1
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The
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I
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Want to thank you all for coming
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For those of you who don't already know it
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You're going to discover that there is no law requiring anybody to pay income taxes
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Or keep books and records for income tax purposes, and you'll also discover that there is no
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penalties or crimes involving income taxes
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Despite this as reported in the paper
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Because of iris pressure people have committed suicide as a matter of fact if you saw the Maury Provitt show last year
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Well husband committed suicide
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People have had nervous breakdowns forced into bankruptcy and their business is literally destroyed all because of
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iris pressure
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And all because they were pressured to pay a tax that no law requires anybody to pay here is the Internal Revenue Code
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And I'm the nation's leading sellers of Internal Revenue Code. I buy him 500 at a clip
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We're going to get into this and there is no law in here that requires anybody to keep books and records or to pay income taxes
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Now I just said a little while ago because of iris pressure
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Now the government the federal government has done a terrific public relations
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Job they've gotten everybody to hate the iris and fear the iris while presumably still respecting and liking their government
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It's it's amazing and the Murray Provitt show for instance and these other shows
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I'll talk about iris abusing their authority the iris doing this the iris doing that
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Nobody ever bothers to mention it's the government that's doing it
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It would be as if I were walking around a room punching people in the nose and the people would say oh Schiff is a nice guy
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But his fist oh his fist is terrible as if I have no control over my fist
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This is what the government has done
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But the iris does nothing that the courts in
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Congress doesn't let them get away with the real culprits here are federal judges
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Who have been putting people in jail knowingly putting people in jail
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For violating a law that nobody was required
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To obey as a matter of fact there's no law as a matter of fact the definition of a tax is a mandatory
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Exaction for the support of government since there's nothing mandatory in here about paying an income tax
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It shouldn't even be called an income tax the government invites contributions a matter of fact
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When I write certain articles or
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Pleadings to the court sometimes I check the word tax and I put quotes around it because technically there is no such thing
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As an income tax there is no such thing as a voluntary tax
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Either you're required to pay it in which case it's a law and if you're not required to pay it
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It shouldn't be termed a tax
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You know it's strange
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The government reports from time to time when there's a tornado or the flood or a hurricane
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Or the flood or a hurricane and people's houses are damaged and destroyed the judgment government immediately jumps in
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With low income low income
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Loans low interest rate loans and we're going to help these people
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At the same time every day hundreds of houses are being seized by the irs or the government
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Paychecks bank accounts where people lose their homes because they don't have their bank accounts a matter of fact
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in the
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March 1997 issue of the readers digest there was an article the irs versus us meaning us
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And in that article they accurately reported that in 1996
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The irs seized three million paychecks
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So here's the government seizes homes from some people in order to get money
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So these people can fix up their home
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Now the reason they do that is they get a lot of publicity when they fix up people's homes
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It seems like we have a benevolent government meanwhile the papers don't report the homes in a given community that the irs has seizes
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So the whole thing is nonsense
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And uh, so the newspapers don't report it
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In a nutshell
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The irs the income tax represents the greatest program of organized extortion the world has ever seen
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How is it possible therefore you might ask how is the government able to hoodwink a hundred million americans into paying a tax
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That no law requires anybody to pay
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Well, the government has a lot of help
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It has a lot of help from the people the tax preparers who the public looks to for tax advice your accountants your tax lawyers
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The publishing companies who publish all kinds of books on you know paying the income tax
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They know it's voluntary. They know there is no statute requiring you to pay so
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But the real beneficiaries of the income tax of the american bar association they make billions of dollars litigating a law
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That nobody is that doesn't even exist make billions of dollars
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And I can't conceive of a tax lawyer not knowing what i'm going to tell you today
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But before we get through I I can assure you that you will know more about income tax than 95 percent of the accountants and the lawyers
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Who hold themselves off as being experts?
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Hold themselves off as being experts now
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The fact of the matter is that you came down here today is really unnecessary
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Everybody should have known all there is to know about the income tax if they just paid 50 cents
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And they bought the january 9th issue of the san diego union tribune
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And for 50 cents you would have learned here's a book I wrote the federal mafia
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$30 nobody should have to pay $30 to buy this book because they would find out everything they needed from this little article in the san diego union tribune
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And what happened is that on january 8th?
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The former commissioner margaret richard margaret miller richardson resigned. She resigned the day before let me read the account
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That appeared in the san diego union tribune
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IRS commissioner margaret miller richardson warned yesterday that continued public bashing of her agency may someday
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undermine americans willingness to pay their taxes
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voluntarily
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Ultimately, she said I worry it may have some impact on our self assessment system
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Now there's two things she said the payment of income tax is voluntary and she mentioned self assessment
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Now how many people when they read this oh said gee she's the commissioner she's saying it's voluntary I won't volunteer anymore
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No, you know what they would assume they would assume she made a mistake
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now most americans
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Are when it comes to income taxes, they have the psychological ailment. It's called cognitive dissonance
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Which is a psychological ailment which says that if you have a deep-seated belief of something and somebody tells you something
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That's contrary to that deep-seated belief you reject it. You don't even consider
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It's like throwing a ping pong ball against your head
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So many americans believe that they're required to pay income taxes that even when the commissioner
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Says it's voluntary doesn't even penetrate
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You're going to find out why it's voluntary in a minute and what does self assessment mean self assessment means you assess yourself
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Unless you assess yourself. You can't even owe the tax now most people who have paid property taxes know they get
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Property time they don't assess themselves the city sends an assessor down determines your tax and sends you a bill
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Well, you know you're going to discover that's what the law says if you own income tax
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The government is supposed to send you and send you a bill and until they do that. You don't owe the tax
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But again, how come you don't know this?
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Because your accountant lawyer doesn't even bother to tell you I want to ask you a question
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How many people here be truthful? How many people here filed a tax return last year?
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Come on, how many people filed a tax return last year?
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No, you didn't you filed a confession
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Well, think about it
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If I you you can return a library book you can return
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Lawnmower to your neighbor, but when I say return, what do you return to the government?
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You don't return anything the word return first appeared in the tax literature
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In the tax act of 1862 and a return was a document prepared by government tax
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Collectors returning to the government to documents and that they were given to collect the tax
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And the money and the return was a document prepared by government tax collectors
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That's the way the word return may now make some sense
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What you filed is a confession
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Well, think about it. Don't you confess to how much money you believe you earned what your deductions are and you sign that confession?
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Under penalty of perjury
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But suppose the government said hey, it's april 15th time to get in your confessions
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The american public. Hey, wait a minute. I can't be required to confess
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And when you go to your accountants and lawyers do they say now you're sure you want to confess?
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No, now, did you know how many people knew that all the information they put on their tax return could be used against them
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Suppose your accountant said this to you when you fill out your tax return now you realize all this information
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The government can use against you they can give it to firing governments
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They can give it to various government agencies and they can use it against you
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Is it okay with you if all this information is used against you? Is it okay with you?
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You would say no
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Well the government we're going to get to that the government tells you that right here in a 1040 booklet
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They tell you we may give the information to the department of justice and to other federal agencies provided by law
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And we may give it to the cities the states the district of columbia, but nobody reads this because it's buried in the privacy act
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Nobody reads this because look what it says on top privacy act and paperwork reduction act notice
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Everybody thinks when they see this well has to do with saving government paperwork
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And even if you read it you wouldn't understand it anyway, but we're going to get to this we're going to devote a segment
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the point is
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It's voluntary and look even when the government comes right out. I just showed you in the paper
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Now here is another article this article when it was in usa today
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March 6 1997 here's the article
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And in this article usa today was interviewing senator bob carrey
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Democrat of nebraska who was co-chairman of the commission to restructure the irs
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And one of the objectives of the commission presumably was to ensure that the irs collected taxes in a fair and reasonable manner
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so
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The reporter asked carrey. Why does being fair and reasonable?
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matter and here's his answer because
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It's a voluntary system
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If people don't perceive it to be fair people will not voluntarily comply
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We are struggling to maintain ground on voluntary compliance
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Now the word voluntary compliance you'll see over and over again in a number of articles issued by the irs
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taxes in the minutes of people see voluntary compliance, then
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They don't understand voluntary compliance means compliance is voluntary, but the public doesn't
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believe it
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Uh, actually voluntary compliance is is the classic oxymoron. It's a contradiction of terms if something is voluntary. You don't have to comply
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If you have to comply it's not voluntary
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So even though the public is told that the income tax over and over again is based on voluntary compliance. They never say well
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I don't want to volunteer
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Now what happened here?
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right on page 13
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Of the federal mafia. I actually reproduced
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The mission statement which was the mission statement of the government for the last 20 years of the irs
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Which they just changed incidentally because we've been using this so effectively against them
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They want to take out voluntary compliance, but let me give you the mission of the irs
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The mission of the service is to encourage and achieve the highest possible degree of voluntary compliance
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With the tax laws. Well, if it's they're based on voluntary compliance
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It means if you don't want to comply you don't have to comply if you were going down to the department of motor vehicles
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And you know that book they give you when you study the to to pass, you know, besides the field driving test
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There's this manual you you know, you got to you have to stop at a stoplight
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You have you only pass you know that little manual suppose in the front of that manual and said
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These rules and regulations are based on voluntary compliance
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What would that tell you?
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If moses believed that the ten commandments were based on voluntary compliance, he would have named them the ten suggestions
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The point is there's no such thing as voluntary compliance. If something is voluntary, it's voluntary. You have to comply you have to comply
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The government attaches compliance to voluntary to hide they don't want to come right out and say it's voluntary
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However, sometimes they actually do that
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Now on page 12 of this book federal mafia, I actually reproduced you'll see
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Those of you have your books you can check it. You can check it right along with me on page 12
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There is the annual report put out by the commissioner of internal revenue at the time. Jerome Kurtz
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Was then the commissioner and you will see that
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In connection with the income tax
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He says no less than six times that the payment of income tax is voluntary voluntary voluntary
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Now you think that jerome kurtz doesn't know the meaning of the word voluntary
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You can see on on page 13
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As it is a training syllabus syllabus that the government would send to high schools
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And you'll see where the arrows are the term voluntary compliance three times compliance is voluntary now if you turn the page as a matter of fact
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On page 16 and you'll notice in the book the federal mafia
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I reproduced documents one of the reasons why the book is a manual size
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It allowed me to reproduce the actual documents because if I told you what was in the documents you wouldn't believe
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What I would have told you because
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In figure 1.5. There is the actual transcript
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Of the testimony being given by dwight avus who was then head of the alcohol and tax division of the irs
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And he's testifying in front of the committee and look what he says your income tax is 100% voluntary
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And your liquor tax is 100% enforced now. The situation is as different as day and night
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So
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Here's document after document saying that the income tax is voluntary my first book
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Was called the biggest con how the government is fleecing you I approached the payment of income tax from an economic standpoint
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I try to show how income tax would literally undermine
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Undermining america's industrial strength the former chief justice john marshall said the power to tax is the power to destroy
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And the government is literally destroying productivity by taxing it, you know the government wanted us to smoke less
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So what they want to do they want to put a tax on cigarettes so people won't smoke
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Well a tax on income is a tax on productivity and if you tax productivity you get less productivity
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And therefore we have a lower standard of living before the income tax
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Which really went into force in 1943 with withholding taxes
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But in 1939 americans women didn't work all of our products. They went into a store. They were all made in america america was the
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Um, the the u.s currency was regarded as the most reliable of all
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Currencies we were the world's
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Mightiest creditor nation since we've had the income tax from another world's biggest debtor
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Very few products you will now find made in america in our store
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The dollar has probably lost 95 of its value since 1939. This is what the income tax has done because it follows john marshall's
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uh observation
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That the power to tax is the power to destroy and that's what the government's been doing to our standard of living
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Destroying it by the abusive imposition of the tax. So when I saw all of these documents
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That payment is voluntary based on voluntary compliance
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I don't want to pay income taxes, but I thought I had to by law. I was writing a book
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On taxation shown from an economic standpoint
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And I saw all these documents
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On voluntary compliance. So I called the irs
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I spoke and I said is income tax based on voluntary compliance?
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And the man said yes
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And I said well, I don't want to volunteer anymore
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And he said well you have to volunteer now. I had just gotten out of the army a few years before they tell you
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never volunteer
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So I said well
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Well, if it's voluntary, why do I have to volunteer and he said well, it's like stopping at a stoplight. This is what they tell you
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Um, if you stop at a stoplight you do it voluntarily if you go through you get a ticket. I said no no
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I don't stop at a stoplight voluntarily. I think if a cop if I don't stop and a cop sees me
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I'm going to get a ticket. It's not voluntary
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By that token everything is murders voluntary because the government is not sending somebody alongside you to keep you from shooting somebody
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Or how about selling drugs? Is that based on voluntary compliance that the fbi?
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Say that our drug laws are based on voluntary compliance
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Why is it only the irs says income tax are based on voluntary compliance if you ask your accountant or a tax lawyer
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Well, isn't it based on voluntary compliance? I'll say yes. Well, it's voluntary
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In the sense that the government doesn't come down and make you fill out a tax return
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And I always say oh in other words filling out a tax return is compulsory and not voluntary. Is that right? Yeah
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So every time the government says it's based on voluntary compliance
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They really mean it's based on compulsory compliance. Is that what you're saying?
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The well, they just say it's based on compulsory compliance if it's compulsory the word voluntary would have absolutely no
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Meaning if it really wasn't voluntary so here you have a nation of 100 million americans actually believing that something is compulsory
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Even though the government tells them over and over again. It's voluntary
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Okay. Now we're going to explain here. Here's a letter that I got from congressman dan burton. I get more and more people
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To write to their congressman saying what section of law requires me to pay the tax or what section of law?
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What section of law requires me to pay the tax or what section of law?
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Makes me liable remember the word liable is very important
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So here's a letter from dan burton in which he actually tells a constituent that there he could find no provision in the law
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That makes you liable
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from a congressman
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Here's a letter from john ensign. He was on the house ways and means committee. He was a congressman from nevada as a matter of fact
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Let me read what he says
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Let me start off by saying I cannot point to a specific place in the law which says you must pay income taxes
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Okay, what caused john ensign ultimately to have to admit in a letter which he was obviously reluctant to admit
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the matter of fact the rest of his letter he tries to
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Confuse and blow smoke in your face
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But I say why we do have a voluntary tax system in sense that the payment of income tax is optional
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There are specific requirements that are required to pay the tax
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You see that's double talk because if there was a specific provision of law that pay the income tax why didn't he identify it?
