Martin A. Larson

                     Who's Eligible for Tax?

     I have recently received a large amount of material from 
various scholars who maintain ordinary Citizens in the private 
sector are not required to file forms 1040 or pay personal 
federal income taxes.

     Many of them base their position on the question of 
jurisdiction and hold that, since the States are sovereign and 
independent entities, their Citizens are "non-resident aliens" in 
respect to the federal government situated in Washington, D.C.

     The most complete and detailed dissertation on this subject 
is an extensive work entitled "The Federal Zone," by Paul Mitchell.
He says the term "United States" has three different and distinct

     It may be the name of a sovereign occupying the same 
     position as do other sovereigns in the family of nations;

     It may designate the limited territory over which the 
     federal government has exclusive jurisdiction;  and,

     It may be the collective name for the 50 States, which are 
     united under the Constitution.

     The book offers 12 highly detailed and documented chapters 
in order to establish Mitchell's thesis that each and every one 
of the 50 States is a separate sovereignty.  Whenever the term 
"United States" is used in the Internal Revenue Code, it means 
the limited area in which the federal government has exclusive 
jurisdiction.  It does not include the territory occupied by the 
50 States.


     Chapter 14, called "Conclusions," tells the reader the land 
over which the federal government has jurisdiction consists of 
the District of Columbia, the federal territories and possessions, 
and the enclaves within the States which have been purchased with 
the consent of the State legislatures.  The author calls these 
the federal zone.  Here, Congress is not subject to the same 
limitations as exist in the sovereign States.

     This makes the laws governing taxation within the federal 
zone entirely different from those outside of it.  The 
Constitution rules within the States, but Congress rules within 
the federal zone, the author contends.

     The most important difference between the two lies in the 
area of taxation.

     According to Mitchell, the "United States", as that term is 
used in the Internal Revenue Code, refers to the area over which 
Congress has exclusive legislative authority.  If you are not a 
citizen residing within the federal zone or an employee of 
government, then you are alien in respect to the United States, 
i.e. you are a non-resident alien.  Non-resident aliens, under 
the Internal Revenue Code, are exempt from all U.S. laws and 
regulations, Mitchell argues.

     Further, according to this theory, non-resident aliens are 
required to pay taxes only on income from sources within the 
federal zone.  Thus, employment within the federal government 
produces income which has its source within the federal zone.  
For the same reason, dividends paid to non-resident aliens on 
stocks or bonds issued by U.S. corporations also have their 
source within the federal zone and are, therefore, subject to 
federal taxation.

     Income derived from sources outside the federal zone is not 
taxable by the U.S. government, Mitchell says.

                       CONSTRUCTIVE FRAUD

     The federal government has used what is called legal 
presumption to impose taxes on millions of Americans who are 
actually legally exempt, says Mitchell.  By means of clever and 
constructive fraud, the Internal Revenue Service ("IRS") has 
extended its power of taxation far beyond the scope authorized by 
its own law.  However, when an otherwise exempt Citizen signs a 
1040 and pays the tax indicated thereon, the presumption is that 
he knows what he is doing and thereby volunteers to become a 

     A completed, signed and submitted 1040 is a voluntarily 
executed commercial agreement, which can be used as prima facie
evidence that a non-resident alien has knowingly and 
intentionally subjected himself to federal taxation.  This 
principle is explained in Morse v. United States, 494 F.2d 876, 

     The author offers a model affidavit of 5,000 words, which is 
to be used by Citizens in explaining to the IRS why they no 
longer make any return or pay any tax to the federal government.

     Congress has collected trillions of dollars from 
unsuspecting Citizens by persuading them they are inside its 
revenue area when, in fact, they are outside.  This is deception 
on a grand scale, if what Mitchell says is true or can be 
defended in court.

     It is indeed stunning to realize how carefully crafted 
definitions such as those for "State" and "United States" are 
found in IRS instructions intentionally so complex that no one 
can understand them.  This indicates that they are carefully 
prepared to accomplish what is perhaps the greatest fiscal fraud 
ever perpetrated upon any people in the history of the world.

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