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The News

Current Events and Continuing Education for January 18 through January 31, 2015

“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. Please keep in mind that many more items of interest are to be found between featured articles, so your most profitable course is to scroll through the whole page...)

I'm taking a poll, people:

Which State Outrage Are You Most Pleased To No Longer Be Paying For?


It's that time again...

The Criminal Rites Of Spring


Dispelling a paralyzing phantasm with a clarifying dose of state-supplied reality:

A Conspiracy That Isn't, And The Conspiracy That Is


Held over, 'cause seriously,

Media Evasion Of CtC Must End, Now


Other Voices

It's Not the Koran, It's Us


A false-flag in Paris; civic dysfunction; an upcoming evil of Obamacare rarely noted; more...

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



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:

Fallacies, Falsehoods and Evasions


A Few More 'This and Thats'


Why Are You Not Doing This?


Project Paradigm-Shift


Test Your "Income" Tax IQ!


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


Your Comments


"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.



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




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

Illuminating anniversaries of this week:

January 25- In 1787, Revolutionary War hero Daniel Shays attempts to seize the federal armory at Springfield, Massachusetts in furtherance of a growing rebellion by the state's rural population over tax policies seen as favoring narrow factional interests at their expense.  In 1890, Nellie Bly completes a trip around the world in a record-breaking 72 days.  In 1919, the League of Nations is founded.  In 1937, 'The Guiding Light'  begins broadcasting (on radio, before moving to television in 1952).  The program ran until 2009.  In 1961, JFK delivers the first live television presidential news conference.  In 2011, the Egyptian revolution to overthrow the despotic US-backed Mubarak regime begins in earnest.

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


Which State Outrage Are You Most Pleased To No Longer Be Paying For?

I'M TAKING A LITTLE POLL, PEOPLE! As an active CtC-educated American, you are no longer a cooperating financial participant in every usurpation, assault on good sense or the rule of law, corruption, scandal or crime committed by Leviathan at home and around the world. I want to know which offensive behavior you are proudest to no longer be a part of.

 Is it no longer being a party to the NSA's wholesale violation of your neighbor's Fourth Amendment rights that puffs your chest the most? Is it having withdrawn your support for extrajudicial killings? Maybe it's the fact that you are no longer paying to militarize your local police department?

Perhaps you get the most satisfaction from taking your name off the list of supporters for Common Core? Perhaps it's for closing your wallet to the nanny-state, or the welfare state, or the warfare state-- or all three? Or is it that you've stopped propping up dictators in other lands; administering Obamacare here at home; and pushing Agenda 21 everywhere?

WHETHER ITS ANY OF THOSE THAT DOES IT FOR YOU, or simply no longer paying for Keynesian economists in the White House, an unlimited CIA budget, and drinks for the presidential entourage every time it comes to town and snarls traffic all day, I want to know.

Your answers will help in the crafting of important new outreach tools (and thinking about the question might help you produce some nice outreach tools of your own)! So please participate in this poll about stuff in which you no longer participate.

Use the "Contact" link at the top of this page to send me an email and tell what rings your bell. Thanks for the help!!

Care to post a comment on this article?

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The Criminal Rites Of Spring

It's that time again...

OVER THE NEXT THREE MONTHS, thousands of American businesses and millions of individual citizens will use tax preparation specialists or software to help themselves commit one or more of a variety of serious crimes.  Willfully, or, at best, negligently, these otherwise law-abiding Americans will prepare and execute a variety of fraudulent affidavits, resulting in serious harmful consequences for themselves and others.  Despite being 100% personally responsible-- both morally and legally-- for its accuracy and its effects, these men and women will engage in a mass exercise of perjury, putting into the record sworn testimony about matters of which they are completely ignorant.

For instance, without ever having looked-- even for a moment-- at the highly specialized, quite-different-from-common-meaning statutory definitions of such custom legal terms as "employee", "trade or business", "employer" or "self-employed", these people will execute tax instruments declaring themselves to be one or more of these things.  Those who do so inaccurately (the majority, I'm afraid) will at the same time subject themselves to a vastly higher tax liability than is legally appropriate; but whether right or wrong, each will swear to the truth and correctness of it all, to the best of their knowledge and belief.

Knowledge and belief.  Read carefully now.  The oath by which a tax instrument is executed doesn't say knowledge or belief, it says knowledge and belief.  To make such an affirmation without any knowledge about what is being affirmed, and particularly without having made any effort to acquire such knowledge, is perjury-- a felony carrying a five year prison term.  The criminal nature of the act is even independent of the accuracy or inaccuracy of what is being affirmed, just as would be your testifying to having seen the accused shoot the gun when you really didn't, the fact that he or she actually did notwithstanding.


Care to post a comment on this article?

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A Conspiracy That Isn't, And The Conspiracy That Is

Dispelling a paralyzing phantasm with a clarifying dose of state-supplied reality

LET ME START OUT BY SAYING THAT I'M QUITE RELUCTANT TO EVEN SPEAK of the "conspiracy that isn't" which prompts this article: the crazy notion that a regime has been secretly imposed upon us all by reason of which Americans interact with their government institutions and in their economic affairs in the guise of "corporate entities" and/or "trustees". It is embarrassing to even admit knowing of notions like these.

Those who promote and embrace such notions should understand that doing so inflicts a fatal wound to their intellectual credibility in any circle but that of fellow believers-- and that means any circle in which competent research and rational analysis is valued, as well as any circle of what might be described as the "mainstream" of American perspectives.

I speak of this now, despite my reluctance, because I have recently been reminded of the astonishingly large number of good folks who, though courageous and committed liberty-and-rule-of-law-loving activists by nature, are nonetheless effectively sidelined from making real contributions to the cause by this bizarre idea. Misled, these good folks tilt at windmills day in and day out while leaving the real threat to their well-being unconfronted, like the bull that wastes all its energy charging the distracting red cape while the matador steadily draws its blood.

Further, over the years I have watched ludicrous notions like these infect the "tax honesty" community, and then, because of the natural migration of "tax honesty" folks into the CtC community, find their way here in the minds of folks who haven't yet had their light-bulb moment.

These carriers don't yet understand (or are still unwilling to face) the fact that the misapplication of the income tax is a simple matter of their own failure to rebut state-serving allegations and presumptions that they engaged in excise-taxable activities (along with a corrupt and steady effort by those who benefit from that failure to encourage its perpetuation). Instead, they imagine the misapplication of the tax (and often many or all other disliked features of modern life) to be the consequence of a massive "Invasion of the Body-Snatchers" conspiracy such as I am describing here.

