The current 'Tax Code' is actually written in the favor of U.S.Citizens living and working domestically, but is being abused and misapplied. Find out how and why we should enforce, understand, and keep the Tax Code as written, instead of getting rid of it in favor of a National Sales tax, as many are advocating. Once you understand the code as it is written it is not hard to understand why certain "official" persons would want to disguard the current tax code and "sweep it under the carpet."
The laws you probably were never told.
On what authority is the direct income tax based?
Supposedly the 16th Amendment was ratified in 1913 and the "Income Tax Act of 1913" was supposedly based on the 16th Amendment. However the Supreme Court stated in Brushaber v Union Pacific RR, 240 US 1, Jan. 1916 regarding the "Income Tax Act" that "we first dispose of two propositions assailing the validity of the statute (i.e. the Income Tax Act of 1913). On the one hand because of it's repugnancy ( contradiction ) to the Constitution in other respects, and especially because it's ( the Income Tax Act of 1913 ) enactment was not authorized by the 16th Amendment." Until the Brushaber decision in 1916 it was put forth that the 16th Amendment of 1913 authorized a direct tax on the income of US Citizens living and working in the states of the Union. The "Income Tax Act" was passed in the fall of 1913 after the 16th was passed in February earlier that year apparently basing its authority on the 16th. However the court ruled in Brushaber v Union Pacific RR, 240 US 1, Jan. 1916 that the 16th Amendment could not authorize a direct tax on income because it contradicts the Constitution which does not allow a direct tax on the income of US Citizens without apportionment. And therefore the "Income Tax Act" of 1913 was not authorized by the 16th as previously put forth. In addition to that, one month after the Brushaber decision, in February of 1916, the Supreme Court ruled in Stanton v. Baltic mining, 240 U.S. 103, "...by the previous ruling (Brushaber) it was settled that the provisions of the Sixteenth Amendment conferred no new power of taxation (emphasis added) but simply prohibited the ... 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." In other words the courts concluded that all the 16th Amendment did was clarify that the income tax referred to in the language of the Amendment was an indirect excise tax, NOT a direct tax on the incomes of US Citizens as we have been lead to believe all these years. Because it was an Amendment it lead us to believe a change took place other then clarifying the nature of the income tax. i.e. that the amendment authorized a direct tax on the income of US Citizens living and working within the 50 states. However, according to the Supreme Court there has never been a legal direct tax on the income of US Citizens living and working in the states of the Union before or since the 16th Amendment. So what has everyone been paying since 1913?
Who is subject to the income tax?
Treasury Decision 2313 issued March 21, 1916 states:
"To collectors of internal revenue:
Under the decision of the Supreme Court of the United States in the case of Brushaber v. Union Pacific Railway Co., decided January 24, 1916, it 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 was the Federal Income Tax Act of October 3, 1913 which supposedly imposed the direct graduated income tax on income that became subtitle A of the IRC today.
For a complete version of TD 2313 click here.
Who is not required to file quarterly estimated income taxes?
Title 26 USC, SEC. 6654. FAILURE BY INDIVIDUALS TO PAY ESTIMATED INCOME TAX.
States:
(e) Exceptions. -
1.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 allowable under section 31, is less than $500.
2.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 months.
B. The individual did not have any liability for tax for the preceding taxable year, and
C. The individual was a citizen or resident of the United States throughout the preceding taxable year . (emphasis added)
On who can the IRS enforce its criminal statutes?
*Internal Revenue Manual Chapter 1100 Organization and Staffing, section 1132.75 states:
"The Criminal Investigation 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..."
Are you beginning to see a pattern here?! Continue. It gets even more interesting.
Are you required by law to fill out a W-4 with an employer?
*26 C.F.R. 3402(p)-1(b)
(b) ... an employee who desires to enter into an agreement under section 3402
(p) ... shall furnish his employer with Form W-4.
The furnishing of such Form W-4 shall constitute a request for withholding...
Furthermore, *26 C.F.R. 31.3402(p)-1(b)(2) states:
"...An agreement under Section 3402(p) shall be effective for such period as the employer and the employee mutually agree upon. However, either the employer or the employee may TERMINATE the agreement prior to the end of such period by furnishing a signed written notice to the other...."
Did you realize that you were REQUESTING that tax be withheld from your paycheck ? If you don't make that REQUEST, what LEGAL authority is there to withhold tax (any money) from your pay? Do you think this might be an important thing to be told to employee's? Why weren't you told? Why don't the "tax pros" tell you?
Who is exempt from withholding of taxes?
