The old miner, who had never attended school, had a framed copy of the Lord's Prayer above his cot, and every night as he lay down to rest, he pointed to it up above his bed, and told God, "Them's my sentiments." Well, below are my sentiments regarding the so-called Income Tax or 1040 Tax. Apologies if you deem it to be too lengthy, but feel free to use as and if you see fit. --John Salter, Jackson, Mississippi.
1. Residents of no State of the Union are required by law to file a Form 1040 nor are they liable for the payment of a tax on "Income" unless they happen to be a Withholding Agent, as there is no provision in Internal Revenue Code imposing an "Income Tax" on money or other property received by citizens or resident aliens residing within the States of the Union, regardless of the amount, unless the money is received on behalf of, or paid to, a nonresident alien, or other foreign entity.
2. Americans have been misled, mistaught, and deceived into believing that the "Income" tax applies to the general public, and that they owe this tax on their earnings, that it is their patriotic duty to pay it, and that jail is the only alternative to paying, while the actuality is that the "Income Tax" is only a Voluntary Gift made not to the United States Government, but to the Federal Reserve System, a privately owned banking system that is totally controlled by persons having citizenship in other countries than the United States; the "Fed" has never been audited by the Congress nor by any of its agencies. Money collected is credited to the United States Treasury, against interest supposedly owed by American citizens to the Federal Reserve private banking system on the Federal Reserve Notes (bills) loaned to the Treasury for circulation amongst the populace as "Legal Tender for All Debts Public and Private" but there is no "patriotic duty" to pay tax money to this privately owned bank. It is worth noting that the Secretary of the Treasury is a citizen of Israel as well as of the United States as was the previous Secretary. The same is true of the Secretary of State and a large number of other high (unelected) officials of the United States Government. The Internal Revenue Service is merely a collection agency for the Federal Reserve System and uses FEAR and BLUFF as their major weapons to keep American citizens in line to "pay their taxes." Tax attorneys and accountants profit tremendously from the fraudulent misapplication of the laws, therefore they are quite reluctant to reveal the truth concerning the law when confronted about it, as the status quo guarantees their extremely high income level. Also, they fear retribution from the IRS.
3. The Internal Revenue Service admits that the entire "Income Tax" system depends completely on voluntary filing of tax returns, which amounts to a gift to the Federal Reserve System, a privately owned bank which is not any part of the Federal Government. The United States Supreme Court stated: Our system of taxation is based on voluntary assessment and payment, not upon distraint. U.S. v Flora, 362 US 145, p176(1960). When a law requires a specific action, compliance therewith is mandatory, not voluntary. When a law requires some person other than yourself to do something, but then you comply with that requirement, then your compliance with that law is voluntary on your part, but is not under distraint. The IRS has repeatedly stated: The mission of the Internal Revenue Service is to encourage and achieve the highest possible degree of VOLUNTARY COMPLIANCE with the tax laws and regulations. (IR Manual § 1111.1)
4. Citizens impose an "Income Tax" on themselves when they voluntarily comply by self-assessing and filing an income tax return, thereby acknowledging under penalty of perjury that they owe a tax that the Internal Revenue Code does not impose on them, which makes their payment a voluntary gift to the Federal Reserve private banking corporation, not to the USA Federal Government. It is also an indisputable fact that every person who signs a Form 1040 has sworn to a lie, specifically that he had for that year some amount of "taxable income" or of "gross income." Signing a W-4 authorizes withholding agent to take some of your own money.
5. The U. S. Constitution twice forbids the United States Government from imposing any Direct Tax on the people within the States of the Union. The first is in Article I, Section 2, Clause 3, which requires that any and all direct taxes are to be divided among the various state governments in direct proportion to the numbers of population of the respective states, and the second prohibition against direct taxes is in Article 1, Section 9, Clause 4, which prohibits any capitation tax (a tax on people) or any other direct tax unless apportioned among the States, again in proportion to the numbers of the census of each State. Direct taxes have been levied only five times in the history of the country, the latest having been in the year 1861, and each one was imposed on the States, never upon any individual persons.
