�����Chapter 2
Not an Agency?


In the last chapter you will recall I showed you how the Word State is defining a Federal State and not the "50 States", as the IRS would love for you to believe. This chapter will continue showing how the IRS has no authority to operate within the "50 States" unless allowed by the constitution.

First off ask yourself what exactly did congress create in 1862? Did they create the Bureau of Internal Revenue (hereinafter BIR, also note the BIR is now the IRS)? Or did congress create the Commissioner of Internal Revenue? Or did congress create both the commissioner's office and the BIR?

First let's look at a couple court cases that will clear this up right away.

Coyne v. State, 22 Ohio App. 462, 153 N.E. 876, 877 (1926) - "Unless the office existed there could be no officer either de facto or de jure. A de facto officer is one invested with an office; but if there is no office with which to invest one, there can be no officer. An office may exist only by duly constituted law".

In other words, if you were given the official title of Head Chief at Greasy Joe's Bar & Grill and there was no office (Business) called Greasy Joe's Bar & Grill, how could you have the office of Head Chief at Greasy Joe's Bar & Grill? Since there is no restaurant in which you could perform your duties as Head Chief. Same goes for the commissioner. You can't have a commissioners office without first having the office of BIR (Business) with which to administer the Bureau. Now this case was on the state level let's take a look at a federal case saying basically the same thing.

Norton v. Shelby County, 118 U.S. 425, 441, 6 S.Ct. 1121 (1886) - "there can be no officer, either de jure or de facto, if there be no office to fill"

So here's a federal case which says basically the same thing no officer if no office to fill.

Now the only thing congress created back in 1862 was the commissioner's office as stated in their own manual

In 1972, an Internal Revenue Manual ("IRM") 1100 was published in both the Federal Register and the Cumulative Bulletin; see 37 Fed Reg. 20960, 1972-2 Cum. Bul. 836. On the very first page of this statement published in the Bulletin, the following admission was made. (We have emphasized the significant sections):

"(3) By common parlance and understanding of the time, an office of the importance of the Office of Commissioner of Internal Revenue was a bureau. The Secretary of the Treasury in his report at the close of the calendar year 1862 stated that 'The Bureau of Internal Revenue has been organized under the Act of the last session�' Also it can be seen that Congress had intended to establish a Bureau of Internal Revenue, or thought they had, from the act of March 3, 1863, in which provision was made for the President to appoint with Senate confirmation a Deputy Commissioner of Internal Revenue 'who shall be charged with such duties in the bureau of internal revenue as may be prescribed by the Secretary of the Treasury, or as may be required by law, and who shall act as Commissioner of internal revenue in the absence of that officer, and exercise the privilege of franking all letters and documents pertaining to the office of internal revenue.' In other words, 'the office of internal revenue' was 'the bureau of internal revenue,' and the act of July 1, 1862 is the organic act of today's Internal Revenue Service."

Now if the BIR was truly created back in 1862 why is it then that even the people at the IRS can't seem to find the act that created the BIR either, otherwise there would be no need for the words "or thought they had" in the above section. To further back the claim that the IRS was not created in the United States of America and is not a Department of the United States as the Department of the Treasury and the IRS claim, but according to the Department of the Treasuries own organizational chart in Chapter of title 31 you won't find either the IRS or Bureau of Alcohol, tobacco, & Firearms Hereinafter BATF). You want to see? Here look for yourself.

http://www4.law.cornell.edu/uscode/31/ch3.html

Just scroll down towards the bottom to find all 50 titles of the USC find title 31, then click on the Subtitle I at the top of the list and then chapter 3. You'll see the following.

CHAPTER 3 - DEPARTMENT OF THE TREASURY

United States Code
TITLE 31 - MONEY AND FINANCE
SUBTITLE I - GENERAL
CHAPTER 3 - DEPARTMENT OF THE TREASURY

US Code as of: 01/26/98

CHAPTER 3 - DEPARTMENT OF THE TREASURY SUBCHAPTER I - ORGANIZATION

� 301. Department of the Treasury.
� 302. Treasury of the United States.
� 303. Bureau of Engraving and Printing.
� 304. Bureau of the Mint. [1]
� 305. Federal Financing Bank.
� 306. Fiscal Service.
� 307. Office of the Comptroller of the Currency.
� 308. United States Customs Service.
� 309. Office of Thrift Supervision.
� 310. Continuing in office.

