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The News

Current Events and Continuing Education for October 12 through October 25, 2014

“Knowledge will forever govern ignorance; and a people who mean to be their own governors must arm themselves with the power which knowledge gives.”

-James Madison


Please Start Here

Features in this edition:

(Click on the underlined text to jump to each feature. To return, use your browser's "back" button, or close the new tab or window to which you have jumped.)

New victories with the feds, California and the Reeling Robot:

CtC-Educated Americans Continue To Enforce The Law


The truth about what's "frivolous" and what's not

About All That "Frivolous" Stuff


They continue to hide in silence, but now I'm offering:

Amnesty For The "Alt-Media"


This week's recommended reading:

The Prophetic C.S. Lewis


Your tax-dollars at play (unless you're a stand-up guy or gal); living the dream; scheduling sass; more...

On This And That...


The most important question facing Americans today:

What Do The People Do About The Rogue State?


Guess what? There are only two possibilities:

You Either Stand Up For The Truth, Or You've Surrendered To The Lie


Spotlights on the past that help bring clarity to the present:

Illuminating Anniversaries for this week


Got something to say?

Your Comments


...and much, much more!


My interview by Lana Lotkeff for Radio 3Fourteen can be found here.


The Fourteenth Edition of CtC is Now Available!

Get The Short, Easy Intro To The Liberating Truth About The Tax


Click here for the current Mid-Edition Update posts

Featured In This Update:

CtC For Dummies


I Just Don't Know How To Deal With This...


American Understanding Of The 16th Amendment At The Time of Adoption


New Resources Posted


The IRS Scam


Snowden Advises Against 'Dropbox' As Insecure


Gun Control Means Voldemort Wins


What Makes YOU A Warrior For The Truth?


Project Paradigm-Shift


Test Your "Income" Tax IQ!


A "Pragmatic" Perspective On The Tax And The Rule Of Law


Your Comments


...and much, much more!


"There are two distinct classes of men...those who pay taxes and those who receive and live upon taxes."

- Thomas Paine


C'mon! CtC can't be right! You're crazy!

If CtC were actually right,

it would mean the government's been concealing and denying the truth for years on end,

and everybody knows THAT would never happen...

(Edward Snowden, come home! It was all just a bad dream; there really is No Such Agency!)



Do you know someone truly steeped in the Kool-Aid?


 I mean someone who finds it easier to believe that the far-better-educated, far-more-suspicious-of-government Americans of a hundred years ago were complete morons who granted authority to the state to take whatever it wished from themselves and their posterity than to imagine that they themselves simply misunderstand the true nature of the income tax? Even while knowing that their beliefs about the tax are derived entirely from the representations of those who profit from those beliefs (like tax bureaucrats and "tax professionals")?


Do you know someone like that? Shake them awake with the latest (fourteenth) edition of CtC!


Regular Resources:


I'm delighted when anyone wishes to share what I have posted here with others! Sharing this page is an important means of moving toward the restoration of the rule of law-- PLEASE DO IT!! But I'd appreciate your doing so by directing your friends here themselves, rather than by copying and emailing the material.




You can't understand the present if you don't understand the past...

Illuminating anniversaries of this week:

October 19- In 1935, the League of Nations imposes economic sanctions on Italy over its invasion of Ethiopia.  In 1943, the first antibiotic treatment for tuberculosis is isolated in a lab.  In 1960, the United States imposes an embargo on Cuba.  In 1973, the Nixon Whitehouse defies an appeals court order to turn over the Watergate tapes.  In 1987, a world-wide stock-market crash begins in Hong Kong and spreads throughout the world.  The Dow Jones Industrial Average falls by 22.6% that day (Black Monday)-- several major markets lose more than 40% of their value, with New Zealand's losing 60% .  In 2005, Saddam Hussein goes on trial in Baghdad for "crimes against humanity".

Anniversaries of interest for each day of this week will be found throughout the newsletter below.


"It does not take a majority to prevail... but rather an irate, tireless minority, keen on setting brushfires of freedom in the minds of men."

-Samuel Adams


CtC-Educated Americans Continue To Enforce The Law

New victories with the feds, California, and the Reeling Robot.

Steven's story is interesting-- he says he works for the US Army, but in a special category of workers that is excepted from "employee/wage" status. Apparently the Department of Treasury agrees, since his refund had some very specific fussing-over and delay before being issued, and also must be presumed to have gone through the gauntlet like all CtC-educated filings... See his filing for this complete refund here.

This is Rob's second victory in as many months (his complete federal refund for 2013 was issued in July). See the filing leading to Rob's latest victory here.

SALUTES AND ACCOLADES TO BOTH these virtuous warriors! They are the ones actually working to restore the republic and curb government crimes, unlike so many who just grumble about their lost rights and issue dark warnings of looming State threats while lacking the stones to stand up and do anything about either.

 BUT, HEY! WE'RE NOT DONE! I want to salute one other pair of serious American grown-ups today. Nathan and Lynda Cooley have been standing very tall for quite some time. More than a year ago I posted one of their earlier adventures in Robot-Land here. This was a long, drawn-out affair marked with much bad agency behavior, including the issuance and collapse of a "notice of deficiency", "frivolous" threats extending all the way to "Notice(s) of Intent To Levy", and finally agency surrender on all critical points and a refund of (so far) half of what Nathan and Lynda claimed.

Today I'm happy to post another victory by Nathan and Lynda-- this one complete, but again, only after some resistance (though a great deal less, this time).

