and manner, as may be prescribed by

the Secretary.

nraveling 6001 straightens out the meaning of 6011, which requires

ling returns, statements, etc., by the person made liable ( 3401(d)), as

istinguished from the person required to make returns (payments) at

012 ( 3401(c)). Even though a person might be a citizen or resident of th

nited States employed by an agency of the United States, and thereby be

equired to return a prescribed amount of United States-source income, h

ot the person liable under 6011 and attending regulations.

he method of assessment prescribed at 26 USC 6303 is therefore

ependent on the taxing statute and must rest on authority specifically

onveyed by a taxing statute which prescribes liability where the Secretar

1) has provided specific notice, including the statute and type of tax being

mposed, or (2) supports assessment by regulatory application. In the

bsence of one or the other, an assessment by the Secretary is of noonsequence as it is not legally obligating.

he requirement for the Secretary to provide notice to whomever is

esponsible for collecting tax, keeping records, etc., is clarified at 26 CFR

01.7512-1, particularly (a)(1)(i), relating to employee tax imposed by

ection 3101 of chapter 21 (Federal Insurance Contributions Act), and

a)(1)(iii), relating to income tax required to be withheld on wages byection 3402 of chapter 24 (Collection of Income Tax at Source on Wages)

he person liable is the employer or the employers agent, and of particul

gnificance, it is this person who is subject to civil and particularly

riminal penalties (26 CFR 301.7513-1(f); 26 CFR 301.7207-1 &

01.7214-1, etc.). Officers and employees of the United States are specifica

dentified as being liable at 26 USC 301.7214-1.



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he matter of who is required to register, apply for licenses, or otherwise

ollect and/or pay taxes imposed by the Internal Revenue Code is ultimate

nd finally put to rest under Licensing and Registration, 26 USC

01.7001-1, et seq. Each of the categories so addressed has liability based o

ome particular taxing statute which creates liability.

. The Necessity of Administrative Process

he requirement for a specific taxing statute, with 26 USC 6001 clearly

roviding the first leg in necessary administrative procedure to determine

ability, was addressed at length in Rodriguez v. United States, 629

.Supp.333 (N.D. Ill. 1986). Presuming (1) the Secretary has provided the

ecessary notice, or (2) a regulation prescribes general application whichmakes any given person liable for a tax and requires tax return statement

e filed, each step in administrative process prescribed by 26 USC 6201

212, 6213, 6303 and 6331 must be in place for seizure or any other

ncumbrance to be legal.

Here again, regulations published in the Federal Register are significant,

ith provisions of 5 USC 552 et seq., 44 USC 1501 et seq., 1 CFR,hapter I, and 26 CFR, Part 601 all supporting the mandate for regulatio

o be published in the Federal Register before they have general applicatio

will be noted by referencing the Parallel Table of Authorities and Rules

eginning on page 751 of the 1995 Index volume to the Code of Federal

egulations, that application by regulation to the several States is only un

itle 27 of the Code of Federal Regulations, or that there are no regulation

ublished in the Federal Register. The following entries, or non-entries, around:

26 USC 6201 Assessment authority 27 CFR, Part 70 26 USC

6212 Notice of deficiency No Regulation 26 USC 6213

Restrictions applicable to deficiencies; petition to Tax Court No

Regulation 26 USC 6303 Notice and Demand for Tax 27 CFR,



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Part 53, 70 26 USC 6331 Levy and distraint 27 CFR, Part 70

he assessment authority under 26 USC 6201, in relevant part as

pplicable to Subtitles A & C taxes, are as follows:

(a) AUTHORITY OF SECRETARY. -- The Secretary is

authorized and required to make the inquires, determination, andassessments of all taxes (including interest, additional amounts,

additions to the tax, and assessable penalties) imposed by this title,

or accruing under any former internal revenue law, which have

been duly paid by stamp at the time and in the manner provided

by law. Such authority shall extend to and include the following:

(1) TAXES SHOWN ON RETURN. -- The secretary shall assess

all taxes determined by the taxpayer or by the Secretary as towhich returns or lists are made under this title. (3) ERRONEOUS

INCOME TAX PREPAYMENT CREDITS. -- If on any r

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