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So the rest of his letter is double talk like most of the letters you get
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Like dan burton's letter the rest of the letter is double talk
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He first answers the question and then tries to tell you why it's not significant
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Okay, now what happened here is in I took let me see the date in november
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I took the date in november and I took the date in november and I took the date in november
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Okay, now what happened here is in I took let me see the date in november 6 1997
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I took a half page ad in the las vegas review journal
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It was an open letter to harry reid, richard bryan, john ensign and jim gibbons who were the two congressmen
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And I said if they would have a town hall meeting I would pay fifty thousand dollars
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To any charity of their choice if they can produce a statute making americans liable for income tax
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Or requiring them to pay it
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And I would donate fifty thousand dollars to charity and I would pay the cost of the town hall meeting
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And we faxed these letters to their offices
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Well obviously they couldn't produce any such statute
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And at a town hall meeting that that that john ensign himself had scheduled about two weeks after the ad came on
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He had a meeting and at that meeting at least five there was 300 people at the meeting
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And about five people reminded him of the ad and was pressing him to identify the law that required people to pay income taxes
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He first said well you know I'm not a lawyer as if you got to be a lawyer to know whether you got to pay income taxes or not
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And he had the services of the congressional research service
21:10.480 --> 21:14.480
But what's funny about it there was a reporter from the las vegas review journal
21:14.480 --> 21:20.480
And there was no mention of that town hall meeting in the newspaper
21:20.640 --> 21:26.640
Because the reporter would have been forced to report on the fact that john ensign couldn't produce a law that required you to pay income taxes
21:26.640 --> 21:32.640
And as a matter of fact we had trouble even getting this letter after we reserved the space into the las vegas review journal
21:32.640 --> 21:40.640
As a matter of fact when the las vegas review journal accused me in an editorial of inviting people to break the law
21:40.640 --> 21:44.640
We called and said look because I have a radio show of course in las vegas
21:44.640 --> 21:48.640
And I said look just for a moment I'm going to be on the news
21:48.800 --> 21:52.800
And I said look just produce a law that requires people to pay income taxes
21:52.800 --> 21:56.800
And I'll apologize call in all my books and I'll get off the ring get a job at mcdonald's
21:56.800 --> 22:00.800
And I had more and more people calling the las vegas review journal produce the law
22:00.800 --> 22:04.800
And finally they got so irritated they said look you got to pay your income taxes
22:04.800 --> 22:08.800
And that was their answer but they couldn't produce the law
22:08.800 --> 22:14.800
And this is one of the reasons of course why the american public doesn't know any of this
22:14.960 --> 22:20.960
I just came back from I was in Portland Oregon and I actually had a scheduled meeting with the reporter
22:20.960 --> 22:26.960
The tax reporter at the Oregonian and a day before the interview he called to cancel the interview
22:26.960 --> 22:32.960
Because apparently the head of the business department and they didn't want that interview
22:32.960 --> 22:38.960
I mean I've actually been interviewed by newspapers thinking that a lot of this stuff I'm going to tell them
22:39.120 --> 22:45.120
Is tax protests cooking stuff and they don't even report it sometimes they even deny was ever there
22:45.120 --> 22:51.120
So this is why the american public is really in the dark because the traditional media especially print media
22:51.120 --> 22:57.120
Doesn't want to print any of this stuff okay so now is there anybody here after all of these documents
22:57.120 --> 23:03.120
And are there any anybody here who doesn't believe the payment of income tax is voluntary
23:03.280 --> 23:09.280
I've given you government document after government document we've shown you letters from congressmen
23:09.280 --> 23:15.280
Now the trick is even though you know it's voluntary that's not going to protect you
23:15.280 --> 23:19.280
You have to develop procedures for protecting yourself from a crooked and criminal government
23:19.280 --> 23:27.280
What's the title of my book the federal mafia now anybody who reads my book and is familiar with this
23:27.440 --> 23:33.440
Does not consider that title to be an exaggeration because the back of my book of course says
23:33.440 --> 23:39.440
A book that will convince you that organized crime in america begins with the federal government
23:39.440 --> 23:43.440
The federal government has been literally extorting income tax from the american public
23:43.440 --> 23:47.440
Also running the world's biggest counterfeit ring because all u.s. coin and currency is counterfeit
23:47.440 --> 23:53.440
The constitution requires only gold and silver and you're going to discover unfortunately social security is a chain letter
23:53.600 --> 23:57.600
There are no trust funds even though they claim there are trust funds there are no trust funds
23:57.600 --> 24:03.600
And of course the irs runs the world's biggest fence all articles seized by the irs are stolen from the people
24:03.600 --> 24:09.600
Because they weren't required to pay income taxes so it's all stolen and when they sell it
24:09.600 --> 24:15.600
They're selling stolen articles so the federal government world runs the world's biggest fence okay
24:15.760 --> 24:23.760
Now now that you are all agree that the income tax is voluntary everybody agree okay now let me tell you why it's voluntary
24:23.760 --> 24:27.760
For those of you i'm going to explain why it's voluntary and again i know a lot of people are bewildered
24:27.760 --> 24:33.760
Because over and over again they're going to say well if it's voluntary why do people go to jail why do people have their
24:33.920 --> 24:39.920
Houses seized bank accounts how could three million americans have their wages seized or incidentally their wages were not seized
24:39.920 --> 24:45.920
The irs didn't go to their employers and seize it the employers mailed those checks
24:45.920 --> 24:51.920
Because they got a phony notice of levy which we're going to talk about but the irs didn't go to their employers and seize it
24:51.920 --> 24:57.920
The irs didn't go to their employers and seize it the employers mailed those checks because they got a phony notice of levy which we're going to talk about
24:57.920 --> 25:03.920
Now before i even proceed i want to tell you the most important aspect of the constitution is what we call the due process clause of the constitution
25:03.920 --> 25:09.920
Which says you can't be you cannot be deprived of property you cannot be deprived of property
25:09.920 --> 25:15.920
You cannot be deprived of property you cannot be deprived of property you cannot be deprived of property you cannot be deprived of property
25:15.920 --> 25:21.920
You cannot be deprived of property you cannot be deprived of property you cannot be deprived of property you cannot be deprived of property
25:21.920 --> 25:27.920
Now the due process clause of the constitution is the due process clause of the constitution
25:27.920 --> 25:33.920
Which says you cannot be deprived of property except pursuant to due process of law now due process means a hearing
25:33.920 --> 25:39.920
Presumably if you lived under Attila the Hun and Genghis Khan if Attila the Hun
25:39.920 --> 25:45.920
Rode through a village over which he had control presumably if he saw something belonging to a peasant he could just grab it
25:45.920 --> 25:51.920
I don't know but I assume he could what could the peasant do about it nothing and gang are Attila the Hun
25:51.920 --> 25:57.920
But presumably we're not living under Attila the Hun presumably the government can't see our property and grab it because of the due process clause of the constitution
25:57.920 --> 26:05.920
It says you can't be deprived of property without a hearing now you know all those three million paychecks there was no hearing there was no court order
26:05.920 --> 26:13.920
The government is you might as well be living under Attila the Hun and Genghis Khan and you know the government is you might as well be living under Attila the Hun and Genghis Khan
26:13.920 --> 26:23.920
And which is the supreme court and we have law schools and we have lawyers and ask them how can the government seize property without a court order or a hearing
26:23.920 --> 26:33.920
And they're getting away with it but they're having a more and more difficult time as a matter of fact the front page of the Wall Street Journal has been a couple of articles about the increasing numbers of people who are not paying income taxes
26:33.920 --> 26:43.920
Because they're discovering indeed it is voluntary and they're following procedures that we've developed that enables them to stop paying income taxes without taking the risk that a number of us took years ago when we didn't file all together
26:43.920 --> 26:53.920
In any case let me prove to you very quickly if I haven't proved to you already because right here on page 33 of the Federal Mafia I have an excerpt from the handbook for special agents this is the IRS's own handbook
26:53.920 --> 27:03.920
And I'm going to read from paragraph 342, 12 says an individual taxpayer may refuse to exhibit his books and records for examination on the grounds that compelling him to do so would violate his right against self-incrimination under the 5th Amendment and constitute an illegal search and seizure under the 4th Amendment
27:03.920 --> 27:09.920
So here is the IRS's own handbook saying that you cannot be compelled to turn over your books and records
27:09.920 --> 27:23.920
And I'm going to read from paragraph 342, 12 says an individual taxpayer may refuse to exhibit his books and records for examination on the grounds that compelling him to do so would violate his right against self-incrimination under the 5th Amendment and constitute an illegal search and seizure under the 4th Amendment
27:23.920 --> 27:31.920
So here is the IRS's own handbook saying that you cannot be compelled to turn over your books and records
27:31.920 --> 27:39.920
When you do it you're waiving your 4th Amendment right, I have a constitution, I published a constitution, it's called the Tax Rebels Guide
27:39.920 --> 27:44.920
It's the only color-coded constitution and let me read you from the 4th Amendment
27:44.920 --> 27:50.920
Now think of all the people who go down IRS offices with their books and records, sometimes they haven't come back for month after month
27:50.920 --> 28:02.920
If you say you have three dependents, sometimes if they want what they call a TCMP audit, they can ask you to bring down birth certificates, marriage licenses, they want to see all your documents, right?
28:02.920 --> 28:06.920
Let me read the 4th Amendment of the United States Constitution
28:06.920 --> 28:15.920
The right of people to be secure in their persons, houses, papers and effects against unreasonable searches and seizures shall not be violated
28:15.920 --> 28:20.920
And no warrant shall issue but upon probable cause supported by your oath or affirmation
28:20.920 --> 28:23.920
In other words the government has no right to see your papers
28:23.920 --> 28:32.920
If the government comes and they want to search your house, they're going to come in and say we want to look around, we think you've done something wrong, maybe you have some contraband, we want to look, no
28:32.920 --> 28:40.920
In order to come into your house and forget a search warrant, they're going to say no, we think he has counterfeit money, we think he's keeping it here, we think he has a weapon
28:40.920 --> 28:47.920
If they come in and just walk around, that's a fishing expedition, they have no right to walk around your house and see if you've done something wrong
28:47.920 --> 28:58.920
Now when the IRS audits you, when they look at your books and records, they don't know you've done anything wrong yet, they want to see if what you reported on your tax return fits what your books and records are
28:58.920 --> 29:03.920
Now we're going to teach you how to file a zero return, how to pay no income taxes
29:03.920 --> 29:08.920
And some people will say to me, well, you think I can get away with it or they think they're taking a risk
29:08.920 --> 29:18.920
Leona Hemsley paid $50 million, listened to her accountants and lawyers, filed a tax return, turned over her books and records and what happened to her?
29:18.920 --> 29:19.920
She went to jail
29:19.920 --> 29:25.920
She went to jail because she listened, you're going to find out how she could have stopped that just by adding a little thing to her tax return
29:25.920 --> 29:26.920
How about Pete Rose?
29:26.920 --> 29:30.920
He listened to his accountants and lawyers, paid $100,000 and he went to jail
29:30.920 --> 29:35.920
That shows you how dangerous it is filing a traditional return
29:35.920 --> 29:39.920
Now you might say, well, they didn't tell the truth on their tax return
29:39.920 --> 29:41.920
Well, I'm not sure if they did or they didn't
29:41.920 --> 29:48.920
But I know two people, Don King and Jerry Lee Lewis, the bandleader, they both were charged with tax evasion also
29:48.920 --> 29:53.920
It cost them both over $200,000 to defend themselves and they were found not guilty
29:53.920 --> 29:58.920
So here's the jury saying, hey, the information on their tax return wasn't false
29:58.920 --> 30:01.920
But that didn't prevent them from being prosecuted
30:01.920 --> 30:07.920
And while most of the people who are charged with tax evasion get convicted, a number of people are found innocent
30:07.920 --> 30:15.920
So that's proof that the government can prosecute you with your own tax return even if the information is not false
30:15.920 --> 30:20.920
So that shows you, but by filing a tax return the way we're going to show you, that can never happen to you
30:20.920 --> 30:25.920
The point is, you are waiving your Fourth Amendment right when you turn over your books and records
30:25.920 --> 30:28.920
Their own documents say it
30:28.920 --> 30:38.920
Now it doesn't say in this handbook that when you turn over a 1040, you're also waiving your constitutional rights
30:38.920 --> 30:39.920
But you are
30:39.920 --> 30:45.920
If the IRS admits in this handbook that you can't be compelled to turn over your books and records
30:45.920 --> 30:48.920
Because it would violate the Fourth and Fifth Amendment, right?
30:48.920 --> 30:53.920
Could you be compelled to turn over a condensation of your books and records?
30:53.920 --> 30:54.920
No
30:54.920 --> 30:59.920
Well, a 1040 is nothing but a condensation of your books and records
30:59.920 --> 31:06.920
And once you file a tax return swearing that this is what your income is and this is what your deductions are
31:06.920 --> 31:11.920
If you don't prove your deductions, they'll disallow them and hit you with a higher tax
31:12.920 --> 31:18.920
So once you file a tax return, you're compelled to waive your Fourth and Fifth Amendment rights
31:18.920 --> 31:22.920
In order to get the deductions that you claimed on your 1040
31:22.920 --> 31:27.920
And of course, right in the 1040 itself, which I have right here, there is a moren-
31:27.920 --> 31:35.920
We talked about, there is a moren- the warning, which says that all information you give us, we can use against you
31:35.920 --> 31:38.920
So by giving them the information, you're simply waiving your Fifth Amendment right
31:39.920 --> 31:44.920
In the same manner that when somebody is arrested, they read the Miranda warning
31:44.920 --> 31:48.920
And then the cop says- starts asking them questions
31:48.920 --> 31:55.920
Can a cop ask an individual incriminating questions after he reads them the-
31:55.920 --> 31:58.920
Yes, as long as you told him he doesn't have to answer
31:58.920 --> 32:01.920
If he's foolish enough to answer, he's waiving his right
32:01.920 --> 32:07.920
So everybody waives their Fourth and Fifth Amendment right when they file a tax return
32:07.920 --> 32:12.920
But does the typical accountant or lawyer say, now you realize by filing a tax return you're waiving your Fourth and Fifth
32:12.920 --> 32:15.920
Is that okay with you? Did I say that? Of course not
32:17.920 --> 32:23.920
Okay, now let me prove to you very simply, if this hasn't already done it
32:23.920 --> 32:26.920
Then you don't have to pay income taxes
32:26.920 --> 32:30.920
Many people think, well the 16th Amendment, the 16th Amendment
32:30.920 --> 32:33.920
The 16th Amendment has nothing to do with whether or not you owe a tax
32:33.920 --> 32:37.920
The 16th Amendment was an enabling statute which we may have time to get into
32:37.920 --> 32:40.920
My book explains extensively the 16th Amendment
32:42.920 --> 32:46.920
Whether you owe a tax is based upon the current Internal Revenue
32:46.920 --> 32:49.920
And this is the 1998 edition of the Internal Revenue Code
32:49.920 --> 32:52.920
I think I'm the nation's leading seller of the Internal Revenue Code
32:52.920 --> 32:56.920
I believe if you- and we tab it and we color code it and I highlight it
32:56.920 --> 32:59.920
And I believe if anybody has a confrontation with the IRS
32:59.920 --> 33:01.920
The best thing is to go in with the code
33:03.920 --> 33:06.920
Title 26, thank you, Title 26
33:06.920 --> 33:11.920
Because when you go into an IRS office and you hold up a code to an IRS agent
33:11.920 --> 33:13.920
It's like holding up a cross to a vampire
33:14.920 --> 33:18.920
Now, 60 Minutes had a segment on the IRS last year
33:19.920 --> 33:23.920
And they had about ten agents, if you saw the show, in silhouette
33:23.920 --> 33:27.920
And the agents were saying how they're taught to lie and mislead the public
33:27.920 --> 33:29.920
They admitted that, well of course they're taught to lie and mislead
33:29.920 --> 33:32.920
Anytime an IRS agent tells you you're required to pay
33:33.920 --> 33:38.920
So much in taxes, John Ensign already said there's no law that requires you to pay
33:38.920 --> 33:41.920
So all they can do is based on intimidation
33:41.920 --> 33:43.920
We go up there with a tape recorder and the law
33:43.920 --> 33:47.920
And they can't lie to us, so they're very fearful of people who know what we know
33:47.920 --> 33:50.920
They can't get away with those lies, what have you
33:50.920 --> 33:57.920
Now, but, here is proof positive
33:57.920 --> 34:01.920
And proof positive that most of the federal judges in this country
34:01.920 --> 34:05.920
I had the honor of being nominated for President of the United States
34:05.920 --> 34:08.920
At the Libertarian Convention in 1996
34:08.920 --> 34:11.920
And I said something, I said if the American public knew what was going on
34:11.920 --> 34:14.920
Practically every federal judge in the country would be behind bars
34:14.920 --> 34:18.920
That sounds inflammatory, it sounds irresponsible
34:18.920 --> 34:22.920
And on the rebroadcast, I said that during a debate between the candidates
34:22.920 --> 34:30.920
C-SPAN bleeped it out of the, so I have the honor of being bleeped out from a political convention
34:30.920 --> 34:32.920
You couldn't hear what I said
34:32.920 --> 34:34.920
Now, let me prove that to you
34:34.920 --> 34:37.920
If you take the Internal Revenue Code and you look in the index
34:37.920 --> 34:39.920
It has nothing to do with the 16th Amendment
34:39.920 --> 34:45.920
Because all taxes that are required to be paid are contained in the Internal Revenue Code
34:45.920 --> 34:48.920
Now, there's an index in this code
34:48.920 --> 34:52.920
And I just went to alcohol taxes, and you will see
34:52.920 --> 34:55.920
There are three subheadings
34:55.920 --> 34:58.920
Liability for, payment of, and penalties
34:58.920 --> 35:01.920
So if I were an alcohol, if I distilled alcohol
35:01.920 --> 35:04.920
And I could say, well, where am I liable for the tax?
