The Recalcitrant IRS
Document 100.0.7- .........# 18 of 38
The Recalcitrant IRS.
USA Today, 2 March 2001, Friday edition. Page 11A.
This is sponsored by: We The People Foundation For Constitutional Education,
Inc., http://www.givemeliberty.org E-mail: email@example.com Ph:
518-656-3578. Fax: 518-656-9724. This is an ongoing educational process
appearing in this "newspaper" and the Washington Times weekly National
edition. [Please help them defeat the illegal IRS and the Illegal Income Tax
by donating any amt of money to the Foundation. Any amount, any amount.
Thank you. This will be a blow against Communism/Socialism too because a
progressively heavy income tax is part of the Communist Manifesto. Copies
previously furnished in my documents 39.1 and 39.2.. CLMsr.] I will use the
symbols [ ] to indicate any comments that I may insert, and also to
indicate a spelling correction.
Quote: Q: What do these men have in common? [Herein appears the photographs
of: David Bosset, Bosset Marketing Partners, Inc., (Florida); Nicholas
Jesson, No Time Delay Electronics, Inc., (California); Dick Simkanin, Arrow
Custom Plastics, Inc., (Texas); Al thompson, Cencal Aviation Products, Inc.,
(California); Leonard Roberto, Batavia Enclosures, Inc., (New York).]
A: They are all employers who have stopped withholding taxes from their
workers' paychecks. They are part of a growing number of employers who
1. There is no law that requires workers, as U.S. Citizens earning their
money from domestic companies, to pay income or employment taxes; nor to
have those taxes withheld;
2. The 16th amendment (the "income tax amendment") was fraudulently
declared to be ratified by the secretary of state in 1913.* See Note on Page
Each of the employers has come to these conclusions with the aid of
Certified Public Accountants, attorneys and/or tax researchers. In 1999,
upon consultation with tax researcher Thurston Bell, David Bosset, a former
tax consultant himself, submitted a nine page legal memorandum to the IRS,
arguing that he had erred in 1996 and 1997 in filing 528 W-2s and1099s,
which reported that workers had earned taxable income. Attached were 528
W-2s and 1099s, corrected to "0".
The local IRS office passed the matter up to the Conflict Resolution
Branch, which determined that Mr Bosset was correct. The IRS returned the
money that Mr Bosset had withheld from the paychecks of his employees [Q:
did the IRS then come after the individual employees?]. Soon after, other
employers around the country stopped withholding, including those identified
Each employer has respectfully presented these arguments to the IRS (and to
their representatives [this is a misnomer!] in Congress), asking the
government to review the results of their research and to show them if they
are mistaken. The IRS DID NOT RESPOND, nor did the others.
IRS SUDDENLY THREATENS "CRACKDOWN"
The IRS on February 10th made public announcements that it would soon
crackdown on dozens of employers who have stopped withholding taxes from the
money they pay their workers. The announcement apparently was spurred on by
articles in the New York Times [a truly left liberal paper with Socialist
intent if there ever was one!] in November that called the employers "tax
cheats" and warned that the trend could spread and cause the tax system to
collapse. [Oh Lord, please let it be so!]. The Times quoted IRS Deputy
Commissioner Dale Hart as saying that the employers' legal rationale is
frivolous, has no legal authority, and has been thoroughly rejected by the
courts. The employers, of course, do not see their arguments as frivolous,
and are unaware of any court case that has addressed or rejected them. Hart
did not offer any code section that would apply.
The employers all followed IRS administrative procedures and cite chapter
and verse of the laws and regulations that allow them to stop withholding.
The IRS, after due consideration, refunded money the employers had withheld
from the paychecks of their employees. This was not the result of low-level
clerical error, but was based on numerous exchanges through the IRS's
Problem Resolution program.
At least one of the employers named in the Times article has written a
letter to the IRS Commissioner requesting a meeting to discuss the matter.
Excerpts from that letter are printed below.
Nick Jesson's (NTD Electronics') demand for dialogue was UNANSWERED by the
IRS, so he is now going public. The IRS's failure to respond follows a
series of attempts to get government officials, including the IRS, Congress
and the White House, to participate in conferences to publicly explain
findings and refute allegations by numerous tax researchers and former IRS
agents such as the allegations made at the top of this message.
