Chapter 3
The Proper Form to use?



Here we go with the 3 rd chapter in this series of evidence as to why the IRS has no legal authority in the "50 States" Now while I have not been able to check this first comment out for lack of availability to the Legal encyclopedias Corpus Juris Secundum every thing else that I have found on the site below has proved accurate so I assume this is also accurate since it would be strange to all of a sudden to lie when all else that has been verified to date has checked out as accurate. If some one does have access to Corpus Juris Secundum, maybe you can verify this for me and let me know if it is accurate, or if you know of a website that has the full volumes available on line, similar to the USC and CFR’s sites out at Cornell’s website. But according to the following site it states as follows.

{Begin website paragraph}

U.S Government Is A Foreign Corporation

Another rather interesting document shown to you comes from 19 Corpus Juris Secundum regarding foreign corporations. You will see in Section 883, the United States Government is a foreign corporation with respect to a state. Now look in Section 884. It says a corporation exists only in contemplation of law and by force of the law, and where that law ceases to operate, the corporation can have no existence.

It further says that a state cannot impose one of its artificial creatures on another sovereignty nor confer on its corporators powers which they can lawfully exercise beyond its jurisdiction. Rather, it must dwell in the place of its creation, and cannot migrate to another sovereignty.

Upon reading this, does it sound to you like the U.S. Government has any authority in any of the 50 states if they are considered a foreign corporation? Not hardly.

{End website paragraph}

Now if this is accurate which I assume it is that would explain why the following evidence is worded the way it is.

Back in 1916 following Brushaber v. Union Pacific R.R. Co., 240 US 1 (1916) the Secretary of the Treasury issued the following Treasury Decision.

Also personal note I have obtained hardcopies of this via my congressman’s office and verified it is word for word including the comments on 1040, I have scanned them in if you want to see them click here .

Treasury Decision 2313

{Begin Treasury Decision 2313}

Treasury Decision 2313

Treasury Decisions Under Internal Revenue Laws of the United States

Vol. 18

January-December 1916

W. G. McAdoo
Secretary of the Treasury
Washington
Government Printing Office
1917

(T.D. 2313)
Income Tax

Taxability of interest from bonds and dividends on stock of domestic corporations owned by nonresident aliens, and the liabilities of nonresident aliens under section 2 of the act of October 3, 1913.

Treasury Department
Office of Commissioner of Internal Revenue
Washington D.C., March 21, 1916

To collectors of internal revenue: Under the decision of the Supreme Court of the United States in the case of Brushaber v. Union Pacific Railway [sic] Co., decided January 24, 1916, it is hereby held that income accruing to nonresident aliens in the form of interest from the bonds and dividends on the stock of domestic corporations is subject to the income tax imposed by the act of October 3, 1913.

Nonresident aliens are not entitled to the specific exemption designated in paragraph C of the income-tax law, but are liable for the normal and additional tax upon the entire net income "from all property owned, and of every business, trade, or profession carried on in the United States," computed upon the basis prescribed in the law.

The responsible heads, agents, or representatives of nonresident aliens, who are in charge of the property owned or business carried on within the United States, shall make a full and complete return of the income therefrom on Form 1040, revised, and shall pay any and all tax, normal and additional, assessed upon the income received by them in behalf of their nonresident alien principals.

The person, firm, company, copartnership, corporation, joint-stock company, or association, and insurance company in the United States, citizen or resident alien, in whatever capacity acting, having the control, receipt, disposal, or payment of fixed or determinable annual or periodic gains, profits, and income of whatever kind, to a nonresident alien, under any contract or otherwise, which payment shall represent income of a nonresident alien from the exercise of any trade or profession within the United States, shall deduct and withhold from such annual or periodic gains, profits, and income, regardless of amount, and pay to the officer of the United States Government authorized to receive the same such sum as will be sufficient to pay the normal tax of 1 per cent imposed by law, and shall make an annual return on Form 1042.

The normal tax shall be withheld at the source from income accrued to nonresident aliens from corporate obligations and shall be returned and paid to the Government by debtor corporations and withholding agents as in the case of citizens and resident aliens, but without benefit of the specific exemption designated in paragraph C of the law.