In November of 2013, Nathan and Lynda filed their claim for the return of everything withheld from Nathan in regard to one of his money-making activities. In an unusual step, rather than use a Form 4852, Nathan rebutted the errant W-2 issued by the payer with simply a written rebuttal on the W-2 itself. Nine 1099-MISC rebuttals were also attached. Here is that filing, in relevant part (Nathan and Lynda didn't send the first page of their 1040, which, as is obvious by what appears on the second page, would have been superfluous).

More than a year later, in February of 2014, Nathan and Lynda found these little screamers in the mailbox demanding back-down and a replacement return, complete with threats of "frivolous" penalties. They immediately fired off this educated and righteously-annoyed response.

 So fast that you'd think they crossed in the mail, Nathan and Lynda's stern demand was met with this:

 ... a flat-out agreement with everything in their claim.



Watch out for that robot!  I THINK IT'S GOING TO EXPLODE!!

Aren't you glad Nathan and Lynda have read CtC? Don't you wish everyone would?

You can help make that happen, and thereby help transform America.  Click here to learn how.


P. S. Speaking of Grown-Ups At Work, CtC Warrior Dave Scotese has contributed an addition to the "whacked weeds" collection, debunking a trollish misrepresentation of an old 8th Circuit ruling in the case of May v. Commissioner, 752 F.2d 1301 (8th Cir. 1985). Find it here.

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About All That "Frivolous" Stuff...

"The attempt to silence a man is the greatest honor you can bestow on him.
It means that you recognize his superiority to yourself."

-Joseph Sobran

I WAS ASKED EARLY THIS WEEK FOR SOME JUDICIAL PRECEDENTS supporting the fact that CtC-educated tax filings don't qualify as "frivolous". I had to reply by observing that it's hard to find precedents that say anything else.

Despite the fact that some educated filers have been plagued with "frivolous" penalty threat-notices, and a few have even had "penalty" amounts taken (tellingly, from the otherwise complete refund being made in response to the very return supposedly being penalized), these harassments (which typically collapse in relatively short order when properly addressed) are purely outside the law. The statutory language itself; the congressional record; the judicial precedents-- and even the IRS's own Office of Chief Counsel-- are all perfectly clear that nothing about CtC-educated returns qualifies them for the penalty.

Anyway, I dug up and assembled for my correspondent the relevant authorities. Afterwards, I worked some of them into an upgrade of my main "frivolous" page here on losthorizons: 'Parsing Frivolous Fictions'.

Because the "frivolous" nonsense remains the primary resort of the corrupt element in the IRS when it wishes to discourage an educated claim or stall before issuing a refund; and because ill-informed rumors about these "frivolous" penalties are the number one scare tactic used by every troll lurking in cyberspace and in the "tax honesty movement" wanting to keep people from learning the liberating truth about the tax, I want to share the "upgrade" stuff here, and invite everyone to re-visit 'Parsing Frivolous Fictions' for another read-through with this new material in mind:


LET'S BEGIN WITH A LOOK AT WHAT THE "FRIVOLOUS" PENALTY is designed to address. This will establish right off the bat that CtC-educated returns do not qualify for the penalty, and make clear why the subterfuges involved in the threatening "notices" are nothing more than cheap efforts to exploit ignorance, doubt and fear. The 'frivolous" penalty is authorized at 27 USC 6702, and...

"Section 6702 of the Code was enacted by the Tax Equity and Fiscal Responsibility Act of 1982, P.L. 97-248, 96 Stat. 324. According to the Senate Report, S. Rep. No. 97-494, Vol. 1, 97th Cong., 2d. Sess. 277 (1982), the penalty is intended to attack a variety of tax protest activities including: (1) irregular forms 1040 not in processible form because of altered or incorrect descriptions of line items or other provisions; (2) references to spurious constitutional arguments instead of required completion of a tax form; (3) forms on which there is incomplete information to calculate tax liability; (4) presentation of information which is clearly inconsistent, such as the listing of only a few dependents by a person who claims 99 exemptions; (5) “gold standard “ or “war tax” deductions; and (6) deliberate use of incorrect tax tables.

IRS Office of Chief Counsel (OCC) Memorandum 200107035.

Now let's look at what the OCC says about returns containing zeros for "income" while showing amounts withheld, amounts constituting "overpayment" and amounts to be refunded-- a fair description of many CtC-educated returns. By looking at what does qualify as an invalid-- and hence, "frivolous"-- return, we'll see what doesn't qualify.

See the following from OCC0127045.pdf. This OCC memorandum discusses the service doctrine and case-law on which it is based regarding valid versus invalid returns in terms of the number entries on them.

"Despite the Service’s broad authority to prescribe the manner of filing, the issue of what constitutes a valid return is frequently litigated. In an early case addressing the issue, the Supreme Court indicated that a “defective” or “incomplete” return may be sufficient to start the running of the period of limitation if it is a specific statement of the items of income, deductions, and credits in compliance with the statutory duty to report information. However, to have such effect, the return must honestly and reasonably be intended as such. Florsheim Bros. Drygoods Co. v. United States, 280 U.S. 453 (1930).

"Subsequently, the Court summarized the criteria as: "[p]erfect accuracy or completeness is not necessary to rescue a return from nullity, if it purports to be a return, is sworn to as such, and evinces an honest and genuine endeavor to satisfy the law. " Zellerbach Paper Co. v. Helvering, 293 U.S. 172, 180 (1934).

"The most recent Supreme Court reaffirmation of the test articulated in Florsheim and Zellerbach is found in Badaracco v. Commissioner, 464 U.S. 386 (1984). There, the taxpayer filed a fraudulent original income tax return and followed it with a nonfraudulent amended return. The taxpayer argued that the original return, to the extent it was fraudulent, was a nullity for purposes of the statute of limitations. The Court disagreed, noting that the fraudulent original returns “purported to be returns, were sworn to as such, and appeared on their faces to constitute endeavors to satisfy the law.”"