35:04.920 --> 35:07.920
50, well, section 5143
35:07.920 --> 35:11.920
What section makes, requires me to pay it? 5142
35:11.920 --> 35:13.920
And penalties
35:13.920 --> 35:17.920
As a matter of fact, I have all of these red codes on my tab
35:17.920 --> 35:21.920
Covered taxes for which you're required to be paid
35:21.920 --> 35:25.920
For instance, section 5703 has to do with tobacco taxes
35:25.920 --> 35:27.920
Let me read what it says
35:27.920 --> 35:31.920
The manufacturer or importer of tobacco products and papers
35:31.920 --> 35:33.920
Shall be liable for the tax imposed
35:33.920 --> 35:37.920
And such taxes shall be paid on the basis of a return
35:37.920 --> 35:40.920
Now, you can ask any accountant or lawyer
35:40.920 --> 35:43.920
Show me where in the code there's a provision
35:43.920 --> 35:46.920
Where it says those people who have income
35:46.920 --> 35:51.920
Shall be liable for the tax and shall pay the tax on the basis of return
35:51.920 --> 35:52.920
It's not here
35:52.920 --> 35:54.920
And as a matter of fact, I've heard funny stories
35:54.920 --> 35:56.920
One man called my short wave show
35:56.920 --> 36:00.920
He said he went to his tax lawyer who had been doing his taxes
36:00.920 --> 36:01.920
With the code
36:01.920 --> 36:05.920
And he said, you know, I got NeuroShift's material
36:05.920 --> 36:08.920
He says, show me what law in here says I've got to pay the tax
36:08.920 --> 36:10.920
You know what the tax lawyer said?
36:10.920 --> 36:12.920
It's an unwritten law
36:12.920 --> 36:17.920
So my son Peter said, we'll ask him what year the unwritten law was enacted
36:17.920 --> 36:21.920
I myself, we had some fun with this on my radio show
36:21.920 --> 36:23.920
And I said, yeah, if you walked into his law library
36:23.920 --> 36:25.920
It'd be a bunch of empty shelves
36:25.920 --> 36:28.920
That's for all the unwritten laws that he keeps track of
36:28.920 --> 36:31.920
The fact of the matter is
36:31.920 --> 36:34.920
Here is tobacco taxes
36:34.920 --> 36:37.920
And you'll see in the tobacco tax section
36:37.920 --> 36:40.920
Liability for tax, penalties
36:40.920 --> 36:42.920
Penalties are very important
36:42.920 --> 36:44.920
There has to be a penalty section
36:44.920 --> 36:47.920
Because if there are no penalties, there's no law
36:47.920 --> 36:48.920
And penalties are very important
36:48.920 --> 36:53.920
For instance, suppose a municipality passed a law saying
36:53.920 --> 36:56.920
It's illegal to spin on a sidewalk
36:56.920 --> 36:57.920
But there's no penalty
36:57.920 --> 36:59.920
No fine, no imprisonment
36:59.920 --> 37:01.920
There has to be a penalty
37:01.920 --> 37:05.920
Now in the code, there's what we call occupational taxes
37:05.920 --> 37:07.920
And again, underoccupa-
37:07.920 --> 37:10.920
You know, if you met gun manufacturers, bookmakers
37:10.920 --> 37:13.920
Liability for, payment of, penalties
37:13.920 --> 37:15.920
Penalties are very important
37:15.920 --> 37:20.920
Now, in the code, there is an income tax section
37:20.920 --> 37:22.920
Here it is
37:22.920 --> 37:25.920
Now, if you go to the income tax section
37:25.920 --> 37:28.920
Here it is, the income tax section
37:28.920 --> 37:30.920
There are three columns
37:30.920 --> 37:35.920
And you will not find in there any entry
37:35.920 --> 37:40.920
For penalty, payment, or penalties
37:40.920 --> 37:42.920
Liability, rather
37:42.920 --> 37:47.920
There is no section for liability, payment, or penalties
37:47.920 --> 37:49.920
Now, what would that tell you?
37:49.920 --> 37:50.920
There is no law
37:50.920 --> 37:52.920
Now, this is very important
37:52.920 --> 37:53.920
Because we use this
37:53.920 --> 37:55.920
This is very important
37:55.920 --> 37:58.920
In the index here, we actually have a section
37:58.920 --> 38:01.920
That says liability for tax
38:01.920 --> 38:04.920
And you can see all the taxes for which you could be liable
38:04.920 --> 38:09.920
Occupational taxes, aviation fuel taxes, cigar excise taxes
38:09.920 --> 38:13.920
Distill spirits, employment taxes, firearms taxes
38:13.920 --> 38:17.920
Foreign insurance policy taxes, highway motor vehicle
38:17.920 --> 38:20.920
I know you're not going to believe me, so I'm going to ask this young lady right here
38:20.920 --> 38:24.920
To look through here and see if you can see an entry for income tax
38:31.920 --> 38:33.920
Not yet
38:33.920 --> 38:35.920
Nope
38:35.920 --> 38:37.920
So what does that tell you?
38:38.920 --> 38:40.920
That you can't be liable
38:40.920 --> 38:43.920
Okay, it's voluntary, but it's very important
38:43.920 --> 38:45.920
That is very important
38:45.920 --> 38:47.920
So there's no entry there for liability
38:47.920 --> 38:48.920
Liability
38:48.920 --> 38:50.920
Liability for tax
38:50.920 --> 38:52.920
So no one's liable, but that's very important
38:52.920 --> 38:54.920
I'm going to tell you why in a minute
38:54.920 --> 38:57.920
As a matter of fact, there is even another section in here
38:57.920 --> 39:00.920
Dealing with payment of tax
39:00.920 --> 39:04.920
And they list a number of taxes, but they don't list income taxes
39:04.920 --> 39:05.920
Okay
39:05.920 --> 39:07.920
Now remember I told you, remember the word liability
39:07.920 --> 39:09.920
I just showed you in the code liability
39:09.920 --> 39:13.920
And there was no provision for having an income tax liability
39:13.920 --> 39:15.920
That is very important
39:15.920 --> 39:17.920
Because, here's why
39:22.920 --> 39:25.920
Here is where the government actually tells you
39:25.920 --> 39:27.920
You don't have to pay income taxes
39:27.920 --> 39:30.920
They literally tell you that right in the 1040 booklet
39:30.920 --> 39:32.920
Because in a 1040 booklet
39:32.920 --> 39:36.920
I'm going to go back to the Privacy Act and Paperwork Reduction Act notice
39:36.920 --> 39:40.920
This is the only official page in a 1040
39:40.920 --> 39:45.920
All of the rest of the 1040 is designed to mislead you into thinking you have to pay the tax
39:45.920 --> 39:48.920
But officially the government has to
39:48.920 --> 39:52.920
There was a Privacy and Paperwork Reduction Act notice passed by Congress
39:52.920 --> 39:54.920
And what that said is this
39:54.920 --> 39:57.920
Any government agency that has a 1040 booklet
39:57.920 --> 39:58.920
And what that said is this
39:58.920 --> 40:02.920
Any government agency that asks you to give them information
40:02.920 --> 40:05.920
Number one must tell you whether giving the information is voluntary or mandatory
40:05.920 --> 40:08.920
Otherwise any bureaucrat can send you a letter saying tell us all of this stuff
40:08.920 --> 40:12.920
And how would you know whether you had to do it or not
40:12.920 --> 40:16.920
And they have to tell you whether giving the information is voluntary or mandatory
40:16.920 --> 40:20.920
And they've got to tell you what will happen to you if you don't give it
40:21.920 --> 40:26.920
And when they submit it to the
40:26.920 --> 40:31.920
They get what is known as an OMB number
40:31.920 --> 40:35.920
And I'll show you where it is on a tax return
40:35.920 --> 40:38.920
In my book on page 274
40:38.920 --> 40:41.920
You will see a zero return how I fill it up
40:41.920 --> 40:44.920
But up in the right hand corner of the tax return
40:44.920 --> 40:47.920
You'll see an OMB number right up there
40:47.920 --> 40:52.920
If you ever get a letter from the IRS or the government asking you for information
40:52.920 --> 40:57.920
If there's no OMB number on that document requesting information
40:57.920 --> 41:00.920
It is actually a bootleg document
41:00.920 --> 41:04.920
And in the law it's identified as a bootleg document
41:04.920 --> 41:07.920
In other words how would you know if some bureaucrat sends you a letter
41:07.920 --> 41:10.920
Whether you have to give them back the information
41:10.920 --> 41:13.920
No, if there's no OMB number on that document
41:13.920 --> 41:16.920
And if they don't tell you whether giving the information is voluntary or mandatory
41:16.920 --> 41:18.920
You can throw it in the ashcan
41:18.920 --> 41:23.920
Now to show you how fraudulent the Privacy Act
41:23.920 --> 41:27.920
And Paperwork Reduction Act notice in the 1040
41:27.920 --> 41:29.920
To show you how fraudulent it is
41:29.920 --> 41:32.920
Let's compare it to one that's honest
41:32.920 --> 41:35.920
And that's this form 730
41:35.920 --> 41:43.920
Form 730 is the return that bookmakers fill out to pay the federal wagering tax
41:43.920 --> 41:46.920
There is such a thing as if you're a bookmaker
41:46.920 --> 41:49.920
And you take in $100,000 worth of bets
41:49.920 --> 41:51.920
You're supposed to pay I think 2%
41:51.920 --> 41:56.920
And bookmakers pay a tax on their gross wagers
41:56.920 --> 42:00.920
Now when the tax was first passed about 25 years ago
42:00.920 --> 42:06.920
The Supreme Court ruled that the federal wagering tax on bookmakers was illegal
42:06.920 --> 42:10.920
Because while being a bookmaker wasn't a federal offense
42:10.920 --> 42:12.920
If a bookmaker paid the tax
42:12.920 --> 42:15.920
That information could be made available to the states
42:15.920 --> 42:18.920
And he could be prosecuted under state law for being a bookmaker
42:18.920 --> 42:26.920
So the Supreme Court declared initially the federal wagering tax unconstitutional
42:26.920 --> 42:28.920
So then in order to collect the tax
42:28.920 --> 42:35.920
What the government did is told the bookmakers that the information they provide cannot be used against them
42:35.920 --> 42:38.920
So right on the federal wagering tax return it says
42:38.920 --> 42:43.920
The information may not be used against the taxpayer in any criminal prosecution
42:43.920 --> 42:47.920
So what the government would have to do if we really wanted to make the payment of income tax compulsory
42:47.920 --> 42:49.920
Is say the information can't be used against you
42:49.920 --> 42:54.920
So that's proof there's a big difference between a compulsory tax that you have to pay
42:54.920 --> 42:56.920
If you have to give the government information
42:56.920 --> 42:59.920
You want to read it? Somebody may not believe me
42:59.920 --> 43:01.920
See what it says right there?
43:01.920 --> 43:04.920
May not be used against the taxpayer in any criminal proceeding
43:04.920 --> 43:06.920
Okay, now Leona Hemsley of course
43:06.920 --> 43:10.920
The first document the government introduced and used against her was a tax return
43:10.920 --> 43:15.920
Now Leona Hemsley was prosecuted because the government said she did not report on her tax return
43:15.920 --> 43:23.920
Some three million dollars that her businesses spent fixing up her house in Greenwich, Connecticut
43:23.920 --> 43:26.920
Therefore her tax return was fraudulent
43:26.920 --> 43:31.920
Now let me tell you very quickly how her lawyer could have stopped the prosecution
43:32.920 --> 43:36.920
In order to prosecute Leona Hemsley they had to put her tax return in
43:36.920 --> 43:40.920
Now only information voluntarily given can be used against you
43:40.920 --> 43:44.920
In other words suppose the government twisted my arm and I confessed to something
43:44.920 --> 43:46.920
Because they were going to break my arm off and I confessed
43:46.920 --> 43:49.920
Is that confession worth anything? No
43:49.920 --> 43:51.920
It was under duress
43:51.920 --> 43:54.920
Now Leona Hemsley believed that if she didn't file
43:54.920 --> 43:57.920
You believe if you didn't file you'd probably go to jail for not filing, is that right?
43:57.920 --> 43:59.920
That's what most people believe
44:00.920 --> 44:02.920
Yeah, most people believe that
44:02.920 --> 44:04.920
And I went to jail as a matter of fact for not filing
44:04.920 --> 44:06.920
A lot of other people went to jail for not filing
44:06.920 --> 44:10.920
As a matter of fact a number of people in New York in the Second Circuit Court
44:10.920 --> 44:13.920
The Second Circuit where Leona Hemsley was prosecuted
44:13.920 --> 44:18.920
The judges in the Second Circuit which is the worst circuit in the country
44:18.920 --> 44:23.920
Said that it's not a return unless it contains information from which a tax can be computed
44:23.920 --> 44:26.920
You see in those days I had filed Fifth Amendment returns
44:26.920 --> 44:29.920
I took the Fifth to all that information knowing it could be used against me
44:29.920 --> 44:33.920
Because there was a case in 1928 and Oliver Wendell Holmes said
44:33.920 --> 44:36.920
You could take the Fifth since all information could be used against you
44:36.920 --> 44:40.920
But modern judges disregard and they misstate what Oliver Wendell Holmes said
44:40.920 --> 44:45.920
What they said, what Oliver Holmes said is that you can only take the Fifth
44:45.920 --> 44:49.920
In connection with the source of your income
44:49.920 --> 44:52.920
But you had to report the income itself
44:52.920 --> 44:54.920
Now I want to show you how silly this is
44:54.920 --> 44:57.920
How many people know who Aldrich James is?
44:57.920 --> 45:03.920
He was the spy who worked for the CIA but was also a Russian spy
45:03.920 --> 45:08.920
And one year he got a million dollars from the Soviet Union
45:08.920 --> 45:11.920
Now a lot of people don't know but it was reported in a paper
45:11.920 --> 45:15.920
That Aldrich James was convicted not only of espionage but tax evasion
45:15.920 --> 45:20.920
Because he didn't pay taxes on the million dollars that he got from the Soviet Union
45:20.920 --> 45:26.920
Now how could Aldrich James have reported that money so he wouldn't go to jail for tax evasion?
45:26.920 --> 45:27.920
He would have had it reported
45:27.920 --> 45:31.920
So presumably Aldrich James who worked for the CIA would take his tax return
45:31.920 --> 45:36.920
And say, okay I got $75,000 from the CIA, whatever their salary is
45:36.920 --> 45:40.920
And I got a million dollars from the Soviet Union for selling them secrets
45:40.920 --> 45:44.920
Now could he have done that? Could he have?
45:44.920 --> 45:49.920
Well don't you think his bosses at the CIA would be out in the next day getting him for espionage?
45:49.920 --> 45:51.920
Well how could he have reported it?
45:51.920 --> 45:54.920
Now you know what our judges would say he could have done?
45:54.920 --> 45:57.920
He didn't have to report the source
45:57.920 --> 46:04.920
So presumably with Aldrich James according to our judges he said, I got a million dollars miscellaneous
46:04.920 --> 46:06.920
Fell out of the sky
46:06.920 --> 46:08.920
Yeah, well don't you think they'd be out in the next day?
46:08.920 --> 46:11.920
What do you mean miscellaneous? Where'd you get it?
46:11.920 --> 46:18.920
Well I had some cash stands in these, what do you call these out there markets, these flea markets
46:18.920 --> 46:22.920
And even if he wanted to pay the tax, what account would he write a check against?
46:22.920 --> 46:24.920
The whole thing is ridiculous
46:24.920 --> 46:29.920
And Pollard also who was a spy who sold secrets to Israel presumably
46:29.920 --> 46:32.920
He also was charged with tax evasion
46:32.920 --> 46:34.920
As well as espionage
46:34.920 --> 46:37.920
How could he pay the tax on the money he received?
46:37.920 --> 46:41.920
I'll show you how ridiculous, you know John Gotti, remember he was prosecuted for tax evasion
46:41.920 --> 46:44.920
Now how could Gotti, I suppose Gotti
46:44.920 --> 46:51.920
Spent three million dollars buying dope and he had, he got twenty million dollars for it
46:51.920 --> 46:56.920
But he had three assassins that wiped off, you know, he paid seventy five thousand to assassinate
46:56.920 --> 46:59.920
He had fifteen cops on the payroll
46:59.920 --> 47:02.920
What was he supposed to send everybody? A ten ninety?
47:02.920 --> 47:07.920
I mean how could he fill out a schedule C and report that illegally?
47:07.920 --> 47:11.920
And nobody bothers to point out how nonsense this all is
47:11.920 --> 47:16.920
Because suppose the US Congress, could the US Congress pass a law saying
47:16.920 --> 47:20.920
That if you commit a crime, you have to report the crime you committed
47:20.920 --> 47:23.920
And if you don't report the crime you committed, if we catch you
47:23.920 --> 47:29.920
We're going to prosecute you for the crime you committed and for the crime of not reporting the crime you committed
47:29.920 --> 47:32.920
Could the US Congress pass such a law? Of course not
47:32.920 --> 47:37.920
Well, how could they pass a law telling you you got to report money you may earn illegally?