Form 1008, revised, claiming the benefit of such deductions as may be applicable to income arising within the United States and for refund of excess tax withheld, as provided by paragraphs B and P of the income-tax law, may be filed by nonresident aliens, their agents or representatives, with the debtor corporation, withholding agent, or collector of internal revenue for the district in which the withholding return is required to be made.

That part of paragraph E of the law which provides that "if such person * * * is absent from the United States, * * * the return and application may be made for him or her by the person required to withhold and pay the tax * * *" is held to be applicable to the return and application on Form 1008, revised, of nonresident aliens.

A fiduciary acting in the capacity of trustee, executor, or administrator, when there is only one beneficiary and that beneficiary a nonresident alien, shall render a return on Form 1040, revised; but when there are two or more beneficiaries, one or all of whom are nonresident aliens, the fiduciary shall render a return on Form 1041, revised, and a personal return on Form 1040 , revised, for each nonresident alien beneficiary.

The liability, under the provisions of the law, to render personal returns, on or before March 1 next succeeding the tax year, of annual net income accrued to them from sources within the United States during the preceding calendar year, attaches to nonresident aliens as in the case of returns required from citizens and resident aliens. Therefore, a return on Form 1040, revised, is required except in cases where the total tax liability has been or is to be satisfied at the source by withholding or has been or is to be satisfied by personal return on Form 1040 , revised, rendered in their behalf. Returns shall be rendered to the collector of internal revenue for the district in which a nonresident aliens carries on his principal business within the United States or, in the absence of a principal business within the United States and in all cases of doubt, the collector of internal revenue at Baltimore, Md., in whose district Washington is situated.

Nonresident aliens are held to be subject to the liabilities and requirements of all administrative, special, and general provisions of law in relation to the assessment, remission, collection, and refund of the income tax imposed by the act of October 3, 1913, and collectors of internal revenue will make collection of the tax by distraint, garnishment, execution, or other appropriate process provided by law.

So much of T.D. 1976 as relates to ownership certificate 1004, T.D. 1977 (certificate Form 1060), 1988 (certificate Form 1060), T.D. 2017 (nontaxability of interest from bonds and dividends on stock), T.D. 2030 (certificate Form 1071), T.D. 2162 (nontaxability of interest from bonds and dividends on stock) and all rulings heretofore made which are in conflict herewith are hereby superseded and repealed.

This decision will be held effective as of January 1, 1916.

W. H. Osborn
Commissioner of Internal Revenue
Approved, March 30, 1916:
Byron R. Newton,
Acting Secretary of the Treasury

{End Treasury decision 2313}

Now note the red section why does this not say form 1040NR it clearly says 1040. I thought that was for United States citizens? But wait the federal territories would make the citizens of those territories citizens of the United States where as according to Corpus Juris Secundum the "50 States" are the foreigners since we are citizens of the "50 Sovereign States". To even further show the form that Americans are suppose to file let’s look at some more code sections from the CFR’s. 26 CFR 1.1-1 is the code section that supposedly makes individuals liable for income taxes. Well Let’s take a look at the OBM # cross-reference chart at 26 CFR 602.101. Now before I continue this section was revised in 1995 to omit this line but let’s look at its history. In 1980 Departments were told they needed to show a chart cross-referencing each forms OMB# (new numbers for each form as required by the Paper Work Reduction Act of 1980) with the sections that the form applied to, by 1985 the IRS had complied with this order and created such a list showing all forms and the sections that applied to each form which is 26 CFR 602.101. Now it took the IRS 6 years before it supposedly ordered the very first line of this list to be removed. (my question what took them so long and how did they miss this very big so-called mistake being that it is the first thing in the list) but it took them 6 years to supposedly find this so-called mistake and order it removed and yet another 3 years before it was actually removed the last year you will see it listed is in the 1994 CFR’s, 1995 it isn’t listed. So that’s a total of 9 years before it was actually removed. Its been suggested it was removed only because too many people were filing the proper form which lost the IRS a lot of $$$’s as this proper form has a $75,000 deductible which would disqualify a lot of Americans from having to pay taxes. Let’s take a look now at this disappearing line. Note it is a photocopy from the 1990 volumes of the CFR’s also will be followed by the 1997 copy, which shows it removed, but for what reason. You can’t tell me the IRS while verifying this chart prior to publication in 1985 missed the very first thing on the chart. If it was buried in the middle of the list I could see the mistake but the very first thing come on what do they take us all for idiots? I think not.