This history-- especially Badaracco, where even an actually and admittedly fraudulent return was deemed valid nonetheless-- plainly holds that what the numbers are that appear on a return is irrelevant to its validity. In that respect, unless it has a facial indication compromising the appearance of sincerity, a return on which any numbers are entered by which any liability can be calculated is valid. In 2006, the 8th Circuit says this again very plainly:

"We therefore hold that the honesty and genuineness of the filer's attempt to satisfy the tax laws should be determined from the face of the form itself... The filer's subjective intent is irrelevant."

In re: Colson, 446 F.3d 836 (8th Cir. 2006)

The memorandum goes on to describe representative cases in which returns were found to be invalid (all emphasis added):

"U.S. v. Porth 426 F.2d 519 (10th Cir. 1970) (no valid return where taxpayer’s Form 1040 was devoid of income information and contained cites to the Constitution purportedly supporting taxpayer’s refusal to complete the form); Thompson v. Commissioner, 78 T.C. 558 (1982) (no valid return where the Form 1040 contained only de minimis income information and was circumscribed with constitutional objections); Sochia v. Commissioner, T.C. Memo. 1998-294, (no valid return where the taxpayers provided some income information, but wrote “object -- 5th Amend.” on every line of the form).

...and then offers the OCC's conclusions:

"We are of the general opinion that a Form 1040 is a nullity in those instances in which the taxpayer has entered the number 0 for all entries on the return except the amount of tax withheld, the amount of the overpayment and the amount to be refunded, and has attached materials which protest the Constitutionality of the requirement that he pay federal income tax. Virtually all of the authority for treating a signed Form 1040 as a nullity relies upon the fact that the taxpayer refused to provide any information pertaining to his income, or provided de minimis income information and accompanied the purported return with tax protestor type arguments."

The consistent qualification in every case is something beyond the numbers, whether "protest" materials, arguments, alterations, additions or omissions.

Most tellingly, in the IRS's own Office of Chief Counsel summary a return containing 0 for all entries except amounts withheld, the amount of the overpayment and the amount to be refunded isn't invalid by reason of that pattern of entries. Such a return only qualifies as invalid when "accompanied ... with tax protestor type arguments"-- and only qualifies for that single reason. Lacking such accompaniment, the return cannot be legitimately declared invalid.

SO, NOW THAT WE'VE SEEN THAT CtC-EDUCATED RETURNS don't qualify as "frivolous", let's look at just what is really going on when the IRS sends out a scary-looking "notice" suggesting the contrary in any particular case.


The fact that CtC-educated returns don't qualify for the "frivolous" penalty but it is occasionally "asserted" about them anyway proves that there is NO legitimate basis for government resistance to those filings. One doesn't use a bogus claim or defense against a filing one doesn't like unless no legitimate one is available.

Please follow the link below and read the whole page on these "frivolous" tax agency evasions and deceits. Afterwards, when encountering ANYONE talking about these penalties in regard to CtC-- whether that anyone is a DOJ slug, an IRS thug, a "tax honesty" guru or your Aunt Sally-- sternly set them straight and denounce the lie.

Here's the link to the whole "Frivolous" page

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America's Purportedly Liberty-And-Fundamental-Law-Loving "Alt-Media" Continue To Crouch Silently In The Shadows

...but I am now offering these folks amnesty...

IT'S A FUNNY THING-- One occasion of James Clapper lying to Congress and the "alt-media" writes about it for weeks, if not months. The IRS systematically lies about "frivolous" nonsense for years, sometimes even in courtrooms, and the "alt-media" says... nothing.

Someone like Cliven Bundy defies an arrogant State bureaucracy, even without solid legal grounds from which to do so, and the alt-media writes about for weeks, if not months. Tens of thousands of Americans across the country defy a lawless bureaucracy-- and from a 100%-solid legal ground, as demonstrated by both the standard authorities on every level and the tens of thousands of concrete acknowledgements over more than ten years by the State itself-- and the "alt-media" says... nothing.

Edward Snowden reveals systematic violations of the Fourth Amendment and the "alt-media" has been writing about it non-stop for a more than a year. CtC reveals systematic cultivation and exploitation of public ignorance about federal taxation which has resulted in the improper transfer of trillions of dollars from the People to the State over decades-- and have been the means by which the offenses revealed by Snowden and other outrages too numerous to mention have been financed and thus made possible-- and the "alt-media" says... nothing.

WELL, I'VE FIGURED OUT THE REASON for this inconsistency: The "alt-media" pundits are too scared to stand up for the rule of law with their own filings, and recognize that they would be hypocrites to write honestly about those who do, and about the truth on behalf of which those good folks stand. Rather than face that acute hypocrisy, the pundits settle for the less-obvious hypocrisy of pretending they don't know about CtC and its history.

(We won't get into the fact that many, if not most of these pundits rail against the State and its abuses on a daily basis and yet meekly sign-off on it taking a huge chunk of their wealth each year to pay for those abuses, an hypocrisy by any measure regardless of their understanding of the true nature of the tax.)

SO HERE'S THE SOLUTION I'VE COME UP WITH to get us all past the hindrance to our progress in restoring the republic and the rule of law imposed by this 'alt-media" silence: AMNESTY.

I pledge to say nothing to shame or disparage for their inconsistency any "alt-media" pundit who begins writing about CtC and the CtC community and yet does not join that community as an active law-enforcer him- or herself.

I call on everyone in the community to take the same pledge. Further, I ask each of you to write nice letters or emails to every "alt-media" pundit assuring him or her of this indemnification.

