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...

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Get the upcoming Tenth Annual Declaration Day Party on your calendar! It'll be Sunday, July 2, here in beautiful Commerce Twp., Michigan! See you then!!

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A Look At How And Why The IRS Is Perpetrating An Elaborate Hoax About "Frivolous Return Penalties"

The creation of a fake list of "frivolous positions" proves the truth of what the subterfuge is meant to conceal and suppress.

THE IRS HAS BEEN CAUGHT perpetrating a brazen "frivolous return penalty" hoax in an effort to discourage CtC-educated tax returns and refund claims. Here's how it works:

Pursuant to 26 U.S.C. § 6702, tax returns which manifest certain "frivolous positions" can be subject to a $5,000 "frivolous return" penalty.

The "position" specs appear in the law as follows:

26 USC § 6702 - Frivolous tax submissions

(a) Civil penalty for frivolous tax returns

A person shall pay a penalty of $5,000 if—

(1) such person files what purports to be a return of a tax imposed by this title but which—

(A) does not contain information on which the substantial correctness of the self-assessment may be judged, or

(B) contains information that on its face indicates that the self-assessment is substantially incorrect, and

(2) the conduct referred to in paragraph (1)—

(A) is based on a position which the Secretary has identified as frivolous under subsection (c), or

(B) reflects a desire to delay or impede the administration of Federal tax laws.

...

(c) Listing of frivolous positions

The Secretary shall prescribe (and periodically revise) a list of positions which the Secretary has identified as being frivolous for purposes of this subsection. The Secretary shall not include in such list any position that the Secretary determines meets the requirement of section 6662(d)(2)(B)(ii)(II).

(6662(d)(2)(B)(ii)(II) provides for relief from an "understatement of income" penalty if "there is a reasonable basis for the tax treatment of such item by the taxpayer"- PH.)

Upon the addition of subsection (c) to the law in 2006, the Secretary promptly issued the required list, which has been revised twice since then. The current list can be seen here or here (applying to filings since April, 2010); its predecessor (applying to filings between January, 2008 and April, 2010) can be seen here; and the original (applying to filings between March, 2007 and January, 2008) can be seen here.

UNFORTUNATELY FOR THE IRS, the Secretary's diligence presented it with a problem: CtC-educated returns aren't even remotely "based on a position" on the Secretary's list. (Returns which overtly manifest a desire to impede or delay the administration of the tax laws alternatively qualify for the penalty. But delay and impediment are the last things desired by educated filers; no such expression appears on CtC-educated returns-- typical examples of which can be seen here, here and here; and this is never alleged in regard to CtC-educated returns.)

The fact that CtC-educated returns don't qualify for the frivolous return penalty is a "problem" for the tax agency because it likes to use the penalty threat in efforts at scaring a few educated Americans into reversing themselves and climbing back into their old stall in the "ignorance tax" barn. A few illustrative instances can be seen in the cases discussed here, here and here. The IRS also hopes that rumors of these penalties will discourage Americans who have never read CtC from doing so in the first place and joining the ranks of those represented here.

So, faced with a conundrum insurmountable by legitimate means, the reality-thwarted agency has devised a "work-around". It has created a fake list, on which appears an entry meant to be taken as a CtC-relevant "position".

THE LIST WITH THE FAKE ENTRY appears on the IRS website at this page (at 25.25.10-1 near the bottom of the page). Here is the text of the entry meant to be taken as an expression of "the CtC position": 

44. Zero Wages on a Substitute Form: Taxpayer generally attaches either a substitute Form W-2, Form 1099, or Form 4852 that shows "$0" wages or no wage information. A statement may be included indicating the taxpayer is rebutting information submitted to the IRS by the payer. Entries are usually for Federal Income Tax Withheld, Social Security Tax Withheld, and/or Medicare Tax Withheld. An explanation on the Form 4852 may cite "statutory language behind IRC 3401 and IRC 3121", or may include some reference to the company refusing to issue a corrected Form W-2 for fear of IRS retaliation.

As noted, this entry is a complete fabrication. It doesn't appear in the actual official list at all, and never has.

