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PUZZLING INCOME TAX PROBLEMS Structural questions: 1. Why was the IRS never set up as an agency of government? (Only the “Commissioner of Internal Revenue” exists as an entity created by Congress.) 2. Why are federal notes exempt from state taxation, while Federal Reserve Notes (also federal notes) are taxed? 3. Why do the courts and Congress refuse to face and resolve the issue that documentary evidence demonstrates the Sixteenth Amendment to the US Constitution was ratified by an act of fraud by Secretary of State Knox? 1. Why does the IRS Code fail to define income, fail to explain who is liable, yet seek to tax what is not defined? 2. Why does the IRS Code (limited by US Constitutional constraint) view the filing of income tax forms as voluntary, yet in practice force “voluntary” compliance, thus causing everyone to obey a law that is not a law? 3. Why are provisions of 26USC, which are required to be codified in Title 26 of the Code of Federal Regulations, instead written in Title 27 of the Code of Federal Regulations? This limits them to the regulation of alcohol, tobacco and firearms (ATF), not the IRS. (These include all 26USC codes regarding enforcement.) Enforcement difficulties: 1. Why does the IRS ignore the fact that by law assessments enforceable against individuals must first be filed by an authorized specially appointed assessment officer with a true bill and a signed, clearly identified affidavit? (Seldom has the IRS followed this procedure, nor will the IRS produce these documents on demand.) 2. Why do bank lawyers, aware of the provisions of law, require bank employees to violate the law by cooperating with IRS administrative seizure orders, rather than acting only upon a judgment from a valid court of law? 3. Why does the IRS ignore its obligation under law to follow its own procedures for imposing a fine under IRC Section 6702 Internal Revenue Manual 546(19)? (The IRM requires the IRS to present the matter in a court of law and obtain a judgment against the individual.) 4. Why does the IRS often ignore lien and levy laws? Form conflict: 1. Why is there a numbering conflict between the Office of Management and Budget’s Paperwork Act requirements found on the IRS 1040 form and the cross reference found in 26CFR? (This conflict creates a situation where a filer, who carefully follows the law, believes he is required to file IRS form 2555, foreign earned income, and to file on Form 1040 only the reporting product of Form 2555.) Yet, if you bring this fact to the attention of IRS officials why will they call your question "frivolous?" 2. When filers follow these complex lawful procedures, why does the IRS apply a $500 frivolous filing penalty? 3. When courteous letters are sent to the IRS asking these questions, why does the IRS refuse to answer the issues? State income tax issues: Why do similar puzzling problems exist in the application of the income tax to state taxing authorities? Judicial problems:1. Why do custom, practice, fear or Bar Association policies appear to block the application of law for income tax judicial proceedings, resulting in the jailing of many well-intentioned people? 2. A microbiologist will look at bacteria, but he will do so only through the lens of his microscope. But why must judges and lawyers view the literal constitution and laws-as-written only through their clouded kaleidoscopic lens of past court decisions? (This practice, known as stare decisis, makes it impossible for the ordinary citizen to read tax law, believe it and apply it to his life.) Practical solutions: 1. The Consolidated Financial Reports of state and federal governments show that a large percentage of the nation’s wealth, including stock market equities, is held by government. This fact is hidden from the public by the media, allowing politicians to plead poverty and to work for tax increases when they have plenty of money. To have a limited budget is one thing. To have almost unlimited wealth is entirely something else. 2. People who have studied how money is created know the solution to the income tax problem rests in the fact that the Treasury Department could set up unlimited numbers of checking accounts with the Federal Reserve Banks and those accounts would need no deposit ever to be made. All expenses of government could be paid from such accounts, with government spending limited to the economic impact created by issuing more money than the increase in Gross Domestic Product and Gross National Product might justify. 3. Neither a so-called flat tax nor a national sales tax would grant back to people in the United States their Constitutional sovereignty and authority over limited government. A tax on money creation, accompanied by truthful disclosures of GDP/GNP growth compared with government spending, would allow merchants to adjust prices immediately in response to the new currency created by government check writing. – By Richard Palmquist and Barton A. Buhtz Send email to frontoffice@truthradio.com with questions or comments about this subject. |