47:37.920 --> 47:40.920
How can you report a legal income without admitting you committed a crime?
47:40.920 --> 47:42.920
There's no way you can report a legal income
47:42.920 --> 47:44.920
Now, which is voluntary
47:44.920 --> 47:48.920
So does that mean the law, does that mean that the law is wrong? The law is not
47:48.920 --> 47:52.920
No, because the law says you don't have to report either legal income or a legal income
47:52.920 --> 47:56.920
Could we have a law that says you got to report a legal income?
47:56.920 --> 47:59.920
It would be unconstitutional on its face
47:59.920 --> 48:02.920
Okay, so here is the tax return
48:02.920 --> 48:06.920
It's a form 730 and this is the Privacy Act notice
48:06.920 --> 48:08.920
That bookmakers get
48:08.920 --> 48:14.920
Now, will you verify that their Privacy Act notice sends no less
48:14.920 --> 48:19.920
You got to file a form 730, you got to file a form 730, and you got to file a form 730
48:19.920 --> 48:22.920
So bookmakers are told that they got to file a form 730
48:22.920 --> 48:25.920
If you look at the Privacy Act and a 1040
48:25.920 --> 48:29.920
There is no mention here you got to file a 1040, so how would you know you got to file one?
48:29.920 --> 48:31.920
Whoever told you you got to file
48:31.920 --> 48:34.920
You're going to find out that if you're required to file one
48:34.920 --> 48:38.920
The government has to send you a notice, a specific notice
48:38.920 --> 48:42.920
But if I ask people who told you you have to file a 1040
48:42.920 --> 48:45.920
Usually my father, he did it and he told
48:45.920 --> 48:48.920
Or I heard somebody, I heard a TV commentator said
48:48.920 --> 48:51.920
Hey, it's a tax deadline, you got to file your tax return
48:51.920 --> 48:54.920
But yeah, my friend, who are they?
48:54.920 --> 48:56.920
How would you know you got to file a 1040?
48:56.920 --> 48:59.920
Does the government tell you in the Privacy Act that you have to file a 1040?
48:59.920 --> 49:02.920
No, it's not there
49:02.920 --> 49:05.920
Now, in addition to everything
49:05.920 --> 49:08.920
On a form 730 which bookmakers use, it says
49:08.920 --> 49:15.920
You must file a form 730 and pay the tax on wagers under section 4401
49:15.920 --> 49:18.920
So they identify the specific law
49:18.920 --> 49:21.920
That where bookmakers have to pay the tax
49:21.920 --> 49:26.920
And later it says in section 4412 makes you liable
49:26.920 --> 49:30.920
So bookmakers are told the form they got to file
49:30.920 --> 49:33.920
The provision of the law requiring them to pay
49:33.920 --> 49:35.920
And the provision of the law that makes them liable
49:35.920 --> 49:39.920
And they're told that all information they provide can't be used against them
49:39.920 --> 49:42.920
Now, Americans on the other hand are told
49:42.920 --> 49:46.920
All the information you provide can be used against you
49:46.920 --> 49:50.920
In addition, there is no mention here that you got to file a 1040
49:50.920 --> 49:52.920
And now I'm going to show you there are three places on here
49:52.920 --> 49:55.920
Where the government tells you you don't have to file
49:55.920 --> 49:58.920
The first place is when they read you a Miranda warning
49:58.920 --> 50:02.920
The minute the government tells you we're going to use all this information against you
50:02.920 --> 50:05.920
That's tantamount to telling you you don't have to give us the information
50:05.920 --> 50:10.920
But let's see how the government deals with the question of liability and payment
50:10.920 --> 50:14.920
Does the government come out and say, hey, there's no law saying that you have to file
50:14.920 --> 50:20.920
No, what they have to do is confuse you into thinking there must be a law requiring you to file and pay
50:20.920 --> 50:23.920
So here's where they do it and they do it right here
50:23.920 --> 50:30.920
They say our legal right to ask for information is Internal Revenue Code Section 6001, 6011, and 6012
50:30.920 --> 50:33.920
And their regulations, now listen to this
50:33.920 --> 50:41.920
They say you must file a return or statement for any tax you are liable for
50:41.920 --> 50:43.920
You must file for any tax
50:43.920 --> 50:46.920
They don't say you must file an income tax return
50:46.920 --> 50:48.920
You must file for any tax you are liable for
50:48.920 --> 50:52.920
But they don't tell you the code section that makes you liable
50:52.920 --> 50:57.920
Now, as bookmakers have told the code section that makes them liable, Section 4412
50:57.920 --> 51:02.920
So they're telling you right here that you've got to file a return for any tax you are liable for
51:02.920 --> 51:03.920
Is that right?
51:03.920 --> 51:08.920
So now you go to the code and you look for liability for tax, right?
51:08.920 --> 51:11.920
And you find out what tax you might be liable for, right?
51:11.920 --> 51:13.920
Do you manufacture alcohol?
51:13.920 --> 51:16.920
So then you're not liable for alcohol taxes
51:16.920 --> 51:19.920
Do you manufacture cigars or cigarettes?
51:19.920 --> 51:22.920
How about yourself?
51:22.920 --> 51:25.920
You sell foreign insurance policies?
51:25.920 --> 51:29.920
How about tobacco products?
51:29.920 --> 51:34.920
Well, can you find an income tax there?
51:34.920 --> 51:36.920
You looked before and you couldn't find it
51:36.920 --> 51:42.920
So if the government tells you right here that you must file a return for any tax you are liable
51:42.920 --> 51:47.920
And you go to the code and you can't find where you're liable, what has the government just told you?
51:47.920 --> 51:48.920
You don't have to file
51:48.920 --> 51:49.920
You don't have to file
51:49.920 --> 51:51.920
Now, there's no liability
51:51.920 --> 51:53.920
Now, in other words, and I'll tell you something else
51:53.920 --> 51:58.920
None of these particular sections, Section 6001, 6011, 6012
51:58.920 --> 52:01.920
Have anything to do with income tax, as a matter of fact
52:01.920 --> 52:04.920
If they did, they would be in subtitle A
52:04.920 --> 52:11.920
You see, the income tax, the Internal Revenue Code is divided into subtitle A, B, C, D, E, and F
52:11.920 --> 52:14.920
Subtitle A has to do with income tax
52:14.920 --> 52:18.920
So any provision having to do with the payment of income tax would be in subtitle A
52:18.920 --> 52:21.920
None of these provisions are in subtitle A
52:21.920 --> 52:27.920
I know I digressed a little bit and I'm reminded I never finished explaining
52:27.920 --> 52:32.920
How Leona Hemsley's lawyers could have stopped her prosecution the first day it opened
52:32.920 --> 52:36.920
Because in order to prosecute Leona Hemsley, they had to get her tax return in
52:36.920 --> 52:42.920
And the only information you can use against anybody in a criminal trial is information given voluntarily
52:42.920 --> 52:45.920
Now, we all know that Leona Hemsley believed she was required to file
52:45.920 --> 52:48.920
As a matter of fact, I went to jail myself for not filing
52:48.920 --> 52:52.920
And the Second Circuit Court of Appeal in sustaining my conviction said
52:52.920 --> 52:57.920
That you have to file a return and give information to the government for which a tax can be computed
52:57.920 --> 53:01.920
Leona Hemsley might have even read about me going to jail for not filing
53:01.920 --> 53:03.920
So she believed she had to file
53:03.920 --> 53:05.920
And I'm sure her accountants and lawyers told her she had to file
53:05.920 --> 53:09.920
And she believed she was required to file, as most people believe
53:10.920 --> 53:13.920
So suppose her lawyer, when they went to introduce her tax return
53:13.920 --> 53:16.920
Said, well, Your Honor, Miss Hemsley introduced this
53:16.920 --> 53:19.920
She filed her return because she was required to file
53:19.920 --> 53:21.920
And therefore all the information is compelled
53:21.920 --> 53:24.920
And therefore it cannot be used against her
53:24.920 --> 53:28.920
What would the judge have had to rule in order to get a return in?
53:28.920 --> 53:30.920
He would have had to rule she filed voluntarily
53:30.920 --> 53:33.920
And then her lawyer could have said, yeah, but in the case of Rowan Schiff
53:33.920 --> 53:36.920
You said he was required to file unless it contained information
53:36.920 --> 53:39.920
The lawyer could have had four or five cases in the Second Circuit
53:39.920 --> 53:41.920
Where they said you're required to file
53:41.920 --> 53:45.920
He could have kept her return out and her trial would have collapsed
53:45.920 --> 53:47.920
She never would have gone to jail where she's a felon
53:47.920 --> 53:49.920
But why didn't her lawyer do that?
53:49.920 --> 53:52.920
Very simple, then the lawyers wouldn't have made the 10 million they made
53:52.920 --> 53:57.920
Because she went to trial and she had to file an appeal
53:57.920 --> 54:01.920
You mean to tell me that her lawyers didn't understand that they could have used that against her?
54:01.920 --> 54:04.920
But I told you the income tax supports half the lawyers in this country
54:04.920 --> 54:06.920
Not only tax lawyers but bankruptcy
54:06.920 --> 54:08.920
People go bankrupt because they have no money after they pay their income tax
54:08.920 --> 54:10.920
Divorces, commercial law
54:10.920 --> 54:12.920
And I'm saying if there were no income tax
54:12.920 --> 54:15.920
Half the lawyers in this country had to look for other jobs
54:15.920 --> 54:19.920
So that's how they could have stopped the Ona Hemsley's trial from taking
54:19.920 --> 54:22.920
It could have collapsed the first day it opened
54:22.920 --> 54:27.920
They used against the Ona Hemsley information that she was forced to divulge
54:27.920 --> 54:29.920
Just like putting somebody on a rack
54:29.920 --> 54:32.920
Getting the information from them and then using it against you
54:32.920 --> 54:34.920
That's our honest government
54:34.920 --> 54:39.920
Okay, now the government does here mention three code sections
54:39.920 --> 54:41.920
And this is of course all done to mislead you
54:41.920 --> 54:47.920
Because under the paperwork they're supposed to tell you if filing is voluntary or mandatory
54:47.920 --> 54:49.920
They don't have to give you all this gobbledygook
54:49.920 --> 54:51.920
They give you the gobbledygook to confuse you
54:51.920 --> 54:54.920
First of all, they use the phrase
54:54.920 --> 54:59.920
Our legal right to ask for information is internal revenue code section
54:59.920 --> 55:03.920
You think the government needs a law to ask me anything it wants
55:03.920 --> 55:04.920
Of course not
55:04.920 --> 55:06.920
Could you have a right to ask me anything you want
55:06.920 --> 55:07.920
Of course
55:07.920 --> 55:10.920
I'm not legally obligated to answer
55:10.920 --> 55:14.920
So the government wants the public to confuse their legal right to ask
55:14.920 --> 55:18.920
With your legal obligation to answer
55:18.920 --> 55:22.920
Of course the government has a legal right to ask for anything it wants
55:22.920 --> 55:24.920
The question is I'm not obligated to answer
55:24.920 --> 55:26.920
But they figure oh, our legal right to ask
55:26.920 --> 55:30.920
Is code section 6001, 6011, 6012
55:30.920 --> 55:34.920
Now another reason why the government does that is that they know nobody has an internal revenue code
55:34.920 --> 55:36.920
Nobody's going to check the section
55:36.920 --> 55:41.920
However, in my book I reproduce these three sections
55:41.920 --> 55:44.920
Now these three sections are very important
55:44.920 --> 55:48.920
Because again they tell you you don't have to file or pay income taxes
55:48.920 --> 55:51.920
Now when I put these sections in the book
55:51.920 --> 55:53.920
And this book was last up there
55:53.920 --> 55:57.920
And I think this book was, when I did the book myself
55:57.920 --> 56:00.920
These three sections are included in a chapter
56:00.920 --> 56:03.920
They included in chapter three entitled the internal revenue code
56:03.920 --> 56:05.920
A masterpiece of deception
56:05.920 --> 56:12.920
So frankly in trying to mislead the American public into believing they're required to file
56:12.920 --> 56:14.920
The government mentions three sections
56:14.920 --> 56:18.920
All of them have absolutely nothing to do with the payment of income tax and reliability
56:18.920 --> 56:26.920
As the letters of course from John Ensign and Congressman Burton have already established
56:26.920 --> 56:29.920
So here's how the government misleads the public
56:29.920 --> 56:33.920
They know you're not going to check these sections anyway
56:33.920 --> 56:35.920
But assuming you did
56:35.920 --> 56:39.920
When I wrote my book I went to these code sections
56:39.920 --> 56:41.920
And I started to read section 6001
56:41.920 --> 56:46.920
Now there are people here who didn't know the first thing about income tax when they came in
56:46.920 --> 56:52.920
Now you should have enough knowledge to be able to recognize
56:52.920 --> 56:57.920
Why a law the government tells you that applies income tax doesn't apply to income tax at all
56:57.920 --> 57:01.920
And how would you know that section 6001 doesn't apply to income tax?
57:01.920 --> 57:06.920
In a third word it says every person liable for any tax
57:06.920 --> 57:07.920
Liable for any tax
57:07.920 --> 57:12.920
So this could apply to bookmakers for the wagering tax, tobacco, but the word income tax
57:12.920 --> 57:14.920
The income doesn't even appear there
57:14.920 --> 57:17.920
So obviously it doesn't apply to income tax
57:17.920 --> 57:21.920
So a code section that they put in a 1040 booklet
57:21.920 --> 57:23.920
Which presumably applies to income tax
57:23.920 --> 57:25.920
Doesn't apply to income tax
57:25.920 --> 57:26.920
You know this is mail fraud
57:26.920 --> 57:28.920
You know when the government prosecutes people for mail fraud
57:28.920 --> 57:30.920
They wrote the book on mail fraud
57:30.920 --> 57:34.920
Okay, this is very important and we're going to come back to it again
57:34.920 --> 57:36.920
Let's go to the next section, section 6011
57:36.920 --> 57:40.920
How do you know that section 6011 doesn't apply to income tax?
57:40.920 --> 57:45.920
Read it, read the first line
57:45.920 --> 57:49.920
When required by regulations prescribed by the secretary
57:49.920 --> 57:52.920
Any person made liable for any tax
57:52.920 --> 57:55.920
Could you be made liable for income tax?
57:55.920 --> 57:57.920
I didn't get an answer yet
57:57.920 --> 57:59.920
Can you be made liable for income tax?
57:59.920 --> 58:01.920
No, we just checked
58:01.920 --> 58:05.920
So neither of these two sections apply to income tax
58:05.920 --> 58:08.920
So let's check the third section mentioned in the privacy
58:08.920 --> 58:10.920
Section 6012, you see it there
58:10.920 --> 58:15.920
It says now there's no mention of liability or payment in section 6012
58:15.920 --> 58:20.920
And all section 6012 says is that tax returns shall be made
58:20.920 --> 58:25.920
The word shall if you check a Black's Law dictionary is not permissive
58:25.920 --> 58:28.920
It can't be made, it can be interpreted as made
58:28.920 --> 58:31.920
And it doesn't say if you file you have to pay a tax
58:31.920 --> 58:35.920
Nor does it say if you don't what the penalty is
58:35.920 --> 58:39.920
In the Internal Revenue Code, if they tell you you have to do something
58:39.920 --> 58:41.920
Usually in the same code section
58:41.920 --> 58:45.920
They tell you, and if you don't do it, here are the penalties
58:45.920 --> 58:49.920
So nowhere in section 6012 are you told you have to pay the tax
58:49.920 --> 58:53.920
Nowhere in section 6012 are you told you're made liable for the tax
58:53.920 --> 58:55.920
Nor are there penalties for not filing
58:55.920 --> 59:00.920
And neither section 6001 and section 6011 even mentions income tax
59:00.920 --> 59:04.920
So none of the sections that the government puts in the Privacy Act
59:04.920 --> 59:06.920
Pertain at all to income tax
59:06.920 --> 59:09.920
And therefore the people who write this for government
59:09.920 --> 59:12.920
Should be prosecuted for mail fraud among other things
59:12.920 --> 59:15.920
Okay, but how can we use this section for our benefit?