6. The United States Supreme Court has ruled that the "income tax" is allowable under the Constitution only when it is an indirect excise tax, but not as a direct tax on individuals of the general public. In the cases of Brushaber v. Union Pacific, RR 240 U.S. 1, and Stanton v. Baltic Mining, 240 U.S. 103, the Supreme Court ruled that the 16th Amendment to the U. S. Constitution created no new power of taxation, that it did not amend or nullify the constitutional prohibition against direct taxation of the people within the states of the union. The Court ruled that the "income tax" is allowable under the constraints of the Constitution only as an indirect tax on the receipts of foreigners, but not as a direct tax on the American people, while in another case, Flint v. Stone Tracy 220 U.S. 197, the Court defined an excise as a tax on activities involving the exercise of a privilege (which does not include the privilege of living within one of the states of the union).
7. The Internal Revenue Service admits that the Brushaber decision relates to "income" accruing to nonresident aliens only. Treasury Decision No.2313, issued March 21, 1916 by the Commissioner of Internal Revenue, informed Collectors of Internal Revenue of the significance of the Brushaber decision (supra) by stating: "Under the decision of the Supreme Court of the United States in the case of Brushaber v. Union Pacific Railway Co, decided January 21, 1916, 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 corporations is subject to the income tax imposed by the act of October 3,1913." This Treasury Decision (2313) also states: "The responsible heads, or representatives of nonresident aliens, who are in charge of the property owned or business carried on within the United States, shall make a full and complete return of the Income therefrom on Form 1040, revised, and shall pay any and all tax, normal and additional, assessed upon the income received by them in behalf of their nonresident alien principals." This document proves that a "withholding agent" receiving "income" on behalf of a nonresident alien must pay the tax and file a Form 1040 for his nonresident alien principal.
8. Form 1040 is an income tax return for nonresident aliens. The Internal Revenue Code § 871(a) imposes a tax of 30% on the amount received by non-resident aliens from sources within the United States while § 871(b) states that the nonresident alien shall be taxable under Section 1 of the Code, thus authorizing the use of Section 1 charts for the computation of taxes and any reduction therein so that he can get a tax refund from the 30% withheld under the provisions of § 1441. Additionally, under § 874(a), the nonresident alien is entitled to the benefit of deductions and credits by filing or having his agent file, a 1040 as stated in the above Treasury Decision 2313.
9."Income" is defined as money received on behalf of or paid to a nonresident alien. The Internal Revenue Code, USC Title 26 §1441 (a) and (b) states that interest, dividends, rent, salaries, wages, premiums, compensations, remunerations, emoluments, or other fixed or determinable annual or periodic gains, profits and income.., are income" when received on behalf of or paid to a nonresident alien or other foreign entity. Courts have ruled that profits of corporations (artificial persons) are "income." However, there is to be found no provision in the Internal Revenue Code that receipts belonging to citizens or residents of the country are "income." Therefore, a citizen*s own receipts are not "income," not "gross income," and not "taxable income" under any provision of the Internal Revenue Code, Title 26 of the United States Code. "Income" is properly derived from activities involving the exercise of a government granted privilege.
10. The United States government can prohibit foreigners from working, investing, or doing business within this country, therefore, the allowance of such activities is a privilege granted by the government which is subject to an excise tax, in a manner similar to the government granted privilege of doing business as a corporation. Individual American citizens, however, have a non-taxable right to work, invest, or to carry on a business in this country. The United States Supreme Court stated in another case, Murdoch v. Pennsylvania, 319 U.S. 105, that "A State may not impose a tax for the enjoyment of a right granted by the Federal Constitution."
11. The "Income Tax" is an indirect excise tax on income derived from privileged activities, not on "Income" itself. The "Income" is merely the measure by which the amount of the tax imposed is determined. The Supreme Cou in e case of Flint v. Stone Tracy (supra) p. 165: "It is therefore well settled by the decisions of this court that when the sovereign authority has exercised the right to tax a legitimate subject of taxation as an exercise of a franchise or privilege, it is no objection that the measure of taxation is found in the income." Further, the Congressional Record, Volume 89, Part 2, page 2580 of March 27, 1943,states: "The income tax is, therefore, not a tax on income as such. It is an excise tax with respect to certain activities and privileges which is measured by reference to the income which they produce. The income is not the subject of the tax; it is the basis for determining the amount of the tax." This statement says it all; what more is needed?
12. Withholding agents are required to withhold from payments of "Income" to foreign persons only, but not from payments to American citizens and residents. The legal definition of withholding agent is given in IR Code § 7701 (a)( 16) which states: "The term ‘withholding agent*means any person required to deduct and withhold any tax under the provisions of sections 1441, 1442, 1443, or 1461, "which sections apply to money received on behalf of, or paid to, nonresident aliens, foreign partnerships, foreign corporations, and other foreign entities only, but does not apply to money received by U. S. citizens living and working within one or more of the States of the Union, on their own behalf. Because the U. S. Government has no authority over foreign citizens living in a foreign country, the only individuals who can be required to deduct and withhold the tax on receipts due to be paid to foreigners and who can be made liable for payment of the tax are those withholding agents who are within this country.
