My study of the legality of the IRS began after I became fed up with what they seemed to be getting away with.
I had a small business with a partner that we operated part time. The money we made was plowed back into the business, as most small businesses need to do to get big. No profits were ever realized. Almost all of the money was spent on advertizing. After about three years of 90 hour weeks, we gave up. During this time we kept a portfolio at a local brokerage house which I also had another business account with. We kept the account for another year and then cashed the account out. I left my business account there, but since I needed cash for my real business, I withdrew all of about $450.00. In mid October 1995 I received Form 8519, Taxpayers copy of Notice of Levy. The first week of November 1995 I received Form 668 A-(c) with a letter from the back office of my brokerage company. (I scanned this in, but it is unreadable because of the size and resolution ). I had received several notices before this but they all wanted me to file my partnership return. I had already done so, I sent them a copy. They responded with the Notice of Levy. Shortly after that they took all the Money from my account.
Here I was, the business was closed and had not made any money. Because They claimed I had not filed I owed them $1,160.00. That is just a penalty for not filing. I got my partners return and upon reading his return I realized what had happened. My partners' accountant had filed without our federal EIN number. Hence, they figured only one of the partners had filed. Instead of making him pay the fines, I decided to try using this as a test case. Since, they apparently didn't know who he was, I would try to use some of the knowledge I had learned and see where it led. Worst case -- I have to pay. Best case -- I stop them.
About this same time, I became involved with a local Libertarian group and several of the people talked about court cases and what the law actually says about "Income" and "Taxes." As I got more familiar with the Internet and the Libertarians, my curiosity grew. These guys all seemed to know more about the law than any lawyer I had ever talked to. I began dumping Title 26 from the United States Code, the IRS Code, from an Online service.
Next, I was invited to hear Gene Schroder speak about the War and Emergency Powers Act. It sounded rather esoteric, because it didn't seem to relate to what I was studying. Was I in for a surprise. As he went over the well documented facts of his paper, several things fell into place. Questions that I had were answered. The key to the door had been found.
These two questions are typical of why people today believe that our government is running out of control. Our right to private property and due process are rights guaranteed by both the federal and our state constitutions. How can the government violate these basic rights and get away with it?
The War and Emergency Powers Doctrine is the key. According to Senate Report 93-549 (1973) "Since March the 9th, 1933, the United States has been in a state of declared national emergency." This means that the constitution has been suspended. A situation which began during World War I and has continued until today. This is the foundation for how the government has taken away our indefeasible rights. I was next given a shareware copy of Mitch Modelesky"s book "The Federal Zone." This book filled in all the gaps and explained the distinctions of status and jurisdiction.
I tried to scan the IRS Forms in just for people to see but, they are very large and I don't have the right tool to fix them up. You'll have to use your imagination.
Time was running out and the IRS and Butcher/Wheat First did enter and steal away about $400.00 FRN's from my account. I kept studying, and cruising the net. I was also trying to get into a local law library to do some research. Meanwhile, I came across Karl Kleinpaste's Battle with the IRS. He had some great stuff and it was very encouraging to see someone else doing it.
They came back! The PLEASE CALL US LETTER came next. Then the IRS sent another Form 8519, Taxpayers copy of Notice of Levy, for the rest of the money. This time I was ready. I responded with my first salvo to Peter Matthews Chief Collections. Surprisingly, I received no response. I did get a letter from Maryanne Slater, Chief Entity Control Section ( too many Chiefs no Indians ). She wanted to assign me a new Social Security Number. I sent her notice of refusal for cause without dishonor (got this from Karl ) checked it out and it might be the right tool. I used it on a traffic ticket when I got their NOTICE.
Nothing in the mail since. I'll keep you posted.
March 27, 1997
Ha... In February I filed a "Statement in Lieu of Form 1040..." for 1994. Within a month on March 17th I received a "Proposal for Assessment." My response is become very quick. I put together a "Refusal for Cause Fraud," another copy of the of the 1040 with schedules, Memorandum of Applicable Law" copied mostly from The Federal Zone Appendix J (I like the style and content) and a Notice and Demand for my 5000 FRN'S. I really want to and have to fight this one, because the assessment was for 16,000 FRN'S. I'm sending it off tomorrow, Good Friday!
Last Updated on March 27, 1997 by Keith A. van Brunt