59:15.920 --> 59:22.920
Now many of you, and people are going to watch the video, many people don't file
59:22.920 --> 59:26.920
We're going to show you how to file a zero return and try to get all the money back you paid
59:26.920 --> 59:28.920
But many people don't file
59:28.920 --> 59:32.920
And when I go around the country sometimes somebody will say to me, well I haven't filed
59:32.920 --> 59:35.920
And I ask them, well why haven't you filed?
59:35.920 --> 59:39.920
And an answer you can get is, well you know five years ago I got sick
59:39.920 --> 59:42.920
I didn't have the money to pay and I thought I was going to pay next year
59:42.920 --> 59:46.920
And I didn't get the money so I didn't file the following year and the following year
59:46.920 --> 59:49.920
And when I meet these people and I say to them
59:49.920 --> 59:51.920
And you worry about that fact that you haven't filed and paid
59:51.920 --> 59:55.920
And many of them say that's the last thing I think about when I go to bed at night
59:55.920 --> 59:57.920
And the first thing I think about in the morning
59:57.920 --> 01:00:01.920
And they're fearful, one of these days the IRS is going to catch them
01:00:01.920 --> 01:00:07.920
And a few dramatic times I've told people
01:00:07.920 --> 01:00:09.920
I say, well you know why you haven't filed?
01:00:09.920 --> 01:00:15.920
Because the secretary never sent you a notice that you had to file
01:00:15.920 --> 01:00:18.920
Now in the Internal Revenue Code, in section after section
01:00:18.920 --> 01:00:22.920
They always talk about the secretary, you'll always see the secretary
01:00:22.920 --> 01:00:24.920
That means the secretary of the treasury
01:00:24.920 --> 01:00:27.920
And in order for an IRS agent or anybody else
01:00:27.920 --> 01:00:30.920
They must have what is known as a delegation from the secretary
01:00:30.920 --> 01:00:32.920
To do what the law says to do
01:00:32.920 --> 01:00:34.920
But they never have a delegation of the authority
01:00:34.920 --> 01:00:37.920
But in any case, if you go to section 60.01
01:00:37.920 --> 01:00:40.920
If you drop down to the fifth line, let me read it
01:00:40.920 --> 01:00:45.920
It says, whenever in the judgment of the secretary it is necessary
01:00:45.920 --> 01:00:51.920
He may require any person by notice served upon such person or by regulation
01:00:51.920 --> 01:00:55.920
To make such return, render such statement and keep such records
01:00:55.920 --> 01:00:59.920
As the secretary deems sufficient to show whether or not
01:00:59.920 --> 01:01:02.920
Such person is liable for the tax under this title
01:01:02.920 --> 01:01:03.920
So what does this tell you?
01:01:03.920 --> 01:01:05.920
This tells you before you can
01:01:05.920 --> 01:01:09.920
If you have to file, you don't listen to some TV announcer saying
01:01:09.920 --> 01:01:11.920
You've got to file because it's a deadline
01:01:11.920 --> 01:01:14.920
You don't listen to your mother and father because they filed
01:01:14.920 --> 01:01:16.920
If you're supposed to file a tax return
01:01:16.920 --> 01:01:18.920
You're supposed to be served with a notice
01:01:18.920 --> 01:01:20.920
Technically that means by hand
01:01:20.920 --> 01:01:23.920
At the very least it's a certified letter
01:01:23.920 --> 01:01:25.920
This is not giving you notice
01:01:25.920 --> 01:01:28.920
So I tell those people who haven't filed
01:01:28.920 --> 01:01:33.920
Many people say it's voluntary or I object to the money
01:01:33.920 --> 01:01:35.920
The way it's spent, whatever
01:01:35.920 --> 01:01:40.920
No, the reason why you haven't filed is you never got a notice
01:01:40.920 --> 01:01:42.920
Now I went to jail for failing to file
01:01:42.920 --> 01:01:45.920
And most of the people who went to jail didn't know about that section
01:01:45.920 --> 01:01:48.920
I didn't know about that section because I never read into the section
01:01:48.920 --> 01:01:51.920
The minute I read every person liable I never bothered reading the rest of it
01:01:51.920 --> 01:01:55.920
It was only because I read a court decision
01:01:55.920 --> 01:01:57.920
In which they talked about giving notice
01:01:57.920 --> 01:01:59.920
I said, hey, wait a minute
01:01:59.920 --> 01:02:01.920
And I finally read it and I said, there it is
01:02:01.920 --> 01:02:03.920
You've got to be served with a notice
01:02:03.920 --> 01:02:06.920
So for those people who haven't filed in the past
01:02:06.920 --> 01:02:08.920
If anybody asks you, if you get a letter from the IRS
01:02:08.920 --> 01:02:10.920
Why haven't you filed? Which is what they do
01:02:10.920 --> 01:02:13.920
Say I never got a notice served to me by the secretary
01:02:13.920 --> 01:02:15.920
Pursuant to section 60-001
01:02:15.920 --> 01:02:17.920
Now there's another thing
01:02:17.920 --> 01:02:20.920
There's another thing that is not in the book
01:02:20.920 --> 01:02:23.920
Which I only discovered in the last six months
01:02:23.920 --> 01:02:27.920
And this is probably one of the most important discoveries I ever made
01:02:27.920 --> 01:02:29.920
Well, I was the one who discovered in 1983
01:02:29.920 --> 01:02:32.920
That there was no provision in the law requiring you to file
01:02:32.920 --> 01:02:35.920
Not requiring you to file, requiring you to pay the tax
01:02:35.920 --> 01:02:37.920
Or establishing a liability
01:02:37.920 --> 01:02:40.920
Those were tremendous discoveries
01:02:40.920 --> 01:02:42.920
And I'll tell you how I discovered it
01:02:42.920 --> 01:02:44.920
I'll tell you how I discovered it
01:02:44.920 --> 01:02:47.920
I'm going to go back to the wagering tax
01:02:47.920 --> 01:02:49.920
That I talked there, the bookmaker tax
01:02:49.920 --> 01:02:53.920
And the wagering tax is imposed in section 4401
01:02:53.920 --> 01:02:56.920
And it's only a page and a half
01:02:56.920 --> 01:02:59.920
And one day I'm reading the federal wagering tax
01:02:59.920 --> 01:03:01.920
It's only a page and a half
01:03:01.920 --> 01:03:03.920
And it says, a person is liable for taxes
01:03:03.920 --> 01:03:05.920
And each person who is engaged in the business of accepting wagers
01:03:05.920 --> 01:03:08.920
Shall be liable for and shall pay the tax
01:03:08.920 --> 01:03:11.920
And it says record requirements that they require
01:03:11.920 --> 01:03:15.920
And it says record requirements that they require to keep records
01:03:15.920 --> 01:03:17.920
And then it says for criminal penalties
01:03:17.920 --> 01:03:23.920
See subtitle F where they put the criminal penalties
01:03:23.920 --> 01:03:27.920
So I said, gee, it says any person liable for the tax shall pay the tax
01:03:27.920 --> 01:03:29.920
And they set up a requirement for records
01:03:29.920 --> 01:03:31.920
And I said, let me go to subtitle A here
01:03:31.920 --> 01:03:33.920
And see if I can find comparable sections
01:03:33.920 --> 01:03:35.920
And I couldn't find it
01:03:35.920 --> 01:03:37.920
That's when I discovered it
01:03:37.920 --> 01:03:38.920
There was no law making you liable
01:03:38.920 --> 01:03:40.920
There was no law requiring you to pay
01:03:40.920 --> 01:03:43.920
And there is no law requiring you to keep books and records for tax purposes
01:03:43.920 --> 01:03:46.920
You see all the blue tabs that I have here
01:03:46.920 --> 01:03:49.920
Set up record requirements for various kinds of taxes
01:03:49.920 --> 01:03:51.920
Tobacco taxes, wagering taxes
01:03:51.920 --> 01:03:54.920
But there's no blue tab in subtitle A
01:03:54.920 --> 01:03:57.920
So anyway, so the first thing we discovered
01:03:57.920 --> 01:04:00.920
So I just told you that the government tells you three times you don't have to file
01:04:00.920 --> 01:04:02.920
They tell you here
01:04:02.920 --> 01:04:04.920
Because they read your Miranda warning
01:04:04.920 --> 01:04:07.920
They tell you all the information you're going to give the government they can use against you
01:04:07.920 --> 01:04:10.920
That's tantamount to telling you you don't have to file
01:04:10.920 --> 01:04:13.920
They tell you you only have to file for a tax for which you're liable
01:04:13.920 --> 01:04:15.920
And you can't find out when you're liable
01:04:15.920 --> 01:04:19.920
And they also tell you by directing you to section 6001
01:04:19.920 --> 01:04:21.920
That you don't have to file unless you get a notice for the second
01:04:21.920 --> 01:04:27.920
Incidentally, what are the three most important sections of the Internal Revenue Code?
01:04:27.920 --> 01:04:29.920
There's about 1,500 sections
01:04:29.920 --> 01:04:31.920
But what are the three that are most important?
01:04:31.920 --> 01:04:35.920
The three mentioned by the government were 6001, 6011, and 6012
01:04:35.920 --> 01:04:39.920
Because those are the sections that they direct your attention to
01:04:39.920 --> 01:04:41.920
When we point out today
01:04:41.920 --> 01:04:43.920
We have litigation against the government
01:04:43.920 --> 01:04:46.920
And we point out that there's no law making us liable
01:04:46.920 --> 01:04:47.920
Requiring us to pay
01:04:47.920 --> 01:04:52.920
Some of the courts are saying well, section one of the code imposes a tax
01:04:52.920 --> 01:04:56.920
And section one of the code does impose an income tax
01:04:56.920 --> 01:05:01.920
But why is section one of the code unimportant with respect to the payment of the tax?
01:05:02.920 --> 01:05:05.920
The answer is if it was important, it'd be mentioned in the Privacy Act
01:05:05.920 --> 01:05:10.920
When you ask the government, well, tell me what law says I have to pay the tax
01:05:10.920 --> 01:05:14.920
They'll mention section 61, which attempts to define income, which doesn't do it
01:05:14.920 --> 01:05:16.920
But they'll mention other sections
01:05:16.920 --> 01:05:21.920
But all of these other sections that they mention, if they were relevant to the payment of income tax
01:05:21.920 --> 01:05:23.920
Would have to be mentioned in the Privacy Act
01:05:23.920 --> 01:05:27.920
So the only three sections the government directs your attention to
01:05:27.920 --> 01:05:30.920
Section 6001, 6011, 6012, and none of them
01:05:30.920 --> 01:05:33.920
Tell you you have to pay income taxes or file tax returns
01:05:33.920 --> 01:05:36.920
And as a matter of fact, they tell you if you're required to file
01:05:36.920 --> 01:05:38.920
The secretary has to send you a notice
01:05:38.920 --> 01:05:43.920
But there's another thing that they tell you, which I overlooked until about six or seven months ago
01:05:43.920 --> 01:05:45.920
I sell the Internal Revenue Code
01:05:48.920 --> 01:05:50.920
And these are the statutes
01:05:50.920 --> 01:05:52.920
And I always thought the statutes were important
01:05:53.920 --> 01:05:56.920
But you know what sections 6001 and 6011 tell you?
01:05:57.920 --> 01:05:58.920
Let me read it
01:05:58.920 --> 01:06:02.920
It says, every person liable for any tax imposed by this act shall keep records
01:06:02.920 --> 01:06:09.920
And shall comply with such rules and regulations as the secretary made from time to time prescribed
01:06:09.920 --> 01:06:12.920
Shall comply with rules and regulations
01:06:13.920 --> 01:06:16.920
It doesn't say statutes, rules, and regulations
01:06:16.920 --> 01:06:18.920
Now let's go to section 6011
01:06:19.920 --> 01:06:22.920
When required by regulations prescribed by the secretary
01:06:23.920 --> 01:06:26.920
What does the government tell you you have to comply with?
01:06:26.920 --> 01:06:29.920
Does the government tell you you have to comply with statutes?
01:06:30.920 --> 01:06:31.920
No
01:06:31.920 --> 01:06:33.920
Does the government tell you you have to comply with court decisions?
01:06:33.920 --> 01:06:35.920
Sometimes when you sue the government, you sue
01:06:36.920 --> 01:06:41.920
The way the game of law is practiced in the United States
01:06:41.920 --> 01:06:44.920
You will see lawyers like to cite one case after another
01:06:45.920 --> 01:06:49.920
To think that you have to conform and comply with all of these court decisions
01:06:50.920 --> 01:06:53.920
Is there anything in here that says you've got to comply with court decisions?
01:06:53.920 --> 01:06:57.920
What's the only thing you're told by the government you have to comply with?
01:06:57.920 --> 01:06:58.920
Regulations
01:06:58.920 --> 01:06:59.920
Regulations
01:06:59.920 --> 01:07:03.920
So if there is no regulation that says you have to pay the tax or turn over books and records
01:07:04.920 --> 01:07:06.920
Then you don't have to comply with anything
01:07:06.920 --> 01:07:08.920
Now, it's very important to understand regulations
01:07:09.920 --> 01:07:10.920
What's a regulation?
01:07:10.920 --> 01:07:11.920
Okay
01:07:12.920 --> 01:07:14.920
Congress passes a statute
01:07:15.920 --> 01:07:18.920
And then some government agency has to enforce the statute
01:07:18.920 --> 01:07:22.920
Now they enforce the statute based on the statute
01:07:23.920 --> 01:07:25.920
Based on regulations that they write
01:07:26.920 --> 01:07:29.920
So by really telling you that you have to comply with regulations
01:07:29.920 --> 01:07:32.920
They're really telling you you have to comply with the law
01:07:33.920 --> 01:07:37.920
However, there are three kinds of regulations
01:07:37.920 --> 01:07:38.920
This is very important
01:07:38.920 --> 01:07:43.920
I got a letter from the Treasury Department
01:07:47.920 --> 01:07:51.920
From Cheryl Kordek, Chief Assistant Section, Department of the Treasury
01:07:51.920 --> 01:07:53.920
Letters dated January 24, 1996
01:07:54.920 --> 01:07:58.920
Now, at this point I discovered that there were three kinds of regulations
01:07:58.920 --> 01:08:01.920
Only one kind had the force and effect of law
01:08:01.920 --> 01:08:05.920
And the IRS had no regulations that had the force and effect of law
01:08:05.920 --> 01:08:10.920
So I wanted them to tell me how you can tell whether a regulation had the force and effect of law
01:08:10.920 --> 01:08:12.920
So I could make it available to the public
01:08:12.920 --> 01:08:14.920
But they wouldn't tell me
01:08:14.920 --> 01:08:18.920
Proof that they didn't answer my letter, but they gave me enough information
01:08:18.920 --> 01:08:22.920
If you read the first paragraph
01:08:22.920 --> 01:08:26.920
Dear Mr. Schiff, this is in response to your January 4th letter
01:08:26.920 --> 01:08:31.920
Asking how you can tell what category a particular regulation falls
01:08:31.920 --> 01:08:33.920
I want, how can you tell?
01:08:35.920 --> 01:08:36.920
Now they don't tell me
01:08:36.920 --> 01:08:38.920
All they did is tell me what I already told them
01:08:38.920 --> 01:08:40.920
I can read you the letter, it says
01:08:40.920 --> 01:08:45.920
Regulations are authorized by Internal Revenue Code, Section 7805
01:08:45.920 --> 01:08:46.920
7805
01:08:46.920 --> 01:08:53.920
They constitute the primary source for guidance on the Treasury's position regarding the interpretation of the Code
01:08:53.920 --> 01:08:59.920
Treasury regulations have generally been classified into three broad categories
01:08:59.920 --> 01:09:02.920
Legislative, Interpretive and Procedural
01:09:02.920 --> 01:09:04.920
When I wrote to them I said
01:09:04.920 --> 01:09:09.920
You know, Treasury regulations are either legislative, interpretive or procedural
01:09:09.920 --> 01:09:12.920
How can I tell which one from the other?