Here is the actual, official and valid "frivolous Argument 44" from the actual list published by the Secretary:

(44) A taxpayer’s income is not taxable if the taxpayer assigns or attributes the income to a religious organization (a “corporation sole” or ministerial trust) claimed to be tax-exempt under section 501(c)(3), or similar arguments described as frivolous in Rev. Rul. 2004-27, 2004-1 C.B. 625.

Plainly, there isn't even a pretense of a relationship between the fake-list "Argument 44" and the real Argument 44.

Further, not only is the fake-list "position" a false representation of an official listed position, but as will be seen when reading it through with this in mind, it isn't even a "position" at all. The fake-list "Argument 44" is just a description of how forms are filled out. An actual "position" is not WHAT you do, or HOW you do it, it is WHY you did whatever you did.

The preamble to the official "frivolous positions" list is quite clear about this:

I. Purpose

Positions that are the same as or similar to the positions listed in this notice are identified as frivolous for purposes of the penalty for a “frivolous tax return” under section 6702(a) of the Internal Revenue Code and the penalty for a “specified frivolous submission” under section 6702(b). Persons who file a purported return of tax, including an original or amended return, based on one or more of these positions are subject to a penalty of $5,000 if the purported return of tax does not contain information on which the substantial correctness of the self-assessed determination of tax may be judged or contains information that on its face indicates the self-assessed determination of tax is substantially incorrect. Likewise, persons who submit a “specified submission” (namely, a request for a collection due process hearing or an application for an installment agreement, offer-in-compromise, or taxpayer assistance order) based on one or more of the positions listed in this notice are subject to a penalty of $5,000. The penalty may also be applied if the purported return or any portion of the specified submission is not based on a position set forth in this notice, yet reflects a desire to delay or impede the administration of Federal tax laws for purposes of section 6702(a)(2)(B) or 6702(b)(2)(A)(ii).

"Based on one or more of these positions". Clearly, the fake entry 44 in the false list cannot qualify as an actual "frivolous position" regardless of where it is or isn't found. It is not a "position" (on which actions are "based") at all-- it is simply a description of some paperwork and the way it's filled-out.

The official-list preamble continues, making another specification by which CtC-educated returns are excluded from qualifying for the penalty, even without regard to what "position" is alleged:

The penalty will be imposed only when the frivolous position or desire to delay or impede the administration of Federal tax laws appears on the face of the return, purported return, or specified submission, including any attachments to the return or submission.

NOTWITHSTANDING ITS ILLEGITIMACY on all these several fronts, the fake-list "Argument 44" is used by the IRS as a pretext for its occasional "assertions" of "frivolous return penalties" against CtC-educated filings. Here's an example of the fake entry being deployed in a transcript as part of this effort (in the center of the highlighted lines, showing as "CVPN (for "civil penalty")-ARG44"):

(See more examples here, here, here, here, here and here.)

SO, THIS BRINGS US BACK TO THE OPENING QUESTION: WHY does the government resort to this noxious little fraud?

Here's a clue: What we DON'T find on either the real or even the fake "frivolous position" list is anything describing the ACTUAL position on which any CtC-educated filing is based-- that the income tax is an excise on privileged activities.

Nor does anything on either list contradict or challenge what might be described as secondary "positions" informing educated filings, such as,

• "Not every receipt is "income" as that term is meant in the context of the "income tax";

• "It is possible for 'information returns" to be wrong when characterizing any given payment as "wages", "self-employment income" or as being relevant to the tax under any other label":

• "One has a right to rebut what one believes to be erroneous assertions of payers regarding the legal character of one's receipts"; and/or that

• "Tax returns are to be completed using whatever figures the filer believes to be true and accurate".

The implications of the government's silence on these matters in this context is obvious. And to REALLY frame the context, let's not forget that CtC-educated Americans are steadily recovering $billions in improperly collected income tax which used to go into the federal and state treasuries.

ALL IN ALL, WHAT WE HAVE HERE is an ugly and deeply corrupt little scam-- but a very revealing one, at the same time (as they always are). Frauds like this are only deployed in efforts to sustain a lie, and so their deployment always emphasizes to the discerning eye the very truth they are meant to conceal.

Still, it makes you want to take a shower and then march on Washington, doesn't it?

