:Income:

1. Joseph R. Banister, C.P.A., former IRS-CID Special Agent
2. Clifton Beale, CEP, A.S., B.S., MS-Taxation, Former IRS Revenue Agent and Appeals Officer
3. Paul Chappell, Attorney at Law, former U.S. Tax Court Clerk, IRS Chief Counsel Attorney
4. Sherry P. Jackson, C.P.A., C.F.E., former IRS Revenue Agent
5. John Turner, E.A., former IRS Revenue Officer

1. Income tax is voluntary. In Flora v. U.S. (1960), the Supreme Court announces, "Our system of taxation is based upon voluntary assessment and payment."
2. In Brushaber v. Union Pacific (1916), the Supreme Court declares that "the conclusion that the 16th Amendment provides for a hitherto unknown power of taxation" is "erroneous," and thus the 16th Amendment did not give Congress any taxing powers it did not already have. Hence, an unapportioned direct tax such as the income tax still cannot be legally mandated.
3. The word "Income", for the purposes of the tax code, can only be understood as defined in the Codes and by the Supreme Court. The Supreme Court, in Merchant's Loan and Trust Company v. Smietanka (1921), define it as having the same meaning as in the Corporation Excise Tax of 1909. Irwin Schiff writes, "nothing that was received by private persons was taxable as 'income' under that Act." Income is defined as "gain derived…from labor" in a previous Supreme Court decision, Stratton's Independence v. Howbert (1913). Labor is personal property, so no gain is made when exchanging labor for money. When money is invested and earns a gain, there can be income indirectly as a result of the original labor.
4. Tax statutes in Title 26 of the U.S. Code are "void for vagueness" because they lack precise definitions of such terms as state, United States, employee, and person. The word "includes" in the tax code means "specifically includes" or "includes only", since anything not specified is not specifically included. Assumption and presumption do not apply in the law.
5. According to U.S. Code 26, Section 861, only income from foreigners or from overseas activity is subject to income tax.

"Silence can be equated with fraud where there is a legal or moral duty to speak, or where an inquiry left unanswered would be intentionally misleading. . . We cannot condone this shocking behavior by the IRS. Our revenue system is based on the good faith of the taxpayer and the taxpayers should be able to expect the same from the government in its enforcement and collection activities."  U.S. v. Tweel, 550 F.2d 297, 299. See also U.S. v. Prudden, 424 F.2d 1021,1032; Carmine v. Bowen, 64 A. 932.

We-the-people: 537 Questions the US Government Refuses to Answer: for Download

:Matter:	:Questions:	:Issues:
Authority for any Liability	49	Who has a legal obligation to pay the tax?
Gift of the Labor	83	Is labor something that can be taxed? What constitutes "income"?
Jurisdiction	43	Does the IRS have legal jurisdiction inside the 50 states?
5th-Amendment	23	How can the government force you to waive your Constitutional rights?
First-Amendment & Socialism	39	Do we live in a socialist democracy instead of a constitutional republic?  Does our government infringe on our rights and freedoms and conflict with Christian religion?
16th-Amendment	109	Was the 16th Amendment properly and legally ratified?
4th-Amendment	85	How can the IRS levy, search, or seize assets without warrants or court involvement?
Closed-COURTS	33	The courts work in complicity with DOJ/IRS to deny due process.
Ambiguity of the LAW	27	How can the Internal Revenue Code define anything if the word of includes is not used restrictively and if it doesn't define anything, how can we have a society of laws rather than of men?
PAPERWORK REDUCTION ACT,  ADMINISTRATIVE PROCEDURES ACT & REGULATIONS	40	Significant anomalies exist between the "laws" and the procedures of the IRS.
Taxability of the SOURCES	46	What "sources" of income are subject to tax and count as taxable income?
INDIVIDUAL MASTER FILES (IMF)	17	Evidence of fraud and falsification of taxpayer records by the IRS.
26 U.S.C. 6020(b) SUBSTITUTE FOR RETURNS	31	Evidence that IRS agents have no authority to create Substitute for Returns for Americans who are not "taxpayers" or who do not voluntarily pay Subtitle A income taxes, which are really not taxes, but "donations".
Citizenship	85	Are you a "citizen of the United States" or a "U.S. citizen" under federal statutes and "acts of Congress"?  Most Americans aren't, and have also been filing the wrong tax form for years.  The IRS hasn't corrected this situation because they benefit too much financially to correct it.
Original Questions	561
New Questions	271
Total Current Questions	710