01:09:12.920 --> 01:09:16.920
That's so that if an IRS agent ever handed me a regulation
01:09:16.920 --> 01:09:18.920
I said, well, that's not a legislator
01:09:18.920 --> 01:09:20.920
Because look at the next paragraph
01:09:20.920 --> 01:09:28.920
Legislative regulations are those for which the service is specifically authorized by the Code to prescribe the operating rules
01:09:28.920 --> 01:09:29.920
Listen to this
01:09:29.920 --> 01:09:34.920
Generally, legislative regulations have the force and effect of law
01:09:34.920 --> 01:09:39.920
Unless the regulation exceeds the scope of the delegated power
01:09:39.920 --> 01:09:41.920
And is contrary to the statute
01:09:41.920 --> 01:09:50.920
Interpretive regulations explain the service's position on various sections of the Code
01:09:50.920 --> 01:09:56.920
Although interpretive regulations do not have the force and effect of law
01:09:56.920 --> 01:10:00.920
The courts customarily accord them substantial weight
01:10:00.920 --> 01:10:01.920
Now ask yourself
01:10:01.920 --> 01:10:04.920
If this regulation has no force and effect of law
01:10:04.920 --> 01:10:07.920
How can the courts give them any weight at all?
01:10:08.920 --> 01:10:11.920
You see, the Constitution which I have here
01:10:11.920 --> 01:10:15.920
Says only Congress can make a law, can pass a law
01:10:15.920 --> 01:10:20.920
How can a government agency write a regulation which the courts can enforce as law?
01:10:20.920 --> 01:10:22.920
You see, what the American public doesn't know today
01:10:22.920 --> 01:10:25.920
Is that we are not governed by laws passed by Congress
01:10:25.920 --> 01:10:31.920
Largely we are governed by the regulations written by administrators and various government agencies
01:10:31.920 --> 01:10:33.920
Which technically don't have the force and effect of law
01:10:33.920 --> 01:10:37.920
And we are governed by court decisions in which federal judges have misstated the law
01:10:37.920 --> 01:10:41.920
And enforce as law their own erroneous decisions
01:10:41.920 --> 01:10:49.920
Now, procedural regulations are considered to be directive rather than mandatory
01:10:49.920 --> 01:10:51.920
And thus do not have the force and effect of law
01:10:51.920 --> 01:10:56.920
So, you are told, it's very important, you are told in sections 60.01 and 60.11
01:10:56.920 --> 01:10:58.920
That you only have to comply with regulations
01:10:58.920 --> 01:11:02.920
But now we know that there are three kinds of regulations
01:11:02.920 --> 01:11:07.920
And if I were to show you, if an IRS agent were to show you a regulation
01:11:07.920 --> 01:11:09.920
You would think that that has the force and effect of law
01:11:09.920 --> 01:11:13.920
Now, the Internal Revenue Code is not enforced
01:11:13.920 --> 01:11:16.920
Or the tax laws are not enforced on the basis of laws
01:11:16.920 --> 01:11:18.920
They are enforced on the basis of regulations
01:11:18.920 --> 01:11:23.920
Now, and the regulations are contained in what we call the Code of Federal Regulations
01:11:23.920 --> 01:11:31.920
It's 26 EFR and we are going to give you an excerpt from 26 EFR
01:11:31.920 --> 01:11:36.920
Now, if I were to, the regulations that implement the code
01:11:36.920 --> 01:11:42.920
Are about 16 separate, they are paperback volumes of varying thickness
01:11:42.920 --> 01:11:44.920
You can see them in a law library
01:11:44.920 --> 01:11:48.920
But if I were to pile the Code of Federal Regulations that implement this
01:11:48.920 --> 01:11:50.920
It would probably be a foot and a half
01:11:50.920 --> 01:11:53.920
So, presumably you have to go through all of that stuff
01:11:53.920 --> 01:11:56.920
And this before you know whether or not you own income tax
01:11:56.920 --> 01:11:58.920
To show you how nonsensical this is
01:11:58.920 --> 01:12:00.920
When you fill up your tank of gasoline
01:12:00.920 --> 01:12:02.920
You are going to pay federal gasoline tax, aren't you?
01:12:02.920 --> 01:12:04.920
You have to know anything, you don't swear on the penalty of perjury
01:12:04.920 --> 01:12:05.920
You just pay your tax
01:12:05.920 --> 01:12:08.920
If you buy anything that is imported into this country
01:12:08.920 --> 01:12:10.920
You are paying import duties, you are paying tax
01:12:10.920 --> 01:12:12.920
When you pay your phone bill, you pay the tax, you calculate it
01:12:12.920 --> 01:12:14.920
Do you swear on the penalty of perjury?
01:12:14.920 --> 01:12:17.920
Do you have to read statutes and regulations? Of course not
01:12:17.920 --> 01:12:21.920
This is part of the nonsense involved in the collection of income tax
01:12:21.920 --> 01:12:26.920
As a matter of fact, there is a principle known to every freshman law student
01:12:26.920 --> 01:12:28.920
And it is called void for vagueness
01:12:28.920 --> 01:12:30.920
You ever hear of that principle?
01:12:30.920 --> 01:12:34.920
Now, it rests on the other principle that persons are assumed to know the law
01:12:34.920 --> 01:12:37.920
But that assumes the law is knowledgeable
01:12:37.920 --> 01:12:40.920
If you can't understand the law, then the law is void
01:12:40.920 --> 01:12:41.920
It is unenforceable
01:12:41.920 --> 01:12:43.920
Nobody understands internal revenue, how can you understand this?
01:12:43.920 --> 01:12:46.920
If it were mandatory, it would be void for vagueness
01:12:46.920 --> 01:12:48.920
And any judge in this country knows that
01:12:48.920 --> 01:12:52.920
Yet they put people in jail for violating a law that nobody understands
01:12:52.920 --> 01:12:55.920
Even tax lawyers who go to school for an extra two or three years
01:12:55.920 --> 01:12:59.920
They come out, they have tax services that explain the law to them
01:12:59.920 --> 01:13:01.920
Well, how are you supposed to understand it?
01:13:01.920 --> 01:13:06.920
What the government is doing is using the enforcement provisions of the Constitution
01:13:06.920 --> 01:13:08.920
Of the Internal Revenue Code and the regulations
01:13:08.920 --> 01:13:11.920
That only apply to liquor, tobacco and firearms
01:13:11.920 --> 01:13:17.920
They are using that to extort income tax from the American public
01:13:17.920 --> 01:13:21.920
As I just mentioned a little while ago, the income tax is only the tip of the iceberg
01:13:21.920 --> 01:13:25.920
What we want to do is take back America from the politicians and the lawyers
01:13:25.920 --> 01:13:27.920
Who are basically running it
01:13:27.920 --> 01:13:30.920
And the average American is a slave
01:13:30.920 --> 01:13:32.920
Well, I want to mention this
01:13:32.920 --> 01:13:35.920
People don't know, the average American doesn't realize he's a slave
01:13:35.920 --> 01:13:39.920
But if we have studied, he's worse than a slave
01:13:39.920 --> 01:13:44.920
Because we have studied the actual, the books of the old slave plantations down south
01:13:44.920 --> 01:13:50.920
And 90% of the income of the slave, of the income of those plantations
01:13:50.920 --> 01:13:52.920
Went to support the slave population
01:13:52.920 --> 01:13:55.920
Slaves had to be fed, they had to be clothed, they had to be housed
01:13:55.920 --> 01:13:58.920
If they got sick, they were afraid of plagues
01:13:58.920 --> 01:14:02.920
You know, an average slave cost $800 then, which is like $8,000 today
01:14:02.920 --> 01:14:05.920
They had to be isolated and nurtured back to help
01:14:05.920 --> 01:14:08.920
Otherwise you're going to infect all of your slaves
01:14:08.920 --> 01:14:14.920
I'm not, it's not a pitch for slavery, but slavery is very uneconomic
01:14:14.920 --> 01:14:15.920
Because slaves don't work hard
01:14:15.920 --> 01:14:18.920
Because a hardworking slave is not going to get any money
01:14:18.920 --> 01:14:22.920
So we know that slaves only gave up 10% of their productivity
01:14:22.920 --> 01:14:27.920
Now serfs, all during the Middle Ages, who weren't slaves, but they were tied to the soil
01:14:27.920 --> 01:14:31.920
And they had to give the Lord of the Manor 25% of what they produced
01:14:31.920 --> 01:14:33.920
So slaves only gave up 10%
01:14:33.920 --> 01:14:36.920
Serfs only gave up 25%
01:14:36.920 --> 01:14:39.920
And Americans who think they're free give up 50%
01:14:39.920 --> 01:14:46.920
The average American is nothing but an income-generating machine for the bureaucratic political complex
01:14:46.920 --> 01:14:51.920
And what they do is, unfortunately, there are a lot of people who want something for nothing from the government
01:14:51.920 --> 01:14:55.920
And what the government has been doing is promising people who want something for nothing
01:14:55.920 --> 01:14:58.920
And going to regular wage earners and taxing their labor
01:14:58.920 --> 01:15:02.920
So there's two kinds of people, people who pay taxes and people who get subsidies
01:15:02.920 --> 01:15:05.920
And if you're paying taxes, you're just being used
01:15:05.920 --> 01:15:10.920
You're supporting another family who the government has promised four votes to get something for nothing
01:15:10.920 --> 01:15:13.920
Because all politicians do, of course, is take money from this guy and give it to him
01:15:13.920 --> 01:15:15.920
And that's all a legal incident
01:15:15.920 --> 01:15:18.920
Incidentally, it's all a legal
01:15:18.920 --> 01:15:20.920
I'm going to tell you why
01:15:20.920 --> 01:15:22.920
Because the government cannot tax you
01:15:24.920 --> 01:15:27.920
The Article 1, Section 8 of the Constitution says
01:15:27.920 --> 01:15:32.920
The Congress shall have the power to lay and collect taxes, duties imposed on excises
01:15:32.920 --> 01:15:38.920
To pay the debts and provide for the common defense and general welfare of the United States
01:15:38.920 --> 01:15:41.920
There are only three things the federal government can tax us for
01:15:41.920 --> 01:15:43.920
To pay the debts of the United States
01:15:43.920 --> 01:15:47.920
They can't tax me to pay his debt yet when you guarantee your mortgage and you can't pay it
01:15:47.920 --> 01:15:49.920
I'm paying off your mortgage
01:15:49.920 --> 01:15:52.920
Or suppose you get a student loan and you renege on it
01:15:52.920 --> 01:15:54.920
Technically, I'm going to pay because you went to
01:15:54.920 --> 01:15:56.920
So the government is taxing me to support him
01:15:56.920 --> 01:16:02.920
How about we're still paying farmers who are getting tobacco subsidies for not growing a product
01:16:02.920 --> 01:16:04.920
Which we're told we shouldn't even use anyway
01:16:04.920 --> 01:16:07.920
They're still getting subsidies for the REA
01:16:07.920 --> 01:16:12.920
Whatever, and how about when the government taxes us for the economic benefit of a firing government
01:16:12.920 --> 01:16:15.920
There's nothing in here that says the government can tax you
01:16:15.920 --> 01:16:18.920
They're only for the general welfare of the United States
01:16:18.920 --> 01:16:23.920
And it's the welfare of the United States, not the welfare of Tom, Dick, and Harry
01:16:23.920 --> 01:16:28.920
In other words, when the government puts up a weather station
01:16:28.920 --> 01:16:31.920
Or even puts up an embassy, it's for all Americans
01:16:31.920 --> 01:16:33.920
Some Americans may use it more than others
01:16:33.920 --> 01:16:36.920
But when the government taxes you and gives him a subsidy
01:16:36.920 --> 01:16:38.920
He's taxing you for his benefit
01:16:38.920 --> 01:16:41.920
Unconstitutional, and as a matter of fact, as long as I'm on it
01:16:41.920 --> 01:16:44.920
If you want to see what the government actually does with your money
01:16:44.920 --> 01:16:49.920
If you take a 1040 booklet, and in the back there's a pie chart
01:16:49.920 --> 01:16:51.920
Everybody forgets to look at it
01:16:51.920 --> 01:16:54.920
And if I were to say to you, how much money do you think the government spends
01:16:54.920 --> 01:16:56.920
How much in taxes that it collects
01:16:56.920 --> 01:16:58.920
Does it actually spend to run the government
01:16:58.920 --> 01:17:03.920
That is all of the administrative agencies, all the foreign embassies, the FBI, the courts
01:17:03.920 --> 01:17:08.920
What percentage of the federal budget do you think the government spends on running the government
01:17:08.920 --> 01:17:10.920
You want to make a guess
01:17:10.920 --> 01:17:11.920
Half
01:17:11.920 --> 01:17:12.920
Make a guess
01:17:12.920 --> 01:17:13.920
8%
01:17:13.920 --> 01:17:14.920
2%
01:17:14.920 --> 01:17:20.920
The government only spends 2% of what it collects to actually run the government
01:17:20.920 --> 01:17:23.920
Now, 20% is used for the defense budget
01:17:23.920 --> 01:17:26.920
For the Army, Navy, National Defense, and Veterans Affairs
01:17:26.920 --> 01:17:29.920
Now, I was in Army finance, and I can tell you
01:17:29.920 --> 01:17:34.920
The money that the Army wastes, and we heard about the $800 toilet seats
01:17:34.920 --> 01:17:37.920
But that's probably at least 25% inflated
01:17:37.920 --> 01:17:42.920
But if we take the defense budget, and what the government spends on running
01:17:42.920 --> 01:17:47.920
So the government only spends 22% of what it collects running the government and on defense
01:17:47.920 --> 01:17:49.920
Well, what are the other things the government spends money on
01:17:49.920 --> 01:17:54.920
Well, 15% is now interest on the national debt
01:17:54.920 --> 01:17:56.920
That shows you how irresponsible they were
01:17:56.920 --> 01:18:01.920
With all the money they wasted, they borrowed money to waste, and now we pay interest on the money that they wasted
01:18:01.920 --> 01:18:08.920
So, 22% is spent on legitimate government activity
01:18:08.920 --> 01:18:12.920
15% on interest on the national debt because they wasted so much
01:18:12.920 --> 01:18:19.920
Can you imagine if the average family paid 15% of their income on interest on money that they borrowed
01:18:19.920 --> 01:18:24.920
How could the government tell us how to run our businesses if they were so irresponsible
01:18:24.920 --> 01:18:28.920
That's 15% now of what they have to collect is just interest on the debt
01:18:28.920 --> 01:18:34.920
And incidentally today, the debt of the United States is greater than the collective debt of every other country in the world
01:18:34.920 --> 01:18:36.920
That's how big our debt is
01:18:36.920 --> 01:18:39.920
And when the government reports the debt, it's $5 trillion
01:18:39.920 --> 01:18:41.920
That's only the funded debt
01:18:41.920 --> 01:18:49.920
That doesn't include unfunded Social Security obligations, unfunded Veterans pensions, unfunded retirement benefits
01:18:49.920 --> 01:18:53.920
Which are probably twice as great as the funded debt
01:18:53.920 --> 01:18:59.920
So if you took the government's funded and unfunded obligations, it's probably $15 trillion
01:18:59.920 --> 01:19:03.920
Which is probably greater than all of the above-ground wealth
01:19:03.920 --> 01:19:09.920
The entire stock market is worth about $7 trillion
01:19:09.920 --> 01:19:13.920
And all of the above-ground wealth is reported at $8 or $9 or $10 trillion
01:19:13.920 --> 01:19:19.920
The government has put us into a hawk greater than all of our above-ground wealth
01:19:19.920 --> 01:19:22.920
I thought they were so concerned about the children
01:19:22.920 --> 01:19:26.920
Yeah, well anyway, all the rest are 60%
01:19:26.920 --> 01:19:28.920
The balance, let me go over this again
01:19:28.920 --> 01:19:34.920
2% to run the government, 20% to run the Army and Navy, 15% to service our debt
01:19:34.920 --> 01:19:38.920
All the rest are better than 60% are nothing more but transfer payments
01:19:38.920 --> 01:19:42.920
Where the government is literally taking money from you and giving it to somebody else
01:19:42.920 --> 01:19:44.920
Whether you call it Medicare, whether you call it Social Security
01:19:44.920 --> 01:19:49.920
See, they give nice names for social programs, Social Security Medicare
01:19:49.920 --> 01:19:53.920
You know, and physical human development
01:19:53.920 --> 01:19:57.920
None of these things, of course, are authorized by the Constitution
01:19:57.920 --> 01:20:02.920
And just to give you an idea, in Article 1, Section 9 of the Constitution
01:20:02.920 --> 01:20:06.920
The government is authorized to borrow money on the credit of the United States
01:20:06.920 --> 01:20:10.920
Incidentally, the Constitution was designed to limit the government's power
01:20:10.920 --> 01:20:15.920
Thomas Jefferson, 200 years ago, said, let us bind up government in the chains of the Constitution
01:20:15.920 --> 01:20:17.920
But who's binding them up?
