© Copyright 1993 by Frederick Mann, ALL RIGHTS RESERVED.
Skirmish with IRS Bureaucrats
On 8/25/89 a person I shall refer to as Mr. "Non Taxpayer" received a form letter from a Revenue Officer of the IRS:
"... We have scheduled a meeting with you for the reason checked below.
--> We have no record of receiving the following tax returns and want to discuss this matter with you.
Form Number: 1040 U.S. Individual Income Tax Return.
Tax Period Ended: 12/31/84, 12/31/85, 12/31/86, 12/31/87, 12/31/88.
You should bring signed returns and visit our office on the date and at the time your meeting is scheduled. If you cannot come to this meeting, you should call our office immediately and reschedule your appointment.
If you do not do either one, a summons may be issued requiring you to produce certain books, papers, records, or other relevant material. Under section 7210 of the Internal Revenue Code, anyone who is summoned to testify or appear and to produce books, accounts, or other relevant material, but who does not do so and is convicted, will be fined up to $1,000, imprisoned for up to a year, or both, and will be charged prosecution costs...
You should bring payment or proof of payment if you already paid. If you cannot pay the tax due, you should bring any records that reflect your current assets and liabilities. We will then analyze your financial status and determine how you can pay your tax. If you cannot visit our office on the date and at the time scheduled, you should call our office immediately and reschedule your appointment.
If you neither bring the requested items to the meeting nor reschedule it, we may take the following action to satisfy your outstanding tax liability:
- File a Notice of Federal Tax Lien, levy against your wages, bank accounts, etc., or
- Seize any of your property or rights to property.
We would appreciate your cooperation... "
Mr. "Non Taxpayer" responded on 9/11/89:
"Dear Mr. "Revenue Officer,"
... I've been giving a lot of thought to your demanding tone that I bring in tax returns and other personal papers for you to review in your capacity as an agent for the IRS.
I am bothered, not only by the tone you used, but by the fact that your demand comes in conflict with the 4th Amendment of the U.S. Constitution which says, "The right of the people to be secure in their persons, houses, papers, and effects, against unreasonable searches and seizures, shall not be violated... "
I do know that some authority has been granted to the Secretary of the Treasury, but I don't believe that he has been granted any authority to demand personal papers from me. Therefore, I don't believe, Mr. "Revenue Officer," that you have that authority; and, therefore, I will not be attending any meeting without first determining whether you have the authority to inquire into my personal affairs.
Now there is a possibility that I may be wrong; but if I am, you are going to have to show me. Therefore, I am requesting the following:
- Copies of the statutes that impose upon me an obligation to produce personal papers to you.
- Specific copies of the delegation orders from the Secretary down to the Commissioner, down to the District Director, and down to you.
- Copies of any notices sent to me that informed me that I am required to keep records and papers for the Secretary or the IRS or you.
- Copies of any determinations or decisions that show that I am liable to the United States of America or the IRS for any taxes.
- Copies of any documents or decisions that show how I came within that taxing authority of the United States of America.
My authority for making this request is as follows:"Whatever the form in which the Government functions, anyone entering into an arrangement with the Government takes the risk of having accurately ascertained that he sho purports to act for the Government stays within the bounds of his authority... and this is so even though as here, the agent himself may have been unaware of the limitations upon his authority." Federal Crop Ins. Corp. v. Merrill, 332 U.S. 380 at 384 (1947).
Without this specific documentation of authority I will presume that none exists and that any submission of information by me to you is totally voluntary and may well constitute a waiver of my fundamental right to privacy and the security of my personal papers and effects.
I will be awaiting your response. If you need additional time, please notify me. Absent that, I will expect to hear from you by October 8, 1989, with the documentation requested.
If I do not hear from you within that time, such lack of response will further support the presumption that you are without authority to make this inquiry into my personal affairs.
Sincerely, "Non Taxpayer"
Certified Mail # ____________"
Copy: District Director File
[Note: Mr. "Non Taxpayer" is not a "United States" citizen, but a citizen of the State of Indiana - See Report #16A: The Best Kept Secrets of the IRS, Q.3, on IRS/federal jurisdiction.]