It is beyond me why anyone would ever imagine that (s)he is, or is treated as, or can only be treated as, a corporation (or a "trustee") by the government or by others wanting to engage with that person economically. What is it that would cause someone to imagine that (s)he is invisible, or untouchable, or incapable of acting in his or her own natural capacity as a human being when dealing with other human beings and institutions created by, composed of, and existing for the purposes of, human beings?

Isn't simply articulating these notions enough to show their wrongness? Let me articulate further.

 This alleged conspiracy, like all those "cabalistic" notions of the same sort, is argued not to be a simple matter of multiple interested parties each being happy to encourage and exploit ignorance of what the law plainly says to anyone who knows where to find it. Instead, it is a complex and proactive conspiracy involving the complete capture and transformation of all legal relationships and practices, and in a fashion that would strike anyone affected as bizarre, inexplicable and completely pointless, even for the purposes of the supposed conspirators.

More, this proposed conspiracy would have to include pretty much everyone except the guy telling about it and the guy being told. It would have had to include everyone over the course of decades, if not hundreds of years (various versions of this lunacy date the beginning of this bizarre "corporate persona imposition" to 1933, 1873, and even 1789).

This "conspiracy" rests on the invariable and entirely unspoken institutional embrace of definitions and principles expressed nowhere in any law of the United States, but which we are expected to just assume to be in force. The "conspiracy", we are asked to believe, somehow plays out in such a way that no one has ever been able to present for inspection a single documented instance of it being overcome or even just flatly exposed. Not a single declaration on a single document produced by the officials supposedly implementing the thing day-in and day-out over all the years can be produced in which can be seen,

 "John Doe is found to be a corporation and therefore..." or,

"Charges against Jane Roe, who has sworn to the court that she is not, in fact a corporation, and whose attestation meets with no contrary evidence, are dropped..." or,

"Mike Moe swears he is not a corporation, but of course, he really is, and so..." or

"...but of course, Jill has a Social Security number and is, therefore a [corporation, employee, trustee, whatever]..."

-- or anything of the sort. Not one.

Nor is there so much as a single law-school text, or lecture excerpt teaching a word of this notion, nor any thing else whatsoever supporting this ridiculous "theory".

In short, this "theory" is simply nonsense, and serves only to distract good Americans from what is REALLY going on-- a soft, unstructured conspiracy of corrupt individuals with which the American institutional landscape has become littered, each operating independently of the others but sharing a common disdain for the law and a willingness to borrow from each others' crimes in the furtherance of their own exploitive purposes.


The common feature to the varied implementations of this, the real conspiracy against American liberty and the rule of law, is a lack of any underpinning in actual authority, pretended or not. Instead, the real conspirators faced by upstanding Americans are 100% reliant on the ignorance, timidity or distraction into ineffectiveness by nonsense like the "we're all corporations theory" of its targeted victim, and on the laziness or disengagement of the legal community and the media.

Consequently, unlike simply being the last human in a sea of pod-people, with no meaningful recourse against a massive "secret law" conspiracy, accurately-educated American patriots ARE, in fact, ready and able to take action and restore the republic. Also unlike the vague conspiracy-theories that rely entirely on the naiveté of the mark for "proof" of their existence, the real conspiracy plaguing America is readily-documented and displayed.

I'm going to walk everyone through one example of that concrete, documenting evidence of the real conspiracy plaguing America. In this case, we examine a recent and so-far-unresolved effort by the Minnesota Department of Revenue to evade an educated American couples' claim for a complete refund of amounts withheld as "income" tax.

I want everyone to recognize that, just as is true of each and every one of the 1,000+ examples of much more common CtC-related documentation on display here, and the hundreds of thousands of the same calculated here, and the dozens of defeated resistance efforts on display here and here, this one simply would not exist were CtC-- and only CtC-- not completely true, correct and complete, and were the conspiracy anything more elaborate than I describe it to be.

By recognizing this truth about what is really going on, you will also recognize that you are not the helpless victim of an overwhelming organized foe. Instead, you are Alice assailed by the pack of cards, needing only to take off the virtual-reality headset that was put on you when you were asleep, and do the same for your family, friends and acquaintances.

TO A DEGREE UNUSUAL AMONG THE STATES, Minnesota has been occasionally balky in response to educated claims seeking the return of property withheld and escrowed against possible tax liabilities. This past summer a couple of good Americans making their first-ever claim with the state were subjected to this graceless behavior, and while their having to go through this is a shame, and though the matter is not yet concluded and corrected, the evasion effort by the state Department of Revenue is instructive and illuminating.

Brief background: on August 21, 2014, some 4 1/2 months after the filing of their claim, and two months or so after their federal claim for 2013 was honored in full, the Minnesota Department of Revenue (MDOR) sent these good folks a "Notice of Change in Minnesota Individual Income Tax or Property Tax Refund". The MDOR proposed a tax outcome for 2013 quite different from what the claimants had calculated for themselves. The purported basis and authority for this will be presented and discussed below.

Our claimants replied to the notice with a [unfortunately argumentative] letter that was treated by the MDOR as an appeal to the substance of the "notice". The MDOR responded a bit over a month later with a "Notice of Determination on Appeal" (which you can see here). This is what we're going to examine in detail below, by an exact reproduction of that notice (in blue text) and my comments added [in brackets] where appropriate.

What will be revealed in this exercise is evasion and mendacity, and a clever effort to get around the limitations plainly laid on the state by the actual law on its own books in a brazen attempt to confuse, intimidate and exploit ignorance of the state's legal structure. That is, the nature of this attempt, and the legal restrictions it is intended to evade and overcome, will make clear to all observers the true character of the real conspiracy upon which today's American patriots must focus their attention.

(Other than in its gratuitous and self-serving deployment of terms such as "wages" and "employer" "income" and so forth, the "facts" summary of the MDOR appears accurate enough as I understand the sequence of events, so I will let it fill in any blanks remaining from that standpoint.)