Two research reports demonstrate without a shadow of doubt that the government has been acting ultra vires (i.e., without bona fide authority), forcing ordinary Americans to file and pay an un-apportioned, direct tax on their salaries, wages and compensation, and that the government has known since 1916 that it lacks the legal authority to do so, and that the government actors have been negligent in their duty to stop and correct the wrongs. Read the cover letter to President Bush, et al.

Attachment #1 is the compelling research report by Phil Hart, “Constitutional Income, Do You Have Any?” showing that ordinary wages and salaries cannot be considered “income” within its Constitutional meaning, thereby rebutting any claim by the IRS or DOJ that the 16 th Amendment provides the legal authority to enforce the income tax laws upon everyday working Americans. Summary.

Attachment #2 is the comprehensive research compendium, “Analysis of the Federal Income Tax Law.” This brilliant research report was compiled by a credentialed tax professional who wishes to remain anonymous, and proves the Treasury Department, the IRS and DOJ have been ignoring the Supreme Court and congressional mandates since the Brushaber decision in 1916, in order to perpetuate the “income” tax fraud initiated in 1913. Summary.

Summary of Findings & Conclusions
of the
Citizens’ Truth-In-Taxation Hearing
Held in Washington DC, Feb 27-28, 2002.

Conclusions & Legal Findings of Fact: Fifth Amendment

• The Fifth Amendment right against self-incrimination is absolute and unalienable.
• There is no 5th Amendment “exception” for tax matters.
• To avoid explicitly ruling that citizens are, in fact, protected by the 5th Amendment while filing tax returns, a federal Court of Appeals ruled, instead, that the 5th Amendment does not apply to tax returns because the 5th Amendment only applies to compelled testimony. Ergo, filing a tax return is not compelled, it is voluntary.
• Using the threats of criminal prosecution, financial penalties, and incarceration, the government effectively forces citizens to “voluntarily” waive their Fifth Amendment rights.
• The IRS & DOJ clearly uses tax return information to initiate and investigate civil and criminal prosecutions against citizens.
• The People do not have to tolerate an income tax system in which the government requires citizens to give up any Constitutional rights.
  Bottom Line : If you file, you have waived your 5th Amendment rights.

Conclusions & Legal Findings of Fact:  Right to Labor

• Labor is property. It is the most valuable property to protect because through it all other rights manifest in the People are realized and enjoyed.
• Under the government’s own accounting rules in the tax code as well as court decisions, the sale or conversion of one’s personal labor into wages or salaries as property does not result in any taxable income.
• There is no basis for payment of employment taxes on wages or salaries.
• Income has been defined by the Supreme Court as being a corporate tax on profit.
• The income tax on labor in all respects, functions as a “slave tax”. This is in direct violation the Constitution’s 13th Amendment prohibiting peonage and involuntary servitude.

Conclusions & Legal Findings of Fact: IRS Violates Citizens' Due Process Rights

Due process is guaranteed by the Constitution.
? IRS’s daily operating practices routinely deny the average citizen due process of law.
? "U.S. Tax Court" is not a “real” legal court.  It is an administrative body of the IRS.
? The IRS administratively creates “dummy returns” without legal authority as a first step in unlawfully “assessing” and collecting income taxes.
? Even though explicitly provided for by U.S. law, certain IRS administrative procedures are routinely denied to the typical citizen because the IRS does not want to answer questions about the basis of their legal authority.
? IRS denies due process procedures to rapidly push citizens into the biased U.S. Tax “Court” where the price of securing justice rises dramatically, and prohibitively.
? IRS routinely refuses to cite its legal authority or to answer detailed legal questions about U.S tax law or the enforcement thereof.

Bottom Line: A tax system that violates due process is, prima facie, unconstitutional.

