Be Careful with the IRS

      The Freedom Movement is growing faster than ever, and with that growth is a proliferation of arguments against the income tax that have lost over and over again in the last 20 years.  These old dead arguments have been dredged up again for a new generation.  The sad story is that the new IRS challengers have not learned from history.   They have started over from scratch and they are making a lot of mistakes.  The principal mistake that was made by the last generation of freedom fighters was the use of the exempt W-4.  The government had a hay day prosecuting these individuals.  And yet the new generation with this new battle, has learned nothing from the suffering of their predecessors.  The elimination of withholding for wage-earners is still a common tactic that will once again result in tons of misery for the people. 

      Individuals are eliminating withholding using the argument that paying income tax is voluntary.  The problem with this argument is that, although an excellent argument can be made for the fact that filing tax returns is voluntary, the IRS can assess individuals under Section 6020(b) of the Internal Revenue Code and then the IRS can proceed without a court order to garnish wages.  Individuals who are on W-4s are, by definition, not judgment proof because the IRS can garnish their wages so easily. That is why the only sane approach is the approach that I outline in my book:  Why No One is Required to File Tax Returns and What You Can Do About It.  So, although we can make an excellent argument that the filing of returns is voluntary, we cannot argue that the payment of the tax is voluntary in a society in which the IRS is allowed unbridled power to collect alleged taxes.

      Let's  take a look at some of the other arguments that are popular:

       Wages are not income.  This argument will go nowhere.  Although a strong argument can be made both historically and rationally for the concept that wages are not profit or gain; and, although Section 61(a) of the Internal Revenue Code does not clearly define wages as income. (See my opinion letter for an analysis of this situation), the appellate courts have taken the position dozens of times in the past 20 years that wages are income. Therefore if you file an exempt W-4 on the assumption that wages are not income, you are headed for disaster.  The IRS may proceed criminally against you and they can proceed civilly and garnish your wages down to a pittance.

      Some individuals are filing "zero" tax returns using the various arguments used by the exempt W-4 people.  The same holds true here.  The IRS will have a hay day with individuals filing zero returns. 

            Contrary to the preaching of many of the gurus in the Freedom Movement, the courts have ruled that the income tax is constitutional.  You are not going to get a court of appeals to take the position that the income tax is unconstitutional.

      Probably the most ridiculous argument that I have encountered in the last twenty years is the argument that "Citizens of the 50 states are not the subjects of the graduated income tax."  The federal government does have the right to levy taxes within the 50 states.  The idea that the founding fathers drafted a constitution that applies only to the District of Columbia and territories that did not even exist at the time of the drafting of the constitution is ridiculous. 

      So the fact is that a lot of the stuff going around the Freedom Movement is complete garbage.  If you want to be successful in this battle, you must understand your arguments.  Don't let other people think for you.  Don't back yourself into a corner by filing an exempt W-4, and if you choose to not file a tax return, be sure that you understand your position and that you rely on professional advice in making your decision.

THE UNITED STATES GOVERNMENT:

ORGANIZED CRIME AND THE IRS

     The United States Government entered the Vietnam War after France was defeated.  Our government inherited the dependence on opium.  The CIA became the principal opium smuggling network out of Southeast Asia.  The CIA established an Airline called Air America in 1965.  There is very persuasive evidence that the CIA has now become the world's most important smuggling operation dealing in narcotics and military weapons.  During 1968 and till 1972, the proportion of heroin coming into the United States originating in South East Asia increased by 50 percent. The relationship between the CIA and organized crime networks continued through the 1980's and has helped finance illegal arms smuggling to Iran and to the Contras who played a part in the smuggling of opium from Vietnam.   Smuggling networks in Latin America were involved with the CIA and the Reagan and Bush administrations. (E. A. Wayne, "Drug Charges Hit Top Haitian Officer," Christian Science Monitor, Feb. 11, 1988;" "Our Man in Panama," The Nation, February 20, 1988.

           Now let's take a little look at history.  The first president of the United States, George Washington, used his office to enrich his personal fortune and this has established a precedent that has affected every administration since.  For example President Grant was forced to resign because of fraud. The office of Martin Van Buren was so corrupt that popular songs told of his willingness to sell anything for a price.   Warren Harding was involved in the "Teapot Dome" scandal. Several close officials in the Truman administration were indicted. Sherman Adams, one of President Eisenhower's closest friends was involved  in various scams and was forced to resign as Eisenhower's special assistant.  Lyndon Johnson was closely associated with organized crime figures and we all know about Richard Nixon.  During the Reagan administration, over a hundred and fifty Reagan appointees were forced to resign for alleged or proven criminal acts.  President Bush, the former head of the CIA, must have involvements that would astound even the most passionate of the true believers in the integrity of the federal government of the United States.

           The United States government uses organized crime figures to plot assassinations, coordinate the smuggling of drugs and arms for the CIA, and generally stand in readiness to "serve their government as a longstanding tradition." (William J. Chambliss, ON THE TAKE, From Petty Crooks to Presidents; Indiana University Press, 1988).

           Many individuals in the Freedom Movement cannot understand how the courts can continue to enforce sanctions against individuals for disobeying a law that doesn't exist.  Some citizens are currently incarcerated for willfully failing to file tax returns when it is obvious to any intelligent individual that there could not possibly be a requirement to file a tax return when the return can be entered into evidence in a criminal case.  People are constantly saying: "How can this be?  How can the government continue to incarcerate individuals and destroy them financially for disobeying a law that does not exist?  The answer to the question is: Our government currently operates through deceit and corruption.  Do you really think that a government that will smuggle illegal drugs, and plan assassinations of the leaders of foreign States; and fight covert wars would tell you the truth about the tax laws?  Of course not?  Many individuals have gone to prison for allegedly failing to comply with the tax laws; and many more have lost their homes, their automobiles and their wages; but the spirit of truth and resistance lives on in the spirit of the people. The income tax system will remain in place only as long as the people will tolerate the abuse of a corrupt and fiscally irresponsible regime. If the cat ever gets out of the bag and the citizenry ever realizes the depth of the hoax that has been perpetrated upon them, the income tax system will meet its match and the entire Income Taxation process will have
to end. Good luck and keep your Chin Up.  There is more and more exposure of the abusive aspects of our government and people are waking up.