Of course this solution itself appears to have a tinge of hypocrisy, but it really doesn't. The amnesty is merely a sustained act of forgiveness, rather than a compromise of principle. And we need those voices.


A New Book On The Truth About The Tax

TOM BOTTARO, ChFC, HAS JUST PUBLISHED a new book, 'SECRETS of the Income Tax Code- What the IRS doesn't want you to know!' Tom's book is a nice, accessible drill-down on several key aspects of the tax. Find it here.

Find many other printables and sharables suited to every different occasion and purpose here.


The Honor Roll 

Do you have a victory to share?  Click here to learn how to do so.

If you're working on one, and just getting stonewalled or speed-bumped, you can still be recognized! Go here to learn what to do.

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The Liberating Truth About The 16th Amendment

IF YOU'RE NOT SPREADING THIS LINK with every bit of energy you can, to school libraries, homeschool families and community groups, your neighbors, your family members, your pastors and co-congregationalists, journalists, lawyers, CPAs, members of congress, tax-agency workers, Wikipedia, Anonymous, WikiLeaks, the Tax Foundation, everyone in the "tax honesty" movement, the 9/11 truth movement, other activist movements and everyone else, you have only yourself to blame for your troubles with the tax, and a whole lot else of which you might complain. It's on you.

WRITE A NICE, FRIENDLY AND BRIEF introductory note explaining what will be seen at the link-- cryptic is bad; excited is good-- and then send this WMI (weapon of mass instruction) far and wide.

"I am a great believer in luck, and I find the harder I work, the more I have of it."

-Thomas Jefferson


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A teacher asked her 6th grade class how many of them were fans of Big Government.
 Not really knowing what a Big Government fan is, but wanting to be liked by the
 teacher, all the kids raised their hands except for Little TJ.
 The teacher asked Little TJ why he has decided to be different...again.
 Little TJ said, "Because I'm not a fan of Big Government."
 The teacher asked, "Why aren't you a fan of Big Government?"
 Little TJ said, "Because I'm a libertarian."
 The teacher asked him why he's a libertarian.  Little TJ answered, "Well, my Dad's a libertarian and my Mom's a libertarian, so I'm a libertarian."
 Annoyed by this answer, the teacher asked, "If your dad were a moron and your mom were an idiot, what would that make you?"
 With a big smile, Little TJ replied, "That would make me a fan of Big Government."


Illuminating anniversaries of this week:

October 20- In 1803, the U.S. Senate ratifies the Louisiana Purchase.  In 1947, the House Un-American Activities Committee begins its investigation of communist infiltration of Hollywood.  In 1955, 'The Return Of The King', the last book in Tolkien's 'Lord Of The Rings' trilogy, is published.  In 1973, the "Saturday Night Massacre" takes place, with Richard Nixon firing Attorney General Elliot Richardson and Deputy Attorney General William Ruckelshaus after they refuse to fire Watergate prosecutor Archibald Cox, who is finally fired by Robert Bork.  In 2011, Moammar Ghaddafi was killed as part of a United States coup intended to thwart Chinese investments and development of oil interests in Libya and Ghaddafi's move toward eliminating the US dollar as the sole currency accepted for oil sales.


Real Americans don't accommodate fog, lies and a sliding scale of adherence to the rule of law. Real American men and women stand up for the truth and the law, come what may, knowing that it is only by setting the bar at the top and enforcing it, come what may, that liberties are secured.


"Heaven knows how to put a proper price upon its goods; and it would be strange indeed if so celestial an article as freedom should not be highly rated."

-Thomas Paine




ONLY ONE THING WILL WIN YOU YOUR LIBERTY: Spreading the truth. Accordingly, I've assembled outreach resources into a new, dedicated page. Find it here, and please, USE THESE TOOLS!! I can't do this all by myself. 

"In a time of universal deceit - telling the truth is a revolutionary act."

-George Orwell

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Test Your "Income" Tax IQ!

CtC Warrior SanDiegoScott has put together a great little 20-question quiz to test your knowledge of the law regarding the United States "income" tax.  Test yourself, test your friends and family!  Test your accountant and tax attorney, and help them learn the liberating truth!!


Click here to take the test


Click here for more Tax IQ tests


“Knowledge will forever govern ignorance; and a people who mean to be their own governors must arm themselves with the power which knowledge gives.”

-James Madison


How About You?


Are You Governing Yourself?


Get The Knowledge, Reclaim Your Power, And Stand With The Founders




The Prophetic C.S. Lewis

by Joseph Sobran

Deep political wisdom can be found in a writer who took very little interest in politics: C.S. Lewis, a scholar who achieved his greatest fame as a popular Christian writer.

Lewis was sometimes laughably ignorant of current events. His friends were once amused to discover that he was under the impression that Tito, the Communist dictator of Yugoslavia, was the king of Greece. But the very distance he kept from politics enabled him to see large outlines invisible to those preoccupied with the daily news.

During World War II, Lewis realized that both the Allies and the Axis were abandoning the traditional morality of the Christian West and indeed of all sane civilizations. The great principle of this morality is that certain acts are intrinsically right or wrong. In a gigantic war among gigantic states, Lewis saw that modern science was being used amorally on all sides to dehumanize and annihilate enemies. When peace came, the victorious states would feel released from moral restraints.

Lewis cited an old theological question: “It has sometimes been asked whether God commands certain things because they are right, or whether certain things are right because God commands them. With Hooker [Richard Hooker, the Anglican theologian], and against Dr. [Samuel] Johnson, I emphatically embrace the first alternative. The second might lead to the abominable conclusion ... that charity is good only because God arbitrarily commanded it — that He might equally well have commanded us to hate Him and one another and that hatred would then have been right.” It was dangerous to believe that sheer will, even God’s will, can be the ultimate source of right and wrong.