Conclusions & Legal Findings of Fact: Jurisdiction

• The terminology used in the Internal Revenue Code is deliberately misleading. The average American who reads words such as “citizen”, “taxpayer”, “state”, etc. in the tax code without fully understanding the true legal definitions, will fail to see that in fact, they are excluded, and are not subject to the income tax laws of the U.S.
• Legislative jurisdiction is required to tax. The federal government enjoys this Constitutional power in only a very small list of geographical areas that include Washington DC. There is no legislative jurisdiction inside the 50 states.
• Jurisdiction must be formally ceded by a state to the federal government. Without this formal transmission, the federal government has no bona fide legal jurisdiction within any state to legislate or enforce a tax.

Bottom Line : The federal government cannot tax your income within the fifty states because they have NO legislative jurisdiction.

• There is NO U.S. income tax law or income tax regulation that explicitly imposes the income tax on the general American populace.
• The laws cited by the IRS in compliance with the Privacy Act and the Paperwork Reduction Act do not specify the specific legal authority that imposes the income tax on the average citizen.
• Key terms found in the tax statutes and as used by the IRS such as “citizen”, “individual”, “income” etc. are not defined clearly in the law and as used in the law, even indicate on their face that they do not apply to average Americans.

Conclusions & Legal Findings of Fact : Fourth Amendment

• The 4th Amendment to the Constitution explicitly requires a signed court order or warrant to seize property or conduct a search.
• IRS blatantly disregards the 4th Amendment in violation of the Constitution.
• Employers are deceived about their true legal responsibility by the misleading content found on the IRS salary/wage “levy” form and instructions.
• 3rd parties such as banks, corporations, etc have no incentive to, and perhaps fear IRS retaliation for, challenging Notices of Levy and Seizure on their customers and/or employees.

Bottom Line : The 4th Amendment does not matter to the IRS.

• The IRS has NO legal authority to create a “substitute return” for a citizen who chooses not file an individual income tax return.
• Without a signed tax return from a citizen, no individual income tax may be legally “assessed” against a citizen by an IRS agent.
• 26 USC Section 6020(b) “Substitute Returns” is NOT applicable to individual income taxes – only business related taxes.
• IRS has propagated the tax fraud by willfully utilizing deceptive training methods and materials for their agents.
• Although there is no legal authority, IRS Agents are fraudulently trained by the IRS to create “Substitute Returns” for individual income taxes. Substitute Returns are used routinely in the normal course of an agent’s workload.
• IRS has put their agents at significant legal risk, civilly and criminally, for acting outside the scope of their delegated statutory authority.
• U.S. Citizens have been falsely convicted of tax “crimes” based directly on assessment documents fraudulently certified by IRS agents as lawful evidence of proper assessments and presented to U.S. District Courts.

• IMF records are arguably kept non-decipherable to hide their abuse by IRS agents.
• The IRS unlawfully alters its computer records by the improper use of computer code fields to create and maintain records in ways that eventually lead to unlawful tax enforcement actions by the agency. Conclusions & Legal Findings of Fact: IRS FRAUD: CREATION OF TIME BARRED ASSESSMENTS
• IRS agents unlawfully and fraudulently alter its computer files to facilitate the illegal assessment and collection of taxes from the American public.
• There is proof and sworn testimony of widespread and intentional illegal tax assessments and accounting practices by agents of the United States Internal Revenue Service.
• The evidence documents IRS fraud and abuse including: manipulation of taxpayers’ master files, illegal time-barred assessments, underpayment of interest owed to taxpayers, illegal levies and liens against taxpayers’ social security benefits, illegal civil penalties, fraudulent certifications of records and more.
• IRS agents are entering fraudulent transaction dates in some taxpayer’s master files to cover-up and conceal illegal time barred assessments.
• Prior to the 1998 IRS Reform and Restructuring Act, a taxpayer had no way to prove that the IRS had committed illegal or fraudulent accounting against them. IRS master files for each and every taxpayer were, and continue to be written, in a complex, technical code. Any illegal activity by the IRS could not be decoded. But the IRS was forced to release the code as a result of the 1998 Reform and Restructuring Act.

• Even for crimes where the punishment includes incarceration, tax defendants are routinely denied the right to present defenses based on the Constitution.
• The Courts act in collusion with the Executive and the Legislative to perpetrate the income tax fraud.

