June 6, 2006
From: Xxxx and Xxxxx Xxxxx
To: Internal Revenue Service
1973 North Rulon White Blvd
Odgen, UT 84404
Specifically: 1. Dennis Parizec, Operations Manager, Exam SC Support
2. Scott Prentky, Field Director, Compliance Services
Notification. This is lawful notification and is sent pursuant to the federal Constitution, specifically, the Bill of Rights, in particular, the First, Fourth, Fifth, Sixth, Seventh, Ninth and Tenth Amendments, and pursuant to your oath, and requires your written response to me specific to the subject matter. Your failure to respond, as stipulated, and rebut, with particularity, everything in this letter with which you disagree, is your lawful, legal and binding agreement with and admission to the fact that everything in this letter is true, correct, legal, lawful and fully binding upon you in any court in America, without your protest or objection or that of those who represent you. Your silence is your acquiescence. See: Connally v. General Construction Co., 269 U.S. 385,391. Notification of legal responsibility is “the first essential of due process of law”. See also: U.S. V. Tweel, 550 F.2d.297. “Silence can only be equated with fraud where there is a legal or moral duty to speak or when an inquiry left unanswered would be intentionally misleading.”
I herein state that it is not, now, nor has it ever been my or my wife’s intention to avoid paying any obligation that we lawfully owe, under the Constitution for the United States of America.
Introduction. Your Letter 3176C to us, of February 1, 2006, judges our returns as “frivolous” and states that our position “has no basis in law.” However, you have provided absolutely no facts, evidence, or law to support your contentions. As you are aware, we have repeatedly stated that we will pay any obligation which we lawfully owe. We will uphold the Constitutionally-compliant law which would make us liable for income tax, if one exists, and we have asked the IRS to produce that law, which, the IRS has failed to do. In fact, upholding the Law is what this matter is all about.
From the threatening tone of your correspondences, we logically believe you intend to take hostile action against us; yet, our studies of valid law bring up questions regarding the authority of the IRS, by and through you and its other agents, to do so. Since there is no evidence that you have the lawful authority to take these actions, then, the logical conclusion is that, by your actions, you are breaking the law. Below is research on five authorities related to taxation of a private Citizen’s earnings for work, which indicate the Congress and IRS are lacking authority in key areas. Please rebut our conclusions, with particularity and specificity, by citing specific, valid, Constitutionally-compliant law(s), to support any and all of your contentions that we owe income tax.
1. Authority of Congress to Levy Taxes - 1
Question: Does the Constitution give Congress the authority to levy a direct tax on my/our earnings for work?
The Constitution allows for only two kinds of taxation: direct and indirect. In the words of the Constitution:
The Congress shall have Power To lay and collect Taxes,
Duties, Imposts and Excises, to earnings the Debts and provide for the common
Defence and general Welfare of the United States; but all Duties, Imposts and
Excises shall be uniform throughout the United States;
No Capitation, or other direct, Tax shall be laid,
unless in Proportion to the Census of Enumeration herein before directed to be
Answer: According to the Constitution any direct tax imposed by Congress must be apportioned. If it is not apportioned, it is an indirect tax. The current “income” tax is not apportioned, and must thereby be an indirect, or excise tax. This is a tax of privilege, and does not apply to private payment for labor, which the constitution sought to protect.
>> Conclusion for the IRS to rebut with particularity: Congress does not have the authority to levy a direct tax on private earnings for work.
2. Authority of Congress to Levy Taxes - 2
Question: Does the 16th Amendment repeal the Constitution and give Congress the authority to levy a direct tax on payment for my work?
The 16th Amendment reads like this:
The Congress shall have power to lay and collect taxes
on incomes, from whatever source derived, without apportionment among the
several States, and without regard to any census or enumeration.
Answer: The 16th Amendment does not change Constitutional taxation, because it is limited to the word “income”, which is not redefined in this amendment. Here the term “income” means that on which an excise tax can be levied. “Income” does not refer to earnings for work. This was confirmed by at least 8 Supreme Court rulings, and has never been overturned. (A list of Supreme Court cases is available upon request.) The 16th Amendment does not repeal the Constitution’s principles of taxation.
>> Conclusion for the IRS to rebut with
particularity: The 16th
Amendment granted Congress no new powers of taxation.
This amendment is a statement about excise taxes, and certainly does not
allow for a new direct tax on earnings for work.
3. Authority of the Secretary (of the Treasury) to Determine Income
Question: Can the Secretary (of the Treasury) – the IRS – “assess” my “income”?
26 USC Section 6201 says this:
The Secretary is authorized and required to make the inquiries, determinations, and assessments of all taxes (including interest, additional amounts, additions to the tax, and assessable penalties) imposed by this title, or accruing under any former internal revenue law, which have not been duly paid by stamp at the time and in the manner provided by law. Such authority shall extend to and include the following:
(1) Taxes shown on return
The Secretary shall assess all taxes determined by the taxpayer or by the Secretary as to which returns or lists are made under this title.