SUBCHAPTER II - ADMINISTRATIVE

� 321. General authority of the Secretary.
� 322. Working capital fund.
� 323. Investment of operating cash.
� 324. Disposing and extending the maturity of obligations.
� 325. International affairs authorization.
� 326. Availability of appropriations for certain expenses.
� 327. Advancements and reimbursements for services.
� 328. Accounts and payments of former disbursing officials.
� 329. Limitations on outside activities.
� 330. Practice before the Department.
� 331. Reports.
� 332. Miscellaneous administrative authority.
� 333. Prohibition of misuse of Department of the Treasury names, symbols, etc.

Footnotes
[1] So in original. Does not conform to section catchline.

See where are these two agencies that are supposedly part of the Department of the treasury? Now take a look at your latest version of the 1040 (which will be shown to actually be the wrong form to file But in a separate document) do you see a Department of the United States Treasury Seal on the forms or publications? I don't see any on my forms. Now take a look at a United States Customs form Note this agency is listed above at �308 in red as you will see from the scanned copy (below) of a customs form you will see the United States Department of the Treasury Seal right in the top left hand corner. So if customs forms have this seal why not IRS forms. I have yet to see a BATF form but would assume you will find no seal on their forms either.

Customs Form

Now one quick question based on article 1, section 8, clause 1, of the constitution why is congress not collecting customs taxes also, since the Department of the Treasury is an executive branch department as proven in section 308 of the above code chapter.

Now for additional proof that the Department of the Treasury is an executive department and not a congressional one making the Customes agency an unconstitutional agency unless run by Congress as dictated in Section 8 Clause 1 of the Constitution.

http://www4.law.cornell.edu/uscode/31/301.html

United States Code
TITLE 31 - MONEY AND FINANCE
SUBTITLE I - GENERAL
CHAPTER 3 - DEPARTMENT OF THE TREASURY
SUBCHAPTER I - ORGANIZATION

US Code as of: 01/05/99

Sec. 301. Department of the Treasury

(a) The Department of the Treasury is an executive department of the United States Government at the seat of the Government.

http://www4.law.cornell.edu/uscode/31/102.html

United States Code
TITLE 31 - MONEY AND FINANCE
SUBTITLE I - GENERAL
CHAPTER 1 - DEFINITIONS

US Code as of: 01/05/99

Sec. 102. Executive agency

In this title, ''executive agency'' means a department, agency, or instrumentality in the executive branch of the United States Government.

Now let's take a closer look at where they are most likely suppose to work. If you can find otherwise please do tell, but so far the one and only definition for a Revenue Agent that I have found to date is not listed under Title 26 CFR's or USC but under Title 27 CFR 250.11 as shown below. Now explain why the only definition found to date would show his job description to be where it is shown and also note the Department he would be working for.

27CFR250.11

[Code of Federal Regulations]
[Title 27, Volume 2, Parts 200 to end]
[Revised as of April 1, 1999]
]From the U.S. Government Printing Office via GPO Access
[CITE: 27CFR250.11]

[Page 26-29]

TITLE 27--ALCOHOL, TOBACCO PRODUCTS AND FIREARMS CHAPTER I--BUREAU OF ALCOHOL, TOBACCO AND FIREARMS, DEPARTMENT OF THE TREASURY

--Continued PART 250

--LIQUORS AND ARTICLES FROM PUERTO RICCO AAND THE VIRGIN ISLANDS --Table of Contents Subpart B

--Definitions Sec. 250.11 Meaning of ttermms.

Revenue Agent. Any duly authorized Commonwealth Internal Revenue Agent of the Department of the Treasury of Puerto Rico.

Secretary. The Secretary of the Treasury of Puerto Rico.

Secretary or his delegate. The Secretary or any officer or employee of the Department of the Treasury of Puerto Rico duly authorized by the Secretary to perform the function mentioned or described in this part.