Conclusions & Legal Findings of Fact:  Word “Includes”

• Critical legal terms in the IRS code defy proper definition and interpretation because of the IRS’s misuse of the word “includes”.
• This deliberate misuse of the word “includes” leads the masses to falsely believe the IRS has jurisdiction over things, places and People it does not.
• This deliberately induced confusion and ambiguity is an act of tyranny against the People and a usurpation of power not authorized the IRS under the Constitution.

• As written, the statutes in the USC instruct tax payers to use regulation Section 861 to determine if their income is taxable.
• Deletions and alterations of key phrases and references since 1954 have deliberately induced confusion in this portion of the tax code which determines what income is taxable.
• Per the plain language of the regulations, “Items” of income can only be taxed if they come from taxable “sources.”
• The list of “sources”, which uses the same word “source” as found in the 16th Amendment, is found in Section 861.
• The list of “sources” found at Section 861 is limited to foreign source income and foreign taxpayers/corporations.
• Per the plain language of the regulations, wages, salaries and even capital gains earned by ordinary Americans within the fifty states are not taxable.

• Per the PRA, all government Forms requiring information from the general public must have an OMB number, be referenced in the regulations and be approved by OMB.
• Form 1040 has never been approved as the proper form to file an individual “income tax return.” In 1994, the reference to From 1040 was DELETED from the table in the CFR that linked it to the income tax.
• Form 2555, “Foreign Earned Income” is the form specified in the regulations as the form to collect the information described in 26 CFR 1.1-1 (the income tax section).

The Great IRS Hoax:  Why We Don't Owe Income Tax

This is a an amazing documentary that exposes the lie that the IRS and our tyrannical government "servants" have foisted upon us all these years:
"That we are liable for IRC Subtitle A income tax as American Citizens living in the 50 states of the Union with income from within the 50 states of the Union."

Through a detailed and very thorough legal analysis unrefuted by any of the 100,000 people who have downloaded the book, including present and former (after they learn the truth!) employees of the Treasury and IRS, it reveals why Subtitle A of the Internal Revenue Code does not require the average American to pay " tax " to the federal government and why the IRS illegally enforces our revenue laws and is therefore involved in criminal extortion on a massive scale.  This book might just as well be called The Emperor Who Had No Clothes because of the massive and blatant government fraud that it exposes. 
 
Three years of continuous research by the webmaster went into writing this very significant and incredible book. This book is very different from most other tax books because:

The book is written in part by our tens of thousands of readers and growing... THAT'S YOU !  We invite and frequently receive good new ideas and materials from legal researchers and ordinary people like YOU, and when we get them, we add them to the book after we research and verify them for ourselves to ensure their accuracy.  Please keep your excellent ideas coming, because this is a team effort, guys!

We use words right out of the government's own mouth, in most cases, as evidence of most assertions we make .  If the government calls the research and processes found in this book frivolous , they would have to call the Supreme Court, the Statutes at Large, the Treasury Regulations (26 C.F.R.) and the U.S. Code frivolous, because everything derives from these sources.

Ever since the first version was published back in Nov. 2000, we have invited, and even begged , the government continually and repeatedly, both on our website and in our book and in correspondence with the IRS and the Senate Finance Committee ( click here to read our letter to Senator Grassley under "Political Activism"), and in the We The People Truth in Taxation Hearings to provide a signed affidavit on government stationary along with supporting evidence that disproves anything in this book .  We have even promised to post the government's rebuttal on our web site unedited because we are more interested in the truth than in our own agenda.  Yet, our criminal government servants   have consistently and  steadfastly refused their legal duty under the First Amendment Petition Clause to answer our concerns and questions, thereby hiding from the truth and obstructing justice in violation of 18 U.S.C. Chapter 73 .  By their failure to answer they have defaulted and admitted to the complete truthfulness of this book. Silence constitutes acquiescence and agreement in the legal field.  

"Evidence of failure to deny statements of others is admissible only when no other explanation is equally consistent with silence."  U.S. v. Gross, 276 F.2d 816 (1960).   