Lewis saw a parallel danger in “the modern theory of sovereignty,” which holds that the state can make right and wrong by sheer act of will: “On this view, total freedom to make what laws it pleases, superiority to law because it is the source of law, is the characteristic of every state; of democratic states no less than of monarchical. That doctrine has proved so popular that it now seems to many a mere tautology. We conceive with difficulty that it was ever new because we imagine with difficulty how political life can ever have gone on without it. We take it for granted that the highest power in the State, whether that power is a despot or a democratically elected assembly, will be wholly free to legislate and incessantly engaged in legislation.”

As a result of the theory of sovereignty, Lewis observed, “Rulers have become owners.” He added: “We are less their subject than their wards, pupils, or domestic animals. There is nothing left of which we can say to them, ‘Mind your own business.’ Our whole lives are their business.” As the state offers us less and less protection, “at the same time it demands from us more and more. We seldom had fewer rights and liberties nor more burdens: and we get less security in return. While our obligations increase their moral ground is taken away.”


Click here to read the rest of this article and then ask yourself:

Aren't you REALLY, REALLY glad YOU'VE taken control of how much of YOUR WEALTH facilitates Washington's misbehavior?!


If you haven't, what the hell is wrong with you?!

Do you not understand how IRRESPONSIBLE YOU ARE for not having done so?



Even as ardent a statist as Abraham Lincoln, in announcing his willingness to burn the Southern states to the ground in order to keep them paying the tariff for the benefit of Northern interests in his first inaugural address on March 4, 1861, paid at least lip service to the Founders design of leaving control over the fuel available to feed the fires Washington wants to light in the hands of the individual citizenry when he said, "Doing this I deem to be only a simple duty on my part; and I shall perform it, unless my rightful masters, the American people, shall withhold the requisite means..."


Held over:

Disinformation-How it works

by Brandon Smith


'The Discourse of Voluntary Servitude'

by Étienne de la Boétie


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Illuminating anniversaries of this week:

October 21-  In 1879, Edison tests the first practical version of his incandescent lightbulb (which lasts 13.5 hours before burning out).  In 1945, women are able to vote in national elections in France for the first time.  In 1959, Frank Lloyd Wright's Guggenheim Museum opens.


Are You Ready For More Power?



"Peter Hendrickson has done it again!  'Upholding The Law' does for individual liberties what 'Cracking the Code' did for tax law compliance: exposes the reader to the unalienable truth!"

-Jesse Herron, Bill Of Rights Press, Fort Collins, Colorado

Click here for more information

And don't miss:

'Was Grandpa Really a Moron?'

picks up where 'Cracking the Code- The Fascinating Truth About The Income Tax' leaves off.


In this new volume, you'll learn about:


  • The in-depth, real story behind the Sixteenth Amendment;

  • A simple little model of just how the "income" tax works;

  • Cognitive stumbling blocks exploited by tax agencies against liberation-seeking Americans;

  • The disturbing relationship between the "income" tax and the Federal Reserve;

  • Why tax reform ideas like the "Fair Tax" are not only unnecessary, but completely counter-productive and even dangerous;

  • Why the "income" tax is what it is, and has to be;

  • The truth about common myths and misunderstandings within the "tax honesty" movement;

  • How to think clearly about the tax, the law in general, and the voracious state;


  • A sordid little passport application scam revealed;

  • How to know if you're in denial about the current crisis in America;

  • Whether the Constitution is going to save you, or is it the other way around?

  • The truth about paper "money; government schools; the Second Amendment...

...and much, much more!

Click here for more information


There is little more important to the long-term health of America than how our children are educated..




Want to get on the Newsletter mailing list?  Just email your name to SubscribeMe 'at' losthorizons.com using the address you want added!


Page Two

This And That

Your tax dollars at play (unless you're a stand-up guy or gal); living the dream; scheduling sass; more...

HEY, HERE'S A QUESTION THAT'S BEEN TROUBLING THE WORLD SO THOROUGHLY that it plainly merits the expenditure of everyone's money: Why Do Fat Girls Have Fewer Dates? At least, some pinhead at the National Institute of Health (who is, after all, spending other people's money) thinks so, and has awarded a "research team" at the Magee-Women's Research Institute and Foundation in Pittsburgh $466,642 of tax-extracted wealth to answer this question over the next four years.

I wonder how many girls whose purses are being tapped to pay for this study might feel the money would be better left in their own hands to pay for a Weight-Watchers or fitness center membership...

You know, I never have to work hard to come up with reasons to marvel out loud over the lunacy of Americans who aren't standing up for the truth about the tax and JUST SAYING "NO!" to crap like this!!

(This story reminds me of an old study of my own in this field of inquiry: Obesity Is Not A Public-Health problem, But Fat-Headedness Is)


EVER HAVE ONE OF THOSE DREAMS WHERE YOU KNOW SOME TERRIBLE DANGER APPROACHES and you just can't move to defend yourself? Terrible feeling isn't it?

Part of what's so disturbing about that paralysis is the fact that you know, even while sitting frozen in ruinous inaction, that what you REALLY NEED TO DO IS MOVE-- and yet, even knowing that you must, you can't.

I have to imagine that this is what waking life is like for a lot of Americans, who understand the path down which this country is going, but somehow can't bestir themselves to join those of us who are doing something about it.

Know somebody locked into that little nightmare? Do the right thing. Be their alarm-clock.


WE LEARNED THIS WEEK THAT COMEDIANS KEY AND PEELE were asked by Barack Obama to do a skit with him promoting Obamacare but declined, saying they "couldn't fit it into their schedule". Outstanding.