AT THE VERY LEAST, it makes you want to forward this article (here is the URL) to everyone you possibly can, right? And especially to journalists (and lawyers)...

And if you're a journalist, it makes you want to publish an article of your own about this, yes?

And then begin digging into the real story concerning CtC, pushing past all the DOJ and IRS bs that has been deployed for well over a decade to keep you from doing so even while the federal and state governments have refunded $billions of improperly-taken income taxes to CtC-educated claimants, yes?

I sure hope so. You won't understand what's at stake until you do that digging, but once you do, you'll smack yourself for not having done it sooner.

NOTE: This article is permalinked here.

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A CtC-Educated Solution To Misleading Assertions About Passport Requirements

There's no substitute for knowing how to read law, and knowing to do so with a properly skeptical perspective

I FIRST EXPLAINED THAT THE LAW did not actually require the furnishing of a Social Security number (SSN) for getting a passport back in 2005, as discussed here. After that initial article was posted readers reported many victories in getting their passports without SSNs.

But over the years since then various enactments have sought to make the process appear even more difficult-- if not impossible. This new layering-on of obfuscation and misinformation is part of an ever-more vigorous government effort to use the passport application process as a bludgeon with which to compel surrender to allegations of outstanding tax liabilities on the part of Americans wishing to exercise their right to travel.

NONETHELESS, the underlying law never really changed, and last week CtC Warrior Brian Harriss demonstrated that fact. Early this month Brian took the problem on in order to get a passport for his son, after doing his homework as only the CtC-trained can do. Five days ago that SSN-free application was granted and the passport arrived.

Here is the letter (with most attachments) that Brian crafted to present his demand for law-respecting behavior from the U.S. Department of State, with supporting attachments. Hats off to this true American grown-up, and to the law-abiding party at the State Department who doubtless could have made this drag out a while longer, but didn't.

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BTW: One of the tag lines here at losthorizons.com is that it is where the problem of the state gets solved, not just complained about. The vast majority of the heroes who prove that boast every day do so by reclaiming their wealth and power through proper invocation of the tax laws.

Brian has just given us a nice example of how true that boast is on other fronts as well, and I want to take the opportunity he has thereby furnished me to remind everyone that deep knowledge of the law has always been the American path to liberty. I discuss this in some detail here, and I hope everyone will spend a few minutes and give those comments a read-through. 

"Be the change you want to see in the world."

-Mohandas Gandhi

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The U.S. Income Tax: An Excise On The Profitable Exploitation Of Federal Privilege

The U.S. Ignorance Tax: The Profitable Exploitation of Confusion About The Income Tax

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Recent Tweets

The Vault 7 trove: Deep State tools for getting control-intel over elected officials who are supposed to control the Deep State.

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Only swamp creatures would fail to prosecute H. Clinton & her private email server confederates, esp. after referrals from Congress.

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Jefferson said that if faced with having to choose, he'd rather have newspapers (WikiLeaks) than government (CIA, et al). Me, too.

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Word to Pompeo: the CIA is the Deep State's intelligence service. Wikileaks is the American people's intelligence service.

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Sick of the incessant psychopathic war-mongering? The Founders gave us a solution: losthorizons.com/Documents/CtCLife.htm

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Do you know the definition of "false flag"? Find it here.

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There IS "A Law Imposing The Tax", And This Is How It Works

Some Observations Regarding Educated And Accurate Filing

The Counter-Productive Craziness Of "Non-Filing"

200,000 Admissions Against Interest

How The Beast Gets Its Dinner

The Hidden Opportunity Cost Of The Tax

The Biggest Snow-Job In World History: The Myth That 1913 America Adopted A Marxist Progressive Tax On "All That Comes In"

“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

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"I am only one, but I am one. I cannot do everything, but I can do something. What I can do, I should do and, with the help of God, I will do."

-Everett Hale

(...and every other person who has ever deserved liberty...)

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Thank goodness the sun is now shining...

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Click here for the rest of this article

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Are the presentations and resources offered on this site and in my other work of any value to you?

Tim Kendrick has posted a video on YouTube regarding donations. I didn't know what to do about it to begin with; I don't do what I do intending for anyone to feel obligated in any way.