Summary of Changes

Period Tax Type Tax Credits Penalty Interest Other Total
2013 Income Tax $7,856 $0 $1,964.00 $1.68 $0.00 $9.821.68


COMMISSIONER OF REVENUE Net Change from above or attached schedule: $9,821.68
Loretta Nunn, Supervisor Less: Offset of prior debt: ($7,736.00)
Appeals and Legal Services Division Balance Due: $2,085.68

Explanation/Schedule of adjustments

 We reviewed the administrative appeal (the "Appeal") you filed from the Notice of Change to your Individual Income Tax (the "Notice") dated August 21, 2014. Our determination is based on available information and applicable law(s).


The Minnesota Department of Revenue (the "Department") reviewed your state individual income tax return for tax year 2013, which the Department received on April 16, 2014. You entered the number zero on all lines of the Minnesota individual income tax return, Form Ml, except line 23 reporting your Minnesota income tax withheld, line 29 for total payments, line 30 indicating your requested refund, and line 31 indicating the bank account into which you request the refund to be deposited. You requested a refund of $7,736.

You attached your U.S. individual income tax return. Form 1040, with the Minnesota filing. The federal return reported the number zero on line 7 for wages, salaries, tips, etc. You requested a full refund of your federal income tax withheld from your wages by your employers.

You attached a Form 4852- Substitute for Form W-2. Wage and Tax Statement, or Form 1099-R, Distributions From Pensions, Annuities, Retirement or Profit-Sharing Plans, IRAs, Insurance Contracts, etc., for your respective employers, XXXX, Inc. ("XXXX") and XXXXXXXXXX XXXX XXXXXXX Corporation ("XXXXXXXXXXy"). On the Forms 4852, in item 7, you listed the amounts for the various taxes withheld, and entered zero in part 7a for wages, tips, and other compensation.

The Department adjusted your Minnesota individual income tax return, and determined your Minnesota taxable income based on the wages, as reported to the Department by your employers. As a result, the Department assessed additional tax, and a 25% penalty for filing a frivolous return under Minnesota Statute § 289A.60, subd. 7.


Your Appeal and Forms 4852 contend that you did not earn "wages" as defined in the Internal Revenue Code ("IRC") § 3401(a) and 3121(a), and your employer incorrectly classified your compensation for services as wages. Therefore, you submitted IRS Form(s) 4852- Substitute for Form W-2. Wage and Tax Statement, indicating that you did not receive wages, tips, or other compensation, but both federal and state taxes were withheld. The Appeal argued your employers are non-governmental, private-sector corporations, and your services are not related to any Federal functions.

Furthermore, you dispute the assessment of a frivolous return penalty because you never contended that "wages are not subject to Minnesota income tax".

Law and Analysis

First, the commissioner is granted the authority to issue an order of assessment if the commissioner determines that the correct amount of tax is different than that assessed on a return filed with the commissioner. Minnesota Statute ("M.S.") § 270C.33, subd. 4(1).

[This is a beautiful start for the MDOR, setting the precise tone for all that follows: this declaration is entirely irrelevant to this case since, as we will see in a moment, the "determination" authority itself only provides for recomputation of the tax, not a change in the gross amount involved in that computation.]

Second, a return or assessment of tax made by the commissioner is presumed to be correct and valid, and the taxpayer has the burden of establishing its incorrectness or invalidity. M.S. § 270C.33, subd. 6.

[However, because of the limits on the "determination" authority in regard to a filed return, all this amounts to is a presumed correctness and burden regarding any claimed deductions and the mathematics with which the rate of tax is applied to "net income".]

Under M.S. §290.014, subd. 1, all net income of a resident individual is subject to tax, and "net income" is defined by reference to IRC § 63, which defines federal taxable income as gross income less certain exclusions and deductions. "Gross income" is defined by reference to IRC § 61, which includes "all income from whatever source". Furthermore. M.S. § 290.92. subd. 3. defines '"employee' as "any resident individual performing services for an employer, either within or without the state of Minnesota... the performance of which services constitute, establish, and determine the relationship as that of employer and employee."

[Like the previous one, this entire paragraph is irrelevant to this contest. All "net income" is subject to the tax, but "net income" for purposes of 290.014 is "federal taxable income" (290.01, subd. 19), which is gross income less available deductions. The MDOR's authority is to only to adjust "the taxpayer's computation of federal taxable income"-- that is, to adjust the application of available deductions to gross income or the math, as provided for in M.S. 289A.35:

289A.35 ASSESSMENTS ON RETURNS. The commissioner may audit and adjust the taxpayer's computation of federal taxable income, items of federal tax preferences, or federal credit amounts to make them conform with the provisions of chapter 290 or section 298.01 [a mining tax]. If a return has been filed, the commissioner shall enter the liability reported on the return and may make any audit or investigation that is considered necessary.

This "adjustment authority" does not extend to changes in the amount of gross income being used in those computations, as is made clear not only by the confinement to audit and adjustment of "the taxpayer's computation" in the authorizing statute above, but also in the very explicit language in the following portions of M.S. 289A.38:

Subd. 7. Federal tax changes.

If the amount of income, items of tax preference, deductions, or credits for any year of a taxpayer ... as reported to the Internal Revenue Service is changed or corrected by the commissioner of Internal Revenue or other officer of the United States or other competent authority ... the taxpayer shall report the change or correction or renegotiation results in writing to the commissioner ... within 180 days after the final determination and must be in the form of ... an amended Minnesota ... income tax return conceding the accuracy of the federal determination or a letter detailing how the federal determination is incorrect or does not change the Minnesota tax. An amended Minnesota income tax return must be accompanied by an amended property tax refund return, if necessary. A taxpayer filing an amended federal tax return must also file a copy of the amended return with the commissioner of revenue within 180 days after filing the amended return.

Subd. 8. Failure to report change or correction of federal return.

If a taxpayer fails to make a report as required by subdivision 7, the commissioner may recompute the tax, including a refund, based on information available to the commissioner. The tax may be recomputed within six years after the report should have been filed, notwithstanding any period of limitations to the contrary.

In short, the MDOR has no power to unilaterally "adjust" the amount of "income" from which is derived the "federal taxable income" ("net income") that is the starting point for a Minnesota return (and can't even do adjustments according to what it might at some point have reason to imagine some federal authority has done until at least 180 days after the federal authorities actions are finalized). And that's all that is relevant here. Lacking authority to declare the receipt of "income" contrary to what appears on the return, everything going on here is pure eyewash and reliance on the ignorance or fear of the target. But let's go through the rest anyway, and get everything possible out of this exercise.]