Why does every definition point to Puerto Rico? The secretary and his delegate are defined in http://www4.law.cornell.edu/uscode/26/7701.html so why not the revenue agent?

Now below you will find a table of USC sections on the left-hand side. On the right-hand side you will see the cross-reference to each section of the USC code listed. The sections on the right-hand side are the enforcement section for the USC sections on the left. As you saw from the above definition Title 27 is titled ALCOHOL, TOBACCO PRODUCTS AND FIREARMS How many of American citizens have income from these areas? Also how many from a Federal State?

Title 26 Description: Enforcement In Title:
6020 Returns Prepared by the Secretary 27 CFR, Parts 53, 70
6201 Assessment Authority 27 CFR, Part 70
6203 Method Of Assessment 27 CFR, Part 70
6212 Notice Of Deficiency NO REGULATION
6213 Restrictions Applicable to Deficiencies; Petition to Tax Court NO REGULATION
6214 Determinations by Tax Court NO REGULATION
6215 Assessment of Deficiency Found by Tax Court NO REGULATION
6301 Collection Authority 27 CFR, Parts 70, 24, 25, 250, 270, 275
6303 Notice and Demand for Tax 27 CFR, Part 70
6321 Liens for Taxes 27 CFR, Part 70
6331-43 Levy and Distraint 27 CFR, Part 70
6601-02 Interest on Underpayments 27 CFR, Parts 70, 170
6651 Failure to File Tax Return or Pay Tax 27 CFR, Parts 70, 24, 25, 194
6671 Penalty Assessed as Tax, Person Defined 27 CFR, Part 70
6672 Failure to Collect and Pay Over Tax 27 CFR, Part 70
6701 Penalties for Understatement of Tax 27 CFR, Part 70
6702 Frivolous Return NO REGULATION
6902 Provisions of Special Application to Transferees NO REGULATION
7201 Attempt to Evade or Defeat Tax NO REGULATION
7203 Willful Failure to File Return, Supply Information or Pay Tax NO REGULATION
7207 Fraudulent Returns 27 CFR, Part 70
7212 Interference with Administration of Internal Revenue Laws 27 CFR, Parts 170, 270, 275, 285, 290, 295, 296
7342 Penalty for Refusal to Permit Entry or Examination 27 CFR, Part 70
7343 Definition of Term "Person" NO REGULATION
7401 Judicial Proceedings Authorization 27 CFR, Part 70
7402 Court's Jurisdiction to Enforce Summons NO REGULATION
7403 Judicial Action to Enforce Lien 27 CFR, Part 70
7454 Burden of Proof in Fraud, Foundation Manager, and Transferee Cases NO REGULATION
7601 Canvass of District for Taxable Persons 27 CFR, Part 70
7602 Examination of Books and Witnesses 27 CFR, Parts 70, 170, 196
7603 Service of Summons 27 CFR, Part 70
7604 Enforcement of Summons 27 CFR, Part 70
7605 Time and Place of Examination 27 CFR, Part 70
7608 Authority of Internal Revenue Enforcement Officers. 27 CFR, Parts 70, 170, 296


So as you can see from all the above, all these statutes are suppose to be enforced by BATF and not the IRS and in some cases there is no enforcement cross-reference to any agency never mind the IRS or BATF.

Now to see why a lot of the IRC's sections cross-reference to title 27 CFR and not 26 CFR let's take a look at this treasury order from 1972 providing they even have this authority to order these agencies with treasury orders.

{Begin Treasury Order 120-01 }

BY ORDER OF THE SECRETARY OF THE TREASURY
TREASURY ORDER: 120-01
DATE: June 6, 1972
SUNSET REVIEW: TBD
SUBJECT: Establishment of the Bureau of Alcohol, Tobacco and Firearms By virtue of the authority vested in me as Secretary of the Treasury, including the authority in Reorganization Plan No. 26 of 1950, it is ordered that:

1. The purpose of this Order is to transfer, as specified herein, the functions, powers and duties of the Internal Revenue Service arising under laws relating to alcohol, tobacco, firearms, and explosives (including the Alcohol, Tobacco and Firearms Division of the Internal Revenue Service) to the Bureau of Alcohol, Tobacco and Firearms (hereinafter referred to as the Bureau) which is hereby established. The Bureau shall be headed by the Director, Alcohol, Tobacco and Firearms (hereinafter referred to as the Director). The Director shall perform his duties under the general direction of the Secretary of the Treasury (hereinafter referred to as the Secretary) and under the supervision of the Assistant Secretary (Enforcement, Tariff and Trade Affairs, and Operations) (hereinafter referred to as the Assistant Secretary).

