Work smarter, not harder.

Learn how the IRS scam works

Posted By: Watchman

Date: Friday, 19-Feb-2010 08:28:32
HOW THE SCAM WORKS
FEDERAL INCOME TAX

By: Willie Shields

Over the years, I have found that when you start talking about income taxes, the eyes of
most Americans will start to glaze over.

Please keep in mind, that before the federal government could confiscate the private
property of persons within the states, there were hurdles to clear. There were limbo sticks
to get under, hoops to dance through. Most importantly, the feds had to constitutionally
gain such jurisdiction, or in the absence of such, convince most citizens that they in fact,
have such power.

Now you can stop here and examine by research, the controversies surrounding the 16Th
amendment. Generally, there are two issues:

1. It was never ratified. This is provably true by looking to the archived records of the
state legislatures. (See Bill Benson’s The Law That Never Was.)

2. The 16th amendment, if it were, in fact a valid amendment, changed nothing, with regard
to the taxing power of the federal government. This is provably true by examining the
findings of the United States Supreme Court. (Stanton v. Baltic Mining Co., 240 US 103)
(1916.)

To discover how the scam works, one need only examine the Internal Revenue Code itself,
specifically, the custom definitions contained therein. Keep in mind, that the rules of
statutory construction mandate that when a term is given a custom definition, for the
purposes of that code, the term takes on its narrowly defined meaning. To illustrate: [For
the purposes of this section, the term “reptile” includes snakes and salamanders.]

Now reading this, one should not conclude that the term “reptile” also includes turtles and
lizards. As they were not included, they are rightfully EXCLUDED.

Now, with that in mind, we go to Title 26, the Internal Revenue Code. When the custom
definitions of terms like “Employer”, “Employee” and “Wages” are examined, we discover
what is included. More importantly, we discover what is excluded. This is where the federal
government’s scam starts to unravel like a cheap sweater. Because no where in these
definitions will you find the everyday, private sector earnings of a citizen of one of the
various states included as taxable earnings for the purpose on federal income taxation. Let
me repeat that. The law as written EXCLUDES most American’s earnings from being defined
as taxable income.
However, if you THINK you are an “employee,” and you THINK you earn “wages” you may
have convinced yourself to swear to such bunk on a return. Also, your “employer” knows not
the definitions, so he sends in a W2 information return, reporting that you earned “wages.”
The IRS takes everyone at his or her word. After all, they didn’t tell YOU that the tax was
owed, YOU TOLD THEM!

The IRS will not dispute this, and there is a mechanism by which you can make them aware
that you understand the law, and that you wish to follow the law, and that you want to file a
correct, truthful and lawful tax return. In addition, you can obtain an IRS form, available
from the IRS website that corrects erroneous wage information on W2’s and 1099’s. This
enables you to file a complete, accurate and lawful return. Oh, and by the way, Mr. IRS,
please return ALL taxes withheld, and not just this year, but for the previous five years
also.

Now let me return to the top of the previous paragraph. The IRS will not dispute what I
have said here. That is, they will not respond by citing any law, or clarifying definitions, etc.
What they will do is threaten the taxpayer with fines for being “frivolous” and maintain
that they have a right to determine your tax liability on their own, etc. If you stick to your
guns, and stand by the law, eventually, they will accept your return. They will do this
because they will be left with no sworn, un-rebutted testimony from any party, stating that
you earned taxable income. Efforts to coerce you or anyone else to testify otherwise, is
unlawful, and they know this.

To learn more about lawfully protecting the fruits of your labor, I can be contacted at
WSHIELDS@COMCAST.NET
================================
Cracking the code: losthorizons. com

Posted By: Watchman

Date: Friday, 19-Feb-2010 08:36:34

In Response To: Work smarter, not harder. Learn how the IRS scam works (Watchman)

Take a tour of this website for an eye-opener of experience

http://www.losthorizons.com/newsarchive.htm

Here is a Foreword to 'Cracking the Code- The Fascinating Truth About Taxation In
America':

It was not until the late 1990’s, when the Internal Revenue Code was digitized (and thus
made searchable) that it became possible to decipher its deliberately confusing and
misleading construction. Only then could complete searches be done of all 3,413,780 or so
words (not counting regulations) for every incidence of “liable”, “imposed”, “income”,
“employee”, and dozens of other key or misleading terms-- checking every reference,
exception, definition and source. Only then could it be established that, as written, the laws
behind the code and the taxes that they impose technically comply with the Constitution,
just as all the judges have said over the years.

But the same analysis also reveals that, as written, these laws don’t apply to most of the
receipts of most private citizens. Indeed, the two things are interdependent-- the former
couldn't be true unless the latter was also true.

What you will learn as you read this book is that specific Constitutional limitations on the
federal government’s power to tax do shape related law, and have generated a coherent
Supreme Court doctrine which clearly and soundly answers the question of what is taxable
"income”. Both the statutes and the doctrine acknowledge the exemption of the vast
majority of private-sector receipts from that taxing power’s reach.

However, you will also learn about a complex combination of craft, routine bureaucratic
incoherence, and casual-- and not-so-casual-- corruption by virtue of which many people are
led to inadvertently allow, and even participate in, the legal transformation of their
untaxable earnings into taxable "income”. Such people are tricked into voluntarily and
utterly unnecessarily enabling the diversion of a river of wealth from their own hands,
usually never to be seen again.

Thanks to an unhappy coincidence of reiterations and amendments of the law, a series of

complicated judicial rulings, and the passage of time and memories, the details of American
tax law-- and the principles upon which it is based-- have come to be widely misunderstood.
The opportunities presented by that reality have been seized upon, by those paid to
maximize revenue flow to the government, to successfully construct an elaborate and
deceptive tax scheme rooted in today’s Internal Revenue Code.

This scheme capitalizes on widespread public ignorance of general legal doctrine and rules
of statutory construction. It practices a careful gauging of extraction levels to the
tolerance limits of key demographic segments. It relies upon the concealment of the
underlying actual-law-in-force behind the misleading words of the code, which is legally no
more than ‘evidence of the law’, and not the law itself.

Fundamental to the scheme is designing that code to be so dauntingly and profoundly

confusing as to force the vast majority of those against whom it’s directed to abandon even
a pretense of personal comprehension. These targets are thus compelled to surrender their
decision-making to the code’s administrative bureaucracy or a professional class of fixers
and go-betweens-- the members of either of which are dependent on the scheme for their
own earnings. Unsurprisingly, both assure any who ask that of course private-sector
receipts are taxed under the law. If pressed, these experts will trot out carefully selected,
out-of-context and ambiguous fragments of law calculated to convincingly suggest that what
they claim must be in the law, somewhere. But somehow, they never manage to demonstrate
exactly where. ‘Cracking the Code’ is going to provide that missing context, unravel the
tangle of deceit and confusion, and make clear that not only is it not in there anywhere,
what is in there is just the opposite.