THE CHARLATANS OF FREEDOM
Probably the biggest problem in the Freedom Movement is the fact that there are many different individuals selling many different
scams to enrich themselves. Individuals in the Freedom Movement are easy pickings for con men because; there are many
individuals who are only into the movement for the money. They really have no interest in the philosophical elements
of the Freedom Movement.
For example, the worst mistake the Freedom Movement ever made was the use of Exempt W-4's. If an individual has
wages, he is not judgment proof. Also the major reason for convictions in criminal cases is because of the filing of
an exempt W-4 combined with the non-filing of a return. In spite of the terrible record of the exempt W-4 approach,
there are still individuals who recommend that approach.
Recently I have received several calls telling me about a group in California that sells a sure-fire system to get the IRS
off your back for $5,000. I called up the leader of the organization and spoke with him. Since I had to make an
evaluation fast, I asked him several specific questions about tax law. I asked him how he deals with a First Party Summons.
He replied that he has a letter that people send out that makes the IRS go away. Regarding Stat. Notices, he claimed
that the IRS was not following procedures in issuing Stat. Notices; when I asked him to clarify; he went off on a long song
and dance that showed he had absolutely no understanding of the true procedures that the IRS uses in the issuance of a Stat.
Notice.
This individual
claims that he is able to remove levies and liens by writing letters to the IRS. He also claims to have had several
individuals removed from prison. When he was asked for proof, he said that he couldn't give that out.
As a long time fighter in the Courts against the
IRS and with hundreds of hours of experience in this arena, I am very skeptical about individuals who have silver bullets
and then won't tell exactly what it is they do until after it is done. It is my opinion that the individual in California
is either a con man or a fool or both. The problem is, he won't have any problem finding fools to buy his product.
As PT Barnum once said; "A fool is born every minute." In my estimation, in the Freedom Movement, five fools
are born a minute.
The
main reason that criminal cases are lost in the Freedom Movement is because individuals do not pick a theory and stick to
it. They change and change and they become very easy targets for the United States Attorney who is no dummy on cross-examination.
Some of the original ideas of the Freedom Movement were the best and they are the only ideas that we need.
Let's analyze the issues and get some ideas
about the issues that have merit and the issues that probably don't have much merit.
1. Wages are not income: This is an old idea in the movement, but it has lost in all the courts
of appeals. If you raise the issue in Tax Court, you will get a $25,000 fine. The only way this issue can be raised
is in a refund suit or possibly in some sort of suit relating to denial of a technical conference. An appeal from Tax
Court might work but the cases are going to have to go to the Supreme Court. Attorney Jeff Dickstein has written an excellent
book on this approach and I highly recommend it for individuals who like this issue. Basically, you shouldn't take this
approach unless you are willing and able to take a good case to the Supreme Court. It is unlikely that the Supreme Court will
hear this issue, however.
2. The Fifth Amendment. This issue is tricky so you have to set it up right and there are still
no guarantees; but it is the best issue that has ever been raised in the Freedom Movement. The IRS claims that the Fifth
Amendment is not an excuse for not filing a return and yet they continue to use information in criminal tax cases that individuals
have given to them on 1040 returns. If you wish to use this approach, you must develop your reason for having concern
about waiving your Fifth Amendment Rights and you must seek opinions from professionals on the issue. It is my opinion
that this one issue with its related components is the most valid and worthwhile approach ever developed by the Movement and
it is certainly a good enough issue to break the camel's back if we use it correctly.
3. Non resident alien stuff. This issue has lost in the courts. It has been the basis for
more than one criminal case that I know of. It is my opinion that individuals who believe they are successfully
using this approach are simply being "worked" by the IRS so they can be later hammered into submission in a criminal
case. I really don't think there is anyway that the government will ever succumb to this issue since it would involve
such an incredible loss of power for them all over the board. Furthermore, we do not need this issue; the Fifth Amendment
issue is good enough.