Tax researchers recognize that the actions of the employers are supported
by provisions in the Tax Code. For example: A withholding agent is only
required to withhold from foreigners (Code Sections 7701, 1461, 1441-3). Tax
researchers have noted for years that a statement of citizenship given to an
employer/withholding agent precludes the withholding of tax, as there is no
authority in the Code to withhold money from a citizen or resident of the
U.S. unless that person authorizes it. If the worker submits a statement of
citizenship, the employer, as a withholding agent, is relieved of duty to
withhold income taxes, since those apply to nonresident aliens. See our web
site [ http://www.givemeliberty.org ].
Tax researchers have asserted there is no law that a U.S. citizen must have
a social security number (SSN) or that an employer must have an employer
identification number ( EIN ), or that either of them must participate in
the social security program (i.e., employment or FICA taxes under Subtitle
C). An employer who does not participate in the social security program is
required to give a W-4 form to a worker, but is not required to get it back,
and the worker is not required to fill it out and return it, unless the
worker wants to participate in the social security program. Absent a W-4
signed by the worker, an employer is not authorized by law to withhold and
submit to the IRS money from the worker for employment taxes. Further, a
person without a SSN number would have no taxable income. All this has been
well-documented and verified by numerous letters from any number of Social
Security Administration officials. You can check these out at our web site
(see below). [also see above].
Section 1441(a) and (b) state that interest, dividends, rent, salaries,
wages, profits, etc., are "income" when received on behalf of, or paid to, a
nonresident alien or other foreign entity. And courts have ruled that
profits of corporations are "income." But there is no provision in the Code
stating that receipts of citizens or residents of the country are "income."
Thus, a citizen's own receipts are not "gross income" and are not,
therefore, "taxable income" under the Code. Income refers to property
derived from activity involving the exercise of a government-granted
Section 61 of the Code has the definition of gross income as "all income
from whatever source derived," and then a list of 15 "items." Tax
researchers have recognized that the "items" listed are not the same as
"sources" of income that are taxable. The sources are actually to be found
in a more remote part of Code at Section 861 (or section 1.861-8(f)(1) of
the regulations). They consist of five "foreign" sources. In previous
versions of the Code, the relationship and distinction between the "items"
and the "sources" was not disguised or separated by distance in the Code.
This part of the Code is an important aspect of the position taken by
employers who have stopped withholding. For more details, see "Connecting
the Dots" on our web site, and especially go to www.Taxableincome.net for a
free download of Larken Rose's excellent book and/or refer to appropriate
chapters of Chris Hansen's opus magnus at
http://familyguardian.tzo.com/Publications/GreatIRSHoax.htm, also a free
DEAR IRS: WHY DON'T YOU ANSWER? AN EMPLOYER'S LETTER.
`Charles O. Rossotti, Commissioner
Internal Revenue Service
1111 Constitution Avenue NW
Washington, D.C. 20224.
Dear Commissioner Rossotti:
I am writing to you because I have reason to believe that certain offices
within the Internal Revenue Service are seeking unwarranted criminal charges
both against Nick Jesson of No Time Delay Electronics for tax evasion and
against myself as Founder and Executive Researcher of the National Institute
for Taxation Education (NITE) for conspiracy to evade taxes.
Both Mr Jesson and I were given this impression by an article that appeared
in the February 10 edition of the New York Times ("I.R.S. Going After
Businesses on Withholding Tax"), in which reporter [this is a misnomer too]
David Cay Johnston refers to Mr Jesson twice, in the context of quotes by
IRS officials such as CID Chief Mark E. Matthews and Deputy Commissioner
Dale Hart. Each of these officials stated that efforts are being made within
the IRS to tighten enforcement, and Chief Matthews told the Times that "some
of the business owners, as well as the promoters who advise them, will be
prosecuted for tax evasion and other crimes."
I wish for you to know the facts of this issue so that you can understand
that in my work with Mr Jesson, we have sought complete compliance with all
of the Internal Revenue laws as stated in the U.S. Code, the Treasury
Regulations, and the Internal Revenue Manual. Furthermore, it has always
been our intent to correct any mistakes of law or fact that we have made and
distributed to any interested parties, as we have engaged in the IRS'
administrative process in order to exhaust all administrative remedy and
avail ourselves of any subsequent judicial hearing of our legal arguments if
However, to date the IRS has given us no reason to believe through Mr.
Jesson's correspondences with the agency that Mr. Jesson or I have
misunderstood, misrepresented, or failed to comply with the law in any way.
