INSTRUCTIONS: 4.18. Vehemently Oppose Improper Exam
Procedures and ALL Assessments
collection of any taxes which are not absolutely required, which do not
beyond reasonable doubt contribute to the public welfare, is only a
species of legalized larceny." -- President Calvin Coolidge
As per 26
U.S.C. §6201(a)(1), only the taxpayer may make an assessment of tax
liability on himself. The
Secretary of the Treasury may not make assessments on the
liability of individuals under Subtitles A through C personal income
taxes. It is quite common for
IRS agents to “estimate” the liability of a taxpayer, especially as an
intimidation mechanism during an exam or audit.
However, unless the taxpayer voluntarily signs the
return forms presented by the agent authorizing the assessment or
settlement, the assessment is not valid.
Without a valid assessment, collection activity cannot be
Furthermore, under 26
CFR §301.6211-1, either making no return or a return showing no tax
amounts to a zero return. Any
amount imputed by the IRS to be owed above the amount on the return is
referred to as a “deficiency” under that regulation.
CFR 301.6211-1 is based on the repealed
1939 Internal Revenue Code that is no longer in effect!
If you look at the bottom of this regulation, it cites NO statutory
authority and therefore is NOT a legislative regulation and cannot be
enforced by the courts! To
confirm this conclusion, this regulation also does NOT appear in the
Parallel Table of Authorities cross-referencing regulations to statutes.
See section Error!
Reference source not found. for a look at the Parallel
Table of Authorities.
U.S.C. § 6020 says the following about returns prepared by the
Secretary of the Treasury:
F - Procedure and Administration
61 - INFORMATION AND RETURNS
A - Returns and Records
II - TAX RETURNS OR STATEMENTS
D - Miscellaneous Provisions §6020 Returns prepared for or executed by
Preparation of return by Secretary
any person shall fail to make a return required by this title or by
regulations prescribed thereunder, but shall consent to disclose all information necessary
for the preparation thereof, then, and in that case, the Secretary
may prepare such return, which, being-signed by such person, may
be received by the Secretary as the return of such person.
So you can see that once again, the IRS and
the Secretary of Treasury rely on the taxpayer’s self-assessment in
order to establish a tax liability. Agents
do not have delegated authority to prepare a tax form on behalf of the
taxpayer without the signature of the taxpayer.
This is clearly shown on their Pocket Commission (see IRM
section 1.16.4). Their
pocket commission must indicate that they have Enforcement commission (the
last letter of the serial number of the pocket commission must be “E”
in order to complete a 23C Assessment form, for instance, and none of the
revenue officers associated with Subtitles A through C have such
commissions. Revenue officer must also have a Delegation Order showing
their authority specifically to sign the IRS form 23C and/or the 1040.
No revenue officers who administer Subtitles A through C have such
delegation orders and are acting outside their lawful authority to sign
such forms. You should demand
a copy of their Delegation Order and their Pocket Commission if any agent
tries to exceed their authority by signing a return for you or a 23C
you argue with the revenue officer over their authority to assess you,
they like to point to regulation 26
CFR 301.6201-1, which is the implementing regulation for 26
U.S.C. §6201. They will
try to say that this authorizes them to make an assessment, but this is
simply false! This regulation
simply reiterates what was found in 26
of Federal Regulations]
26, Volume 17]
as of April 1, 2001]
the U.S. Government Printing Office via GPO Access
district director is authorized and required to make all inquiries
necessary to the determination and assessment of all taxes imposed by the
Internal Revenue Code of 1954 or any prior internal revenue law. The
district director is further authorized and required, and the director of
the regional service center is authorized, to make the determinations and
the assessments of such taxes. However, certain inquiries and
determinations are, by direction of the Commissioner, made by other
officials, such as assistant regional commissioners. The term
"taxes" includes interest, additional amounts, additions to the
taxes, and assessable penalties. The authority of the district director
and the director of the regional service center to make assessments
includes the following:
TAXES SHOWN ON RETURN. The district director or the director of the
regional service center shall assess all taxes determined by the taxpayer
or by the district director or the director of the regional service center
and disclosed on a return or list.
UNPAID TAXES PAYABLE BY STAMP.
If without the use of the proper stamp:
Any article upon which a tax is required to be paid by means of a stamp is
sold or removed for sale or use by the manufacturer thereof, or
Any transaction or act upon which a tax is required to be paid by means of
a stamp occurs; The district director, upon such information as he can
obtain, must estimate the amount of the tax which has not been paid and
the district director or the director of the regional service center must
make assessment therefor upon the person the district director determines
to be liable for the tax. However, the district director or the director
of the regional service center may not assess any tax which is payable by
stamp unless the taxpayer fails to pay such tax at the time and in the
manner provided by law or regulations.
If a taxpayer gives a check or money order as a payment for stamps but the
check or money order is not paid upon presentment, then the district
director or the director of the regional service center shall assess the
amount of the check or money order against the taxpayer as if it were a
tax due at the time the check or money order was received by the district
The section above clearly shows that the
only thing the district director can do is make assessments of taxes
collected by stamp under 26 CFR 301.6201-1(a)(2) but NOT personal income
taxes coming under Subtitles A through C. Notice that this regulation does NOT give the revenue
officer authority to estimate tax nor sign a return or list on behalf of
the taxpayer, or it would have said so.
