Note Of Debt - Income NOT !

Notes of Debt are not Income

Recently, Levi Philos, whom I had asked about the e-mail below, did some searching of his own, and came up with the article by The Informer that follows below the e-mail. I think ya'll find all of this to be very interesting AND useful!
Fred

Levi Philos wrote:
Now I understand the full meaning of this message posted to yahoo group tips_and_tricks (archives limited to members) where "brokenwrench" posted on Feb 10, 05:
( http://groups.yahoo.com/group/tips_and_tricks/message/7411 )
"The irs has never tried to collect, it has been over 25 years since I was audited, and then I got a refund. I have a stamp that prints
DEPOSITED FOR CREDIT ON ACCOUNT OR EXCHANGED FOR
NON-NEGOTIABLE FEDERAL RESERVE NOTES OF FACE VALUE
when I was audited, I produced the front and back copies of my paychecks to the irs man. He took a break and came back and told me that those checks endorsed that way were not taxable income. I got in a hurry and open signed 3 of my checks, those were the only ones I had that they said they could tax that is the last I heard from them."
==================================

Dear brokenwrench,

I'm very interested in your adventures with the stamp for the back of checks. Would you care to correspond with me about that?

Fred

Making checks a non-taxable event

This is all based upon what is lawful money of value and HJR-192 (House Joint Resolution-192, June 5, 1933) , that none is in circulation for private use by the public. There are no lawful dollars out there only credit and debt ledger entrees, and no one gets paid for anything with anything of valuable substance. The IRS can't tax credit, debt, or barter. The Congress licensed the use of FRNs to be used as -legal tender - not money, as a medium or exchange for discharge of public and private debt into the US bankruptcy. At that point FRNs became contraband and that gives the criminal BATF and the criminal IRS jurisdiction over its use and transfer. Just like trafficking in alcohol, guns, drugs, or tobacoo , or other substances allegedly subject to excise taxes.

There are many types of commercial paper that properly prepared can discharge debt other than FRNs but few know how to use them. Using FRNs is criminally insane "licensed" money laundering, plain and simple.

When I get a check, it says dollars on the front. If I endorse it openly, I just testified I received dollars of valuable substance, even though there are none. When I stamp or write:

DEPOSITED FOR CREDIT ON ACCOUNT
OR EXCHANGED FOR
NON-REDEEMABLE FEDERAL RESERVE NOTES

I just corrected the error on the front and converted the check into a bill of exchange. In other words: a barter transaction of two different kinds of things being traded even-up for equal value are not taxable, there was no sale or financial gain just a private trade.

Sincerely, brokenwrench

So, brokenwrench has cut a Gordion Knot with a pen, instead of a sword. If you wish to use such a sharp pen, you would do well to read the article below, and if that doesn�€™t lead you to study further then you don�€™t understand enough about the honing and care of a good blade...start over with a study of the life of The Master who told his disciples to sell their cloaks to buy a sword and intervened when Peter used his: Exhaust administrative remedy, first! Ignorance is curable.
�€“Fred

========================= ====================================

Re: Notes of Debt are not Income
( http://www.atgpress.com/inform/tx064.htm is printed out below.) WHAT TO PRESENT ADMINISTRATIVELY TO SHOW THAT YOU HAVE NO INCOME.
By: The Informer

(Fred�€™s note: Any words in bold-face parentheses are my addition, and any bold-face type in the text is my added emphasis. The author has placed his notes/insertions in [squarebrackets]. I will make them bold-blue Italic. All of author�€™s words are in blue Italic type. The author also specified red type in certain quoted text, and I left it that way.)

Here is a observation that no one realizes, or even knows it exists. Here is a problem that may be brought before a court it you are drug into one. But it is better used administratively. Just a hypotheses. Could it work? Who knows?

(1) You work for a company.
(2) You receive a negotiable instrument for your work (a check).
(3) You have to cash it at a bank.
(4) You are given federal reserve notes in exchange.
(5) You have not been paid anything but worthless securities.

So now let�€™s put on your thinking caps and do some digging starting with:

TITLE 26 > Subtitle A > CHAPTER 1 > Subchapter B > PART VI > §

§ 165. Losses
Release date: 2003-05-15

(a) General rule
There shall be allowed as a deduction any loss sustained during the taxable year and not compensated for by insurance or otherwise.
(b) Amount of deduction
For purposes of subsection (a), the basis for determining the amount of the deduction for any loss shall be the adjusted basis provided in section 1011 for determining the loss from the sale or other disposition of property (think: your labor).
(c) Limitation on losses of individuals
In the case of an individual, the deduction under subsection (a) shall be limited to------�€”
(1) losses incurred in a trade or business;
(2) losses incurred in any transaction entered into for profit, though not connected with a trade or business; and
(3) except as provided in subsection (h), losses of property not connected with a trade or business or a transaction entered into for profit, if such losses arise from fire, storm, shipwreck, or other casualty, or from theft.
(d) Wagering losses
Losses from wagering transactions shall be allowed only to the extent of the gains from such transactions.
(e) Theft losses
For purposes of subsection (a), any loss arising from theft shall be treated as sustained during the taxable year in which the taxpayer discovers such loss.
(f) Capital losses
Losses from sales or exchanges of capital assets shall be allowed only to the extent allowed in sections 1211 and 1212.