The "Revenue Officer" responded on 9/20/89:
This letter is in response to your letter and requests dated 9/11/89. With respect to your inquiries, please refer to Internal Revenue Code sections 6001, 6012, 6091(b), 6151 and 6201. If your intent is to question the legal basis for Income Tax I suggest you contact your elected Federal representatives, as the Internal Revenue Service only administers tax laws passed by the legislative branch.
Also, since I am not aware of any special exemption you possess for not being required to file a Federal Income Tax return, please be advised I am again requesting you filing of Federal forms 1040 for the years ended 2/31/84, 12/31/85, 12/31/86, 12/31/87 and 12/31/88. In the absence of such I will continue to determine your Federal Income Tax liability for the above years.
Sincerely, Revenue Officer"
On 9/29/89 Mr. "Non Taxpayer" responded:
"Dear Mr. "Revenue Officer,"
I am in receipt of your letter of 9/20/89 which is in response to my letter of 9/11/89.
As you suggested, I have, along with a friend, looked up and copied the sections of the Internal Revenue Code, that you requested I refer to in your letter. I would like to address each of those sections.
Section 6001 states in pertinent part, "Every person liable for any tax imposed by this title, or for the collection thereto shall... "
Section 6012 states in pertinent part, "Returns with respect to income taxes under subtitle A shall be made by the following: (1)(A) Every individual having for the taxable year gross income... "
Section 6091(b) states in pertinent part, "In the case of returns of tax required under part II of this subchapter... "
Section 6151 states in pertinent part, "... When a return of tax is required under this title or regulations, the person required to make such return shall... "
Section 6201 states in pertinent part, "The Secretary is authorized and required to make the inquiries, determinations and assessments of all taxes imposed by this title, ... which have not been duly paid by stamp at the time and in the manner provided by law. Such authority shall extend to and include the following:
(1) The Secretary shall assess all taxes determined by the taxpayer or by the Secretary as to which returns or lists are made under this title... "
In reference to Section 6011, I deny that I am liable or a person made liable for any tax imposed by this title or for the collection thereof. If you disagree, I am requesting that you refer me to the section of the Code that makes me liable. I am further requesting copies of any written decision by the Secretary or his properly delegated official who made that determination. I am also requesting a copy of that determination.
In reference to Section 6012, I deny that I have any obligation under Subtitle A. I further deny that I have a taxable year or that any section of Subtitle A makes me liable to pay or collect a tax. If you believe to the contrary, I request that you refer me to that section of Subtitle A that imposes a tax upon me that makes anything I receive in return for the exercise of my right to work, taxable income. Also please send me a copy of the decision by the Secretary or his properly delegated official that any funds I receive are taxable to the United States of America.
In reference to 6091(b), I deny that I am required to submit a return to the Secretary. If you disagree, please refer me to that section of the Code which imposes that requirement upon me.
In reference to Section 6151, I deny that I am a person required to submit a return and deny that I have any obligation to pay a tax to the Secretary or to the United States of America on anything I receive for the exercise of my right to exist. If you disagree, please refer me to that section of the Code which imposes that requirement. Also send to me a copy of the decision by the Secretary or his properly delegated official who made that determination.
In reference to Section 6201, I deny that the Secretary or his delegate has authority to make an assessment for income taxes in reference to me. If you disagree, I request that you send to me a copy of each and every delegation order issued by the Secretary in reference to a citizen of a state who exercises his right to work outside of any federal territorial jurisdiction.
So there is no misunderstanding, I am not challenging the legal basis of the income tax for those to whom it applies. I am just wanting to verify that you are not trying to apply sections of the U.S. income tax laws to one who does not come within the purview of those sections.
Until you can show me how, where and when those sections of the Code, that you referred to in your letter, apply to me, I cannot, out of fear that my voluntary action would be construed as a waiver of my fundamental rights, submit information to you. I want to see a statute, that is written in clear and easy-to-understand language, that makes me the person who is liable to submit a return or pay a tax to the United States.
The basis for my position is the Supreme Court decision of Guardian T & D Co. v. Fisher, decided in 1906 and cited as 26 S.Ct. 186, with the following quote at page 188:"An individual may be under no obligation to do a particular thing and his failure to act creates no liability, but if he voluntarily attempts to act and do the particular thing, he comes under an implied obligation in respect to the manner in which he does it."