If the "court of public opinion" really were a court, and if the public really were fully educated about the law as it is the purpose of this book to bring about, the IRS and our federal government would have been convicted long ago of the following crimes by their own treasonous words and actions thoroughly documented in this book:

Establishment of the U.S. government as a "religion" in violation of First Amendment (see section 4.3.2 of this book and our article entitled: The Government is a Pagan Cult and We've All Been Drinking the Kool Aid )
Obstruction of justice under 18 U.S.C. Chapter 73
Conspiracy against rights under 18 U.S.C. 241
Extortion under 18 U.S.C. 872.
Wrongful actions of Revenue Officers under 26 U.S.C. 7214
Engaging in monetary transactions derived from unlawful activity under 18 U.S.C. 1957
Mailing threatening communications under 18 U.S.C. 876
False writings and fraud under 18 U.S.C. 1018
Taking of property without due process of law under 26 CFR 601.106(f)(1)
Unauthorized collection activity under 26 U.S.C. 7433
Fraud under 18 U.S.C. 1341
Continuing financial crimes enterprise (RICO) under 18 U.S.C. 225
Conflict of interest of federal judges under 28 U.S.C. 455
Treason under Article III , Section 3, Clause 1 of the U.S. Constitution
Breach of fiduciary duty in violation of 26 CFR 2635.101, Executive order order 12731, and Public Law 96-303
Peonage and obstructing enforcement under  Thirteenth Amendment ,  18 U.S.C. 1581 and 42 U.S.C. 1994
Bank robbery under 18 U.S.C. §2113 ( in the case of fraudulent notice of levies)

We keep the level of the writing to where a person of average intelligence and no legal background can understand and substantiate the claims we are making for himself.

We show you how and where to go to substantiate every claim we make and we encourage you to check the facts for yourself so you will believe what we say is absolutely accurate and truthful.

All inferences made are backed up by extensive legal research and justification, and therefore tend to be more convincing and authoritative and understandable than most other tax books.  We assume up front that you will question absolutely every assertion that we make because we encourage you to do exactly that, so we try to defend every assertion in advance by answering the most important questions that we think will come up.  We try to reach no unsubstantiated conclusions whatsoever and we avoid the use of personal opinions or anecdotes or misleading IRS publications.  Instead, we always try to back up our conclusions with evidence or an authoritative government source such as a court cite or a regulation or statute or quotes from the authors of the law themselves, and we verify every cite so we don't destroy our credibility with irrelevant or erroneous data or conclusions.  Frequent corrections and feedback from our 100,000 readers (and growing) also helps considerably to ensure continual improvements in the accuracy and authority and credibility of the document.

Absolutely everything in the book is consistent with itself and we try very hard not to put the reader into a state of "cognitive dissonance", which is a favorite obfuscation technique of our criminal government and legal profession.  No part of this book conflicts with any other part and there is complete "cognitive unity".  Every point made supports and enhances every other point.  If the book is truthful, then this must be the case.  A true statement cannot conflict with itself or it simply can't be truthful. 

With every point we make, we try to answer the question of "why" things are the way they are so you can understand our reasoning.  We don't flood you with a bunch of rote facts to memorize without explaining why they are important and how they fit in the big picture so you can decide for yourself whether you think it is worth your time to learn them.  That way you can learn to think strategically, like most lawyers do.

We practice exactly what we preach and what we put in the book is based on lessons learned actually doing what is described.  That way you will believe what we say and see by our example that we are very sincere about everything that we are telling you.  Since we aren't trying to sell you anything, then there can't be any other agenda than to help you learn the truth and achieve personal freedom.

This is the ONLY tax book we have ever found that not only tells you the complete story about government tax fraud, but more importantly it shows you exactly and specifically , with both tools and detailed procedures, all of the steps needed to free oneself completely and legally from slavery to the Subtitle A federal personal income tax.

This is also the ONLY book that explains and compares all the major theories and tax honesty groups and sifts the wheat from the chaff to extract the "best of breed" approach from each advocate which has the best foundation in law and can most easily be defended in court.
The entire book, we believe, completely, truthfully, and convincingly answers the following very important question:

"How can we interpret and explain federal tax law in a way that makes it completely legal and Constitutional, both from the standpoint of current law and from a historical perspective?"

If you don't have a lot of time to read EVERYTHING, we recommend reading at least the following chapters in the order listed: 1, 4, 5, 8 (these are mandatory). :source for links, outline and free download.

See: wages.