3. The income tax is voluntary. This is another great issue. There is no statute that makes
individuals liable. The IRS Privacy Act Notice is unclear and does not follow the requirements of the Privacy Act.
If the Notice says anything, it says that you are not required to file returns, because it contains a Miranda type of warning.
The Notice says that the IRS can give all information they get to the Department of Justice obviously for use in a criminal
tax case. The IRS constantly refers to the income tax as voluntary in its publications and in the Internal Revenue Manual.
They do this because they wish to continue to use information proffered on 1040 returns in criminal tax cases. However, the
IRS can assess individuals under Section 6020(b) who do not file returns and the IRS can proceed to collection. Therefore,
although filing tax returns is voluntary, if the IRS files one for you, they can then take their pound of flesh through levies,
liens, seizures, etc.
4. Affidavits of rescission and revocation; quite frankly, I am sometimes embarrassed that I am involved
in a movement with individuals who perform silly maneuvers like this one. If there is no statue that makes you liable
and you can't be required to waive your Fifth Amendment Rights, then why do you need to file affidavits of recession and
revocation? It has been my experience, and my experience is extensive on this issue that the IRS ignores these affidavits,
and they make great evidence in criminal tax cases for the IRS. Because of individual's constant changing of position,
U.S. Attorneys are many times able to show bad faith to the jury. Furthermore, these affidavits will not stop garnishments,
levies, liens, etc; and anybody who tells you otherwise is not being truthful.
5. Quite frankly, there are no silver bullets. Anyone who gets on the front lines must realize
that he is taking a dangerous position. You can't buy a packet for any amount that will protect you from the IRS
or the Income Tax. If it were that easy, I would have figured it out by now myself. But in spite of that fact,
there are still at least six groups that are selling silver bullets. There is nothing except judgment proofing that
can protect you from the IRS. If you are an employee, you cannot do an exempt W-4, the IRS is going to get your money.
However, that doesn't mean that you can't fight the IRS. There is very little danger either civilly or criminally
if you choose to not file a return if the IRS has your tax money and counsel has advised you that you are NOT required to
file. If the IRS has your money without an assessment, you do have an issue; and you can have fun with it. It will be
very difficult for the IRS to put you on the defensive.
6. If you are self-employed and you have absolutely no property, you have professional advice that
you are not required to file returns, and you realize the possibility of a criminal conviction for a crime that you have not
committed, then you might consider a front-line position. You have to realize that even though you are right and even
though you know you are right, a jury might still convict you and if you are not judgment proof, the IRS will be able to get
your stuff. The solution to the risks of an adversary position is to be the devil's advocate. Look at your
situation and decide what you will do if all your theories fail. Assume the theories are going to fail and prepare for
the worst. It is better to be safe than sorry. Taking a front line position against your spouse's wishes,
or when you are an employee of a major corporation, can be very difficult if you do not think through the consequences and
prepare for them.
Remember
this: There are no silver bullets. There is nothing that some con man can sell you that will make the
IRS simply go away and save your property. If you got into the front lines of the movement with property, you have already
made your mistake, you may have to just take the hit and go on. Many individuals, who have received silver bullet kits
for large amounts of money, have really only succeeded in getting their civil case postponed while the IRS considers a criminal
one. The con men selling these packages continue to sell them to the "true believers" in the movement who seem to
want to be duped. For your own protection, if you are offered a silver bullet; put the burden of proof on the con man.
Ask him to show you specific proof that the idea really works. If the idea does work, you may be able to prove it by
getting a complete FOIA file on the individual and finding out if the IRS really has stopped its procedures because of something
that was said in a letter. The IRS could have simply turned the whole thing over to criminal investigation. To date,
I have never seen anyone come up with proof that is real proof. For example, if the IRS sends you a letter removing
a lien after you send them a letter, you cannot state absolutely that the lien was removed because of something you said in
the letter; unless you do a great deal of research.