Here the Secretary can assess taxes but not income, which is determined by the submitter. However, the Secretary can execute a return for a “taxpayer” as specified in Section 6020:
(b) Execution of return by Secretary
(1) Authority of Secretary to execute return
If any person fails to make any return required by any internal revenue law or regulation made thereunder at the time prescribed therefor, or makes, willfully or otherwise, a false or fraudulent return, the Secretary shall make such return from his own knowledge and from such information as he can obtain through testimony or otherwise.
(2) Status of returns
Any return so made and subscribed by the Secretary shall be prima facie good and sufficient for all legal purposes.
According to this passage, if a return is deemed false or fraudulent, the Secretary can execute a replacement return from his own knowledge and from such information as he can obtain through testimony or otherwise. Surely, “his own knowledge” will include the fundamental law of Constitutional taxation by which an income tax must be an indirect, excise tax. Since, in (2), such a replacement return is to be subscribed by the Secretary, he must be prepared to cite the pertinent law establishing the “taxpayer’s” lawful liability. After all, the Secretary took an oath of office to uphold the Constitution.
As further evidence that the assessment authorization does not apply to private-sector earnings for work, notice that the Parallel Table of Authority and Rules shows that assessment authority applies to 27 CFR 70, Alcohol, Tobacco Products and Firearms.
26 U.S.C. (1986 I.R.C.)
6201........................................................27 Part 70
6203--6204..................................................27 Part 70
>> Conclusion for the IRS to rebut with particularity: While the Secretary has the authority to replace my return, he does not have the authority to declare any of my private, non-privileged earnings for work as “income”, as he has no authority to levy a direct tax. The only earnings he can declare as “income” are those on which an indirect, or excise tax can be lawfully assessed. This is consistent with the Constitution, including the 16th Amendment.
Addendum to Question 3 on the Authority of the Secretary: The Secretary’s limited authority to replace returns is found in the Internal Revenue Manual, section 184.108.40.206.10, where the following forms are to be used to prepare returns under IRC 6020(b) by revenue officers GS-09 and above, or Collection Support Function managers GS-09 and above (more on this authority later). All these forms apply to federally-privileged activities.
Form 940, Employer’s Annual Federal
Unemployment Tax Return; Form 941, Employer’s Quarterly Federal Tax
Return; Form 943, Employer’s Annual Tax Return for Agricultural
Employees; Form 720, Quarterly Federal Excise Tax Return; Form 2290,
Heavy Vehicle Use Tax Return; Form CT–1, Employer’s Annual Railroad
Retirement Tax Return; Form 1065, U.S. Return of Partnership Income.
4. Authority of the IRS to Levy Property, including Earnings for work
Question: Does the IRS have the authority to levy my property, including my earnings for work?
26 USC Section 6301 says this:
The Secretary shall collect the taxes imposed by the internal revenue laws.
Authority for lien is given in 26 USC Section 6321:
If any person liable to pay any tax neglects or refuses to pay the same after demand, the amount (including any interest, additional amount, addition to tax, or assessable penalty, together with any costs that may accrue in addition thereto) shall be a lien in favor of the United States upon all property and rights to property, whether real or personal, belonging to such person.
The question is: who is liable to pay any tax. The Parallel Table of Authorities shows the implementing regulations for this USC section are found at 27 CFR 70, Alcohol, Tobacco Products and Firearms.
26 U.S.C. (1986 I.R.C.)
6321........................................................27 Part 70
Section 26 USC Section 6331 covers Levy and Distraint. Here the authority of the Secretary is spelled out. This section clearly shows that those subject to levy are not private citizens, but in this case, those working under federal privilege, which is, consistent with the Constitution.
If any person liable to pay
any tax neglects or refuses to pay the same within 10 days after notice and
demand, it shall be lawful for the Secretary to collect such tax (and such
further sum as shall be sufficient to cover the expenses of the levy) by levy
upon all property and rights to property (except such property as is exempt
under section 6334) belonging to such person or on which there is a lien
provided in this chapter for the payment of such tax. Levy may be made upon the
accrued salary or wages of any officer, employee, or elected official, of the
United States, the District of Columbia, or any agency or instrumentality of the
United States or the District of Columbia, by serving a notice of levy on the
employer (as defined in section 3401(d)) of such officer, employee, or elected
official. If the Secretary makes a finding that the collection of such tax is in
jeopardy, notice and demand for immediate payment of such tax may be made by the
Secretary and, upon failure or refusal to pay such tax, collection thereof by
levy shall be lawful without regard to the 10-day period provided in this
The Parallel Table of Authorities, once again, show the implementing regulation for this section are in 27 CFR 70, Alcohol, Tobacco and Firearms.
26 U.S.C. (1986 I.R.C.)
6331--6343..................................................27 Part 70
>> Conclusion for the IRS to rebut with particularity: The IRS has no authority to place a lien on my/our property, including my/our earnings for work.