You state: "I will continue to attempt to determine your Federal Income Tax liability for the above years." That is totally up to you Mr. "Revenue Officer," but until you produce for me the documentation of your authority, and that of your agency, as I requested of you in my letter of September 11 and in this letter, I do not believe I have any obligation to waive my fundamental rights to privacy and the security of my papers and personal effects.
The basis for my requests is the same as in my letter of September 11, and that is my reliance upon the Supreme Court decision of Federal Crop Ins. Corp. v. Merrill, 332 U.S. 380 at 384 (1947).
Sincerely, "Non Taxpayer"
Certified Mail # _______________
Copy: District Director File"
The "Revenue Officer" must have passed all the above correspondence to the Chief, Collection Branch, who sent five "2358C" form letters - one for each "tax year" in question - to Mr. "Non Taxpayer," dated 11/29/89:
"... Correspondence Received Date: Nov. 22, 1989
Based on the information you have provided, the account specified above is resolved. We may contact you in the future, if further issues arise requiring clarification. At present, no further response is needed on the above account.
Sincerely yours, Chief, Collection Branch"
Mr. "Non Taxpayer" responded on 12/20/89:
"... Dear Chief...,
I am in receipt of five 2358C letters dated November 29, 1989, referencing my name, the years 1984 through 1988, and which state that, "Based on the information you have provided, the account specified above is resolved." These letters further allege that correspondence was received on November 22, 1989, on which you presumably based these letters.
I am not aware that I sent you any correspondence on or about November 22, 1989. Please identify the correspondence you referenced and how you obtained that correspondence.
These letters also reference an "account" that I allegedly have with you. I am not aware of any "account" and deny that I have any "account" for any of the five years your letters reference.
If you disagree with my determination, please send to me the documents showing that the "account" was opened, the type of "account," who opened it, and under whose authority it was or they were opened.
Furthermore, these letters reference the terms "taxpayer," "taxpayer identification number," "tax form," and "tax period" as having some application to me. I deny that these terms have any application to me.
If you disagree with my determination, please send to me the documents which substantiate your assumption that these terms are applicable to me.
Also, I would like to know what authority you have, as the Chief of the Collection Branch of a Department of the Treasury Service Center, to make such presumptions of fact and conclusions of law in reference to me. Please send to me the documents that specify this authority.
If you agree with my determination, please notify me of the actions you have taken to correct these errors.
I will expect your response to my request within thirty days. If you need additional time, please make your request in writing and it will be granted.
If I do not receive a response from you within that time, the presumption will be established that your assumptions are in error and are without basis in fact and law and that my determinations are correct.
I will appreciate your cooperation and earliest response to this matter.
Sincerely, "Non Taxpayer"
Certified Mail # _____________"
"The entire, increasingly rickety, structure is designed to preserve the secret of the "income tax"; which is that - as presently applied to working people - it has been perverted into a direct tax on the source without apportionment. Such a tax is as illegal today as it was when the Founding Fathers wrote the Constitution. That is the secret our friends at I.R.S. are trying to hide."
- Alan Stang, 1988 (Taxscam)
"It is a proven fact: the men and women of the Internal Revenue Service can be beaten. If you remain, in spite of this revelation, fearful, it is your choice. This is not to say you should feel now the expert in tax matters. We have barely scratched the surface. But at the very least, you should have learned that the Bully has a soft belly, an Achilles heel, and is mentally and physically lazy. Not only a coward, he is a paper tiger."
- Donald W. MacPherson, 1989
(Tax Fraud & Evasion)
AN INTERESTING ISSUEI've seen copies of several letters from the IRS. Everyone says on the letterhead:
"Department of the Treasury
Internal Revenue Service"
I've also seen several letters from the Department of Justice. Their letterhead says:
"U.S. Department of Justice
This raises an interesting issue. Is the "Internal Revenue Service" a U.S. organization, or is it part of some other country, state, county, or city? Some people claim that the IRS is a private corporation incorporated in Delaware.
A response to a letter from the IRS could include:
"There is no indication on your letterhead whether you represent the U.S., or some other country, or state, or county, or city - or whether you are a private organization. If you are part of the U.S. Government, then please provide proof that such is the case - and for any future letters to me, please use a letterhead that says:
"U.S. Department of the Treasury
Internal Revenue Service"
GENERAL GOVERNMENT RESPONSE LETTERThe following letter can be adapted to almost any government inquiry. It is reprinted with permission from the AntiShyster, PO Box 540786, Dallas, TX 75354-0786, or call (214) 559-7957 - annual subscription $25. The importance of the letter is its structure and the strategy it reveals.
