The US Constitution Doesn't Require Most Americans To Pay An Income Tax
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The US Constitution Doesn't Require Most Americans To Pay An Income Tax
Brushaber v. Union Pacific R.R., 240 U.S. 1, 11 (1916)
* America From Freedom To Fascism (Video):
See Video Section 25:00 Minutes To 30:00 To See Actual Proof Demonstrating That The I.R.S. Has No Legal Authority For The Collection Of Income Taxes, Seizure of Property For Non-Payment, Audits Of Citizens Tax Filings, etc.: http://youtu.be/gKToYTOE128
The I.R.S. Also Fails To Actually Define Income: See Video Section 32:41
IRS LOSES CHALLENGE TO PROVE TAX LIABILITY
Lawyer is acquitted after arguing income levy lacks legal foundation
The Internal Revenue Service has lost a lawyer’s challenge in front of a jury to prove a constitutional foundation for the nation’s income tax, and the victorious attorney now is setting his sights higher.
“I think now people are beginning to realize that this has got to be the largest fraud, backed up by intimidation and extortion and by the sheer force of taking peoples property and hard-earned money without any lawful authorization whatsoever,” said lawyer Tom Cryer just days after a jury in Louisiana acquitted him of two criminal tax counts.
And before you consign him to the legions of “tin foil hat brigades” who argue against paying taxes, and then want payment to explain how to do that, he addresses the issue up front.
“These snake oil peddlers have conned millions of dollars out of many well-intended patriots and left a trail of broken lives in their wake. … These charlatans should be avoided, not only because they will lead you to bankruptcy and prison, but because by association they discredit those who are telling the truth,” he said.
The truth, he said, is where he comes in, with the launch of a new Truth Attack website that is intended to build on his victory, and create a coalition of resources to defeat – ultimately – the income tax in the United States.
Although the legal citations in the case tend to run the length of paragraphs, Cryer said the underlying issue is not that complicated. Essentially, he argued that income is not necessarily any money that comes to a person, but rather categories such as profit and interest.
He said the free exchange of labor for compensation has been upheld as a right by the Supreme Court, but that doesn’t necessarily make the compensation income.
If ever such an argument were to be presented widely, Cryer said, the income to the federal government would plummet. But not to worry, he said, the expenses could be reduced equally by eliminating programs, departments and agencies that also have no foundation in the Constitution.
“The Founding Fathers intentionally restricted the taxing powers of the new federal government as a measure of restraint on its size. By exceeding that limited taxing authority the federal government has been able to obtain resources beyond its intended reach, and that money has enabled the federal government to exceed its authority,” he said.
For example, he said, the Constitution does not empower the federal government to regulate education, or employment, and agriculture, yet it does so.
But for the rest of the nation, he’s working with Save-a-Patriot, the Free Enterprise Society, Live Free Now and his own Lie Free Zone to spread the message of the truth.
“There are three points that are important,” he said. “There’s no law making the average working man liable [for income taxes], there’s no law or regulation that allows the IRS to contend that earnings are 100 percent profit received in exchange for nothing, and the right to earn a living through any lawful occupation is a constitutionally protected fundamental right, and it is exempt from taxation.”
Spokesman Robert Marvin in Washington’s IRS office said the Internal Revenue Code provides for taxation on salaries or wages, but when pressed for a specific citation, or constitutional provision, he said, “I can’t comment.”
Cryer’s encounter with tax law began more than a decade ago when a friend told him the income tax was sham. Cryer started researching, hoping to keep his friend out of trouble. But his conclusions, after years of research, were exactly what his friend told him.
He researched not only tax laws, but also the documents pertaining to the drafting of the U.S. Constitution as well as the first income tax.
He said throughout his battle, he’s offered at every turn to pay taxes if the IRS could show him the authorization, and that never has happened.
“The Criminal Investigation Division and Department of Justice both responded only with ‘your position is frivolous.’ I had never stated a position, so how could they know whether it was frivolous?” he said. “Imagine my sending you a bill for $1,000 and when you call me and ask what the bill was for I simply said, ‘that position is frivolous, just write the check and send it in.’”
His acquittal, he said, was a precedent because it means “people can see and recognize the truth.”
He said multiple Supreme Court opinions have affirmed an individual’s ownership of his or her own labor, and “exercising your fundamental rights” is not taxable. “It is definitely a trade. What most people receive in the form of wages, salaries or in my case fees that they personally earned for their labor is not received in exchange for nothing.”
He said there might be a profit that should be taxable, but there might not.