IRS Publication 515. Instruction Manuel to withholding agent on withholding of taxes states:
" Evidence of residence.
If an individual gives you a written statement stating that he or she is a citizen or resident of the United States and you do not know otherwise, you do not have to withhold tax under the rules discussed in the publication."
This publication is based on 26 CFR, section 1.1441-5 (you will have to enter the numbers "26 * 1 * 1441-5" in the search fields to find this section) Under "Claiming to be a person not subject to withholding." Which states:
" (a) Individuals. For the purpose of chapter 3 of the Code, an individual's written statement that he or she is a citizen or resident of the United States my be relied upon by the payer of the income as proof that such individual is a citizen or resident of the United States. This statement shall be furnished to the withholding agent in duplicate. An alien may claim residence in the United States by filing form 1078 with the withholding agent in duplicate in lieu of the above statement.
(b) Partnerships and Corporations. ...
(c) Disposition of Statement and Form. The duplicate copy of each statement and form filed pursuant to this section shall be forwarded with a letter of transmittal to the Internal Revenue Service Center, Philadelphia, PA. 19255. The original statement shall be retained by the withholding agent."
This code section clearly states a US Citizen may claim that they are not subject to withholding (of income tax) IF they GIVE their EMPLOYER A STATEMENT OF CITIZENSHIP (in duplicate), INSTEAD OF PROVIDING A W-4 with a Social Security number on it. Did your employer ever show you this? Chances are they have never even heard of it! Why not?!
On who can a levy legally be served?
Title 26, USC section 6331(a). Levy and Distraint states:
" ...Levy may be made on the accrued salary or wages of any officer, employee, or elected official of the United States, the District of Columbia, or any agency of Or instrumentality of the United States or the District of Columbia."
Did you see US Citizen in that section anywhere?
By the way, on the "notice of levy" form 668-W(c) which goes out to the banks and employers etc from the IRS in order to levy wages and the like, the code section sited on the back of this form is the correct section 6331 dealing with "levy and distraint". However the section sited starts with paragraph(b) and following. The above paragraph (a) which address who a levy can be served on is left out entirely. I wonder why?
To whom is a Social Security number assigned?
Title 42, United States Code section 405(c)(2)(B)(i)(II) states:
"...to any individual who is an applicant for or recipient of benefits."
If it is required, why does one apply for it?
If you read subparagraph (I) immediately prior to the above it states that the Secretary of the Social Security Administration will ASSIGN SSN's to aliens ( meaning foreigners ) at the time of their lawful admission to the United States and, under subparagraph (II) as already quoted above: "...any individual who is an APPLICANT for or recipient of benefits..."
Numbers are automatically asigned to foreigners BUT for the rest ( citizens )only IF they APPLY. Why are they assigned to foreigners WITHOUT an application and everyone else WITH an application? If a citizen never applies, guess what? They will never get a number because for citizens it isn't REQUIRED by law!
*Title 20, United States Code section 422.103(b)(1), titled, "Applying for a number":"An individual needing a social security number MAY APPLY FOR ONE by filing a signed Form SS-5... at any Social Security office, and submitting the required evidence..."
Just for the fun of it read the below definitions of voluntary and mandatory. Sounds mutually exclusive, I would say.
vol·un·tar·y
vol·un·tar·y
(vòl¹en-tèr´ê) adjective1.
Arising from or acting on one's own free will.2.
Acting, serving, or done willingly and without constraint or expectation of reward: a voluntary hostage; voluntary community work.3.
Normally controlled by or subject to individual volition: Respiration is voluntary.4.
Capable of making choices; having the faculty of will.5.
Supported by contributions or charitable donations rather than by government appropriations: voluntary hospitals.6.
Law. a. Without legal obligation or consideration: a voluntary conveyance of property. b. Done deliberately; intentional: voluntary manslaughter.noun
plural vol·un·tar·ies
1.
Music. a. A short piece of music, often improvised on a solo instrument, played as an introduction to a larger work. b. A piece for solo organ, often improvised, played before, during, or after a religious service.2. A volunteer.
[Middle English, from Latin voluntârius, from voluntâs, choice, from velle, vol-, to wish.]
. vol´un·tar¹i·ly (-târ¹e-lê) adverb. vol¹un·tar´i·ness noun
man·da·to·ryman·da·to·ry
(màn¹de-tôr´ê, -tor´ê) adjective1.
Required or commanded by authority; obligatory: Attendance at the meeting is mandatory.2.
Of, having the nature of, or containing a mandate.
