1401 – Self-employment

82

1402 – Definitions re Self-employment (rely on Trade or Business)

83

1441 – Backup Withholding – applies only to (certain) nonresident alien "income" recipients

129

16th Amendment – no new taxation power; no new definition of “income”

20-23

301.6109 – “do not wish to participate” in SS language!

122, 132-135

31.6011 – “Employee” account numbers

133

3101 – Tax relies on Wages & Employment language for FICA & Medicaid

77

3121 – FICA – who is subject? Employees earning Wages

60, 77

3121 – United States (a) Wages, (b) Employment, (e) State, (e)(2) US

60, 77

3301 – FUTA

79

3306 – Employee, Employer & Wages defined

79

3401 – Definitions (a) Wages, (c) Employee, (d) Employer

75

3402 – (f)(2)(A)

147

3501 – FICA, FUTA, W/H paid into Treasury (No "trust fund" involved)

81

6012 – Statutory requirement to make returns

157, 167

6017 – Self-employment (relies on Trade or Business language)

86

6020(a) Substitute required return from Secretary’s own knowledge

168, 169, 171

6041 – Depends on Gains, Person & Trade or Business language

84, 114, 174, 175

6041A(d) – “Person” includes governmental unit

86

6048 - Foreign Trusts – § 6048 requires associated regulations-- which do not exist

119

6051 – W-2 Depends on Employee, Wages, Trade or Business language

136

6109 – Identifying numbers (whose?) SS# required? p.134,135

122, 129, 132, 146, 157

6201 – Assessment of tax only on income specified by citizen; Secretary has Burden of Proof in court setting

168, 183

6201(d) – In court, Secretary has Burden of Proof

183

6211 – Definition of deficiency – does not authorize contemplation of amount – only the tax upon whatever the citizen has declared.

169, 182, 183

6331 – (a) Specifies who can be levied by mere 'Notice of Levy'! Officer, employee or elected official of United States!

144, 145, 172

6401 – Overpayments – 6401(c) even when no tax liability exists

175

6402 – Credits or Refunds

173

6702 – Frivolous returns – Assessment errors

181

7434 – Civil Damages for Fraudulent Filing

127, 141

7491 – Burden of Proof on Secretary

184

7701 – (a)(26) Trade or Business – “public office” language

70, 83

7701(c) – sophomoric circular argument re “includes” and “including”

56, 57

7806(b) – Code represents no change in legal effect

69

Agreement (I must agree to withholding!) Termination p. 152

150

Ambiguity -

65, 92

Assessment – determines amount of tax, not amount being taxed

169, 181, 182

Authority – Termination of

152

Backup Withholding

129

Banks

121, 127, 131

Banks requesting W-9

127, 131

Belief – IRS System dependent upon…

54

Brushaber – definition of income not expanded – 16th Amendment squares with Constitution only through use of custom definition of “income.”

19, 21-22, 209

Burden of Proof on Secretary

183, 184

Business, Trade

83, 84

Civic responsibility

99

Civil Damages, Liabilities, Penalties

138, 141, 142, 146, 151

Classification Act of 1923 (definition of "service", "compensation", "position", and "employee")

51, 72

Compensation

52

Constitution

Page I

Constitutionality – regulation specifying “unless excluded by law”

21, 89

Court? Secretary has burden of proof – 6201(d)

183, 184

Custom Definitions (unique – because it doesn’t mean what you think!!)

21, 55, 56

Defensive deniability – the law contains the truth we’re assumed to know

146

Deficiency – Notice of § 6211

182

Direct vs. Indirect

1, 16

Disclaimer

152

Dividends - § 6042-3(b)(iv)

19, 116

Draft analogy regarding confusing language

76-77

Due diligence (required and presumed we know the law!)

138

Due Process of Law

189

Duty to society

99

Employee (or Person?)

59, 148, 150

Employer

60, 79, 148

Employment

77, 148

Enacting clause missing from Title 26 – and 26 others! The statutes at large still rule.

42-43

Everyone?

74, 164

Excise Tax = Income Tax (Supreme Court rulings)

24-25

Federal Jurisdiction

5

Felony – Impersonating a federal official or employer (18 USC 912)

142, 143

FICA – just another “income” tax § 3401

Page v, 175

Foreign Trusts – § 6048 contains NO associated regulations

119

Form 1040 – Purpose of form – to state or correct assertion of income and claim refund of overpayment

169, 173

Form 4852 – Substitute for W-2 – to correct information

177, 230

Fraud

146

Frivolous return?  § 6702

181

FUTA - § 3301, 3501

79, 81

Gain from property – not value of property

5

Gains, profits, income vs. Money

25, 86, 89

Geographical sense (e.g. resident, citizen, within)

78

Government Spending

193

Ignorance of the law is no excuse

18

Includes, Including (defined by Black’s on p. i)

i, 54 – 56, 57, 59

Income – Keeping it constitutional; IRS can’t make pay become “income;” Most not subject to income tax; meaning NOT expanded or modified by 16th Amendment.