We have made every effort to comply with the law and the IRS procedures that
we must exhaust before seeking adjudication of claims. Since the IRS has
effectively accepted as correct and truthful NITE's arguments as applied by
Mr. Jesson, any attempt to prosecute either myself or Mr. Jesson would not
only be outside of the scope of the law but also a clear abuse of government
NITE is an educational organization operating under the protection of the
First Amendment guaranty of freedom of speech and freedom of
association...Since 1997 NITE has been distributing information regarding
the Internal Revenue laws and assisting its members in complying with the
letter of the law and discovering the long-obfuscated IRS administrative
procedures, which are binding upon the IRS as well as the Citizens.
In the case of Mr. Jesson NITE provided to him information regarding the
U.S. Source Rules as set forth in the Internal Revunue laws and the process
of correcting prior claims made to the IRS regarding "gross income" paid and
reported to the IRS. These are the pertinent facts of Mr. Jesson's case:
On November 19, 2000 the New York Times printed an article authored by
David Cay Johnston, which referred to Mr. Jesson (not by name but as owner
of NTD Electronics) in the context of tax cheats who are evading the taxes
Prior to the publication of the article I had a brief conversation with Mr.
Johnston, during which I attempted to correct his misconception of the
substance of my work. Though there was some reference made to my work
through mention of NTD Electronics, there was no specific mention of myself
or of NITE (www.nite.org) being the source of this effort by employers to
apply the U.S. Source Rules to their determinations of wages and gross
reported to the IRS.
([Editors note])...The letter goes on to note inaccuracies in the Times
stories by David Cay Johnston and his failure to take telephone calls from
Mr Jesson or to return them. The letter notes the article of February 10
juxtaposed statements about Mr. Jesson with statements by IRS officials who
said that business owners are "scamming their employees" and will be
prosecuted for evasion. The article stated that those who promote tax
strategies for businesses will also be prosecuted. The letter continues....
I understand that the IRS should not be held responsible for the words that
Mr. Johnston chooses to write and the New York Times chooses to publish. I
recognize the possibility that the IRS may have given Mr. Johnston wholly
accurate information and the blame for the accusatory language lies wholly
upon Mr. Johnston and the New York Times. And it is in good faith that I
reach out to the IRS to bring the IRS, NITE and Mr. Jesson into an exclusive
and legitimate face-to-face conversation regarding any misunderstandings or
errors of law that NITE or Mr. Jesson are holding and availing to the
We propose that the IRS, represented by you and/or your delegates, engage
NITE in a public forum and discuss the legality and legitimacy of the
positions that NITE proffers. At this meeting, we expect that the IRS will
either provide pertinent case law from a court of competent jurisdiction
that does not ignore the fact that the U.S. Source Rules apply to U.S.
Citizens, or failing that will admit publicly that NITE's specific argument
of law is correct and therefore no criminal or civil actions will be brought
against any individual Citizen who proffers NITE's specific argument. At
this meeting you and your delegates would have the opportunity to refute our
argument and we would have an opportunity to engage in a dialogue with our
government regarding our application of the whole of the Internal Revenue
laws and most specifically our application of the U.S. Source Rules to U.S.
([Editors note])...The letter says that Mr. Bell and Mr Jesson are prepared
to meet for the discussion at any time and place that will allow for an
audience of members of the media and other concerned citizens, and that it
would be desirable to have representatives of the Justice Department there
to save the need for any follow-up meeting with them. Mr. Bell states that
the position used by Mr. Jesson has never been argued or decided in federal
court, and that
so far, no government official has attempted to refute the specific
arguments on which it is based. He continues...
This letter is being sent to you directly since your delegates have made
the naked threats of prosecution as contained in the David Cay Johnston
article. If the intent of your subordinates' comments to David Cay Johnston
was to intimidate and threaten law-abiding citizens and employers, then the
Restructuring and Reform Act of 1998 has indeed failed to protect taxpayers
in the manner that Congress intended. Nevertheless, we are intimidated by
the lawless threats of your deputies, as any attempt by the IRS to follow
through with these threats will be reviewed by the Treasury Inspector
General for Tax Administration as well as elected officials in Congress.
Presently the record shows that the IRS has not only failed to refute our
position has effectively offered evidence that our arguments are correct by
refunding over $215,000 to No Time Delay Electronics. Therefore, until such
time as we are shown to our reasonable satisfaction to be holding mistaken
positions, Mr. Jesson, NITE and I will continue to operate as law-abiding
Citizens within the letter of the law as we have applied.
We expect a response from you within fifteen (15) business days.
Respectfully, Thurston P Bell, Executive Researcher and Founder, National
Institute for Taxation Education.