01:20:17.920 --> 01:20:20.920
Now, here's what the Constitution says
01:20:20.920 --> 01:20:23.920
The government is authorized to borrow money
01:20:23.920 --> 01:20:27.920
Is there any provision here for the government to lend money or guarantee debt?
01:20:27.920 --> 01:20:33.920
No. So when the government borrows and guarantees debt, they're making you a guarantor
01:20:33.920 --> 01:20:36.920
They're making you the guarantor
01:20:36.920 --> 01:20:41.920
There is no provision in the Constitution for the government to guarantee debt
01:20:41.920 --> 01:20:47.920
And they do it and get away with it because nobody is enforcing the Constitution on the government
01:20:47.920 --> 01:20:50.920
Okay. Now, let me prove to you very quickly
01:20:50.920 --> 01:20:52.920
And this proves it in one document
01:20:52.920 --> 01:20:56.920
That what the government is doing is using the enforcement provisions of the Code
01:20:56.920 --> 01:20:59.920
That only deal with liquor, tobacco and firearms
01:20:59.920 --> 01:21:02.920
Because if you go to a law library, you will see
01:21:02.920 --> 01:21:04.920
They're called Code of Federal Regulations
01:21:04.920 --> 01:21:06.920
They're in paperback
01:21:06.920 --> 01:21:11.920
And you'll see number one, number two, number five
01:21:11.920 --> 01:21:14.920
They go all the way up
01:21:14.920 --> 01:21:17.920
And it's called CFR, Code of Federal Regulations
01:21:17.920 --> 01:21:22.920
Now, the regulations dealing with income tax are 26 CFR
01:21:22.920 --> 01:21:29.920
Those regulations dealing with liquor, tobacco and firearms are known as 27 CFR
01:21:29.920 --> 01:21:32.920
Now, if you look up a statute, remember, you have to obey the regulation
01:21:32.920 --> 01:21:38.920
So suppose you look up a statute and you want to see where the implementing regulation for that statute is
01:21:38.920 --> 01:21:40.920
You go to the Code of Federal Regulations
01:21:40.920 --> 01:21:43.920
You look up the statute, then they tell you where to go for the regulation
01:21:43.920 --> 01:21:47.920
Because remember, you're told to comply with regulations
01:21:47.920 --> 01:21:49.920
And now you know there are three kinds
01:21:49.920 --> 01:21:53.920
Now, the two most oppressive sections of the Internal Revenue Code
01:21:53.920 --> 01:21:58.920
Is the section that allows the government to seize property without a hearing
01:21:58.920 --> 01:22:01.920
Section 6331 of the Code, which we'll get into later
01:22:01.920 --> 01:22:10.920
And Section 7602 of the Code, which allegedly allows the IRS to summon you and bring down your books and records and audit you
01:22:10.920 --> 01:22:11.920
Okay?
01:22:11.920 --> 01:22:15.920
Section, when they send out a summons for you to bring your books and records
01:22:15.920 --> 01:22:20.920
They say, presume it's a Section 7602 and Section 6331
01:22:20.920 --> 01:22:24.920
Now, we want to see where the regulations that authorize them to do it
01:22:24.920 --> 01:22:29.920
Now, we see the regulations for seizures are in 27 Part 70
01:22:29.920 --> 01:22:35.920
The regulations that implements the seizure section has to do with liquor to back on firearms
01:22:35.920 --> 01:22:42.920
And the regulation that implements Section 7602, which allows them to audit you
01:22:42.920 --> 01:22:47.920
Again, is in 27 Parts 170, 296
01:22:47.920 --> 01:22:49.920
Now, this certain surprises you
01:22:49.920 --> 01:22:53.920
You see, everything is very simple if you understand that there's nothing wrong with the law
01:22:54.920 --> 01:22:57.920
Since there is no law requiring you to pay income taxes
01:22:57.920 --> 01:22:59.920
And there's no law making you liable
01:22:59.920 --> 01:23:00.920
The government was very careful
01:23:00.920 --> 01:23:02.920
They didn't pass any regulation
01:23:02.920 --> 01:23:06.920
How can they write a regulation compelling you to provide books and records
01:23:06.920 --> 01:23:11.920
And allowing the government to seize property in payment of a tax that doesn't exist?
01:23:11.920 --> 01:23:18.920
What the government has done is relied upon the duplicity of its own judges to disregard the law
01:23:18.920 --> 01:23:23.920
And the self-interest of accountants and lawyers, many of whom don't even know this anyway
01:23:23.920 --> 01:23:28.920
But even if they did know it, they have no financial interest in explaining it to you
01:23:28.920 --> 01:23:31.920
So that's how the government is relying on it
01:23:31.920 --> 01:23:41.920
Now, I just pointed out very clearly that the implementing regulations for both audits and seizures are in CFR 27
01:23:41.920 --> 01:23:50.920
However, if you brought up the question of regulations, an IRS agent could produce a regulation
01:23:50.920 --> 01:23:52.920
Let me give you an example
01:23:52.920 --> 01:23:55.920
A very important code section is Section 6303
01:23:55.920 --> 01:23:59.920
Which we're going to get to shortly when we get to assessments
01:23:59.920 --> 01:24:06.920
Section 6303 says that the government has to send you a notice and demand for payment before you have to give them any money anyway
01:24:06.920 --> 01:24:08.920
Now, nobody's ever got one
01:24:08.920 --> 01:24:12.920
See, you pay your taxes before you can get a notice and demand
01:24:12.920 --> 01:24:21.920
Now, you can see Section 6303 right here says the implementing regulation for that, again, is 27 CFR
01:24:21.920 --> 01:24:24.920
So, 70, Part 70
01:24:24.920 --> 01:24:29.920
So therefore, no IRS agent can actually send you a notice demanding payment
01:24:29.920 --> 01:24:33.920
Which again makes sense, if you understand the laws make sense
01:24:33.920 --> 01:24:38.920
And since there is no law requiring you to pay the tax, how can an IRS agent demand
01:24:38.920 --> 01:24:41.920
Let me just tell you before I even forget again, this is very important
01:24:41.920 --> 01:24:44.920
Let's put this all in context
01:24:44.920 --> 01:24:48.920
The IRS is an agency that has absolutely no enforcement powers
01:24:48.920 --> 01:24:51.920
They're strictly an administrative agency
01:24:51.920 --> 01:24:53.920
Let me say that again
01:24:53.920 --> 01:24:56.920
You can't deal with the IRS unless you know their actual function
01:24:56.920 --> 01:24:58.920
They're strictly an administrative agency
01:24:58.920 --> 01:25:03.920
And the only authority any IRS agent legally has is if you voluntarily want to pay the tax
01:25:03.920 --> 01:25:06.920
He can record the transaction and say you paid it
01:25:06.920 --> 01:25:09.920
But he has no authority to seize your property, disallow deductions
01:25:09.920 --> 01:25:11.920
He has no authority to do any of that
01:25:11.920 --> 01:25:16.920
Why do you think he doesn't have any authority to do any of that?
01:25:16.920 --> 01:25:19.920
Because there's no law that says you got to pay income taxes
01:25:19.920 --> 01:25:22.920
And if the laws are okay, as I just said, how could he have
01:25:23.920 --> 01:25:28.920
Is there a law allowing IRS agents to subpoena you in connection with the federal kissing tax?
01:25:28.920 --> 01:25:33.920
Can the IRS put a lien on your property in connection with the federal kissing tax?
01:25:33.920 --> 01:25:35.920
Why not?
01:25:35.920 --> 01:25:37.920
Because there's no federal kissing tax
01:25:37.920 --> 01:25:39.920
Well, there's no income tax either
01:25:39.920 --> 01:25:41.920
You see, you got to get this
01:25:41.920 --> 01:25:44.920
You see, what I'm dealing with with some people is cognitive dissonance
01:25:44.920 --> 01:25:49.920
The magnitude of the swindle involved in the income tax is so great, is so overwhelming
01:25:49.920 --> 01:25:53.920
That you almost can't believe it could have taken place
01:25:53.920 --> 01:25:56.920
But the media has done such a good job of brainwashing all of us
01:25:56.920 --> 01:25:57.920
Exactly
01:25:57.920 --> 01:25:59.920
Now, let me just show you something
01:25:59.920 --> 01:26:07.920
Remember I told you when we went to the exhibit saying it to three kinds of regulations
01:26:07.920 --> 01:26:12.920
I wrote to the Treasury Department for them to tell me how you can tell the difference
01:26:12.920 --> 01:26:13.920
I did about two follow-ups
01:26:13.920 --> 01:26:14.920
They wouldn't tell me
01:26:14.920 --> 01:26:16.920
Of course I knew how to tell the difference
01:26:16.920 --> 01:26:20.920
But I wanted a letter from them making it easy
01:26:20.920 --> 01:26:23.920
Now let me show you how you can tell the difference
01:26:23.920 --> 01:26:33.920
The next exhibit are the regulations that apply to section 6303
01:26:33.920 --> 01:26:38.920
Now, when we went into the Code of Federal Regulations 27
01:26:38.920 --> 01:26:48.920
It said that the regulation for sending out a notice in demand is in 27 CFR, means Code of Part 70
01:26:48.920 --> 01:26:52.920
Well, you'll notice on this exhibit you'll see two regulations
01:26:52.920 --> 01:26:57.920
One from 27 CFR, which is having to do with liquor to back when firearms
01:26:57.920 --> 01:27:03.920
And the other regulation is in 26 CFR, which has to do with income tax
01:27:03.920 --> 01:27:07.920
Now, if you look at the regulation that's in 27 CFR
01:27:07.920 --> 01:27:11.920
Which you were directed to by the parallel table of authorities
01:27:11.920 --> 01:27:15.920
Here's how you can tell if a regulation has the force and effect of law
01:27:15.920 --> 01:27:21.920
If they show you that the authority for the regulation is a statute
01:27:21.920 --> 01:27:25.920
Now you look at the bottom of the regulation and you'll see right here
01:27:25.920 --> 01:27:32.920
Here's the regulation and on the bottom you see 26 USC 6303 and 6521
01:27:32.920 --> 01:27:36.920
Those are statutes. USC stands for the United States Code
01:27:36.920 --> 01:27:40.920
And that means Title 26 is the Internal Revenue Code
01:27:40.920 --> 01:27:48.920
And the statute that this regulation implements are two laws
01:27:48.920 --> 01:27:51.920
Section 6303, section 7521
01:27:51.920 --> 01:27:58.920
So the Treasury Department is saying, look, we are writing this regulation to implement these two statutes
01:27:58.920 --> 01:28:03.920
Now, this is what for the use of people at the Bureau of Alcohol, Tobacco and Firearms
01:28:03.920 --> 01:28:05.920
Which has enforcement powers
01:28:05.920 --> 01:28:09.920
Since you are legally required to pay liquor, tobacco and firearms
01:28:09.920 --> 01:28:12.920
People who work for the BATF, they're allowed to carry guns
01:28:12.920 --> 01:28:14.920
IRS agents are not authorized to carry guns
01:28:14.920 --> 01:28:17.920
Even though special agents do carry guns
01:28:17.920 --> 01:28:19.920
By statute, they're not authorized to carry guns
01:28:19.920 --> 01:28:21.920
Because they're only an administrative agency
01:28:21.920 --> 01:28:23.920
Have no enforcement powers
01:28:23.920 --> 01:28:29.920
So here you can see a regulation which is a legislative regulation
01:28:29.920 --> 01:28:33.920
Now, suppose an IRS agent said, well, we've got a regulation too
01:28:33.920 --> 01:28:38.920
Now, according to the parallel table of authority, they don't have a regulation
01:28:38.920 --> 01:28:41.920
But they can pull out one and it's shown right here
01:28:41.920 --> 01:28:45.920
In the right-hand side of this exhibit
01:28:45.920 --> 01:28:49.920
Now here's the regulation, right?
01:28:49.920 --> 01:28:52.920
What's the authority for the regulation?
01:28:52.920 --> 01:28:56.920
There isn't any
01:28:56.920 --> 01:28:58.920
No authority
01:28:58.920 --> 01:29:01.920
So what kind of a regulation is it? Is it a legislative regulation?
01:29:01.920 --> 01:29:05.920
No, it therefore must either be an interpretive or procedural
01:29:05.920 --> 01:29:08.920
Does it have any force and effect of law? No
01:29:08.920 --> 01:29:11.920
So you know what you can tell them to do with that regulation
01:29:11.920 --> 01:29:14.920
But, alright, this is a family show
01:29:14.920 --> 01:29:16.920
So I won't go on
01:29:16.920 --> 01:29:19.920
Okay, so there you have it
01:29:22.920 --> 01:29:26.920
Okay, now, as I mentioned earlier
01:29:26.920 --> 01:29:31.920
Reader's Digest in the March 1997 issue
01:29:31.920 --> 01:29:34.920
Pointed out that the IRS seized 3 million paychecks
01:29:34.920 --> 01:29:36.920
The IRS seized houses
01:29:36.920 --> 01:29:38.920
They seized bank accounts
01:29:38.920 --> 01:29:41.920
Now obviously, as you already know, that all such seizures are illegal
01:29:41.920 --> 01:29:44.920
Since there is no law making anybody liable for tax
01:29:44.920 --> 01:29:46.920
No law requiring anybody to pay
01:29:46.920 --> 01:29:49.920
How can the government legally seize property?
01:29:49.920 --> 01:29:52.920
Especially since the due process clause of the Constitution says
01:29:52.920 --> 01:29:55.920
You can't take anybody's property except pursuant to due process of law
01:29:55.920 --> 01:29:57.920
Which means a hearing
01:29:57.920 --> 01:30:00.920
Now, actually
01:30:00.920 --> 01:30:02.920
When the IRS seizes property
01:30:02.920 --> 01:30:08.920
They seize property in violation of both federal law and state law
01:30:08.920 --> 01:30:13.920
In Title 28, which is called the Code of Civil Procedure
01:30:13.920 --> 01:30:17.920
In Title 28, starting at Section 3001
01:30:17.920 --> 01:30:19.920
Section 3001
01:30:19.920 --> 01:30:22.920
You have what is called the Federal Debt Collection Procedures Act
01:30:22.920 --> 01:30:26.920
And in that act, it simply says only U.S. Marshals can seize property
01:30:26.920 --> 01:30:29.920
And they need court orders
01:30:29.920 --> 01:30:31.920
And they need writs of attachment
01:30:31.920 --> 01:30:33.920
And when the IRS seizes property
01:30:33.920 --> 01:30:36.920
They seize property in violation of the garnishment laws of every state
01:30:36.920 --> 01:30:38.920
Let me explain
01:30:38.920 --> 01:30:40.920
The fact that you have private property
01:30:40.920 --> 01:30:43.920
And laws that were designed to protect property
01:30:43.920 --> 01:30:46.920
If it wasn't for property, I don't know whether we have laws
01:30:46.920 --> 01:30:49.920
Now, laws are designed to protect your property
01:30:49.920 --> 01:30:52.920
That's the whole purpose of law
01:30:52.920 --> 01:30:54.920
Going back to the cavemen
01:30:54.920 --> 01:30:58.920
The biggest, the strongest caveman can go and take your boner, your this
01:30:58.920 --> 01:31:02.920
So laws had to be enacted to protect your property
01:31:02.920 --> 01:31:05.920
So somebody just can't come and take it from you
01:31:05.920 --> 01:31:10.920
However, some people should be legally entitled to your property
01:31:10.920 --> 01:31:13.920
They might have injured you, breached your contract
01:31:13.920 --> 01:31:16.920
So every state has what we call garnishment laws
01:31:16.920 --> 01:31:20.920
It explains how some third party can get to your property
01:31:20.920 --> 01:31:22.920
Now, in all of the states that have garnishment laws
01:31:22.920 --> 01:31:24.920
They say before any third party
01:31:24.920 --> 01:31:27.920
And it doesn't say with the exception of the United States government
01:31:27.920 --> 01:31:31.920
Before any third party can take your property
01:31:31.920 --> 01:31:33.920
They A, have to take it to court
01:31:33.920 --> 01:31:35.920
They have to have a court order
01:31:35.920 --> 01:31:38.920
And then the court has to issue what is known as a writ of attachment
01:31:38.920 --> 01:31:40.920
Or a writ of garnishment
01:31:40.920 --> 01:31:43.920
A writ of garnishment is when they go to a third party
01:31:43.920 --> 01:31:47.920
Who may owe you money like a bank or an employer
01:31:47.920 --> 01:31:50.920
A writ of attachment is when they want to take your car
01:31:50.920 --> 01:31:53.920
They want to attach something you already have in your house
01:31:53.920 --> 01:31:57.920
Now, the IRS never has a court order
01:31:57.920 --> 01:32:00.920
And they have no writs of garnishment, no writs of attachment
01:32:00.920 --> 01:32:05.920
As I explained earlier, all IRS seizures are illegal
01:32:05.920 --> 01:32:10.920
Now, all IRS seizures, of course, start off from section 6331 of the code
01:32:10.920 --> 01:32:14.920
Which is shown on page 99
01:32:14.920 --> 01:32:17.920
And it starts off, if any person liable to pay any tax
01:32:17.920 --> 01:32:21.920
Neglects or refuses to pay within 10 days after notice and demand
01:32:21.920 --> 01:32:24.920
Now, you already know that since you can't be liable for the tax
01:32:24.920 --> 01:32:28.920
Section 6331 can't even apply to income tax
01:32:28.920 --> 01:32:32.920
And since I pointed out, there is no regulation that allows them
01:32:32.920 --> 01:32:35.920
To send out a notice and demand
01:32:35.920 --> 01:32:38.920
Section 6331 can't even apply
01:32:38.920 --> 01:32:41.920
It can only apply to certain taxes for which you're liable
01:32:41.920 --> 01:32:45.920
But let's assume it could apply
01:32:45.920 --> 01:32:49.920
The first time I saw a notice of levy is when a bank in Hampton, Connecticut
01:32:49.920 --> 01:32:54.920
Got a notice of levy and they turned over $10,000 to the federal government
01:32:54.920 --> 01:32:57.920
Up until that time, I didn't even realize that they could do this
01:32:57.920 --> 01:33:00.920
I thought that before they would take my property
01:33:00.920 --> 01:33:02.920
They had to have a court order
01:33:02.920 --> 01:33:06.920
As a matter of fact, going back years ago when I stopped paying income taxes
01:33:06.920 --> 01:33:10.920
People would say to me, well, do you have any money overseas or offshore?
