Professional Documents
Culture Documents
The below page is not the research of taxtruth4u but that of Patti Maher. Her contact
information is at the bottom of this page if you wish to ask questions regarding this research.
Nor is the below tax advice. Any actions taken as a result of the below information is the sole
responsibility of the party taking those actions.
A little stressed about how much you mighthave paidin taxeslast year? How much did you really owe? Did you
know that federal tax law is much simpler than you thoughtdespite the myth that most people believe if you
make any money at all you always have a legal obligation to send in a 1040? Most hear the message
resistanceis futile and giveaway their hard earn pay simply out fear andlack of knowledge of the facts?
Millions of intelligent people have already discovered the truth about "nontaxpayers"...Isn't it your turn?..
Here is a letter from the IRS simplifying who reallyhas a legal obligation below:
Seems simple enough right? Let's look at this Privacy Act response from the IRS above alittle closer
as it is unusually honest. Proof IRC Subtitle Afederal income taxis an excise tax only on activities in
connection with a "trade or business"
I bet you think you are involved in some type of "trade or business" as described in the above letter right?
Read it again carefully. Well,The only thing that matters when we describe the term "trade or business" when
it relates to tax codeis how the Internal Revenue Code defines what is says it's limited to...so let's start withthe
VERY IMPORTANT LEGALDEFINITION from the tax codeof: trade or business"
26 U.S.C. 7701(a)(26)
"The term 'trade or business' includes [is limited to] the performance of the functions of
a public office."
"Includes is a term of limitation....is a term to indicate restriction rather than
enlargement." Powers ex re. Covon v. Charron R.I., 135 A. 2nd 829,832
and ....
"In the interpretation of statutes levying taxes it is the established rule not to extend
their provisions, by implication, beyond the clear import of the language used, or to
enlarge their operations so as to embrace matters not specifically pointed out. In case of
doubt they are construed most strongly against the government, and in favor of the
citizen." Supreme Court -Gould v. Gould 245 U.S. 151(1917)United States v.
Wigglesworth, 2 Story, 369, Fed. Cas. No. 16,690; American Net & Twine Co. v.
Worthington, 141 U.S. 468, 474 , 12 S. Sup. Ct. 55; Benziger v. United States, 192 U.S.
38, 55 , 24 S. Sup. Ct. 189.
Don't feel alone when this does NOT describe your occupation! It's as simple as that. Need more
proof? Okay, but one more technical matter before we get to the good stuff...and this is also
important to remember about federal officials since the federal income tax has been aroundalong
time
Title 4 USC Sec. 111. Same; taxation affecting Federal employees; income tax
A little stressed about how much you might have paid in taxes last year
against the officer or employee because of the source of the pay or compensation.
Ever wonder how you can make a "return" of income to the federal government if it didn't come
from them in the first place? Don't you need to recieve something before you return it? Although
the next response(link below)from the IRS is full of half-truths(lies) about a few technical areas
butnotice the part we have highlightedas they have againhave been a little too honest about the
fact that their is no law requiring anyone to file a 1040 and the only persons that can
legally be levied are officersor employees of the federal government.
So who is the taxpayer and who is the nontaxpayer ?
"The taxpayer-- that's someone who works for the federal government but doesn't have to take
the civil service examination."
One must be engaged in a public office in the District of Columbia in order to earn gross income as a
natural person. Gross income that meets this criteria is described in the code simply as
income effectively connected with a trade or business from sources within the United States.
This is confirmed by 26 U.S.C. 7701(a)(31), which says that an estate that is in no way connected with a
"trade or business" and whose sources of income are outside the United States[District of Columbia]
may not have its earnings identified as "gross income" and is a "foreign estate", which means it is not
subject in any way to the provisions of the Internal Revenue Code:
TITLE 26 > Subtitle F > CHAPTER 79 > Sec. 7701.
Sec. 7701. - Definitions
(a)(31) Foreign estate or trust
(A) Foreign estate
The term ''foreign estate'' means an estate the income of which, from sources without
the United States which is not effectively connected with the conduct of a trade or
business within the United States, is not includible in gross income under subtitle A.
These critical facts are very carefully concealed by the IRS in their publications to hide the true nature of the
income tax and instead to make it appear as an unapportioned direct tax upon persons living in states of the
Union. If the American people understood on a large scale:
1.That the I.R.C. Subtitle A income tax was an excise tax upon privileged "taxable activities" only.
2.Exactly what activity was being taxed.
3.That the IRS has no jurisdiction within states of the Union against anyone who does not sign a private
agreement with the government by submitting a W-4 or a 1040 tax return.
. . .then they would exit the tax system en masse by simply avoiding the activity or avoiding to volunteer to
submit forms declaring they want their "wages" to be treated the same as federal employees. All excise taxes are
"avoidable" by avoiding the taxed activity, and therefore they are completely "voluntary". Therefore, the IRS and
our public dis-servants have a vested interest in hiding and concealing the true nature of the income tax as an
A little stressed about how much you might have paid in taxes last year
The "trade or business " requirement also extends to nearly all other types of payment reporting within the I.R.C.