13. The only person who can be found to be made liable for payment of "Income Tax" within the Internal Revenue Code is a withholding agent. Subtitle A § 1461 is the only section of the IR Code which makes any person liable for or subject to payment of "Income Tax," and this person is required to withhold from the "Income" of foreign persons only. There is, within the IR Code, no liability for any other American citizen to pay the "income tax," regardless of what IRS or any other entity may say about it. Most federal judges know this.
14. The only method by which any person can be "made liable" to pay any internal revenue tax is by a statute, or a provision in the law, as outlined by the United States Court of Appeals, which decision has not been overturned, in the decision of Botta v. ScanIon, 288 F. 2d 509 (1961) which stated "Moreover, even the collection of taxes should be exacted only from persons upon whom a tax liability is imposed by some statute." Sutherland*s Rules of Statutory Construction § 66.03 states: "..the obligation to pay taxes arises only by force of legislative action..." Legislative action is the passage of a statute; therefore, for anyone to be liable for income tax requires that such liability must be so stated within the IR Code, which has been shown to be absent any such requirement for American Citizens living and working within the States of the Union.
15.Any provision making anyone liable for payment of a tax must be stated in clear understandable language that the average person can read, understand, and interpret. Liability for taxation must clearly appear from statute imposing tax." Higley v. Commissioner of Internal Revenue, 69 F. 2d 160, headnote 2. Sutherland*s Rules of Statutory Construction, § 66.01 titled "Strict construction of statutes creating tax liabilities" refers to the U.S. Supreme Court decision of Gould v. Gould, 245 U.S. 151, which states: "In the interpretation of statutes levying taxes it is the established rule not to extend their provisions by implication beyond the clear import of the language used, or to enlarge their operation so as to embrace matters not specifically pointed out. In case of doubt they are construed most strongly against the government, and in favor of the citizen."
16. Internal Revenue Code provisions which do impose a liability to pay a tax are clearly stated and use the word "Liable". This word "Liable" is found in IR code §§ 4401(c), 5005(a), 5703(a), and 1461, which create liabilities for a wagering tax, distilled spirits tax, tobacco tax, and "income" tax, respectively. Again, Section 1461 is the only section in the IR Code imposing a liability for payment of "income" tax. That section applies only to withholding agents who are required by § 1441 to deduct and withhold from payments of "Income" owed to foreign persons. Section 1461 states: ‘Every person required to deduct and withhold any tax under this chapter is hereby made liable for such tax." Not included is any liability which may be imposed under any other chapter of the IR Code.
17. Internal Revenue Publication 515 clearly explains that withholding a p plies only to money owed to foreign persons, not to citizens or residents of the United States, on page 2, where it is stated that those who pay wages, rents, dividends, interest, etc., that "...if an individual gives you a written statement, in duplicate, stating that he or she is a citizen or a resident of the United States, and you do knot know otherwise, you may accept this statement and are relieved from the duty of withholding the tax."
18. Chapter 24 of the IR Code provides for withholding from "employees" but does not apply to any non-government employee or employer (§ 3401(c) & (d)). Chapter 24 contains provisions which authorize the U.S. Government, the District of Columbia, their agents and instrumentalities, to setup and administer a withholding system for their employees. Absent such statutory authority, no official of the government could lawfully create a withholding system in government, but Chapter 24 imposes no tax on any person, governmental employee or non-governmental employee.
19. Neither the Internal Revenue Service nor any other agency of the Government has any authority to withhold money from a citizen or a resident of the United States unless he or she authorizes such, as to do so would be a violation of the Fifth Amendment of the Constitution which requires that no individual can be deprived of property without due process of law which requires a proper hearing in a proper court of law with all rights preserved. The only way such United States citizen or resident alien can have "income" tax withheld from his pay legally is if he authorizes it by voluntarily signing an IRS Form W-4, entitled "Employee*s Withholding Allowance Certificate" thus indicating that he is in the same status as a nonresident alien. The Internal Revenue Service under the color of law pressures all employers to require new hires to voluntarily execute the W-4 while they know full well that there is no law that requires such compliance in order to qualify for or to be hired for any employment.