Page i, 5 12, 20, 21, 23, 24, 46, 47

Income – meaning limited – 247 U.S. 330, (1918)

24-25

Income Tax = Excise Tax (Supreme Court rulings)

24-25

IRS Collection Spending (consumes 65% of receipts)

189

Jurisdiction

5, 6, 7

Knowledge of the law is assumed

18

Language (Supreme Court rulings)

65-67

Law is Law – Unless repealed

72

Legal effect – not changed with advent of Code

69

Legal Limitations

146

Levy by 'notice' – Form 688-W (theft-by-conversion, convincing company to send $)

144

Levy by 'notice'– who? (relies on United States and Employee language.)

145, 172

Liabilities, Penalties, Civil Damages

138, 141, 142, 146, 151, 153

Liability for Incorrect Filing § 7434 ($5K minimum) (re W-2’s p.138)

138, 141, 142

Limitations of Authority

146

Litigation Risk

127

Means what it says – Supreme Court rulings

65-67

Money vs. “gains, profits, income”

86, 89

New workplace? Disclaimer for W-4 wording on website http://www.losthorizons.com/appendix.htm

152

Notices of Deficiency (never signed by IRS)

182

Overpayments § 6401(b)1)(c) – includes Medicare and FICA

174, 175

Overpayments where no tax liability exists – § 6104(c)

175

Penalties, Civil Damages, Liabilities

138, 141, 142, 146, 151

Person - § 6401A(d)(1) – “includes government unit…”

86

Pollock v Farmer’s – 157 US 429 & 158 US 601 (1895)

16-18

Prima facie (evidence sufficient to raise presumption, unless rebutted)

161, 170

Private citizen – no authority to levy by mere 'notice'

172

Private-sector remuneration specifically excluded

21, 151

Privilege Tax

5, 10, 16, 17, 25

Privilege Tax & Excise Tax are synonymous

8

Public office language used to define Trade or Business

83

Public Salary Tax Act of 1939

70, 71, 72

Refunds

173, 175, 176

Regulations – subordinate to Statutes > subordinate to Constitution

113

Required to make a return § 6012 relies on “income” language

i, 12, 46, 157

Rights, per Supreme Court

8, 11, 131

Risk of Litigation

127

Savings – 13.85% of 1st $7K & 7.65%=min $1200+/worker+Admin Expense!

153

Selective Service analogy regarding confusing language

76-77

Self-employment – See § 7701 & 6017 (Trade or Business language)

83, 86

Service defined

52

Signature of IRS or sworn statement commanding action – highly unlikely

143

Sixteenth Amendment – no new taxing power; no new definition of income

19-23

Social Security # only if “required”

129, 134, 135

Social Security & Medicaid (rely on Wages & Employment language)

77

SS-4 – signature not required per p.6 of instructions

158

State – § 7701(10) defined as District of Columbia

64, 70, 231

Subject to (per Treasury Dept, largest portion of population NOT subject)

47, 74, 164

Substitute required return § 6020(a) from Secretary’s own knowledge

168, 169, 171

Summary

88

Taxpayer (only) vs. tax-payer.

107, 163

Term vs. Word

54, 58

Termination of Authority to Withhold

152

Theft-by-conversion – IRS Form 688-W Notice of Levy

144

Title 26 (IRC) NOT enacted as public law-- The statutes-at-large still rule

43

Trade or Business – § 7701(a)(26)

83, 84

Treasury Dept. Report (1941) 3.9% of citizens filed (majority not subject)

47

Trust – not mentioned.  W/H paid into Treasury

81

Trusts, Foreign – § 6048 contains NO associated regulations

119

Truth is there – IRS has defensive deniability

146

Unique Custom Definitions (Why? Because it doesn’t mean what they want you to think!!)

21, 55, 56, 112

United States – § 7701(9) & (10) District of Columbia

Note: re Petroleum Tax section specifies “the 50 states.”

60, 78, 111, 112

US Corporation

75

US Person – § 7701(30)

78, 86, 111, 133

Vague Law

65, 92

Voluntary

14, 54,107-110, 146, 149

Voluntary Compliance

63, 110, 149-50

W-2 – § 6051(a)

136

W-4

132, 146, 149, 159

W-9 – created for Withholding Agents

120, 125-6, 132, 160

Wages – § 3401(a)

75, 77, 150

Website info – IRC, rulings, regulations

Page vi

Withdraw Authority to Withhold – example of wording

152

Withholding Agent – 7701(16) defined (for nonresident aliens, foreign corps)

126

Withholding’s movements – (a game of “hide-and-seek”) 1862 in § 86;

1939 Public Salary Tax Act in §1; 1942 Revenue Act moved to §466;

1943 Tax Payment Act – added “State” language;

1954 IRC moved to Subtitle C.  (Only the strong survive!!)

13, 72, 73

Worker vs. Employee

135, 143, 150