Although publications are not law, here are just a few examples:
1. IRS Publication 334 entitled Tax Guide for Small Businesses, Year 2002, p. 12 says:
"Form 8300. You must file form 8300, Report of Cash Payments Over $10,000 Received
in a Trade or Business, if you receive more than $10,000 in cash in one transaction, or
two or more related business transactions. Cash includes U.S. and foreign coin and
currency. It also includes certain monetary instruments such as cashier's and traveler's
checks and money orders. Cash does not include a check drawn on an individual's
A little stressed about how much you might have paid in taxes last year
personal account (personal check). For more information, see Publication 1544,
Reporting Cash Payments of Over $10,000 (Received in a Trade or Business)
http://famguardian.org/TaxFreedom/Forms/IRS/IRSPub334.pdf
2. IRS Publication 583 entitled Starting a Business and Keeping Records, Rev. May 2002, p. 8 says:
"Trade or business reporting only. Report on Form 1099-MISC only when payments are
made in the course of your trade or business. Personal payments are not reportable..."
http://famguardian.org/TaxFreedom/Forms/IRS/IRSForm1099Inst.pdf
We also know that private employers are NOT required to act as withholding agents, by the admission of the
IRS' own Internal Revenue Manual:
5.14.10.2 (09-30-2004)
Payroll Deduction Agreements
2. Private employers, states, and political subdivisions are not required to enter into
payroll deduction [withholding] agreements. Taxpayers should determine whether their
employers will accept and process executed agreements [W-4 withholding]before
agreements are submitted for approval or finalized.
[http://www.irs.gov/irm/part5/ch13s10.html]
How the scam affects you and some things to do about it
If you are not engaged in a trade or business, then you arent even mentioned in the I.R.C. as a subject for
any Internal Revenue tax. Nearly all Americans living in states of the Union are nonresident to the "domestic"
U.S. government in D.C., and so the above provision for "nontaxpayers" must apply to you. To summarizeif
you haveno sources of income connected with a public office in the District of Columbia, then you:
1.
2.
3.
4.
5.
6.
7.
8.
9.
Are not engaged in an excise taxable activity under the I.R.C. subtitle A.
Dont earn any gross income but have a "foreign estate" under 26 USC 7701(a)(31)
Have no taxable sources of income identified in 26 CFR 1.861-8(f)(1).
Are a nontaxpayer not subject to the I.R.C. All portions within the I.R.C., IRS publications, and the Internal
Revenue Manual that refer to taxpayers dont refer to you and can safely be disregarded and disobeyed.
Cannot file an IRS form 1040 under penalty of perjury now, because EVERYTHING that goes on that form is
treated as effectively connected with a trade or business.
Cannot lawfully have any CTRs, or Currency Transaction Reports, prepared against you by any financial
institution.
Cannot lawfully have form 8300 filed against you by anyone. See IRS Publication 334 entitled Tax Guide for
Small Businesses, p. 12 above.
Cannot lawfully have form 1099-MISC filed against you. See IRS Pub 583, Starting a Business and
Keeping Records, p. 8 above.
Are not subject to withholding if you earn no income from the District of Columbia or are not engaged in a
"trade or business".
A little stressed about how much you might have paid in taxes last year
26 CFR 1.861-8(f)(1) to draw attention to the fact that the federal income tax is in fact an indirect excise tax,
and that the "taxable activities" are all enumerated individually in this regulation and nowhere else in either the
I.R.C. or the Treasury Regulations.This regulation also happens to be the only regulation that describes exactly
how to apply earnings from each enumerated "taxable activity" to the process of computing one's tax liability.Is
it any surprise that the government doesn't want evidence like this in the hands of people?This interferes with
their "voluntary compliance" efforts and exposes their willful and malicious fraud for what it is, and this is why
they don't like it.
Understanding the "trade or business" scam fits together all the pieces of the puzzle scattered throughout this
article and explain them in such a cohesive way that it is impossible to argue with. It is far more than simply a
"theory", but a fact you can verify yourself by reading the IRS Publications, the code, the Constitution, and the
Treasury Regulations. All of them agree with this article.Unfortunately, Congress and the IRS have been less
than forthright in the administration and recordkeeping of its collection activities. If you are ready to actively
pursue a good faith effort in administratively establishing that youmaybe anontaxpayer by asking some simple
questions to verify claims of liability, lawful assessment etc., we can assist you inthat research using the Freedom
ofInformation Act requeststo obtain/decipheryour Master file records as well as research/verify collection letter
inquiries. Although we do not give legal or tax advice ..all decisions start with obtaining all thefacts first. For
more information on how wemay be able to help you and be able to take advantage of our April discounted
prices, please fill out a FREE consultation request at the site: www.imfdecoder.com/patti .
Patti Maher
509 476 2435
877 432 4130