2. The Director shall perform the functions, exercise the powers, and carry out the duties of the Secretary in the administration and enforcement of the following provisions of law:

��� a. Chapters 51, 52, and 53 of the Internal Revenue Code of 1954 and sections 7652 and 7653 of such Code ��������insofar as they relate to the commodities subject to tax under such chapters;
��� b. Chapters 61 to 80, inclusive, of the Internal Revenue Code of 1954, insofar as they relate to activities ��������administered and enforced with respect to chapters 51, 52, and 53;
��� c. The Federal Alcohol Administration Act (27 U.S.C. Chapter 8);
��� d. 18 U.S.C. Chapter 44 (relating to firearms);
��� e. Title VII, Omnibus Crime Control and Safe Streets Act of 1968 (18 U.S.C. Appendix, sections 1201-1203);
��� f. 18 U.S.C. 1262-1265; 1952; 3615 (relating to liquor traffic);
���g. Act of August 9, 1939 (49 U.S.C. Chapter 11); insofar as it involves matters relating to violations of the ��������National Firearms Act;
��� h. 18 U.S.C. Chapter 40 (relating to explosives); and
��� i. Section 414 of the Mutual Security Act of 1954, as amended (22 U.S.C. 1934) relating to the control of the ��������importation of arms, ammunition and implements of war.

All functions, powers and duties of the Secretary which relate to the administration and enforcement of the laws specified in paragraph 2 hereof are delegated to the Director. Regulations for the purposes of carrying out the functions, powers and duties delegated to the Director may be issued by him with the approval of the Secretary. All regulations prescribed, all rules and instructions issued, and all forms adopted for the administration and enforcement of the laws specified in paragraph 2 hereof, which are in effect or in use on the effective date of this Order, shall continue in effect as regulations, rules, instructions and forms of the Bureau until superseded or revised.

All existing activities relating to the collection, processing, depositing, or accounting for taxes (including penalties and interest), fees, or other moneys under the laws specified in paragraph 2 hereof, shall continue to be performed by the Commissioner of Internal Revenue to the extent not now performed by the Alcohol, Tobacco and Firearms Division or the Assistant Regional Commissioners (Alcohol, Tobacco and Firearms), until the Director shall otherwise provide with the approval of the Secretary.

All existing activities relating to the laws specified in paragraph 2 hereof which are now performed by the Bureau of Customs, shall continue to be performed by such Bureau until the Director shall otherwise provide with the approval of the Secretary.

The terms "Director, Alcohol, Tobacco and Firearms Division" and "Commissioner of Internal Revenue" wherever used in regulations, rules, and instructions, and forms, issued or adopted for the administration and enforcement of the laws specified in paragraph 2 hereof, which are in effect or in use on the effective date of this Order, shall be held to mean the Director.

The terms "Assistant Regional Commissioner" wherever used in such regulations, rules, instructions, and forms, shall be held to mean Regional Director.

The terms "internal revenue officer" and "officer, employee or agent of the internal revenue" wherever used in such regulations, rules, instructions and forms, in any law specified in paragraph 2. above, and in 18 U.S.C. 1114, shall include all officers and employees of the United States engaged in the administration and enforcement of the laws administered by the Bureau, who are appointed or employed by, or pursuant to the authority of, or who are subject to the directions, instructions or orders of, the Secretary.

The above terms, when used in regulations, rules, instructions and forms of government agencies other than the Internal Revenue Service, which relate to the administration and enforcement of the laws specified in paragraph 2 hereof, shall be held to have the same meaning as if used in regulations, rules, instructions and forms of the Bureau.