20. American citizens living and working abroad are subject to the income tax because the Supreme Court ruled in the case Cook v. Tait, 265 U.S. 47(1924) that "Congress has power to tax the income received by a native citizen of the United States domiciled abroad from property situated abroad". Obviously, the Constitutional prohibition of unapportioned direct taxes within the states of the union does not apply in foreign countries.
21. A tax return for citizens living and working abroad is the only return required to be filed by citizens under Section 1 of the IR Code. The Paperwork Reduction Act requires that any form on which information is required to be submitted must first be approved by the Office of Management and Budget and must be given an 0MB number. There is a chart which lists all OM numbers and the forms required to be used for compliance of this Act and includes the various IR Code sections, which chart is found in Chapter 600 of 26 Code of Federal Regulations, and lists only one form that is required to be filed by citizens in compliance with Section 1, which contains the same tax tables to be found in the Form 1040 Instruction Booklet. That one form is identified by 0MB Number 1545-0067, which is on Form 2555, a return to be filed by citizens living and working abroad.
22. Criminal investigations for income tax violations apply to citizens living abroad and nonresident aliens only as outlined in Internal Revenue Manual (1-6-87) Section 1132.75 which describes the total scope of its activities: "The Criminal Investigations Branch enforces the criminal statute 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..." There is no authority for the CID to investigate any other citizens whatsoever.
23. The Internal Revenue Code applies to "TAXPAYERS" only, those made liable for a tax by statute. "Taxpayer" is defined as a legal term in Sect. 7701l(a)(14) as: "The term taxpayer means any person subject to any internal revenue tax." To be subject to a tax, there must be a provision in the law stating clearly that a person*s activity makes him "liable" for the tax. Paying a tax such as a sales tax, gasoline tax, or realty tax, does not place one in the legal status of "taxpayer" as that term is used in the IR Code. This concept has been made clearly and repeatedly by court decrees over the years in such instances as Long v. Rasmussen, 281 F. 236(1922), Botta v. Scanlon (supra), Economy Plumbing v. U.S., 470 F.2d 589(1972) and First National Bank ofEmlenton, Pa v. U.S., 161 F. Supp 847(1958).
24. The terms "Taxable Income" and "Taxable Year" apply only to "Taxpayers," but not anyone else, as defined in IR Code § 1441(a) & (b) as well as to those who file returns on the Form 1040 where they mistakenly sign under penalty of perjury that they are indeed a "taxpayer." A key legal term in Sec. 6012(a)(l) is "Taxable Year," which is one Section the IRS cites when claiming that some individual is required to file income tax returns. Since a withholding agent is the only person in the IR Code "made liable" for the payment of income tax, he is the only individual in the legal status of "taxpayer" in respect to "income tax." Therefore, a withholding agent is the only one who has a "taxable year" under the provisions of § 6012(a)(1). Other legal terms requiring study to be properly understood include empfoyee, employer, wages, United States, State, person, individual, taxpayer, taxable income, gross income, all of which may have different meanings in different parts of the Code.
25. Only a very few certain persons can be subject to criminal penalties, and these are those described in the IR Code § 7343 as those required to act on behalf of a corporation or partnership, and states: "The term ‘person ‘ as used in this chapter includes an officer or employee of a corporation, or a member or employee of a partnership, who as such officer, employee, or member is under a duty to perform the act in respect of which the violation occurs." Whenever any person who is not in such a position is prosecuted, his prosecution is highly illegal and should result in sanctions against the Internal Revenue Service and the employees of that Service responsible for such illegal prosecution.
26. It is morally wrong, reprehensible and incomprehensible that the government of these United States would deceive and intimidate its own citizens into believing that they must pay an "income tax" (and to a private party) that is specifically forbidden by their own Constitution. Any official of th is government who is notified or who becomes aware of the illegal actions taken by the Internal Revenue Service to try to force ordinary citizens to pay an "income tax" but who does nothing to stop it, violates his or her Oath of Office to uphold and enforce the Constitution, but more importantly, becomes GUILTY OF MISPRISION OF FELONY.
The complete story of who is behind the above unlawful acts of "our" Internal Revenue Service and the Federal Reserve System is a story that takes far more than these 2 pages, beginning with Karl Marx, his book, The Communist Manifesto, and the world-wide concerted effort to eliminate Christianity from the face of the Earth, and is available. NB: This Report was written in October 2000, therefore some of the information may be currently out of date. Citizenship of current Secretary of Treasury is unknown, but this Report will be updated as new info becomes available.