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From: alpert@nanook.DEC
Newsgroups: net.taxes
Subject: Things IRS won't tell you #1
Message-ID: <3958@decwrl.UUCP>
Date: Thu, 18-Oct-84 21:06:53 EDT
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Posted: Thu Oct 18 21:06:53 1984
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*** Things the IRS won't tell you ******************************* #1 ***

* Well, the response has been overwhelmingly in favor of posting     *
* this material!  I have three of this series currently on the DEC   *
* E-Net and will be posting them (and future) notes at more-or-less  *
* regular intervals as time permits.                                 *

DISCLAIMER:

To clarify my position: I DO NOT reccomend that anyone actually
go out and do any of these things until and unless you have a THOROUGH 
grasp of the issues and risks involved.  This series is meant as a starting
point, to get people thinking and questioning some long-held assumtions
about the federal income tax laws.  I have been investigating along
these lines for the last couple of years and am just now starting
to apply some of this knowledge. 

THE IRS GETS AWAY WITH ILLEGALLY PROSECUTING PEOPLE PRIMARILY BECAUSE 
TAXPAYERS DO NOT KNOW THE PROPER DEFENSES TO USE! (The only exception 
to this caution is the material in #3 of the series, which deals
with IRS audits. But I'm getting ahead of myself...)


>>>>>>> FLAME ON! <<<<<<
 
With winter fast approaching, many of us are contemplating the odious
task preparing our required federal tax returns.  But wait a minute...
How many people have actually LOOKED at the IRS code to see just what
the requirements are? Not very many! Believe it or not...

There is NOWHERE in the IRS code where:

	* Filing of "income" tax returns is made "mandatory" or
	    "required"
	* A crime is made of or penalties spelled out for "failure to file"

What we do find when we examine the law is a real eye-opener. For example,
take section 6201 (a)...

	AUTHORITY OF THE SECRETARY. The Secretary [of the Treasury] is
	authorized and REQUIRED to make the inquiries, determinations,
	and ASSESSMENTS of ALL TAXES ... imposed by this title, or accruing 
	under any former internal revenue law, which have not been paid
	by stamp at the time and in the manner provided by law. Such 
	authority shall extend to and include the following:

		(1) TAXES SHOWN ON RETURN. 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.

You read it right. The U.S. government (specifically, the Secretary of
the Treasury) is REQUIRED BY LAW to assess citizens' tax liability. Note
that the way the law is worded, it makes it appear that the Secretary is
required to do so only if the taxes have not been paid "in the manner
provided by law". However, the law provides NO requirement that any
person assess themselves for "income" taxes! If you don't believe it,
try to get your friendly local IRS agent to show you the laws which

	* use the language "mandatory" or "required" in reference to
	  filing tax returns.
	* specify precisely WHO is required to file such a return
	* the exact statute which makes it "mandatory" or "required"
	  for anyone to assess themselves, rather than having the
	  Secretary make the assessment persuant to sections 6201 and
	  6203 of the IRS code.
	* the law which makes it a SPECIFIC crime not to file a tax
	  return, and states what type of crime it is and the SPECIFIC
	  penalties.

I have a complete copy of the IRS code and have not been able to find
these items, nor have others who have attempted to find them. I have
been attempting to get these questions answered by the IRS for the nearly
a year now and they refuse to answer.

Further, the law REQUIRES that upon request of the taxpayer, the government
will provide a copy of the assessment.  According to section 6203...

	The assessment shall be made by recording the liability of the
	taxpayer in the Office of the Secretary in accordance with rules
	and regulations prescribed by the Secretary. UPON REQUEST OF THE
	TAXPAYER, the Secretary shall furnish the taxpayer a copy of the
	record of the assessment.

Section 6303...

	Where it is not otherwise provided by this title [and it is not!],
	THE SECRETARY shall, as soon as practicable, and WITHIN 60 DAYS,
	AFTER THE MAKING OF AN ASSESSMENT of a tax persuant to section
	6203, GIVE NOTICE TO EACH PERSON LIABLE FOR THE UNPAID TAX, 
	stating the amount and demanding payment thereof...


Why are the laws structured this way?  Why do they skirt the issue of
REQUIRING citizens to file "returns"? The answer is simple -- to avoid
conflict with the U.S. Constitution. The Constitution clearly states that
no one can be compelled to be a witness against themselves... and even the
Supreme Court agrees that...

	"The information revealed in the preparation and filing of an
	 income tax return is, for Fifth Amendment analysis, the 
	 testimony of a `witness' as that term is used herein."

				-- Garner vs. United States (1976)

How do they do it? How are millions of people convinced that they
are REQUIRED to do something that the law does not make mandatory?
Describing in detail the depths of deception that the IRS uses in its laws 
is beyond the scope of this note. However, one of their favorite tricks 
is...

Usage of the word "shall" in laws that purport to make tax "returns" 
mandatory.  For example, section 6012 of the IRS code states that
"Returns...SHALL be made by the following..." and then describes those
persons who "shall" file a return.  Numerous court decisions have ruled
that in laws which potentially conflict with the Constitution, the 
word "shall" is to be interpreted as "may", devoid of any compulsory
meaning.  For example:

	"If necessary, to avoid unconstitutionality of a statute,
	`shall' will be deemed equivalent to `may'."

		-- Gow vs. Consolodated Coppermines Corp., 165 Atl. 136

The Supreme Court ruled:

	"As against the government, the word `shall' when used in
	 statutes is to be construed as `may', unless a contrary 
	 intention is manifest."

		-- Cairo and Fulton RR Co. vs. Hecht, 95 US 170


As a final point, it is very instructive to take a look at Index to
the Internal Revenue Code (I have a copy in front of me). You will
find therein references to the sections of the Code which provide
penalties for not complying with various taxes:

	* ALCOHOL TAXES:
		-liability for occupational taxes
		-penalties, seizures and forfeitures

	* FIREARMS:
		-failure to file return or pay tax
		-penalties and forfeitures

	* GIFT TAXES:
		-failure to file return
		-failure to pay
		-liability
		-liens for taxes

	* TOBACCO TAXES
		-failure to file return or pay tax

Guess what kinds of entries are curiously missing under the heading of
INCOME taxes?  What does that tell you??

There is much, much more, but you get the idea.  The principle of the 
Big Lie lives on!

>>>>>> FLAME OFF! <<<<<<

******* Next time: withholding and W-4 forms *******


		Bob Alpert

		...decwrl!rhea!nanook!alpert

NOTE: the information in this note has been compiled mainly from various
      publications of the Tax Reform movement, particularly the works
      of Irwin Schiff.