At the same time we saw obituaries posted for the last of what were one-time iconic Saturday-morning cartoon-fests on the major over-the-air networks (which were all we had back in the day, kidlings). This less happy thing was also the result of a scheduling issue.

You see, decades ago the busybody feds arrogated to themselves ownership of the radio frequency spectrum, and began assigning chunks of it to favored broadcasters. In 1990, Congress decided to impose on its broadcast-privilege-beneficiaries the requirement to air several hours of children-targeted "educational programming" each week.

Eventually, this educational programming-- which was axiomatically unwanted by the market (or else it would have been offered without any mandate by the State) but had to be fit in somewhere-- replaced the cartoons on Saturday morning. Over the years those time-slots had become the least expensive to sacrifice to this unwanted material because by then the kids that used to watch the cartoons there had moved to cable networks not subject to these idiot mandates (which were not confined to just enforced programming diktats, but also restrained the controlled networks from allowing the vulgarity of any and all of their content to keep up with the steadily-dropping standards of the average American TV viewer).

So, no more Bugs Bunny sassin' the Man in his inimitable style before the eyes of 50 million kids in their jammies on the living room floor every week, like when I was little. But on the bright side, a whole lot of those kids of today are watching Key and Peele sass the Man on Comedy Central instead.


SPEAKING OF THE CORRUPT, ARROGANT POLITICAL CLASS, AND ITS TROUGH-SNUFFLING CLIENTS AND CRONIES, have you ever given any thought to what will happen when 30 million other Americans-- or even just 3 million-- learn what you know about the "income" tax and begin following your example of acting to protect your own interests and uphold the law?

The political class thinks about it-- a lot.

You should, too, and add vigorous outreach to your activism.

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Are You Ready For "Obamacare"? Not Unless You've Read This...


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Illuminating anniversaries of this week:

October 22- In 1797, the first parachute jump is made-- a 3,000 foot drop from a hot-air balloon to the delight of a crowd of onlookers in Paris, France.  In 1836, Sam Houston is inaugurated as the first president of the Republic of Texas.  In 1907, a bank run on the Knickerbocker Trust Company causes its collapse and sparks the "Panic of 1907".  In 1964, Jean-Paul Sartre is awarded the Nobel Prize for Literature, but declines the honor.  In 2008, India launches its first spacecraft to the moon.

What Do The People Do About The Rogue State??

The most important question facing Americans today

I HAD THIS QUESTION POSED TO ME BY AN EMAIL CORRESPONDENT the other day. I guess this just shows how poor a job I've done at communicating, because I have been trying to shout the answer to this one from the rooftops for a long time.

That answer is simple: The People impose restraint on the rogue state by choosing-- one by one-- to cease voluntarily turning control over their resources to the state, and choosing instead to retain control over those resources. This is done by refusing-- one by one-- to engage in "income tax" excisable activities (and refusing to blindly or fearfully allow their activities to be treated or taken as excisable activities upon which the tax arises, when they really are not).

The refusal of individual Americans to voluntarily engage in excisable activities forces the state to resort to highly-politically-accountable, highly-politically-vulnerable alternatives revenue sources. These include options like direct, apportioned taxes (which will not be tolerated by the people or approved by Congress at $multi-trillion annual volumes), and/or increased revenue tariffs (which can raise amounts adequate for legitimate state needs, but are very self-regulating, since consumers naturally choose domestic product alternatives when higher tariffs raise the prices of imports beyond a certain point).

This solution is precisely the one intended and provided for by the Founders-- who didn't impose the taxation rules in the US Constitution just so they could admire their handwriting. They put those rules in place in direct anticipation of state behavior of the sort with which we are now plagued.

 As even so odious a character as Hamilton pointed out in Federalist #21:

“Imposts, excises, and, in general, all duties upon articles of consumption, may be compared to a fluid, which will, in time, find its level with the means of paying them. The amount to be contributed by each citizen will in a degree be at his own option, and can be regulated by an attention to his resources. ...If duties are too high, they lessen the consumption; the collection is eluded; and the product to the treasury is not so great as when they are confined within proper and moderate bounds. This forms a complete barrier against any material oppression of the citizens by taxes of this class, and is itself a natural limitation of the power of imposing them.”

What we've got today is simply the direct (and perfectly predictable) consequences of NOT adhering to the Founders' plan. As Frederick Douglass trenchantly observed,

“Find out just what any people will quietly submit to and you have the exact measure of the injustice and wrong which will be imposed on them."

We've got plenty of injustice and wrong these days. But our fix to the problem was bought for us with blood a few hundred years ago.

All we have to do is stop playing along with the rogue state's false (and rather embarrassingly crude) paradigm  concerning who owns what, and what powers to tax have really been granted. As soon as enough of us quit endorsing that nonsense, it's all good

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A brief look at 100 years of Fiscal Folly; and a nice confirmation of CtC scholarship using four-generation-old data from the IRS itself.


CtC-Educated Lawyers: It's Way Past Time For You All To Queue Up!


[Y]ou really need to familiarize yourself with Pete Hendrickson's absolutely magnificent work at his website and in his book(s).  He has, brilliantly and lucidly, "cracked the code" regarding the federal income EXCISE tax(es)."

-Mark C. Phillips, JD


"...I find your work fascinatingly simple to understand."

-Jerry Arnowitz, JD


"Your book is a masterpiece!"

-Michael Carver, JD


"Received your book yesterday.  Started reading at 11 PM, finished at 4 AM."  "I have 16 feet (literally 16' 4.5") of documents supporting just about everything in your book." "Your book should be required reading for every lawyer before being admitted to any Bar."  "I hope you sell a million of them." 