“The IRS lets Wal-Mart sell a trillion dollars worth of goods, but they can back out their cost of goods [before being taxed,]” he said. “The IRS considers, in the case of a Wal-Mart wage earner, 100 percent of what he takes in is profit.”
“But he’s using his life, energy and work lifespan, and depleting it as he goes,” Cryer said. “[Working] is a God-given fundamental right that is protected under the Constitution and can’t be taxed any more than exercising freedom of speech.”
While he waits to see what, if anything, the IRS and Justice Department will do next in his case, he’s working to coordinate the groups that are battling taxation as unconstitutional.
“I have started a campaign to unify [the work] and we’ve got a number of organizations that are sponsoring and supporting this campaign,” he said. The goal is to get everyone “who is aware of the truth” organized so they can spread the word.
He warned without a restoration of constitutional basics, the nation is lost.
“Read your Constitution and you will see that the federal role does not include ANY authority to regulate or tax any citizen directly and that WE expressly reserved the right to rule and govern ourselves as States, not as mere political subdivisions,” his website says.
“The Constitution does not allow the government to run your lives, but the money it is stealing from millions of Americans is the fuel for its over-reaching and kibitzing. Take the money back and we and our states and communities can again be free,” he said.
The fight is over “our FREEDOM from rule by a DISTANT RULER, just as we fought to free ourselves of a distant England over 200 years ago,” he said.
Lost: $67 Million. If Found, Please Return To IRS
Hoo boy…this isn’t going to go over well.
The IRS has seen its summer from hell extended into autumn, as a report issued today by the Treasury Inspector General for Tax Administration (TIGTA) revealed that the Service cannot account for $67 million that was set aside in a slush fund to help pay for Obamacare.
Obamacare – or more formally, the Patient Protection and Affordable Care Act – adds several new taxes to the Code, as well as the requirement that beginning in 2014, most individuals must carry a minimum amount of health insurance or be required to pay a sum to the IRS upon filing their tax return. Perhaps you’ve read about this so-called “individual insurance mandate,” and if you’re a Republican, perhaps it’s caused you to spend an inordinate amount of your free time over the last three years typing in all caps on various message boards.
From 2010 through 2012, the IRS’s $488 million cost of implementing Obamcare was paid for by the Health Insurance Reform Implementation Fund (HIRIF), a slush fund set up by the Department of Health and Human Services.
TIGTA took it upon itself to conduct a little audit to ensure that the Service had the necessary processes in place to properly account for the Obamacare-directed costs. Things did not go well. In the report was this little nugget:
TIGTA also found that the IRS did not track all costs associated with implementation of the ACA including costs not charged to the HIRIF. Specifically, the IRS did not account for or attempt to quantify approximately $67 million of indirect ACA costs incurred for Fiscal Years 2010 through 2012.
Yup. That’s $67 million of taxpayer dollars that were spent on, well…nobody is quite sure what it was spent on, other than it appears to have used for employee workspaces and technology. In other words…Grand Theft Auto V for everyone!
Rather than bicker and argue over who spent the missing $67 million, the IRS has agreed to simply move on and prevent future misappropriations by implementing the recommendations made by TIGTA with the hopes that next time around, they’ll have a better idea of what happened to 15% of their working budget.
IRS Loses
IRS Loses: DoJ and IRS Fraud
In Jerry Dixon v. CIR, F.3d (9th Cir. 2003), the court found that DoJ and IRS committed fraud on the court in a tax case.
IRS Loses: Unrecorded Deed Beats IRS
A couple deeded real estate to their son shortly before the IRS tried to put a lien on the real estate to collect their past-due taxes. The IRS argued that the deed was invalid because it had not been recorded in the county courthouse as the law required.
Court:
A deed is recorded to give notice to third parties of a property's status. But because an IRS agent who had been dealing with the couple had been aware of the transaction, such notice was not required for the IRS. Thus, the deed was effective. Because it conveyed the property before the IRS issued the tax liens, the property escapes the liens.
Arthur D. Dalessandro, M.D. Pa., No. 3 :CV-93-00105
IRS Loses: Fifth Amendment Rights Preserved
The IRS selected John Berry for a random audit, but he refused to comply, invoking his Fifth Amendment right against self-incrimination. The IRS then summoned all of Berry's tax records.
District Court:
The summons against Berry was invalid because the IRS didn't know that the summoned records existed. Forcing Berry to produce records would in effect make him testify against himself by admitting that the records did exist.