Your Appeal makes claim that you did not receive reportable wages because you provide services in the private sector to "non-governmental, private sector corporations". Your identification as individuals receiving "private sector payments" presumably alludes to the position that only Federal employees or elected government officials are subject to income tax. [It does not, but see below...] However, you mistakenly infer the meaning of "includes" as it is used in section 3401(c). [Actually, no, but see below...] Rather, IRC §7701(c) states that the use of the word "includes" shall not be deemed to exclude other things otherwise within the meaning of the term defined. Thus, the word "includes' as used in the definition of "employee" is a term of enlargement, not limitation, and "employee" generally includes private citizens.

[This entire paragraph is also irrelevant for the same reason as the last one, but while we're here: On the contrary--or more precisely, if you prefer-- IRC §7701(c) actually provides that "includes" is a term of LIMITED enlargement, allowing for the inclusion of unenumerated things which are within the meaning of the statutory term being defined by the shared special characteristics of the enumerated exemplars. Thus, the fact that the common word "employee" generally includes private citizens, as you say, is irrelevant to the scope of the uncommon, statutorily-defined term "employee" at 3401(c). In any event, and again, all of this is irrelevant. The MDOR lacks authority to "adjust" the amount of "income" being used in tax computations, however much it may be willing to pretend misunderstanding of the meaning of "includes".]

Your tax position is a frivolous argument used by taxpayers to avoid or evade tax. The IRS listed your present position as a "Common Frivolous Argument" in its Notice 2006-3, 2006-1 CB 751, and specifically in Revenue Ruling 2006-18, 2006-1 CB 743 (attached for your reference). This tax position has been litigated in both federal and state courts, and ruled in favor of the government. See Lindberg v. Comm'r, TC Memo 2010-67; Montero v. Comm'r, 104 AFTR 2d 2009-73 80 (CA5): Sytsma v. Comm 'r of Revenue, A11-269, (Minn. 2011); Dorschner v. Comm'r of Revenue, 7700-R (Minn. Tax Ct. Reg. Div., 06/02/05)

[Actually, all the IRS "notices" listed here are eight years old and were explicitly superceded by the official IRS "Frivolous Position" list mandated by statute just after the dates of every one of these notices (as explained in the "Background" section of this document). See each succeeding version of these lists here. CtC-educated "positions" are not on any of these official lists, a fact very tellingly illustrated by the "Position #AR" hoax exposed here. These references by the MDOR are bogus, just like its citations to irrelevant statutes and its effort to evade by omission the very plain and strictly-limiting provisions of M.S. 289A.35 and .38.

The court rulings cited in this paragraph would require several pages-worth of text in properly parsing out every misconstruction, irrelevancy and falsehood in which the MDOR would likely be hoping to find support for its assertion that the return in this case qualifies for a "frivolous" penalty (something we'll see and address again a little further down). But it is enough to simply point out that in none of them was the issue of MDOR's inability to adjust "gross income" raised or ruled upon; and that lacking authority to find a receipt of "income" contrary to what appears on the claimants' return, whether of "wages" or otherwise, the department plainly has no grounds for alleging a flaw in a return based on what the filers do or do not declare in that regard.*]

It (sic) well established that under both Federal and Minnesota law, that (sic) wages are taxable. For those reasons, the Department properly included your compensation in wages from XXXX and XXXXXXXXXX in your income.

[Another effort to skate past the sole relevant issue here: MDOR's lack of authority to "adjust" the gross amount of "income". Whether it is "well established that under both Federal and Minnesota law, wages are taxable" is of no significance in this whatever. True or not, and even if it were established that these claimants HAD, in fact, received "taxable wages", the MDOR lacks the authority to add them to the gross income figure on the return.

At the same time, the appeals officer's careful phrasing has to be appreciated. Note the precise statement that "wages are taxable", despite the earlier efforts to suggest-- while carefully never saying so-- that all earnings are taxable. This is followed by the careful use of the phrase "compensation in wages" rather than just "compensation" or "earnings". Contrast the careful wording in this paragraph with what it would have been if what the appeals officer strove to suggest earlier were valid:

"It is well established that under both Federal and Minnesota law, all earnings are taxable. For those reasons, the Department properly included your compensation from XXXX and XXXXXXXXXX in your income."]

While you point out that the IRS refunded the amount you requested on Form 1040, the Department has the authority to make an independent assessment of your state tax liability regardless of any IRS determination, and the commissioner is not bound by the IRS's determinations. Busch v. Comm 'r of Revenue. 713 NW2d 337 (Minn. 2006); Bond v. Comm'r of Revenue, 691 N.W.2d 831, 2005 WL 310802 (Minn., 02/10/05).

[Actually, Busch concerns only the MDOR's authority over the effect of deductions in computing federal taxable income, as discussed above-- in this case the MDOR disallowed a deduction for gambling losses which the IRS had allowed. Although I have been unable to find the text of the ruling in Bond, based on extensive citations to the case in other rulings it appears to  provide only that Minnesota courts consider matters already adjudicated in Tax Court de novo.

Neither of these cited cases, therefore, offers any support for the invitation by the MDOR in the preceding paragraph to imagine that the provisions of M.S. 289A.35 and .38 restricting the MDOR's authority over the amount of "income" relevant to a filing don't mean what they plainly and exactly say (as also discussed above). Per that plain and clear language, while the MDOR does indeed have the authority to make an independent assessment-- which is the application of the rate of tax to a given amount of what is taxed-- it does not have the authority to independently determine how much "income" is to be considered as an overall starting point in calculating that assessment. Further, even the MDOR's limited authority to "recompute" an assessment in accordance to an IRS determination contrary to the filer's original figures-- if one should arise, as it has not in this case-- must wait at least 180 days from the time such a determination is finalized.]

The penalty for filing a frivolous return has been assessed on your 2013 tax return as allowed under M.S. § 289A.60, subd. 7. The burden of proof is on the Commissioner to prove that your return was frivolous. M.S. § 289A.60, subd. 7. Your claim for refund is substantially incorrect, has no basis in law or fact, and it is due to a position that has been consistently held to be frivolous.

 ['Fraid not... M.S. 289A.60, subd.7 provides that:

Subd. 7. Penalty for frivolous return. If a taxpayer files what purports to be a tax return or a claim for refund but which does not contain information on which the substantial correctness of the purported return or claim for refund may be judged or contains information that on its face shows that the purported return or claim for refund is substantially incorrect and the conduct is due to a position that is frivolous or a desire that appears on the purported return or claim for refund to delay or impede the administration of Minnesota tax laws, then the taxpayer shall pay a penalty of the greater of $1,000 or 25 percent of the amount of tax required to be shown on the return. In a proceeding involving the issue of whether or not a taxpayer is liable for this penalty, the burden of proof is on the commissioner.