But of course, no one IS obligated. I will continue to make my work freely-available here, and in my books for only the cost of a cheap paperback.

Thus, even though I post it here below, Tim's very thoughtful personal resolution and encouragement to others is just an invitation for consideration by those who may not be conscious of the fact that I can't do what I do without support. No one is to feel any pressure from it; if it moves anyone to act let it be solely because it seems right.

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Why Does The Government Lie About 'Cracking the Code'?

THE ANSWER TO THAT QUESTION is the key to the restoration of the republic and the rule of law in America. See it below. (NOTE: It's very important that the entire 24 minutes be viewed.)

This video can also be found on YouTube at https://youtu.be/hgzzYl-eeUI.

Here are links to the two pages to which viewers are directed at the end of the film: The Crime of the Century and The Truth About The 16th Amendment.

The other two mentioned in the film are this one (the "bulletin board" stack of 1,200 or so posted refunds and other victories in knowledgably applying the law; and this one (the collection of resisted claims and the outcomes of those little battles).

PLEASE be a real activist about sending this link to every single person in your address book, and about sharing it through facebook, reddit, twitter, and any other distribution channel with which you are familiar. Send it to every journalist you can. It's time to really make something happen.

Accompany your emails and posts with with a strong admonishment to watch the film through, and that doing so will show the viewer an individual-empowering, state-restraining truth about the income tax which the government has been trying to keep hidden from view for 75 years and which that person really needs to know.

BY THE WAY, as is impossible to miss, I have neither the skills nor the tools to make even moderately good films. This is simply not my forte. Anyone able to do better is encouraged to talk to me about that.

As is ALSO impossible to miss, though-- even in my amateur production-- reader video testimonials have GREAT POWER. Send me yours.

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How To Be A Leader In The CtC Community

It's simple

KNOW THE TRUTH ABOUT THE TAX IN DETAIL

LEAD BY EXAMPLE

KNOW WHERE TO FIND THE RESOURCES

BE FAMILIAR WITH THE SCAMS, THE MISUNDERSTANDINGS, AND THE TROLL-POLLUTION

TAKE CHARGE IN YOUR STATE FORUM, HELPING EVERYONE TO THINK CLEARLY AND STAY ON TOPIC

All-in-all, just be the sort of person for others that you would go to yourself for trustworthy leadership.

Leadership is a challenge. But it's not complicated, and you can do it.

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True American Joe Black Testifies And Shares Victories For Liberty And The Rule Of Law

...as every American should...

EDUCATED AMERICAN GROWN-UP JOE BLACK has stood up and acted to enforce the law upon its domestic enemies-- or, at least, upon agencies of the state whose operators seem to happily exploit ignorance and mis-apply the law at every chance for their personal benefit. Get inspired and encouraged by Joe's video sharing his spirit, his testimony and the acknowledgements he has secured:

Find more testimonial videos here, and please, people, share these around as widely as you can. To learn what, how and why to share your own testimony (with or without mere practical victories to go along with the far more important spiritual victories that are the real heart of CtC), click here.

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Two Simple Questions For Every Silent "Alt-Media" Journalist

The silence of these folks is the liberation bottleneck. Maybe this'll help, if enough people ask...

HERE'S A SIMPLE QUESTION: The income tax is, and always has been, an excise tax on privilege. This is established beyond any controversy whatever by repeated Supreme Court rulings, the words of the related laws, and, since 2003, by hundreds of thousands of acknowledgements by federal and state tax agencies.

You, like most folks, have been fooled into inadvertently agreeing that your economic activities are exercises of privilege, thereby allowing the tax to be applied to your earnings. Why is this so hard for you to admit?

HERE'S ANOTHER SIMPLE QUESTION: You and everyone else being fooled into agreeing that your economic activities are privileged and thereby allowing them to be taxed is what enables the flow of wealth that finances all the bad things done by the state of which you complain in every column. Why is this so hard for you to admit?

I GUESS THESE ACTUALLY LEAD TO A THIRD SIMPLE QUESTION: If you really feel that all these things of which you complain are so bad, why are you not helping more Americans understand the true nature of the tax and the ill effects of it being misunderstood and misapplied?

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