5. Authority of IRS Enforcement Officers
Question: Do IRS enforcement officers have authority to enforce regulations under Subtitle A, Income Taxes, and Subtitle C, Employment Taxes?
26 USC 7608 (a) shows clearly that internal revenue officers enforce subtitle E, pertaining to liquor, tobacco, and firearms.
(a) Enforcement of subtitle E and other
laws pertaining to liquor, tobacco, and firearms
Any investigator, agent, or
other internal revenue officer by whatever term designated, whom the Secretary
charges with the duty of enforcing any of the criminal, seizure, or forfeiture
provisions of subtitle E or of any other law of the United States pertaining to
the commodities subject to tax under such subtitle for the enforcement of which
the Secretary is responsible may—
(1) carry firearms;
(2) execute and
serve search warrants and arrest warrants, and serve subpoenas and summonses
issued under authority of the United States;
(3) in respect
to the performance of such duty, make arrests without warrant for any offense
against the United States committed in his presence, or for any felony
cognizable under the laws of the United States if he has reasonable grounds to
believe that the person to be arrested has committed, or is committing, such
(4) in respect
to the performance of such duty, make seizures of property subject to forfeiture
to the United States.
26 USC 7608 (b) clearly shows that enforcement relating to internal revenue other that Subtitle E belongs to the Intelligence Division, an international agency.
(b) Enforcement of laws relating to
internal revenue other than subtitle E
criminal investigator of the Intelligence Division of the Internal Revenue
Service whom the Secretary charges with the duty of enforcing any of the
criminal provisions of the internal revenue laws, any other criminal provisions
of law relating to internal revenue for the enforcement of which the Secretary
is responsible, or any other law for which the Secretary has delegated
investigatory authority to the Internal Revenue Service, is, in the performance
of his duties, authorized to perform the functions described in paragraph (2).
(2) The functions authorized under this
subsection to be performed by an officer referred to in paragraph (1) are—
(A) to execute and serve search warrants
and arrest warrants, and serve subpoenas and summonses issued under authority of
the United States;
(B) to make arrests without warrant for
any offense against the United States relating to the internal revenue laws
committed in his presence, or for any felony cognizable under such laws if he
has reasonable grounds to believe that the person to be arrested has committed
or is committing any such felony; and
(C) to make seizures of property subject to forfeiture under the internal revenue laws.
>> Conclusion for the IRS to rebut with particularity: IRS revenue agents have no authority over subtitles A, Income Taxes, or Title C, Employment taxes, only Subtitle E. Only criminal investigators from the Intelligence Division, and international agency, can enforce outside Subtitle E.
Conclusion. We have concluded, from our research, that the Congress does not have the authority to levy a direct tax on one’s earnings for work, based on the Constitution and the 16th Amendment. Further, the Secretary does not have the authority to assess our “income“, only to assess the tax on our declared “income”. Next, the IRS has no authority to place liens on my/our property, including my earnings for work. Finally, IRS revenue agents have no enforcement authority in Subtitle A, Income Taxes, nor in Subtitle C, Employment Taxes.
These conclusions regarding law controlling the IRS are completely consistent with the Constitution, which specifically denies the authority to directly tax property, including earnings for work, without apportionment.
Based upon our due diligence, supported by and in facts and law, these are our logical conclusions. We invite the IRS to rebut them, and to set clear the laws by which any income tax on our earnings for work can be lawfully levied and enforced. We also invite you and the IRS to remember and obey the mandates of The First Amendment of the Bill of Rights, which affirms and guarantees Citizens the Right "to petition the Government for a redress of grievances". In addition, we remind you that all officers of the Federal Government are required (1) to take an oath of office to uphold the Constitution and the Constitutional Rights of all Citizens, guaranteed therein; and (2) to post a surety bond to ensure that this oath is not broken. Therefore, the Constitution upholds and protects the legal and lawful Right, inherent in all Citizens, to require the IRS to rebut our claims, and to set clear the laws by which any “income” tax on our earnings for work can lawfully be levied and enforced. Should you fail to rebut our claims, then, pursuant to your oath, you have exceeded and defied the limited authority delegated to you, by the People, in the Constitution, and have perjured your oath, thereby, invoked the self-executing Sections 3 and 4 of the 14th Amendment, vacated your office, and forfeited all benefits of that former office, including salary and pension.
Closing. If you disagree with anything in this letter, then rebut that with which you disagree, in writing, with particularity, to me, within 30 days of this letter’s date, and support your disagreement with fact, evidence and Constitutionally-based law or case law. Your failure to respond, as stipulated, is your agreement with and admission to the fact that everything in this letter is true, correct, legal, lawful, and your irrevocable admission attesting to this, fully binding upon you in any court in America, without your protest, objection, or that of those who represent you. Be sure your rebuttal shows clearly an authorizing signature, authorizer’s printed name, title, and federal employee number.
All Rights Reserved All Rights Reserved
cc: Greg Abbot, Texas Attorney General
cc: Ron Paul, US Congressman