The MDOR lacks authority to say that the claim for refund is substantially incorrect, since it cannot dispute the declared amount of "income" by which that claim was arrived at. Therefore it has no actual grounds for this asserted penalty.]

ALL TOLD, WHAT WE SEE HERE is a concerted, focused effort to resist a CtC-educated claim by a state Department of Revenue which is able to muster nothing on its behalf but evasions and falsehoods. There is no secret law for it to call on under the terms of which our claimants can simply be deemed subject to the tax on their earnings (whether because of alleged "corporate" status or otherwise).

Instead, the MDOR must resort to invalid "frivolous position" lists; inapposite case-law; incomplete citations and excerpts of its own state statutes; and a lot of confusion-generating conflated irrelevancies-- and all to get around the plain limiting language of statutes it simply hopes its targets will overlook.

There IS a conspiracy, and this is its substance: lies and dodges and desperate hope that you will imagine it to be the Great and Powerful Oz, rather than just that little man behind the curtain struggling to keep the illusion alive day by day. Defeating it is as simple as knowing the truth, standing your ground, and spreading this link far and wide.

By the way, the "everyone is a corporation" thing is just one of a disturbingly large number of dangerous and distracting myths, misunderstandings and outright disinformation infecting various parts of what can be called the 'patriot movement'. Find articles addressing a few dozen of the most prominent here.


*It is worth pointing out that to the extent that these cases cited by the MDOR could be seen as taking positions relevant to a "frivolous" assertion, it is done by the embrace of two fallacies. One is that the reporting of amounts withheld but no "wages" paid is somehow self-contradictory, as though it is categorically-impossible for withholding to be improperly or erroneously applied. This argument is nonsense on its face, of course, and has even been effectively conceded by the IRS itself last year by way of changes in the latest of its series of post-CtC-publication Form 4852 revisions.

The other fallacy deployed in an attempt to support a frivolous penalty is the argument that even if one's earnings don't qualify as "wages" they must still be "income" which should be reported under some other "income" category on a tax return. This manifestly invalid proposition is a futile attempt to evade the simple fact that when a subclass of commonly-defined wages is distinguished as being "income" subject to the tax (under the provisions of 26 USC 3401(a) and/or 3121(a)), commonly-defined wages NOT so distinguished are axiomatically NOT "income" subject to the tax.

There's a reason why government schools don't teach logic...

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Did you miss the 'Set Your Church Free' commentaries?

Set Your Church Free

Ignorance of the true nature of the "income" tax has gagged, gutted and seduced-into-disgrace America's ministerial community. This must change.


Copy and post this one around, people!

Media Evasion Of CtC Must End, Now

Time, unfortunately, is on the side of the well-funded disinformation specialists

OVER THE YEARS, I HAVE DEMONSTRATED FAR BEYOND RATIONAL DOUBT OR HONEST DISPUTE that for the last 75 years the income tax has been systematically mis-administered so as to capture far more revenue and from far more earners than it should and would were its actual statutory limits more broadly understood. I have further shown that this is not because of some quirk in the law being exploited by the IRS but solely because of the ignorance of the Americans to whom it ends up being misapplied.

People's ignorance is certainly being exploited by the IRS, of course. But as written, and as interpreted by the courts and the tax agency itself, the law is perfectly clear and entirely on the side of most Americans. Even while corrupt elements in the government have engaged in strenuous efforts to create a facade of opposition to what CtC reveals and thus shore up the ignorance regime  (such as is exposed here, here, here, here and here), and even while some folks are unfortunately targeted for annoying and sometimes protracted resistance to their claims before they are honored, nearly every person who simply learns how to stop the tax from being misapplied in his or her own case and acts accordingly has been enjoying proper acknowledgement and capitulation to the truth by federal and state tax agencies since 2003.

At the same time, I've also plainly shown that the collapse of the rule of law and metastasizing of the rogue State now threatening the well-being of every American (and possibly the entire world) coincides with, and results directly and exclusively from, the onset of the mis-application of the income tax in the early 1940s.

In short, I've shown the nature of the problem about which every non-state-coopted pundit steadily warns, and the nature of the solution to that problem. What's more, I introduce, highlight, and celebrate the tens of thousands of other American men and women who have also learned these facts and are leading the way down the only path to that solution.

NEARLY EVERY WEEK FOR NINE YEARS, I have shared my posts about all these things with all of you. For the last three years, I have copied those folks in the (purportedly) non-state-coopted media whose email addresses I believe I have.

At the same time, week after week the well-financed and much more influential enemies of the state-restraining, liberty-enhancing truth have steadily injected more and more noise into the ether in an attempt to drown out my signal. This means that the window of opportunity in which the liberating truth has a realistic chance to do its good work-- which it can only do by becoming widely known-- is finite and narrowing.

And yet every week the acknowledgements and desperately-needed signal-amplification offered by the purportedly-non-coopted media amount to... nada. Zero, zilch, radio silence.

This won't do. It also makes no sense-- unless my emails to these folks simply aren't getting through.

There are several reasons why my emails may not be making it. Some are as mundane as the possibility that they are being spam-filtered away from these folks' inboxes. It is known to me that, for instance, anyone on a pacbell, swbell or optonline server won't receive my emails-- these servers systematically (and apparently automatically, for reasons known only to their programmers) reject my emails as spam. There may be others that do the same without doing bounce-backs to me to let me know.

Then there are darker possibilities. As was posted here a few months ago in a letter from an educated American who works for the City of Los Angeles, while no other websites that might be described as "outside the box" are known to be so treated, access to losthorizons.com is blocked on the city's internet-capable computers. Wikipedia won't allow links to documents posted on losthorizons.com. Recent additions to the ongoing treasure-trove of revelations from the heroic Edward Snowden have awakened us all to the possibility of other knobblings of the same sort on a grander scale. It's also possible that some of these folks may simply have closed their own minds.

IN RESPONSE TO THIS PROBLEM, I am going to ask for everyone's help. Following is a short list of publicly-available alt-media-pundit email addresses which I have accumulated.