IRS Loses: Late Amended Claim Is Allowed
A refund claim was filed just before the filing deadline. After the deadline, the taxpayer discovered that the refund had been underestimated and filed an amended claim for a larger amount. But the IRS said it was too late.
Court:
The new claim was simply an adjustment of the original, timely claim, so it was allowed.
IRS Loses: Can't Collect Interest After Losing Return For 11 Years
In 1987, an individual filed an amended tax return claiming a loss carryback that he thought paid off a prior year's tax. In 1998, during a later tax dispute, he received an inexplicable tax bill and asked the IRS about the amended 1987 return. The IRS then realized it had lost the return, found it, processed it—and added 11 years of interest to the tax bill. The individual protested.
Court:
The individual's tax in fact had been underpaid, but this was entirely due to the IRS's error in losing the amended return and not telling him the status of his tax bill even when he had asked. So the IRS must abate the interest charge.
Nicholas J. Paihnich, TC Memo 2003-297
IRS Loses: Conviction Overturned Due To Abusive Search Warrant
A tax professional was criminally convicted of advising clients to cheat on their taxes. The IRS used evidence it obtained by seizing his computers, client files, correspondence, seminar videos and many other business materials. But the adviser said the evidence had been obtained illegally and should be thrown out.
Court of Appeals:
The search warrant used by the IRS to seize the evidence was so expansive as to cover virtually anything in the adviser's office. Since it failed to be "reasonably specific" and state the activity being investigated, it was defective. So the adviser gets a new trial—without the ill gotten evidence.
Alfred G. Bridges. CA-9, No. 01-30316
IRS Loses: Under-Reporting Income Isn't Fraud
John Maloney knowingly understated his income for a year. The IRS said this was fraud, so it could asses back taxes even though the status of limitations otherwise would have expired for the year.
Tax Court:
While Maloney had under-reported his income for the year, he believed this merely offset the amount by which he had over-reported his income the prior year. He also kept good books and records, gave all necessary information to his accountant and cooperated with the IRS. None of this indicated and intent to evade tax—so there was no fraud and the limitations period did protect his return.
IRS Loses: Occasional Inventor Doesn't Owe Self-Employment Tax
Melvin Levinson operated a retail store for more than 40 years and in his spare time created and patented various inventions. On his tax return, he reported royalty income from patents and settlement payments he received from a business that had infringed his patents. The IRS imposed self-employment tax on his invention related income.
Tax Court:
Levinson did not design inventions regularly or continuously, but only sporadically. Thus, he was not engaged in the "trade or business" of inventing and does not owe self-employment tax on his invention-related income.
IRS Loses: Lack of Fraud Saves Businessman From Paying Tax
The IRS sent a tax deficiency notice to a businessman more than three years after he filled his tax return. It said the statute of limitations shouldn't apply because he had committed tax fraud. It claimed his tax underpayments were consistent with acknowledged skill in business—and pointed out he previously been convicted of filing a false return.
Tax Court:
Tax fraud consists of activity hiding income from the IRS and the IRS had no evidence that the businessman had done that. Underpaying taxes is not fraud and neither is filing a false return. So the three-year limit applied and the businessman was safe from tax.
IRS Loses: Must Cooperate With Request For Information
Louis Peyton filed a Freedom of Information Act (FOIA) request with the IRS for documents indexed under his name regarding a criminal case being investigated by an IRS agent in Virginia. The IRS refused, saying the request wasn't specific enough and hadn't been filed in the Richmond, Virginia office.
Court:
The IRS, like other government agencies, is capable of finding documents indexed under an individual's name—so long as sufficient information has been provided to it. And the IRS is capable of forwarding the request to its Richmond Office itself. It was ordered to comply with the FOIA request.
IRS Loses: Taxpayer Keeps Excess Refund
The IRS mistakenly double-credited Raymond O'Bryant's account for a $28,000 tax payment he had made. They sent him a refund in the same amount, plus interest. Later the IRS realized its error, said the original tax bill remained unpaid and put a lien on O'Bryant's property.
Court:
The original tax debt was extinguished when O'Bryant made his payment. The problems that followed were the fault of the IRS. To recover the refund, it had to bring a separate action—and it had failed to do so before the statute of limitations ran out. So the lien was lifted and O'Bryant kept the refund.
IRS Loses: Must Release Its Own Valuation Expert's Report
Richard Bennett claimed a $236,000 deduction for items he donated to a charity, but the IRS said the items had no value and disallowed the entire deduction. Later, Bennett learned that the IRS' initial appraisal of the items said they did have value—and that the IRS then obtained a second opinion from another appraiser who said they had no value. Bennett demanded that the IRS release its initial appraisal to him, but the IRS said that because it hadn't used the initial appraisal it was irrelevant to the case.
