Posted by Charles F. Charpentier on May 27, 1997 at 23:29:34:
USC vs CFR
OR
STATUTES vs REGULATIONS
By
Charles F. Charpentier, P.I.
(E-mail me: sterling@palacenet.net)
This document will help you understand the difference between Federal Statutes and Administrative
Regulations. This is the cornerstone of the foundation of understanding the fraud which the IRS is
perpetrating on Americans.
When Congress passes a law, that law is recorded in a set of books known as:
The United States Code (or USC)
New USC laws cannot be enforced until new regulations are issued. Those regulations implement
the USC laws, and are recorded in the set of books known as:
The Code of Federal Regulations (or CFR)
NEVER CONFUSE THESE TWO SETS OF BOOKS! MUCH OF WHAT YOU WILL
LEARN ABOUT THE IRS AND ITS FRAUDULENT DEALINGS WITH YOU HINGES ON
UNDERSTANDING THE DIFFERENCE BETWEEN THE USC AND THE CFR!
ALSO: Memorize the term "Implementing Regulations." You'll hear much more about them. For
example, shown next is an Associated Press article which appeared in the Friday, June 4, 1993
edition of Investor's Business Daily. This article clearly shows the difference between the statute
and the regulation. Also, it shows the span of time between the enactment of the statute and the
promulgation of the regulation. If that was a mouthful, read on, and it will be explained.
Officials Issue New Regulations To Implement Family Leave Law
WASHINGTON (AP) — The Labor Department yesterday announced regulations,
effective Aug 5, implementing a new law that provides about 40% of American
workers with unpaid leave for family emergencies. President Clinton signed the Family
and Medical Leave act on Feb. 5, 16 days after taking office. Former President Bush
twice vetoed similar measures... (emphasis added)
You can see from the above article that the idea of regulations which implement the laws is no
secret. Websters New Collegiate Dictionary describes the verb "implement" as:
2 implement vt 1 : to carry out : accomplish; esp : to give practical effect to and ensure of actual
fulfillment by concrete measures (plans not yet implemented due to lack of funds).
Barron's Law Dictionary, 3rd Edition, describes "regulations" as:
REGULATIONS rules or other directives issued by administrative agencies that must have specific
authorization to issue directives and upon such authorization must usually follow prescribed
conditions, such as prior notification of the proposed action in a public record and an invitation for
public comment. See Administrative Procedure Act.
So we go there, and it reads in part:
ADMINISTRATIVE PROCEDURES ACT [APA] an act designed to give uniformity to the
rule-making and adjudicative proceedings of federal administrative agencies. The federal
government passed the act in 1946, in response to increasing resentment of the agencies' latitude in
matters affecting the rights of individuals... ...The APA provides guidelines for... ...public access to
agency rules and decisions, and it creates rights of counsel at hearings, (and) rights of public access
to administrative hearings... (underlines added)
The Internal Revenue Service is an administrative agency or regulatory agency, governed by its
own administrative codes, which are issued by the Secretary of the Treasury (*SEE NOTE
BELOW!). Barron's Law Dictionary, 3rd Edition, defines "regulatory agency" as:
REGULATORY AGENCY a government body responsible for control and supervision of a
particular activity or area of public interest. For example, the Federal Communications Commission
(FCC), in addition to its other duties, administers the laws regulating access to communication
facilities such as television and radio airwaves. Regulatory agencies are also called
administrative agencies. (emphasis added)
No IRS law (USC) enacted by Congress is valid without an implementing regulation (CFR) issued
by the Secretary of the Treasury. Though there are many more examples from case law we could
quote for this, the following Supreme Court opinion proves the point.
"...we think it important to note that the Act's civil and criminal penalties attach only upon violation
of regulations promulgated by the Secretary; if the Secretary were to do nothing, the Act itself
would impose no penalties on anyone." (underlines added) {California Bankers Ass'n v. Schultz,
416 US 21 (1974)}
The "Act" spoken of here by the Supreme Court was an Act signed into law during a certain year,
which then was recorded in the USC as a law. But unless the Secretary of the Treasury
"promulgates" certain regulations to implement the statute, the statute just sits there! No civil or
criminal penalties attach unless there is a violation of REGULATIONS promulgated by the
Secretary! It says so right there in the above statement!
The Random House Dictionary describes "promulgate" as:
promulgate, v.t. 1. to put into operation (a law, etc.) by formal proclamation. 2. to set forth publicly
(a creed, etc.).
(parentheses theirs)
You might ask, "Are the regulations in the CFR really laws?" That's a good question. Understand
that there are different kinds of laws. An ordinance of a municipality stating that riding bicycles on a
downtown sidewalk is a law. A county may pass guidelines for zoning, defining residential,
agricultural and business areas. Those guidelines are also laws. Regulations are laws, but they are
not statutes! Regulations do not stand on their own; they are (or ought to be) based upon statutes
passed by Congress (or the equivalent on the State level), and must adhere to our Constitution (at
least theoretically).
The IRS cannot arbitrarily make up their own laws (regulations). The "laws" of any regulatory (or
administrative) agency, though they are called "laws," are regulations to implement a statute which
has been passed by Congress. You must remember that when someone says, "It's the law," they
may not be speaking about a statute, but about a regulation or an ordinance. Barron's Law
Dictionary describes "statute" as:
STATUTE an act of the legislature, adopted pursuant to its constitutional authority, by prescribed
means and in certain form such that it becomes the law governing conduct within its scope. Statutes
are enacted to prescribe conduct, define crimes, create inferior government bodies, appropriate
public monies, and in general to promote the public good and welfare. Lesser governmental bodies
adopt ordinances; administrative agencies adopt REGULATIONS...
(underlines added)
Are you getting the picture? Let's look at Barron's again...
ADMINISTRATIVE LAW law created by administrative agencies by way of rules, regulations,
orders, and decisions.
So in conclusion: regulations are laws, and statutes are laws. The CFR is full of laws, but those
regulations are only valid laws in that they implement, or, put into effect, an actual statute enacted
into law by Congress. Theoretically, the IRS can't simply fill the CFR with "laws" at its own whim;
they must be based on an actual statute, and be "constitutional."
In following documents, you will learn that the IRS has NO IMPLEMENTING REGULATIONS
for the distraint actions it takes against you. They want you to believe that:
You must file a tax return
You must make your records available
If you don't, we'll fine you, take your house, your car, or throw you in jail
In upcoming chapters, you'll learn how the IRS deceitfully (and knowingly) twists the interpretation
of the tax laws, and uses Gestapo-like tactics to "keep us in line." You'll learn how the IRS, aside
from a few exceptions, fraudulently dupes the American public into believing that they are required
to pay taxes for which they are NOT liable; e.g. "Income Tax on Individuals." This is made clear by
the fact that, for years, the IRS has refused to answer a few simple questions from Americans, such
as: "What tax am I liable for?" and "Which form does the law require me to file to pay that tax?"
For the IRS to answer either of these questions would force them to expose their fraud. They
would either have to lie or tell the truth, neither of which they can afford to do. The lie would
expose them, and the truth would bring down their empire.
NOTE: Since writing this, it has come to my attention that the IRS may not be an
organization or agency of the Department of the Treasury AT ALL, and that the IRS was
NOT created by Congress. This does not negate what I have set forth here, but this
chapter was only, and remains, merely one ANGLE to use against this fraud. Please print
out and read: http://www.supremelaw.com/cooper.html to learn more about how the IRS
exists and is structured within our government (if at all).