Because my emails do not seem to be making it through to these folks, I'd be grateful if you were to see if yours do. Compose your own thoughtful, courteous but plain-spoken entreaties and admonishments to these folks making clear to them that patriotic, activist and educated Americans are wondering why they are not contributing their voices on the side of the angels in this critically-important contest between State-serving myths and corruption and the liberating truth. Forward my emails to them, as well.

EXPECT RESISTANCE FROM THESE FOLKS! All of them are likely to think they already know all about the income tax, and will have opinions based on either some theories of their own or from the "tax honesty" community. Or they will be standard victims of "ignorance tax" mythologies.

These folks are also likely to imagine that they're just being told about another version of Irwin Schiff. Some will even reflexively resort to the troll sites and other noise generators maintained by the IRS and DOJ on the internet and fall prey to the fallacious notion that since I have been attacked by the government what I say must somehow be wrong, despite all the unambiguous evidence to the contrary. (This is as crazy as concluding that because John Kirkiaou and Chelsea Manning are in prison, and the government is salivating over the prospect of getting its prosecutorial hands on Edward Snowden and Julian Assange and Kangarooing them in as well, all the state crimes these folks revealed must not really have happened. But believe it or not, people can be that thoroughly conditioned to worship the State.)

 None of these folks will know a tenth of what you know about the tax. None of them will know a hundredth of what you know about CtC, its history, and the ferocious campaign to keep people like them from knowing the truth about it.

For one reason or another, I am unable to deal with this problem myself; your help will be greatly appreciated and may do much good. The email addresses are all offered with disabling formatting to protect against abuse from spiders, so to use them, please replace the "at" with @. By the by, if you have any other addresses of the same sort, please share them with me for addition to this list. (For instance, I have long sought an address for Paul Craig Roberts, whose work I esteem, and who seems to me a very likely ally in this fight, but who I am unable to contact, even through his website "contact form".)

Glenn Greenwald- glenn.greenwald"at"theintercept.org

Lew Rockwell- lew"at"lewrockwell.com

Tom Woods- woods"at"mises.org

Thomas DiLorenzo- TDilo"at"aol.com

Jacob Hornberger- jhornberger"at"fff.org

Will Grigg- wngrigg"at"msn.com

Chuck Baldwin- chuck"at"chuckbaldwinlive.com

John Whitehead- johnw"at"rutherford.org

William Anderson- anderwl"at"prodigy.net

Justin Raimondo- justin"at"antiwar.com

Karen Kwiatkowski- ksusiek"at"shentel.net

Paul Rosenberg- p.rosenberg"at"cryptohippie.com

Tom Englehardt- tomdispatch"at"yahoo.com

Laura Poitras- info"at"praxisfilms.org

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Are You Having Trouble Spreading The Word?

SKEPTICISM (SOMETIMES INVOKED BY FEAR) IS TO BE EXPECTED when you're trying to explain to someone that everything they've been encouraged their whole lives to believe about something as entrenched and significant as the income tax is basically nonsense. So here's a way to help cut through the resistance:

Ask your listener how he or she would react if you were to show an announcement from the Commissioner of Internal Revenue admitting that the tax doesn't apply to the earnings of most Americans and is misapplied most of the time because people don't understand how it works? Or how about if you showed a ruling from the Supreme Court saying the same?

Now you just have to explain that you're going to show exactly those things-- but because the state really doesn't want people to know this, these things haven't been said quite as forthrightly as we would all wish. It's going to take a bit more work to take these admissions in than is sufficient for just reading a press release. But it'll be worth the effort...


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.


A New Book On The Truth About The Tax

TOM BOTTARO, ChFC, HAS JUST PUBLISHED '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 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:

January 26- In 1837, Michigan is admitted to the union as the 26th of the several states.  In 1861, Louisiana becomes the sixth of the several states to secede from the Union.  In 1920, Henry Leland launches the Lincoln Motor Company (later bought by Ford).  In  1934, Germany and Poland sign a non-aggression pact (later nullified by Germany by the deployment of a "false-flag" operation suggesting a Polish attack on a German radio station).  In 1998, Bill Clinton issues a nationally-televised denial of having had sexual relations with Monica Lewinski.


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. 

This Week's Outreach Bon Mot:

Collecting an excise is no more an "exercise of sovereignty"-- which is to say, no more special, and no more entitled to special advantages under the law-- than is charging parade-watchers for the use of your restaurant's bathroom.

"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




It's Not the Koran, It's Us

by Leonard C. Goodman

For a brief time after the 9/11 terror attacks, Americans could be heard asking the reasonable question: Why do these men from Middle Eastern countries (back then, mostly Saudis) hate us so much that they would give their own lives to cause us pain? Within a few weeks, the official explanation became: They hate us for our freedom, end of story.

When you follow the money, it is easy to understand why the government avoided any honest discussion of the causes of terrorism. By one estimate, U.S. taxpayers have squandered $10 trillion over four decades to protect the flow of oil on behalf of multinational corporations. The result is an empire of U.S. military bases which have garrisoned the Greater Middle East. In the Persian Gulf alone, the United States has bases in every country save Iran. These bases support repressive, undemocratic regimes, and act as staging grounds to launch wars, interventions and drone strikes. And they generate tremendous profits for defense contractors.

The existence of these bases helps generate radicalism, anti-American sentiment and terrorist attacks. The drone attacks have incited even more hatred for us, which should come as little surprise. The U.S. uses drones to incinerate suspected militants (and anyone else in the vicinity) on secret evidence, but only if they are living in Muslim nations like Pakistan, Yemen, Iraq or Somalia. We don’t fly killer drones over dangerous neighborhoods in Detroit or Chicago, or in Iguala, Mexico, where 43 students were recently massacred by gang members aided by corrupt police.

The fact that our misguided foreign policy creates terrorism is almost never discussed in polite society. There is of course no justification for a terror attack on innocents. But if our leaders truly cared as much about protecting Americans from terror as they do about protecting corporate profits, they would have an honest discussion of what’s prompting the violence.


Click here to read the rest of this article

Now consider:

Aren't you REALLY, REALLY glad YOU'VE had the fortitude and clarity of vision to do the only thing that will actually make a difference by taking control of how much of YOUR WEALTH facilitates government misbehavior?


Now ask yourself this: Have I really done all that I can to urge everyone I know to also stand up and act in the only way that will really bring about change in my lifetime? 


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 great reading recommendations:

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:

January 27- In 1606, the trial of Guy Fawkes over the 'gunpowder plot' begins.  In 1825, Congress establishes the territory to which the Eastern Native American populations will be forcibly relocated by way of the 'Trail of Tears'.