SUMMARY OF THE LETTER
>The employers' position is careful to follow the laws and regulations.
>The applications went through IRS's procedures and were approved.
>The NY Times articles were both inaccurate and biased.
>Employer Jesson and Thurston Bell requested a meeting with the IRS to
discuss the issues and IRS did not respond at all.
The IRS has not responded to Mr. Bell's letter. They refused to deny or
respond to former CID investigator Joe Banister's report that concluded the
findings by numerous tax researchers were correct. They have declined to
reply to invitations to five conferences conducted by We The People
Foundation to discuss questions and issues. (For further details of these
attempts, go to our web site.) We have posed the crucial question: "At what
point must continued evasion be regarded as an admission that the tax
researchers are correct, and that there is no law that requires most
citizens to pay income tax?"
*In 1913, Americans got the federal income tax and a central bank (the
Federal Reserve System). There is evidence in support of the hypothesis that
the income tax was imposed on the American people so that the owners of the
(private) central bank could control not only our money but our government
Shoddy Journalism: David Cay Johnston and The NY Times become an issue.
Our previous message two weeks ago noted that the NY Times has assumed the
role of cheerleader for the IRS, obviously hoping to sic 'em onto the
employers who have stopped withholding, even though in accordance with the
In another Times article on February 23, David Cay Johnston reported that
the recent sentencing of a couple for crimes involving tax evasion followed
a trial at which defendants' case was based on Code section 861. Larken
Rose, a tax researcher who has studied and written authoritatively about the
861 position, asked Mr. Johnston about it, and he acknowledged that the 861
position was not mentioned at the trial and was not adjudicated. This
represents irresponsible and misleading journalism. Check Larken Roses's
website at www.taxableincome.net for more information. (E-mail:
We also have a copy of a very biased, hostile and condescending letter Mr.
Johnston sent to Mr. Jesson two weeks ago in response to Jesson's challenge
that Johnston show him the law that makes him liable, and noting that the
California tax board, whose tax rules are the same as the federal, had
recently approved his position. We'll not print that letter at this time,
but it has become evident that Mr. Johnston has set out upon a one-man
crusade, using the NY Times as his vehicle, against any and all who don't
agree with his views on the income tax, even though he acknowledges in the
letter that he hasn't done research on it.
His letter asserts that the issues Jesson has raised have been judged in
tax courts, district courts, and appeals courts and been rejected as without
merit. In fact, Thurston Bell's letter above states that these issues have
never been addressed or adjudicated in any court case. Johnston's desire to
discredit the employers has caused him to resort to inaccurate, false and
As further evidence of his unprofessional bias, Mr. Johnston "pulled the
plug" on an interview when the guest interviewee, Virginia Cropsey, J.D., an
expert on the 4th Amendment and IRS liens, began to speak about warrant
requirements for federal seizures of property for income taxes and that IRS
seizures had decreased by 98% because they can't get a warrant, since it
would require them to lie under oath that a tax was owed. She said she had
never spoken with a more insolent, biased reporter, who didn't want to hear
any explanations about the tax laws that he couldn't refute. She said she
had lost a lot of respect for the Times.[I do not see how anyone with any
degree of intelligence and the ability to reason, could have any respect for
The Times.] Check her web site at www.getawarrant.com
It appears to us that there is serious reason to question whether the
readers of the NY Times are well served by David Cay Johnston's brand of
reporting, since it is biased and incompletely researched. If you would like
to express your opinion about the NY Times articles by David Cay Johnston,
you can do so by calling his superior, Glenn Kramon, Business Editor, at
LATE NEWS: The Texas Incident.
Subsequent to the NY Times articles, the IRS contacted Clubb Spa and Pool,
a company in Keller, Texas, just nortwest of Dallas, that had stopped
withholding in accordance with the provisions of the law. The IRS wanted to
send a couple auditors to review their books and records. On the appointed
day, last Friday, February 23, five people showed up, three of them
conspicuously carrying guns. When asked by company owner, Teri Clubb, who
the armed men were, they refused to disclose their identities. The company
called 911, police officers arrived, who told the agents they'd have to
identify themselves or leave. The IRS group left, still (except for one
auditor) refusing to give identities. As of this writing, the police have
not provided the owner with a written incident report.
If revenue officers are authorized by law (Code section 7608) to conduct
only civil enforcement of alcohol, tobacco, and firearms regulations, and
the Criminal Investigation Division only authorized to investigate income
tax mattes involving U.S. citizens residing in foreign countries and
nonresident aliens with U.S. income (Internal Revenue Manual chapter 1100),
one wonders just what was going on, and under what authority.