There shall be transferred to the Bureau all positions, personnel, records, property, and unexpended balances of appropriations, allocations, and other funds of the Alcohol, Tobacco and Firearms Division of the Internal Revenue Service, including those of the Assistant Regional Commissioners (Alcohol, Tobacco and Firearms), Internal Revenue Service.

In addition, there shall be transferred to the Bureau such other positions, personnel, records, property, and unexpended balances of appropriations, allocations, and other funds, as are determined by the Assistant Secretary for Administration, in consultation with the Assistant Secretary, the Director, and the Commissioner of Internal Revenue, to be necessary or appropriate to be transferred to carry out the purposes of this Order.

There shall be transferred to the Chief Counsel of the Bureau such functions, powers and duties, and such positions, personnel, records, property, and unexpended balances of appropriations, allocations, and other funds, of the Chief Counsel of the Internal Revenue Service as the General Counsel of the Department shall direct.

All delegations inconsistent with this Order are revoked. This Order shall become effectively July 1, 1972.

Charles E. Walker
Acting Secretary of the Treasury

{End Treasury Order 120-01}

Now if you noted the red highlighted section it stated as follows "b. Chapters 61 to 80, inclusive, of the Internal Revenue Code of 1954, insofar as they relate to activities administered and enforced with respect to chapters 51, 52, and 53;". Now this subsection would at first glance seem to indicate that only Subtitle F as applies to chapters 51, 52, & 53, would be related to this, but if you take a look at that list of cross-references above you will see that a lot of those that have enforcement under 27 CFR are not found in Chapters 51, 52, or 53, they are under Subtitle F but just not in chapters 51,52, or 53. So it would seem that BATF has more control over Subtitle F then this Treasury Order would seem to indicate. Now before the Treasury Order I had said providing the Department of the Treasury is connected with the IRS & BATF. Well if you remember back to the definition above of Revenue Agent it also had these 2 sections listed after the agents definition.

Secretary. The Secretary of the Treasury of Puerto Rico.

Secretary or his delegate. The Secretary or any officer or employee of the Department of the Treasury of Puerto Rico duly authorized by the Secretary to perform the function mentioned or described in this part.

So as you can see apparently the Secretary works for 2 separate Departments of the Treasury one here in the United States and one in Puerto Rico. Now in his capacity as Secretary of the United States Branch he can not create Offices (e.g. Bureaus, Agencies, Departments, etc.) as the following court cases will show.

State Court cases:

Patton v. Bd. Of Health, 127 Cal. 388, 393, 59 P. 702, 704 (1899) - "One of the requisites is that the office must be created by the constitution of the state or it must be authorized by some statute."

State ex rel. Key v. Bond, 94 W.Va. 255, 118 S.E. 276, 279 (1923) - "a position is a public office when it is created by law"

Coyne v. State, 22 Ohio App. 462, 153 N.E. 876, 877 (1926) - "Unless the office existed there could be no officer either de facto or de jure. A de facto officer is one invested with an office; but if there is no office with which to invest one, there can be no officer. An office may exist only by duly constituted law".

This same rule applies at the Federal Level:

Glavey v. United States, 182 U.S. 595, 607, 21 S.Ct. 891 (1901) - "The law creates the office, prescribes its duties"

Sully v. United States, 193 F. 185, 187 (D.Nev. 1910) - "There can be no offices of the United States, strictly speaking, except those which are created by the Constitution itself, or by an act of Congress"

So as I have shown only constitutions or law can create an office and only congress can make federal law. Treasury Orders are not law and Congress didn't sign off on this so obviously BATF can not be a Bureau of the United States otherwise the Secretary would be creating law which he is not empowered to do. There has been no amendment to the constitution saying the Secretary also has the power to make law so it is still Congresses responsibility to create laws not the Secretaries. So since the Secretary can not create law he can't establish agencies and bureaus and departments within the United States, but what about his powers as they relate to territories is this possible for him to do this in the territories if so that would explain why so many references to Puerto Rico and not to many relating to the States as I showed in the first document on the definitions of state in the IRC. Think on this then move on to the 3rd chapter in this series showing you how and why the IRS has no authority within the "50 States".

Chapter 1~State Definitions���Chapter 3~The Proper Form


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