ZERO SUM GAMEConsidering the potential misadventures of those who file "zero" tax returns
Note: The following sections from the Internal Revenue Code were referenced in this article. They are provided here for your convenience. It is recommended that the entire sections be read in context within Title 26 of the United States Code, available at most larger libraries.
26 USC § [Section] 6702. Frivolous income tax return.(a) Civil penalty. If-(1) any individual files what purports to be a return of the tax imposed by subtitle A but which-(A) does not contain information on which the substantial correctness of the self-assessment may be judged, or(B) contains information that on its face indicates that the self-assessment is substantially incorrect; and(2) the conduct referred to in paragraph (1) is due to-(A) a position which is frivolous, or(B) a desire (which appears on the purported return) to delay or impede the administration of Federal income tax laws, then such individual shall pay a penalty of $500.(b) Penalty in addition to other penalties.The penalty imposed by subsection (a) shall be in addition to any other penalty provided by law.
[The FRYING PAN] 26 USC § 7203. Willful failure to file return, supply information, or pay tax. Any person required under this title to pay any estimated tax or tax, or required by this title or by regulations made under authority thereof to make a return, keep any records, or supply any information, who willfully fails to pay such estimated tax or tax, make such return, keep such records, or supply such information, at the time or times required by law or regulations, shall, in addition to other penalties provided by law, be guilty of a misdemeanor and, upon conviction thereof, shall be fined not more than $25,000 ($100,000 in the case of a corporation), or imprisoned not more than 1 year, or both, together with the costs of prosecution...
[The FIRE] 26 USC § 7201. Attempt to evade or defeat tax. Any person who willfully attempts in any manner to evade or defeat any tax imposed by this title or the payment thereof shall, in addition to other penalties provided by law, be guilty of a felony and, upon conviction thereof,shall be fined not more than $100,000 ($500,000 in the case of a corporation), or imprisoned not more than 5 years, or both, together with the costs of prosecution.
Those who are advising others to file tax returns supplying zeros in all the blanks, should take a long hard look at the provisions of the Internal Revenue Code. The difference between willful failure to file charges - a misdemeanor, and tax evasion charges - a felony, may be the price their unwary victims pay for this advice that comes at times with a hefty price for some guru’s silver-bullet tax packet. The difference though not at all subtle, seems to be escaping many Americans who would rather believe patriot mythology than invest the requisite time to study the law for themselves. Sadly, some may have to spend a long time, in a place where they don’t want to be, contemplating the significance of this article. It is our hope that being forewarned our readers can be forearmed with the truth.
Remember the IRS admonition: "An accurate tax return is a happy tax return [this is an actual quote]." Like most lies, it contains a grain of truth, for if one files a return with inaccurate information he is much more likely (from a purely statistical point of view), to be prosecuted for felony tax evasion [26 USC 7201] charges, than for misdemeanor willful failure to file [26 USC 7203] charges. His fate is then more or less signed, sealed and delivered into the tender loving care of the U.S. Attorney General and/or the Bureau of Prisons. If you see "TLC" when you read "IRS," you may be as demented as the employee that coined the motto above.
We have been accused of being "too technical" by some [especially government agents who would operate outside the bounds of the written law]. But we wear our "too technical" cognomen as a badge of honor. However, the issue of the difference between the two sections we are discussing had better not be "too technical" for our readers to assimilate.
Since "willfulness" is a key element in both of these punishment statutes, let’s consider its treatment in the popular "Cheek" decision where the supreme Court said in pertinent part:
"...in a prosecution, under §§7201 and 7203, for "willfully" attempting to evade federal income taxes and "willfully" failing to file federal income tax returns, (a) there is no requirement that a defendant’s claimed good-faith belief must be objectively reasonable if the claimed belief is to be considered as possibly negating the Federal Government’s evidence purporting to show a defendant’s awareness of the legal duty at issue...however incredible such claimed misunderstandings of and beliefs about the tax law might be, to instruct the jury not to consider the defendant’s asserted beliefs that wages are not income and that he was not a taxpayer within the meaning of the Internal Revenue Code...
Scalia, J., concurring in the judgment, expressed the view that (1) the Supreme Court’s cases had consistently held that a failure to pay a tax in the good-faith belief that the tax is not legally owing is not ‘willful’;..."
You are encouraged to read the entire Cheek decision. If you want to look it up in the law library, ask for Cheek v. U.S. The cite is 498 U.S. 192, 112 L Ed 2d 617, p.6.
Zero is a number, and in fact it may become for you -the loneliest number. Whereas the courts have held that a blank return is no return at all, they have somewhat consistently held that a zero return is evidence of intent to evade. If you enter all zeros on a tax return, the likelihood that you will be able to convince a jury that you had no intent to willfully violate the law, is in our view somewhat reduced, notwithstanding the probability that there may have been no underlying requirement for you to pay any tax or file any return regarding your own income, provided you have always lived and worked within the States of the Union. [The Just the Facts video available in our bookshop goes into great detail regarding all of these matters.]