Employers have noted in Texas, as in most states, garnishment of wages
(which is what withholding is, if done without the employees permission)
requires a court order. In Texas, it is even written into the state
constitution, as well.
This whole incident seems to resemble the old Brown Shirt intimidation
tactics of Nazi Germany. But the owner of one company said, in effect: "This
is America. Don't show us your guns; show us your authority."
This message is part of PROJECT TOTO, a plan to educate millions of
citizens (along with accountants, tax attorneys, legislators, judges, IRS
employees, and prospective jurors) about the true limited application of the
income tax laws, to expose any operations of the IRS that are unauthorized
by law, and to put an end to any illegal collection of taxes from people who
do not owe them. We want to publish additional full-page ads in this
newspaper, each of which costs tens of thousands of dollars. [The first one
cost them $87,000.00 Dollars!] Your help is urgently needed. Please send a
donation. In addition, please order 500 copies of this ad from WTP for
$50.00...Jefferson said it best, "When the government fears the people, you
have liberty. When the people fear the government, you have tyranny." [Which
is it fellow citizens? R U afraid of them?] Sponsored by We The People
Foundation For Constitutional Education, Inc., 2458 Ridge Rd., Queensbury,
NY 12804, www.givemeliberty.org mailto: firstname.lastname@example.org (518) 656-3578 Fax
End of Quote. I certify that this is as exact a copy as can be made by
typing it direct from the newspaper page. It is absolutely accurate and
complete except for those notes that are enclosed in [ ] as previously
stated in first few lines of this document.
We have a Constitution and our Bill of Rights (the first 10 amendments)
that makes us free. Right? Then visit:
Then take a look at these sites: http://www.dixierising.com
NOTE # 1: This is the EIGHTEENTH doc in a string of about 38 regarding
the Income Tax, How it was illegally forced upon us, the collusion of
various nation banks, including The Bank of England, the Banks of Europe,
the Banks of the USA that make up the Non-Government organization known as
the Fed and the bankers themselves dedicated to making this a Socialist
Nation. As David Rockefeller reportedly said in 1973 when he and others
formed the Trilateral Commission, "We will have this a Socialist Nation by
the end of the year 2000." Well, with the help of our past Communist
President, he damned well nearly did it. If Comrade Gore had been elected,
it would be now! The last doc in this series is a plan that was presented to
President Bush when he visited Florida recently. It was put directly into
his hands. He has not acted upon it. We The People must initiate a campaign
of letters, faxes, e-mails, and phone calls to him and others in our
otherwise corrupt government letting them know of our displeasure. For God
and Country, Chet.
NOTE #2: [ Should you wish to be removed from my mailing list, please
send a message with the word remove in the subject line. If you got this
from a mail list, such as email@example.com or something like that,
then it is up to the moderator or owner of the list to remove my access
based upon complaints of my material, abuse, or removal of your access if
you request it. ] Should you wish a copy of a numbered message
(this is the 18th one) that you may have missed, please e-mail me off net
for a copy of it and I will be very happy to provide it. Chet.
You may forward this to every member of Congress by using a Mail Blaster
application available on the Internet as follows:
Step 1. Access your web browser. Step 2. Type in the search block:
Step 3. Click on Send Batch E-Mail which is on the left end of the
Step 4. Type in your E-mail Address. Step 5. Click on Subject: Type in
the subject of your document.
Step 6. Click on Message: Now here you can type in your message or you can
paste a previously copied file here. You can also edit your message after
you finish with the message and before sending it.
Step 7. Then click on select a file. Here you may click on:
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Step 8. After selecting the group to receive your message then click on
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Remember: Nothing beats a letter AND a phone call.
Forwarded by: Chester L McWhorter Sr, c/o 504 N. Brighton Rd, Lecanto,
Occupied Florida. 34461. Ph: 352-344-9073. Fax: Same. E-mail:
18 of 38.........126.96.36.199 End.
"Beware the leader who bangs the drums of war in order to whip the
citizenry into a patriotic fervor, for patriotism is indeed a double-edged
sword. It both emboldens the blood, just it narrows the mind. And when the
drums of war have reached a fever pitch and the blood boils with hate and
the mind has closed, the leader will have no need in seizing the rights of
the citizenry. Rather, the citizenry, infused with fear and blinded by
partiotism, will offer up all of their rights unto the leader and gladly so.
How do I know? For this is what I have done. And I am Caesar."--Julius
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