Subtitles A through C personal income taxes must instead appear on
a tax return, and the 1040, 2555, or 1040NR are the only things that
qualify as legitimate returns upon which to base an assessment of Subtitle
A through C personal income taxes. 26
CFR 301.6201-1(a)(1) says the taxes assessed by the district director
MUST be “disclosed on a return or list”.
Even the title says that: “TAXES SHOWN ON RETURN”.
If the agent has no Delegation Order or delegated authority to
prepare such a return, then he is acting outside his lawful delegated
authority and can be prosecuted for violation of 26
With these kinds of shenanigans going on, we
need to ask ourselves:
the income tax isn’t voluntary, then why don’t they just
assess us without our permission and send us a bill like they do with
property taxes? Why do
they need us to snitch on ourselves and send in a’confession’ called a
tax return if it’s a mandatory ‘tax’?”
answer, once again, is that it is and always has been a voluntary
tax, which is why the IRS has no authority to assess you and
why only you can assess yourself! If
all you ever put on your tax return is a zero, then you have no liability
and no one other than a judge can determine otherwise.
The IRS will try to scare you by sending a bogus Notice and Demand
for tax, but they can’t do this either, because the regulation they rely
CFR 301.6303-1, to send it is not the law so they are
acting outside their authority in doing so.
This is confirmed by the absence of a reference at the bottom of
the regulation pointing to an authorizing statute, which means the
regulation is NOT a legislative regulation.
Don’t let the IRS scare you with a trick Notice and Demand for
tax following an examination or with a bogus assessment, because they do
not have the authority to issue either.
Instead, ask for a copy of the Delegation Order, their Pocket
Commission, and the law that authorizes them to:
a Notice and demand. (26
CFR 301.6303 is NOT the law because its bogus, and you should remind
them of that when you ask them for their authority to issue it).
them when making the above request that according to the Supreme Court:
system of taxation is based upon voluntary assessment and payment,
not upon distraint.”
v. U.S., 362
U.S. 145 (1959)
Tell them that if they apply any kind of
penalties, coercion, institute collection actions, or try to assess you
for any amount of tax above the amount you put on the return, then the
payment of taxes ceases to be voluntary and shifts to being based on
distraint and force and coercion. At the point when coercion is
applied, the "confessions" called tax returns cease to be useful
as evidence in court because they were obtained illegally and under duress
as per Weeks v. United States, 232
U.S. 383 (1914) mentioned in section 8.3.6. They are akin to a
coerced confession, which is not a confession at all. All
confessions must be voluntary, which is why only we can
assess ourself and not the IRS!
naked assessment is one that is not founded in evidence.
If proper procedures are followed by the tax examiner, then the
Citizen being examined will have seen and hopefully gotten a copy of every
piece of evidence that is being relied upon by the examiner in the
determination of tax liability. Proper
procedures and rules of evidence must be followed in order to arrive at a
valid assessment, and the assessment must be documented in an IRS
form 23C. Here are some
of the more common mistakes made by IRS examiners that may work in the
favor of the Citizen:
form is not signed (for instance, because the revenue officer knows he has
no delegation of authority to sign the form).
is not available to support a specific conclusion found on the 23C
section 5.18.2 specifically lists the only types of tax forms upon
which a Substitute for Return (SFR) may be administered, and the form 1040
is not listed. Only
businesses may have an SFR done on them involuntarily, not natural
persons. This a direct result
of the fact that Subtitle A income taxes are indirect excise taxes on
corporations. If the tax were
on natural persons, it would be a direct tax, which clearly violates 1:2:3
and 1:9:4 of the Constitution.
Proper procedures for arriving at a valid
assessment as part of a tax examination are documented in the Internal
Revenue Manual [4.10] Section 7.4 et seq. You should study these procedures to ensure that they are
properly followed. If they
have not been followed, then you have a basis for redress in a court of
law. Before you attempt this,
a letter to the IRS Commissioner, your Congressman, and the Treasury
Secretary might be helpful in applying political pressure.
After taking the political approach, you
should then elevate your case by requesting help from the Taxpayer
Advocate. You will need to
fill out an IRS
form 911 in order to start this process.
If the agent refuses to address your issues either during or
after the tax examination and the issues you have are founded in law, then
you can refer your case to District Headquarters for Technical
Advice. You also have
legal recourse for damages against the agent, because he is obviously
vexatiously litigating and harassing you without any demonstrated lawful
U.S.C. §1589(3) indicates that it is considered involuntary servitude
for you to be forced to respond to anyone in government by means of an
abuse or threatened abuse of legal process, for instance in the case of
“extortion under the color of law”. 18
U.S.C. §1593 mandates financial restitution for such abuse and the
agent is personally liable for this abuse, along with the lost time,
productivity and emotional distress.