Making a "zero" return, when you may be uncertain (or even certain) that you are not required to file any return at all, should pretty much throw out any on-point arguments you might ever want to raise. You are effectively branding yourself as a tax protester. More than just a red flag, this is like drawing a target on your chest.
The best possible outcome for someone who sets himself up by filing a "zero" return may be found in the Internal Revenue Code at §6702, which appears in the center of the previous.
Notice the last part (b) wherein the possibility of a double jeopardy plea may have already been preempted [at least in the minds of the average jury]. If you think you can opt for the $500 penalty above in hopes that its imposition will prevent the possibility of later criminal prosecution for evasion under 7203, we find nothing in the written law to prevent it.
Compare penalties. Compare possible outcomes. Thinking is allowed - even encouraged. Reference the written laws and case records to gain further valuable insights.
Plan to win the battle if you can, but don’t lose sight of the war. Something that might appear to save you a little bit of money in the short term may have disastrous consequences for you personally and do great damage to you (and the cause of liberty) in the long run.
Remember, if you only want to save a little money; or if you want to avoid what you consider to be excessive taxes, get a "good" enrolled agent - a CPA or a tax attorney, someone who has no conflict within [never having studied the actual tax laws of the United States in most cases or troubled themselves to think of the long-term detrimental effects of the de facto tax "system"].
As the record clearly shows: filing no return at all, may bring a misdemeanor charge for willful [subject to a jury’s finding] failure to file. Considering the Cheek decision the likelihood negating the willfulness aspect is considerable.
Since the filing of a "zero" return is off-point for various and patently obvious reasons, we can visualize the likelihood of not a few, but a great many easy wins for the IRS as their lawyers (with limited talents), continue to focus on the halt and the lame [brained] of the flock. As more citizens are learning to assert their rights in accordance with the law, it seems reasonable for the IRS to strike at the point of least resistance - at the frivolous filer. The Justice Department doesn’t normally pursue a case unless there is an 85% chance of conviction.
Those who want "no-brainers" will likely have a great deal of time to contemplate their mistakes but apparently won’t have the equipment for it. Please realize the gravity of a felony tax evasion conviction. The loss of rights [including and certainly not limited to the right to own firearms as well as voting rights] may tend to add injury to insult for years to come. Always remember to count the cost before you act, then act only in accordance with the written law. Tragically, many on-point arguments for the due process of law are now almost completely obscured as those who foolishly seek out one futile "short-cut" after another, contribute to the establishment’s attempts to make those (whose tedious and devoted efforts have brought forth the exposure of constructive fraud on a grand scale) out to be just another element of the radical fringe.
I’m reminded of the now-infamous government informmercial wherein the monologue in the background begins, "this is your brain [as you are shown a hot frying pan over a flame]." Then you are shown an egg being added, and told, "this is your brain on drugs, [as you hear the crackling sounds]." The effect on the American youth of the above, for the alleged purpose of reducing illegal drug usage is dubious, since most of their brains have already been fried by the educational establishment.
I’ll ask our readers to visualize and paraphrase the above as: "this is my life after a misdemeanor conviction, which might be totally abrogated by the lack of proof beyond reasonable doubt, for the requisite factor of willfulness." Then picture yourself jumping out of the frying pan and into the fire, and say, "this is my life after a felony tax evasion conviction." Please realize a misdemeanor is not to be compared to a felony conviction. If you paint the government into the corner [by filing "zero" returns] of charging you with a felony instead of the lesser misdemeanor charge [the more likely option if you had filed no return at all], you may find out what it means to sow to the wind and reap the whirlwind. Warning: If for whatever reason you have just finished reading the above article and you thought you were receiving legal advice, read it again and again until you realize it contains no legal advice whatsoever. Make sure you understand everything I didn’t say, so you can understand and use what I did say. §7201 - Attempt to evade or defeat tax - is a felony charge. §7203 - Willful failure to file a return, supply information, or pay tax - is a misdemeanor charge. Any questions?
Please read the following definitions carefully.
Misdemeanor. Offenses lower than felonies and generally those punishable by fine or imprisonment otherwise than in penitentiary. Under federal law, and most states laws, any offense other than a felony is classified as a misdemeanor. - Black’s Law, Fifth Edition.
Felony. A crime of a graver nature than those designated as misdemeanors; e.g. aggravated assault (felony) as contrasted with simple assault (misdemeanor). Under federal law, and many state statutes, any offense punishable by death or imprisonment for a term exceeding one year. ...At common law, an offense occasioning total forfeiture of either land or goods to which capital punishment might be superadded according to the degree of guilt. At early common law, the term was applied to describe the more serious offenses cognizable in the royal courts, conviction for which entailed forfeiture of life, limb and chattels and escheat of lands to the felon’s lord after a year and a day in the king’s hands. Subsequently, however, the classification was so greatly enlarged that many offenses not involving moral turpitude were included therein..."-Black’s Law, Fifth Edition.
© Copyright 1996 by William H. Huff for the Save-A-Patriot Fellowship - All Rights Reserved - Used by Permission
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