-John O'Neil Green, JD


“Thanks again for your efforts, Pete. They mean an awful lot to a lot of people.” “…as an attorney, I am humbled by your knowledge and ability in navigating the law.  THANK YOU for your hard work and sacrifice.”

-Eric Smithers, JD


"I am an attorney and want to give a testimonial to your book, which I find to be compelling. I am exercising these rights for myself and my adult children. I'm even considering making this my new avenue of law practice."

Nancy "Ana" Garner, JD


Learn what these colleagues already know, then step forward and become part of a coordinated, mutually-supportive squadron focused on developing strategy and deploying the law in courtrooms across the country.  There's a lot of suing that needs doing right now.


Are you ready for a challenge that'll put some real meaning behind all the effort you went through to get your credentials?  Send me an email. 


Have You Taken A Military, Law Enforcement or Public Office Oath To Uphold And Defend The Constitution?


Renew Your Promise




Illuminating anniversaries of this week:

October 23- In 1707, the parliament of the United Kingdom meets for the first time.  In 1861, Abraham Lincoln declares habeas corpus suspended for all war-related cases in certain parts of the Union territory, in furtherance of his suppression of widespread dissent against his policy of making war on the seceding Southern states.


  IGNORANCE TAX: An unnecessary exaction suffered out of ignorance as to its lawful objects and the means of its application by someone too lazy, frightened or misled to learn how it really works and to what it really applies.  See "Income Tax", "Social Security Tax", "Medicare Tax" and "Federal Unemployment Tax".


An Introduction To The Liberating Truth In Ten Easy Segments

Tom Bottaro, ChFC, CtCW, author of 'Secrets of the Income Tax Code- A Guide for Businessmen', has shared another fine outreach effort. Tom has been writing and sending a series of short wake-up and educational essays to friends and family, one by one, for some time. When Tom told me about this, I asked him to compile the pieces and let me post them for everyone to enjoy and share with their own people. Tom, good guy and warrior for the truth that he is, was perfectly agreeable.

Here is the compilation in printable .pdf format. I hope everyone will indeed share it widely. 


"It is not the function of our Government to keep the citizen from falling into error; it is the function of the citizen to keep the Government from falling into error."

-United States Supreme Court Justice Robert H. Jackson





CtC Warrior David Sides says, "Bumper stickers?  Nice, but NOT BIG ENOUGH!"


(By the way, Dave's got it precisely right-- If you want your power to be secure, your neighbors have to be empowered with the same knowledge that you've acquired.  Click here for ideas about spreading the truth-- which include normal bumper stickers available for free, by the way....)




Photographed on 1-70 in Missouri




At a rally outside the Alamo




CtC Warrior Brian H. in Alaska has a great INDOOR approach to spreading the transformational truth. Here's Brian's desk at his workplace:



You notice the big glass container to the right of the CtC in the first pic above? Tasty freebies for Brian's co-workers-- candy and brain-candy all in one:



Very sweet!




'Don't Tread On Me' Polo Shirts Say It All!



Click Here To Get Yours Now!







More Than Two Thirds Of The Several States That Collect "Income" Taxes Have Now Acknowledged The Truth About The Law As Revealed In CtC, And Have Issued Complete Refunds Accordingly!  See The Following Chart...



Illuminating anniversaries of this week:

October 24- In 1861, The first American transcontinental telegraph line is laid, ending the 18 month run of the Pony Express.  In 1926, Harry Houdini performs for the last time.  In 1929, the New York Stock Exchange crashes (Black Thursday).  In 1931, the George Washington Bridge opens to traffic over the Hudson River between Fort Lee, New Jersey and Manhattan Island.  In 1945, the United Nations comes into formal existence.  In 2008, many of the world's stock exchanges suffered their worst day in history up to that point, with most dropping around 10%.


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(How our forefathers responded to arrogant "Rule of Law defiers"...)





“All truth passes through three stages. First, it is ridiculed, second it is violently opposed, and third, it is accepted as self-evident.”

-Arthur Schopenhauer


Get your FREE* CtC bumper sticker and help spread the word!

Just send a stamped, self-addressed envelope to Lost Horizons, Bumper Sticker Offer, 232 Oriole Rd., Commerce Twp., MI 48382

(*If you want to throw a few bucks into the envelope to help with costs, that'd be nice, but it's entirely optional...)




If You're Not Standing Up, Then You're Standing Down

...and "standing down" means "going down"...


MY FRIENDS, IT IS MY SINCERE BELIEF that this community of activists has been encouraged, inspired, enlightened and expanded over the years by the steady posting here of your ongoing victories on behalf of the rule of law. Certainly, it has been my pride and my joy to help you share with the world your honorable testament to the liberating truth about the tax, widespread knowledge of which is so critical to the well-being of ourselves, our children, and our beloved America.


However, unless YOU send those victories I can't post them. Unless YOU stand up, your courage and commitment can't inspire anyone.


YOU WILL RECALL THAT FOR THE LAST YEAR OR SO I've been telling you that we are in a transformational moment. Look around at what is going on today and recognize the truth of what I say.


More than half the American population views government as a threat. As mainstream a publication as Forbes magazine is posting articles about massive DHS ammunition and armored vehicle purchases. Denunciations of the NSA violations are features in every major MSM organ.


Even before Edward Snowden's documentation of particular crimes being committed against the American people the LA Times, NY Times, Washington Times and other mainstream organs were editorializing about Leviathan having grown too big, and gotten dangerously out-of-hand (see stories at each of the preceding links). In the Spring Rand Paul's filibuster denouncing the lawlessness of Mordor-on-the-Potomac prompted a major buzz across the country, and in July Justin Amash shocked Washington by very nearly defunding a huge portion of the illegal surveillance state's crimes.