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

A false-flag in Paris; civic dysfunction; an upcoming evil of Obamacare rarely noted; more...


Let's remember the definition of "terrorism": the creation of a sense of danger in members of society through acts of violence against non-combatants for the purpose of influencing public policy. The attacks on the French satirical magazine Charlie Hebdo have no discernable potential for influencing public-policy decisions for the benefit of jihadis.

The only "policy" related to the attacks from the standpoint of Islamists is that of disrespect to Islam or its sacred figures by people like the satirists at Charlie Hebdo. Such disrespect is not a "public policy" matter.

Those who incline toward such disrespect will persist or refrain of their own individual accord in the wake of this event, just as has been true in the wake of each previous expression of Islamist anger over previous juvenile goadings. It is only the policies of these individual actors that could be addressed or affected by these attacks, from the Islamist's point of view.

These attacks could not be expected to generate an official banning of expressions of disrespect for Islam and its sacred objects, because one is completely unnecessary. If Islamists committed these attacks, doing so has explained with much greater effect than would be carried by any censorship legislation or other public policy change that those who choose to disrespect Islam and its sacred objects face a summary death penalty.

And maybe that's all this was. If so, it remains heinous and unforgivable, but it is NOT "terrorism". It is no more "terrorism" than is the beating administered by Bubba to some punk who bad-mouths Bubba's sister or mama.

BUT THERE IS PUBLIC POLICY THAT IS ALMOST CERTAIN TO BE INFLUENCED BY THESE ATTACKS-- and that is the official demeanor of France in several areas of considerable interest to certain parties' areas, and public pressure on the French government in its choices regarding these areas.

For instance, just weeks before this plainly pro-level assault on Charlie Hebdo, the French Parliament, in accord with popular views, had announced recognition of Palestinian statehood, over the strenuous objection of the United States and Israel. Just days earlier, over strong United States opposition but in accord with popular views, French President Francois Hollande had called for an end to sanctions against Russia.

Public views prompting both these public-policy positions would likely be influenced toward reversal by an event certain to demonize Muslims in the French perception generally. The murders at Charlie Hebdo surely qualify.

The reason for the influence against supporting Palestinian statehood is obvious and need not be explained here. The (admittedly more strained) possible reason why demonizing Muslims might be expected to influence French popular views toward Russian sanctions is Russia's close alliance with the Syrian regime of Shia Muslim Bashar al-Assad.

IN SHORT, WHILE ISLAMISTS HAD NO REASON TO EXPECT public policy changes in their favor by virtue of this Charlie Hebdo crime, Israel, the United States and the government of France surely did. If this event merits being called "terrorism", it can only be if it was NOT committed by the couple of non-descript malcontents we are told to view as the perpetrators, but was the act of someone with a plausible policy-influence expectation, such as Israel, the United States, or the government of France-- or some combination thereof.

Looking at the evidence currently available, this conclusion forces itself upon an objective viewer even without the foregoing reasoning in any event. The little excerpt of the alleged shooting of the cop on the sidewalk video found here is sufficient all by itself:

(If your browser lacks a needed plug-in or otherwise won't play this video, you can download it here, and play it in Windows Media Player.)

It is plain that this cop was NOT shot as shown in this video, despite continuing official claims to the contrary. There isn't even so much as a jiggle in this fellow's head, much less the violent bounce off the sidewalk that would result from taking a round to the head even from a small caliber weapon (which this was not). No spray, no wound, no nothing-- just a dust puff off the sidewalk where whatever left that rifle barrel actually hit.

This one thing alone is more than enough dog poo on this dinner plate to make the whole meal a non-starter. The official story being plainly false, the logical conclusion is that officialdom is responsible for what really did happen, which DOES make this a terrorist incident-- but not one committed by Muslims.

P. S. Paul Craig Roberts has good articles on this subject here and here.

NOTE: I have seen the argument that this assault really was terrorism by Muslims, based on the reasoning that the attack was intended to prompt repressive anti-Muslim policies by the French government which will polarize and radicalize France's Muslim population and generate more "soldiers" for the jihadi cause. I don't buy it.

For one thing, if this were true, it would be counter-productive to kill some of the talent which was already contributing to that radicalization, and would certainly have gone into hyper-drive doing so after an attack which didn't kill them. For another, killing the Charlie Hebdo folks is not nearly as likely to prompt serious and enduring French public support for seriously oppressive policy changes as would have been the killing of, say, a bunch of random schoolkids, or any other selection of victims who could never be said to have knowingly and deliberately provoked their murderers.

All in all, the selection of the Charlie Hebdo people as targets rings of a slightly tin-eared false flag operation, where those responsible instinctively recognized that the satirists would be seen as plausible targets of Muslim violence, without thinking further and realizing that targets plausible for other reasons don't support a "terrorism" meme very well. And in any event, there is that video...


IT WAS REPORTED THIS WEEK WITHOUT A EVEN A HINT OF DISMAY that Arizona will become the first and only state of the union (in modern times, at least) to require government school students to demonstrate some mastery of civics in order to graduate from high school. The required level of mastery? A mere 60% score on the test routinely given to immigrants who hope to be granted American citizenship. I guess mild kudos are in order for Arizona, but surely the rest of the states earn major raspberries.

Thank God for homeschooling!


AS WE ALL NOTE THE NEW TAXES AND OTHER UGLINESS ASSOCIATED WITH OBAMACARE that are popping out this month, one very important aspect of this massive price-control program is routinely overlooked: When the state pretends to be paying people's bills, it finds itself justified in seizing control of people's behavior. After all, your "bad" behavior choices will increase the public expense in remediating them, right?

For a discussion on this political dynamic, see this. For information on what really constitutes America's "health-care" crisis, and on why educated Americans need not really worry about Obamacare as a personal matter (however much it still needs to be scrubbed from the books as a policy matter), see the two articles here


SAY, 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:

January 28- In 1547, a nine-year-old becomes King of England (Edward VI).  In 1909, U.S. troops leave most of Cuba in the hands of American puppet Jose Miguel Gomez (operating under a U.S.-dictated "constitution"), continuing to occupy only the naval base at Guantanamo Bay.  In 1958, "Lego" is patented.  In 1981, Ronald Reagan ends federal price controls on petroleum first put in place during the 1970s.