One Patriot Plaza,
Rochester, Indiana 46975
August 17, 1990
Agent Iluv Toripuoff - Examiner
Internal Revenue Service
666 Fraudhaven Drive
Indianapolis, Indiana 46244
Dear Examiner Toripuoff:
|[RESPOND]||I am in receipt of a form letter 904(DO), dated August 5,1990, that caries your stamped signature and which claims that you have been assigned to examine my "federal tax returns for the years stated above" and that you have set an appointment date of August 23, 1990 for me to come to your office along with a literal grocery list of personal documents.|
|[ACCUSE]||Mr. Toripuoff, you are in error and proceeding on a false assumption if you believe that I have some obligation to attend any meeting that you scheduled, without first confirming that I had any obligation to meet with you and confirm whether any date you set for an appointment was convenient for me.|
|[DENY]||I am hereby giving NOTICE UPON YOU of those errors and also declaring my objection to any such presumed claim by you or anyone else in your Service. I deny that I have any obligation or requirement to appear and produce for your examination, any personal papers or records.|
|[STATE YOUR |
I want to make it clear that it is my intention to
obey all laws that legitimately impose a requirement or obligation
upon me. However, I have no desire to volunteer where no obligation
exists, especially when the waiver of my rights is involved. I
am relying on what the Supreme Court held long ago:
"An individual may be under no obligation to do a particular thing, and his failure to act creates no liability; but if he voluntarily attempts to act and do a particular thing, he comes under an implied obligation in respect to the manner in which he does it." Guardian T&D Co. v. Fisher (1906) 26 S.Ct. 186,188.
|[MAKE YOUR |
|Therefore, I have determined that I am not one of your subjects for whom you can set a meeting without first requesting my permission. Neither am I one to whom you can demand that I produce personal documents and records for your review or that I have any obligation to submit those records for an examination by you for any purpose.|
|[MAKE YOUR |
If you agree with my determinations, I make timely
demand that you notify me of the actions you have taken to correct
your error. If you disagree with my determination I will expect
you to document your position and authority with at least the
1) All documents on which you base your claim that I have any obligation to you or your Service or the United States and that I am the one who is required to produce books and records for your examination.
2) Copies of all documents that identify how I came within the purview of the statutes which you claim obligate me to produce personal documents for your examination.
3) All documents of determination that indicate I am one who is liable or subject to any statute that you or your Service claim to have authority to enforce.
4) Copies of all documents that identify the facts on which those determinations were made.
5) Copies of all statutes on which those facts were applied to make any of the determinations that I am one who is liable or subject.
|[Item 6 helps
claims and defences]
6) Copies of the Notices sent or served upon me prior
to making those determinations.
7) Copies of your delegation of authority to inquire into my personal affairs or make any demand upon me, and the delegations of authority of those who made the above determinations that I am liable or subject to those determinations.
8) Copies of your document of appointment to the position which you now hold and copies of the documents that identify by name title, position, G.S.#, and office, each party who participated in any aspect of the above determinations.
9) The document that describes the procedural format for expungement of alleged determinations, improperly or unlawfully made within you Service.
|[STATE YOUR |
My authority for making this demand for verification
of your authority has been well established as follows:
"Whatever the form in which the Government functions, anyone entering into an arrangement with the Government takes the risk of having accurately ascertained that he who purports to act for the Government stays within the bounds of his authority... and this is so even though, as here, the agent himself may have been unaware of the limitations upon his authority." Federal Crop Insurance Corporation v. Merrill, 332 U.S. 380 at 384 (1947).
|[SET A |
|I will expect your response as to my demand for the correction of your error or the documents requested above within 30 days of your receipt of this letter. If you need additional time, please make your request in writing and it will be granted.|
|[CHANGE THE |
If I do not hear from you, within that time, your
lack of response will establish the presumption that you or your
Service do not have the documentation or the authority to support
your claim of any requirement or obligation upon me.
Certified Mail #:____________
|[NOTIFY THE |
|Copies to: Agent Toripuoff; IRS District Director, Secretary of the Treasury; U.S. Congressman; U.S. Senator.|