All sections are highlighted for easy references so depending on your graphics viewer or browser scroll around document to find all highlights.

1.1-1 Income Tax on Individuals form Cross-reference~1990 CFR’s

1.1-1 Income Tax on Individuals form Cross-reference~1997 CFR’s

Form 1040



Form 2555



So as you can see for your own eyes there has been a form cross-referenced to 1.1-1 but has since been removed. So question would be what form is to be used in connection with the individual income tax????? Sources have said that the line was removed to supposedly stop confusion by those bringing up this same question. It was supposedly only deleted but not repealed so if it’s only been deleted and not repealed then it would still be in effect even though the IRS has deemed it necessary to try and hide the truth from the American Public at large.

Also quick question 1040 is a returns form any ways so what form do you use if you have to pay? I’ve always filed 1040 in the past and usually have to pay a tax not get a return. So since 1040 is for returns what do you have to file if you pay?

And final thought if you care about your rights as I mentioned in Chapter 1 By Voluntarily complying with the filing of form 1040 and signing it you give up the right below

Amendment V

No person shall be held to answer for a capital, or otherwise infamous crime, unless on a presentment or indictment of a Grand Jury, except in cases arising in the land or naval forces, or in the Militia, when in actual service in time of War or public danger; nor shall any person be subject for the same offence to be twice put in jeopardy of life or limb; nor shall be compelled in any criminal case to be a witness against himself, nor be deprived of life, liberty, or property, without due process of law; nor shall private property be taken for public use, without just compensation. (emphasis added)

Now each time you voluntarily file a form 1040 you give this right up which I will also show you can’t give it up despite the IRS trying to make you think you have given it up. Now in the current 1040 instructions (2000 edition) on page 56 the IRS has the mandatory Disclosure, Privacy Act and Paper Work Reduction Act Notice. I suggest you read it thoroughly before you file. It clearly says voluntary Compliance it then goes on to tell you what could happen should you decide to not voluntarily comply with the filing of 1040. This is a threat of force to be taken should you not file. Also it is compelling you to file such a form to pay any taxes if necessary. Now how can a tax be both mandatory and voluntary? Based on the fact that they compel you to file or otherwise , makes this a mandatory system. Since it’s mandatory with discipline action specifically listed in the notice, they are compelling you to be a witness against yourself. They also state that the information you send can be sent to the Department of Justice and other law enforcement agencies worldwide which would only be used in criminal proceedings should something on it be wrong. This is a clear violation of the 5 th Amendment and clearly makes the income taxes unconstitutional.

So as you can see from the above all rights are preserved including the 5 th Amendment. Yet they don’t write your Miranda rights in any form in the 1040 manual that explains by voluntarily filing and signing a 1040 you wave your 5 th Amendment rights no differently then if a cop arrested you and had to read you your rights about " Anything you say can and will be used against you in a court of law, etc." (It’s not word for word but you get the point). Now in the same disclaimer on Page 56 they sure as heck tell you their authority to ask these questions and they tell you what could happen but they don’t say you also have the right not to answer any of the questions without the presence of a professional. Just some more of the trickery they try and use to get you to voluntarily comply and sign away your rights as an American Citizen (Note I did not say United States Citizen)So in conclusion you can see from all the evidence that the IRS has no authority to operate in the "50 States" unless they collect the tax as foreign earned income since as has been shown the federal government in relationship to the states is considered a foreign corporation hence they have to collect the tax based on that foreign status and which has a lot higher deductibility of $75,000 which would exclude most Americans from having to pay any taxes at all. Think about it all and it all does make clear sense despite the government’s snow job. Feel free to write me if you have any questions and feel free to send comments also if you have evidence to the contrary that will dispute anything said in any of this, but please if your going to dispute please have evidence to back your claims as I have shown I do have evidence for the most part to back all of my claims. Making statements with nothing to back them up is only that making a statement it doesn’t prove your dispute is correct it only shows it to be your opinion unless you have evidence to the contrary. I’m only saying this because so many of the So-called tax experts are great at the statement defense with nothing to back their statements. Thanks for taking the time to read this and like I said feel free to write any disputes or questions to me if you have any.

Chapter 1 Are the 50 States legally part of the income tax?     Chapter 2~Not an Agency


Home