Some Observations Regarding Educated And Accurate Filing

BASED ON MY OWN READING OF THE RELEVANT LAWS AND RULES, my own experience, and my own observations, I have come to the following conclusions. They may or may not have relevance to any particular person's situation, and of course everyone should make their own studies and come to their own conclusions. They are presented in no particular order, and I suggest everyone read through them all.

1. If "information returns" by a payer make what are believed to be erroneous allegations of the payment of "wages", "non-employee-compensation" or other revenue purportedly in connection with the conduct of an "income-taxable" activity, a filing intended to be true, complete and correct would seek to rebut the erroneous allegations and provide what the filer believes to be the correct amounts. This might be done by, for instance:

A. Attaching sworn statements specifically rebutting the errors on those forms with correct entries to one's 1040. Examples are Forms 4852 (to rebut and replace errant W-2s or 1099-Rs), or photocopies of errant original 1099-MISCs (or any other type of 1099 other than the 1099-R) with correct information replacing incorrect entries, and a sworn statement added declaring the instrument to be a rebuttal of an erroneous 1099-(xx) known to have been submitted by the listed payer.


B. Using the rebuttal instruments as replacements for the erroneous "information returns" and the correct information from the rebutting instruments to complete one's 1040. For instance, if one has received erroneous W-2s and has created a rebutting 4852, where a 1040 asks for "wages received" and says to attach a W-2, one would declare the "wage" entry from line 7(a) of the 4852, and attach that form instead of the erroneous W-2.

Instruments rebutting erroneous 1099s (other than 1099-Rs) are attached to the return by themselves-- that is, not with some kind of schedule-- unless one really IS operating some kind of tax-relevant business or other activity, and one is acknowledging having had SOME "trade or business" "income", but just a different amount than what was reported on the erroneous 1099.

 • If one engaged in no tax-relevant activities during the year there are likely no schedules that are appropriate for one's filing (unless, I suppose, one has something being carried over from a previous year in which something taxable WAS done...).

• If erroneous forms were included with a filing in which those erroneous forms are rebutted it would cause a contradiction in entries and make the return invalid and "frivolous", since everything included with a return is presumed to be attested to as correct by the filer.

• Failing to combine all amounts withheld as or for any kind of federal tax as a single figure on the line designated for "Federal income tax withheld", and/or failing to include and claim back any withheld amount while claiming back other amounts, is to create an apparent contradiction.

For instance, to report $0 "wages" and claim back amounts listed as withheld on a W-2 or 4852 as nominal "federal income tax" but to not also claim back amounts withheld as "Social Security tax" and "Medicare tax" would be to declare oneself to have not received "wages" as defined in 26 USC 3401(a) but to HAVE received 'wages" as defined in 3121(a). Since both designations of "wages" refer to the same receipts and activities which produce them (with the latter being merely a surtax on a portion of the former) the declarations are contradictory of each other.

The same contradiction would arise if one listed anything as "Excess social security and tier 1 RRTA tax withheld", while denying having received 3121(a) "wages". One can only have "excess SS tax withheld" if one has had "SS tax" properly withheld up to the amount at which anything further becomes "excess".

2. A return is NOT an appropriate document for making legal arguments of any kind. To include a cover letter explaining what is seen in the return (such as that erroneous "information returns" have been rebutted with instruments completed and attached for that purpose) does no harm, but this is neither the time nor the place to be making assertions about whether one is or isn't an "employee", arguments about the nature of the tax, and so forth. A return is just a statement of the amounts one knows and believes to be true, complete and correct in regard to each item inquired-about on the 1040, properly-understood as to its statutory meaning. It's neither a soap-box nor a legal brief; further, some kinds of arguments can actually invite a "frivolous" assertion.

3. Amounts improperly or erroneously collected, withheld, paid-in, what-have-you can only be claimed for refund looking back three years. On the other hand, rebuttals/corrections of erroneous assertions for their own sake, or as a response to collections efforts based on erroneous information returns, have no look-back limit. Learn more about both issues here.

4. Returns varying from (or attempting to supplement) the principles and points listed here, and/or reflecting notions not presented in CtC or on this site (exclusive of forum pages)-- such as adding "UCC" references to jurats, or otherwise marking-up or adding-to a return-- invite problems. I believe such variations are sometimes seen as reflecting an uncertainty (and therefore an insincerity) about one's filing, which can create a pretext for treating a return as "frivolous" and invalid. They also make one appear to be a soft target for harassment, ill-equipped to stand one's ground and deal competently with pushback, which is therefore more likely to be attempted.

5. Most all of the above has long been posted amongst much other useful material on the FAQ pages. Make a point of staying up to date with those pages, and everything linked from the Site Map!!

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What Do The People Do About The Rogue State??

The most important question facing Americans today

THE 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:

January 29- In 1845, Edgar Allen Poe's "The Raven" is published.  In 1861, Kansas is admitted to the union as the 34th of the several states.  In 1886, Karl Benz patents the first successful gasoline-powered automobile.  In 1891, Queen Liliuokalani takes the throne of Hawaii.  In 2002, George W. Bush delivers his State of the Union address in which he deploys the phrase "axis of evil" in regard to Iraq, Iran and North Korea.


  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:

January 30- In 1649, King Charles I of England is beheaded after attempting to claim more authority than the people were prepared to recognize in a ruler.  In 1835, Richard Lawrence attempts to assassinate President Andrew Jackson, but both his pistols misfire.  In 1933, Adolph Hitler is sworn in as chancellor of Germany.  In 1948, Mohandas Gandhi is assassinated.  In 1956, Martin Luther King Jr.'s home is bombed.  In 1968, the Tet Offensive begins in Vietnam.  In 1969, the Beatles give their last public performance, an impromptu concert played on the roof of Apple Records in London.  In 1976, George H. W. Bush becomes director of the CIA.  In 1982, Richard Skrenta creates the first computer virus.


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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 Cops Agree




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:

January 31- In 1606, Guy Fawkes is executed for the Gunpowder Plot.  In 1876, the federal government orders all Native Americans onto reservations.  In 1930, 3M begins marketing Scotch tape.  In 1945, Private Eddie Slovik is executed for desertion from the U.S. Army.  In 1950, Truman announces a program to develop a hydrogen bomb.  In 1958, an American satellite is successfully launched into orbit.  In 1995, President Bill Clinton authorizes a $20 billion loan to Mexico.  In 1996, a truck-bomb is detonated outside the central bank of Sri Lanka.


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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