(g) Worthless securities
(1) General rule
If any security which is a capital asset becomes worthless during the taxable year, the loss resulting therefrom shall, for purposes of this subtitle, be treated as a loss from the sale or exchange, on the last day of the taxable year, of a capital asset.

(2) Security defined
For purposes of this subsection, the term "security" means�€”
(A) a share of stock in a corporation;
(B) a right to subscribe for, or to receive, a share of stock in a corporation; or
(C) a bond, debenture, note, or certificate, or other evidence of indebtedness, issued by a corporation or by a government or political subdivision thereof, with interest coupons or in registered form.

Ok so now you have been given "evidences of debt" for your work. You have never made "income" but received evidences of debt. The US Treasury admits to (g) above in its website (and you really must visit this website!):
http://www.ustreas.gov/education/faq/currency/legal-tender.shtml
wherein the website states:

�€œFederal Reserve notes are legal tender currency notes. The twelve Federal Reserve Banks issue them into circulation pursuant to the Federal Reserve Act of 1913. A commercial bank belonging to the Federal Reserve System can obtain Federal Reserve notes from the Federal Reserve Bank in its district whenever it wishes. It must pay for them in full, dollar for dollar, by drawing down its account with its district Federal Reserve Bank.

Federal Reserve Banks obtain the notes from our Bureau of Engraving and Printing (BEP). It pays the BEP for the cost of producing the notes, which then become liabilities of the Federal Reserve Banks, and obligations of the United States Government.

Congress has specified that a Federal Reserve Bank must hold collateral equal in value to the Federal Reserve notes that the Bank receives. This collateral is chiefly gold certificates and United States securities. This provides backing for the note issue. The idea was that if the Congress dissolved the Federal Reserve System, the United States would take over the notes (liabilities). This would meet the requirements of Section 411, but the government would also take over the assets, which would be of equal value. Federal Reserve notes represent a first lien on all the assets of the Federal Reserve Banks, and on the collateral specifically held against them.

Federal Reserve notes are not redeemable in gold, silver or any other commodity, and receive no backing by anything. This has been the case since 1933. The notes have no value for themselves, but for what they will buy. In another sense, because they are legal tender, Federal Reserve notes are "backed" by all the goods and services in the economy.�€�

(The underlined sentence above, deserves attention because a man once wrote (I believe to Alfred Adask, publisher of AntiShyster magazine) that he had robbed a bank, was caught, and with the aid of counsel, was prepared to argue in court that since he had taken only Federal Reserve Notes, he had taken nothing of �€œvalue�€� and therefore could not be guilty of the criminal code section he was accused of violating. Apparently the prosecutor decided to drop the case, rather than have his argument go on the public record. This was probably more than 10 years ago. Having read what follows, I can assure you that our author will suggest no such course of action! And, of course, neither do I! I won�€™t even make this note in the boldface type.)
Now they, not you, have established that their confidence game, what you received in exchange for the company draft (check) was absolutely nothing. They are valueless so you exchanged your labor for valueless paper that has a lien on it already. They are identified in two statutes (Code) and they are Title 18 Section 8 wherein it states:
TITLE 18 > PART I > CHAPTER 1 > § 8 Release date: 2004-08-06
§ 8. Obligation or other security of the United States defined
The term "obligation or other security of the United States" includes all bonds, certificates of indebtedness, national bank currency, Federal Reserve notes, Federal Reserve bank notes, coupons, United States notes, Treasury notes, gold certificates, silver certificates, fractional notes, certificates of deposit, bills, checks, or drafts for money, drawn by or upon authorized officers of the United States, stamps and other representatives of value, of whatever denomination, issued under any Act of Congress, and canceled United States stamps.
And the second statute (Code) is:
CITE-
12 USC SUBCHAPTER XII - FEDERAL RESERVE NOTES 01/23/00
-EXPCITE-
TITLE 12 - BANKS AND BANKING
CHAPTER 3 - FEDERAL RESERVE SYSTEM
SUBCHAPTER XII - FEDERAL RESERVE NOTES
-HEAD-
SUBCHAPTER XII - FEDERAL RESERVE NOTES
-CITE
12 USC Sec. 411 01/23/00
-EXPCITE-
TITLE 12 - BANKS AND BANKING
CHAPTER 3 - FEDERAL RESERVE SYSTEM
SUBCHAPTER XII - FEDERAL RESERVE NOTES
-HEAD-
Sec. 411. Issuance to reserve banks; nature of obligation redemption
-STATUTE-
Federal reserve notes, to be issued at the discretion of the Board of Governors of the Federal Reserve System for the purpose of making advances to Federal reserve banks through the Federal reserve agents as hereinafter set forth and for no other purpose, are authorized. The said notes shall be obligations of the United States and shall be receivable by all national and member banks and Federal reserve banks and for all taxes, customs, and other public dues. They shall be redeemed in lawful money on demand at the Treasury Department of the United States, in the city of Washington, District of Columbia, or at any Federal Reserve bank.
-SOURCE-
(Dec. 23, 1913, ch. 6, Sec. 16 (par.), 38 Stat. 265; Jan. 30, 1934, ch. 6, Sec. 2(b)(1), 48 Stat. 337; Aug. 23, 1935, ch. 614, title II, Sec. 203(a), 49 Stat. 704.)
-REFTEXT-
REFERENCES IN TEXT
Phrase ''hereinafter set forth'' is from section 16 of the Federal Reserve Act, act Dec. 23, 1913. Reference probably means as set forth in sections 17 et seq. of the Federal Reserve Act. For classification of these sections to the Code, see Tables.
-COD-
CODIFICATION
Section is comprised of first par. of section 16 of act Dec. 23, 1913. Pars. 2 to 4, 5, and 6, 7, 8 to 11, 13 and 14 of section 16, and pars. 15 to 18 of section 16 as added June 21, 1917, ch. 32, Sec. 8, 40 Stat. 238, are classified to sections 412 to 414, 415, 416, 418 to 421, 360, 248-1, and 467, respectively, of this title. Par. 12 of section 16, formerly classified to section 422 of this title, was repealed by act June 26, 1934, ch. 756, Sec. 1, 48 Stat. 1225.
-MISC3-
AMENDMENTS
1934 - Act Jan. 30, 1934, struck out from last sentence provision permitting redemption in gold.
-CHANGE-
CHANGE OF NAME
Section 203(a) of act Aug. 23, 1935, changed name of Federal Reserve Board to Board of Governors of the Federal Reserve System.
-CROSS-
CROSS REFERENCES
Gold coinage discontinued, see section 5112 of Title 31, Money and Finance.
Since there is no more real "money" to be redeemed then, as the Treasury Web Site stated, they are worthless in conformity with 26 USC 165 (g). Ergo: you cannot go into a bank and demand gold or silver coin for a federal reserve note.
So the question is, Have I received any income that is reportable for filing a tax form? Have I objected openly that I do not accept federal reserve notes as "payment" for my labor? See the Padleford case 14 Ga. 438 wherein they stated:
"Supposing this not to be taxed for inspection purposes, has Congress consented to it being laid? It is certain that Congress has not expressly consented. But is express consent necessary? There is nothing in the Constitution which says so. There is nothing in the practice of men, or in the Municipal Law of men, or in the practice of nations, or the Law of nations that says so. Silence gives consent, is the rule of business life. A tender of bills is as good as one of coin, unless the bills are objected to. To stand by, in silence, and see another sell your property, binds you. [Ok people how many times has your property (labor included) been stolen and turned over to the tax man in your silence? Did you file a refusal for good cause shown?] These are mere instances of the use of the maxim in the Municipal Law. In the Law of nations, it is equally potent. Silent acquiescence in the breach of a treaty binds a nation.(Vattel, ch. 16, sec.199, book 1. See book 2, sec. 142 et seq. as to usucaption and prescription, and sec. 208 as to ratification). Express consent, then, not being necessary, is there anything from which consent may be applied? There is--length of time."
Has the company caused a theft when issuing you a draft that only will result in you receiving evidences of debt that are no longer "at Par" with a face value US Silver Eagle dollar denominated coin? This is what the court stated on this type money issue,
Westfall vs. Braley, 10 Ohio 188, 75 Am. Dec. 509:
�€œBank notes are the representative of money, and circulate as such, only by the general consent and usage of the community. But this consent and usage are based upon the convertibility of such notes into coin, at the pleasure of the holder, upon their presentation to the bank for redemption. This is the vital principle which sustains their character as money. So long as they are in fact what they purport to be, payable on demand, common consent gives them the ordinary attributes of money. But upon failure of the bank by which they are issued, when its doors are closed, and its inability to redeem its bills is openly avowed [See Letter, Oct. 26, 1989, Dept. of Treasury, Russell Munk, Asst. Gen. Council, (International Affairs) as recorded in the Office of the Clerk & Recorder, Bacca County, Colorado, admitting the notes are worthless and not redeemable at par.], they instantly lose the character of