Court:
The appraisal was relevant to the issue of the items' value, so the IRS must produce it.
IRS Loses: Transposed Street Number Voids Notice
The IRS mailed a deficiency notice to the wrong street number, 750 instead of 705, but told the Tax Court that this didn't matter because the local mail carrier knew the addressee and tried to deliver the notice to the correct address. However, the mail carrier did not testify.
Tax Court:
The deficiency notice had been mailed to the wrong address, and the IRS had presented no evidence showing that it had actually delivered to the right address so the notice was invalid.
IRS Loses: Deposit Defeats Levy
An attorney held funds for a client who was being sued by several creditors who wanted the money, including the IRS. The IRS levied on the funds, but instead of turning them over the attorney proposed to deposit them with the court and remove himself from the dispute. However, the IRS insisted on holding the attorney liable for the money.
Court:
For the attorney, it was reasonable for him to turn funds over to the court until the issue was decided. And because he never made any claim to the funds himself, it was reasonable to prevent creditors—including the IRS—from holding him accountable for them.
IRS Loses: Conviction Overturned
When the IRS brought a criminal charge against Bernhard Manko for tax fraud, he tried to get into evidence the fact that in an earlier civil tax proceeding the IRS had agreed to a compromise settlement of the same tax bill that it now said was fraudulent. Mr. Manko said that by agreeing to the compromise the IRS had admitted that his tax position was at least partly legitimate. But the court barred the compromise agreement as evidence and Mr. Manko was convicted. He appealed.
Court of Appeals:
For Mr. Manko. The agreement should have been admitted as evidence, so the conviction is vacated.
TIME LIMITATIONS ON THE IRS' RIGHT TO AUDIT YOUR RETURN?
The Supreme Court just took away from the IRS audit power the IRS misused against taxpayers for years. Tax laws only allow the audit process of the IRS to add taxes to your bill if they finish the audit process and add additional tax within three years after the return was filed. Congress allows a limited exception if a taxpayer hid income items that added up to more than 25% of their receipts of moneys from their tax return. For years, the IRS interpreted that “income omission” exception to allow them to conduct audits and add taxes to your tax bill up to six years after you filed your return even if you only happened to be wrong about something other than an income omission — like a deduction or the amount of “basis” in the sale of a capital asset.
Now, the Supreme Court told the Internal Revenue Service they were wrong and had no right to audit taxpayers and add tax past the three-year limitations in the tax laws where the taxpayer merely made a mistake about a deduction or the basis in an asset, but never hid income from their return. It is one of the kind of differences between lawful avoidance and avoiding taxes and unlawful evasion of taxes of the kind that can cause criminal investigations. www.supremecourt.gov_opinions_11pdf_11-139
Getting a deduction wrong or the basis in an asset mistaken is a common civil mistake; it does not mislead the IRS the way completely omitting or hiding money from the return does. The 3-year shorter limit on audits and adding tax to your tax bill is what Congress intended for those who include the amount, but simply get the tax ort accounting interpretation of the meaning of the amount mistaken.
What does that mean? It means thousands of IRS audits and the audit process happening right now to millions of Americans should be stopped in their tracks. It means hundreds of united states tax court cases pending right now should be dismissed or ruled in favor of the taxpayer. It means millions of Americans just got their rights back against the IRS misusing the audit process.
A quick cheat-sheet for the limits on the IRS reviewing non-fraudulent returns:
If you completely left out the receipt of money from your return, then the IRS has 6 years to audit and add tax;
If you got the basis in your asset wrong on your tax return, then the IRS has only 3 years to audit and add tax;
If you included a deduction that was mistaken, then the IRS has only 3 years to audit and add tax;
Remember your rights; they are all that protects you from unfair government conduct and overreaching. The Supreme Court just reinstated a critical right for you in the audit process against the IRS to protect innocent mistakes in for people seeking lawful means to avoid taxes.
Monty Henry, Owner
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posted by DPL-Surveillance-Equipment | 8:54 AM
* I.R.S. Can't Identify Law Requiring The Payment Of Income Taxes
Supreme Court Rulings Denying The I.R.S. The Authority To Collect An Income Tax: http://tinyurl.com/m33efj4 (There Are Numerous Other Supreme Court Rulings Stating The Same: http://tinyurl.com/m85te6s).