Concurrently, this CtC community has been winning legal victories and refunds which are ever-more significant and telling. Consider, for instance, the victories which have qualified for the EWWBL collection. Every one of these is an especially illuminating acknowledgement of the truth about the tax, and now include a very significant two-time victory in a federal district court.


Things are happening!


HOW IT ALL SHAKES OUT is still up for grabs, though. This is not the time for either complacency or paralysis, because both of those don't amount to "doing nothing"-- instead they amount to "standing down". And standing down means conceding the fight, letting all these eleventh-hour sparks of light burn out unnurtured and the moment be a transformation for the worse.


This is not the time for standing down. This is the time for a FULL-COURT PRESS.


This is the time for educated American grown-ups to stand up tall and firm, pulling others to their feet by their very gravity. This is the time for leading the way.


STAND UP! SEND THOSE VICTORIES-- the new ones, and those of the last few years as well. Click here to learn how. Even if you don't have checks to scan, send your testimonials. Learn how to do that here.




The Willingness Of Some People To Trade Liberty For Convenience Is Without Limit

Some Observations About Current Political Efforts To Evade The Truth, Such As The "Fair Tax" Scheme


Regarding "Tax Reform"


"Taxes are not raised to carry on wars, wars are raised to carry on taxes."

-Thomas Paine


Where To Find Things On This Site


Law Professor James Duane Says: "Don't Talk To The Police.  Period."


Honest Cope Agree




The Newsletter is interested in your work!  If you are a writer, scholar, or just a dedicated Warrior with a worth-while story to tell, please consider sharing your words and your wisdom with our thousands of readers!  Click here to learn how.


'Letters to the Editor' should be addressed to 'feedback 'at' losthorizons.com', with "Editor" in the subject line.




Films That Belong In Every Home Library




Ever Wonder How Much An Unrestrained FedState Would Like To Tap You For?





Warrior David Larson shares this beautiful little farce, wryly observing that, "Depositors have "..not lost one penny.." - OK we could agree on that simple statement  ..how about the purchasing power of that same penny 'not lost'?"


Source: Bureau of Labor Statistics






Illuminating anniversaries of this week:

October 25- In 1760, George III becomes King of Great Britain.  In 1917, the 'October Revolution' takes place in Russia with the capture of the Winter Palace in Petrograd by the Bolsheviks.  In 1936, Adolph Hitler and Benito Mussolini enact a treaty creating the "Rome-Berlin Axis".  In 1983, the United States invades Grenada.


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Last Word


"If ye love wealth greater than liberty, the tranquility of servitude greater than the animating contest for freedom, go home from us in peace. We seek not your counsel, nor your arms. Crouch down and lick the hand that feeds you. May your chains set lightly upon you; and may posterity forget that ye were our countrymen."

-Samuel Adams, Architect of the First American Revolution


OK, Now Back To Your Regularly Scheduled Programming:




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to help keep it available, or it soon won't be. Donations can be sent to:


Peter Hendrickson

232 Oriole St.

Commerce Twp., MI  48382


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An "Income" Tax Related Site Map


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About The Author


Pete Hendrickson is possibly the most effective lawyer in history, even while never having set foot in a law school, nor ever being a card-carrying member of "the bar". He is the first American in history to secure a complete refund of Social Security and Medicare ‘contributions’ withheld from his earnings (along with all other property taken for federal taxes); further, since 2003 students of his legal analyses and arguments in ‘Cracking the Code- The Fascinating Truth About Taxation In America’ (CtC), and its sequel, 'Was Grandpa Really a Moron?' have been routinely retaining and recovering billions of dollars which otherwise-- wrongly, but as a matter of course-- would have gone to federal or state government treasuries. This despite concerted efforts by government to suppress his work, and in some cases vigorously oppose the claims by his students.


Hendrickson is also a widely-read essayist on matters of politics, public policy and law; many of these works are collected in his second book, ‘Upholding the Law And Other Observations’.  He is a member of Mensa; an award-winning artist; and has paid his dues as a youth soccer coach.  He is a long-time political activist as well, and has served as co-chair and platform convention delegate of Michigan’s largest county Libertarian Party organization; as a consultant to the National Right to Work Foundation and Citizens for a Sound Economy; as a member of the Heartland Institute; and as a member of the International Society for Individual Liberty.  He is a frequent radio-show guest on stations across the country.


Hendrickson's business career has included nearly a decade-and-a-half at the leading edge of the renewable-energy industry, both as Director of Purchasing and Materials Management and member of the R&D board at Starpak Energy Systems, the mid-west's then-largest solar heating and energy-recovery-and re-utilization company; and as founder and president of AFJ Inc., a high-efficiency lighting design, manufacture and installation firm.


Beginning in the mid-1990s and continuing for the twelve years before his present full-time focus on the restoration of the rule of law in America, Hendrickson directed purchasing activities for the $84 million-a-year multi-family-housing division of the Farmington Hills, Michigan branch of Edward Rose and Sons, with responsibility for 18,000+ apartments, direct supervision of 35 technicians and agents, and incidental authority over several hundred divisional workers.  He also ran the division's 10 cable television earth-station and distribution systems in four states, and designed and administered the company's website.


On rather the other end of the spectrum, amidst these more mundane pursuits Hendrickson co-founded and was the primary creative force behind a small board- and card-game company that enjoyed a modest success for several years.


 Hendrickson makes his home in southeast Michigan, with his wife and two children.  He is currently working on his next book.


© All written and graphic material on this page and website are copyrighted by Peter E. Hendrickson, unless otherwise attributed