01:33:10.920 --> 01:33:11.920
And I'd say no
01:33:11.920 --> 01:33:14.920
Well, because I didn't think the government could seize your property
01:33:14.920 --> 01:33:19.920
I figured I'd have to have a hearing and at that hearing I'd point out I'm not liable, there's no law
01:33:19.920 --> 01:33:24.920
But the first time my bank got a notice of levy and they sent my money to the government
01:33:24.920 --> 01:33:26.920
I was floored
01:33:26.920 --> 01:33:30.920
And I called some lawyers, friends of mine
01:33:30.920 --> 01:33:33.920
I said, how can they seize property without a court order?
01:33:33.920 --> 01:33:36.920
And they said, well, the IRS can do it for taxes
01:33:36.920 --> 01:33:40.920
I said, well, the due process clause of the Constitution says
01:33:40.920 --> 01:33:42.920
Well, you can't be deprived of property except for taxes
01:33:42.920 --> 01:33:47.920
They said, well, they can do it, they wouldn't give me any reason for it
01:33:47.920 --> 01:33:51.920
Well, so when I got the notice of levy
01:33:51.920 --> 01:33:59.920
Which is a document that is shown on page 107 of the Federal Mafia
01:33:59.920 --> 01:34:02.920
I read the first paragraph
01:34:02.920 --> 01:34:06.920
I did something that most people don't do since I had an internal revenue code
01:34:06.920 --> 01:34:10.920
And when I read it, I says, well, I knew it didn't apply to me right off the bat
01:34:10.920 --> 01:34:13.920
Because you could only apply to people for which you're liable
01:34:13.920 --> 01:34:17.920
But it said levy may be made upon the accrued salary or wages of any officer
01:34:17.920 --> 01:34:21.920
Or elected official of the United States, the District of Columbia
01:34:21.920 --> 01:34:25.920
Or any instrumentality of the United States
01:34:25.920 --> 01:34:28.920
By serving a notice of levy on the employer
01:34:28.920 --> 01:34:31.920
Well, it was obvious that the employer here was the United States
01:34:31.920 --> 01:34:37.920
And I said to myself, well, how can a statute having to do with levy
01:34:37.920 --> 01:34:44.920
Why does it single out a government employer and a particular asset
01:34:44.920 --> 01:34:46.920
Belonging to that employee, rather
01:34:46.920 --> 01:34:49.920
Why does it single out a government employee?
01:34:49.920 --> 01:34:53.920
And I couldn't understand why it was there, but I know nothing is an accident
01:34:53.920 --> 01:35:02.920
Why does section 6331, when it talks about levies, as I said, single out a government employee
01:35:02.920 --> 01:35:07.920
And only singles out a particular asset that they can take by a notice of levy
01:35:07.920 --> 01:35:12.920
And then section 6331B says to turn levy means to seize
01:35:13.920 --> 01:35:17.920
And after 20 minutes of struggling with this
01:35:17.920 --> 01:35:22.920
As a matter of fact, there were a few people in my living room at the time
01:35:22.920 --> 01:35:26.920
And we just couldn't figure it out, and then suddenly a light went on in my head
01:35:26.920 --> 01:35:29.920
And the word levy means to seize
01:35:29.920 --> 01:35:33.920
Now the only property the government can't seize is property already in its possession
01:35:33.920 --> 01:35:35.920
Because it already has it
01:35:35.920 --> 01:35:41.920
So the government had to prepare a document where it can give to a person
01:35:41.920 --> 01:35:47.920
Telling that person, look, the money we owe you, we're going to apply against taxes that you owe us
01:35:47.920 --> 01:35:50.920
Because they can't seize it
01:35:50.920 --> 01:35:57.920
Now, a seizure, a levy, is between two people, an IRS agent who takes your car
01:35:57.920 --> 01:36:01.920
So there are only two people involved in what is known as a levy
01:36:01.920 --> 01:36:02.920
That is a seizure
01:36:02.920 --> 01:36:05.920
An IRS agent goes, takes your car, and gives you a notice of seizure
01:36:05.920 --> 01:36:10.920
But a notice of levy, which represents 90% of what the government uses to seize property
01:36:10.920 --> 01:36:14.920
They have to go to third parties, they go to banks, insurance companies
01:36:14.920 --> 01:36:16.920
They send the bank a notice of levy
01:36:16.920 --> 01:36:19.920
Now, what they do is they send the bank a document
01:36:19.920 --> 01:36:24.920
Which the law says only applies to the accrued wages and salary of a government employee
01:36:24.920 --> 01:36:27.920
And why does the bank turn it over?
01:36:27.920 --> 01:36:30.920
Because when the bank gets a notice of levy
01:36:30.920 --> 01:36:32.920
Here's what it looks like
01:36:32.920 --> 01:36:40.920
On the back of the notice of levy, the government presumably writes section 6331
01:36:40.920 --> 01:36:43.920
But they start with paragraph B
01:36:43.920 --> 01:36:45.920
They leave off paragraph A
01:36:45.920 --> 01:36:51.920
So the banker or the third party would not know that the notice of levy doesn't even apply to the bank
01:36:51.920 --> 01:36:58.920
In addition, on the back of the notice of levy, they write, surrender a property subject to levy
01:36:58.920 --> 01:37:03.920
Now, a levy, as I said, is a seizure, where an IRS agent goes and seizes property
01:37:03.920 --> 01:37:08.920
When the bank turns over money, it's not turning over money subject to levy
01:37:08.920 --> 01:37:11.920
It turns over money subject to a notice of levy
01:37:11.920 --> 01:37:22.920
Now, before there can be a levy, the law says a notice of seizure has to be given to the person whose property is being seized
01:37:22.920 --> 01:37:34.920
For instance, on page 114 of the Federal Mafia, you will see a notice of seizure
01:37:34.920 --> 01:37:41.920
In section 6502 of the Internal Emu Code, it says, the date on which a levy on property or rights to property is made
01:37:41.920 --> 01:37:44.920
Shall be the date on which a notice of seizure is given
01:37:44.920 --> 01:37:48.920
So there is no levy unless a notice of seizure is given
01:37:48.920 --> 01:37:53.920
Now, when an IRS agent goes to the bank, he doesn't seize the property, he doesn't give them a notice of seizure
01:37:53.920 --> 01:37:56.920
He gives them a notice of levy, and then the bank may write out a check
01:37:56.920 --> 01:37:58.920
So this is not a levy
01:37:58.920 --> 01:38:05.920
So, on the back of the notice of levy, where it says, what can happen to people who don't respond to a levy, it says
01:38:05.920 --> 01:38:15.920
Any person who fails to or refuses to surrender any property subject to levy, the only persons in possession of property subject to levy are IRS agents
01:38:15.920 --> 01:38:24.920
So, the penalties that are on the back of a notice of levy really only apply to IRS agents who may seize a car and not give it to the government
01:38:24.920 --> 01:38:27.920
So they are required to give the property that they seized to the government
01:38:27.920 --> 01:38:29.920
So let me tell you what the government does
01:38:29.920 --> 01:38:33.920
The government has prepared a document which it sends out to banks, insurance companies and third parties
01:38:33.920 --> 01:38:42.920
They leave off the document, that portion of the law, that might explain that this document doesn't apply to the situation
01:38:42.920 --> 01:38:49.920
And then they put on the back of the notice, provisions of the law that can't apply to third parties, only to IRS agents
01:38:49.920 --> 01:38:58.920
In other words, a notice of levy is a totally fraudulent document for which any IRS agent who sends it out should be arrested for mail fraud
01:38:58.920 --> 01:39:00.920
Now, what do you do about it?
01:39:00.920 --> 01:39:04.920
I'll show you how to stop and prevent notices of levy
01:39:04.920 --> 01:39:08.920
Suppose your bank gets a notice of levy
01:39:09.920 --> 01:39:13.920
Now, if you look at section 6331, it says,
01:39:13.920 --> 01:39:22.920
If any person liable to pay any tax, neglects or refuses to pay after 10 days, the secretary shall send out a notice
01:39:22.920 --> 01:39:27.920
It doesn't say the IRS can send out a notice, it says the secretary
01:39:27.920 --> 01:39:33.920
Now, notices of levy are not sent out by the secretary, it's Bob Rubin
01:39:33.920 --> 01:39:37.920
Now, what you want to do, the minute your bank gets a notice of levy
01:39:37.920 --> 01:39:41.920
or third party, you give your bank an affidavit
01:39:41.920 --> 01:39:45.920
We have prepared this affidavit, it's in our lien and levy packet
01:39:45.920 --> 01:39:52.920
And you tell the bank that the person who sent out the notice of levy was not authorized to send it out
01:39:52.920 --> 01:39:57.920
You give them an affidavit saying, and then with another letter we prepare
01:39:57.920 --> 01:40:01.920
You ask the bank to write to the IRS agent who sent it
01:40:01.920 --> 01:40:09.920
and ask him for his delegation of authority from the secretary to him to send out the notice of levy
01:40:09.920 --> 01:40:14.920
Because you can point out to the bank, it says the secretary shall send out a notice of levy
01:40:14.920 --> 01:40:18.920
It doesn't say the IRS, it doesn't say any particular agent
01:40:18.920 --> 01:40:21.920
And you give the bank your sworn affidavit
01:40:22.920 --> 01:40:28.920
Now, the bank has a fiduciary obligation to treat your affidavit seriously
01:40:28.920 --> 01:40:36.920
So the IRS uses a notice of levy to seize property from banks, insurance companies, brokerage firms
01:40:36.920 --> 01:40:38.920
And you'll get a copy of the notice of levy
01:40:38.920 --> 01:40:42.920
The first thing you do is you give the bank or the third party an affidavit
01:40:42.920 --> 01:40:45.920
You say, be acknowledged that I, the understie being a legal agent
01:40:45.920 --> 01:40:49.920
And you say, revenue officer, so and so, whoever signed the notice of levy
01:40:49.920 --> 01:40:58.920
was never authorized by the secretary of the treasurer pursuant to 26 U.S.C. 6331 to send out such a notice
01:40:58.920 --> 01:41:02.920
Now, when you give them that affidavit, that's a sworn affidavit
01:41:02.920 --> 01:41:05.920
Now, a sworn statement takes precedent over an unsworn statement
01:41:05.920 --> 01:41:07.920
The notice of levy is not sworn to
01:41:07.920 --> 01:41:09.920
Now, the bank is duty bound
01:41:09.920 --> 01:41:15.920
You also give the bank a letter pointing out that I am writing in connection with the above notice of levy
01:41:15.920 --> 01:41:17.920
you received from revenue agent, put his name in
01:41:17.920 --> 01:41:22.920
I have enclosed with this letter my affidavit attesting to the fact that revenue officer so and so
01:41:22.920 --> 01:41:25.920
is without delegated authority to send out such a notice
01:41:25.920 --> 01:41:31.920
Attached to my affidavit is internal revenue code section 6331
01:41:31.920 --> 01:41:34.920
The code section pursuant to which the notice was sent
01:41:34.920 --> 01:41:39.920
As you can see, it only says that it shall be lawful for the secretary to collect such tax
01:41:39.920 --> 01:41:44.920
And you're pointing out that you didn't get the notice of levy from the secretary
01:41:44.920 --> 01:41:49.920
And then we prepare a letter in which you ask the bank of third party
01:41:49.920 --> 01:41:52.920
just to send a notice to the agent who sent this out to you
01:41:52.920 --> 01:41:58.920
asking him from his delegation of authority to send out the notice
01:41:58.920 --> 01:42:03.920
As a matter of fact, here I have right here a delegation of authority
01:42:03.920 --> 01:42:08.920
Here's a delegation of authority that special agents have
01:42:08.920 --> 01:42:13.920
And you can see special agents are authorized to seize property used in violation of internal revenue laws
01:42:13.920 --> 01:42:19.920
In other words, the only delegation of authority that an IRS agent has is to seize a still
01:42:19.920 --> 01:42:23.920
To seize something used in violation of law
01:42:23.920 --> 01:42:25.920
As I said, they can seize a still
01:42:25.920 --> 01:42:28.920
But they can't seize money in payment of taxes
01:42:28.920 --> 01:42:32.920
Before they can seize your money in payment of taxes, they got to take you to court
01:42:32.920 --> 01:42:37.920
They got to get a judgment and then get either rid of attachment or rid of garnishment
01:42:37.920 --> 01:42:42.920
The fifth amendment to the United States Constitution doesn't say the government can deprive you of property
01:42:42.920 --> 01:42:44.920
except for taxes
01:42:44.920 --> 01:42:49.920
The government under the Federal Debt Collection Procedures Act must get a court order
01:42:49.920 --> 01:42:53.920
Now they've been getting away with it because the lawyers are so incompetent
01:42:53.920 --> 01:42:56.920
and because of the help they get from the federal judiciary
01:42:56.920 --> 01:42:57.920
But here's what you do
01:42:57.920 --> 01:43:02.920
The important thing is you give a sworn affidavit to the bank
01:43:02.920 --> 01:43:07.920
that that person is not authorized to have sent this out
01:43:07.920 --> 01:43:11.920
Now the bank or any third party has a fiduciary obligation
01:43:11.920 --> 01:43:14.920
to check and see whether the person is authorized
01:43:14.920 --> 01:43:18.920
Remember, a notice of levy is not a court order
01:43:18.920 --> 01:43:21.920
Now, normally you only have to respond to court orders
01:43:21.920 --> 01:43:26.920
and it will say, based upon the court orders you to turn this over
01:43:26.920 --> 01:43:29.920
and if you don't turn it over, then you're in contempt of court
01:43:29.920 --> 01:43:33.920
But a notice, trust me, a notice from an IRS agent
01:43:33.920 --> 01:43:35.920
you can just wrinkle up and throw in the ashcan
01:43:35.920 --> 01:43:40.920
What you want, as I said, I know an employer who got a notice of levy
01:43:40.920 --> 01:43:45.920
from the IRS and he called the IRS and he said, look, I got this notice of levy
01:43:45.920 --> 01:43:47.920
how come paragraph A was missing?
01:43:47.920 --> 01:43:49.920
And they hung up on him
01:43:49.920 --> 01:43:52.920
And he made two such phone calls and he just threw it away
01:43:52.920 --> 01:43:58.920
Now, if the bank turns over the money or if the third party turns over the money
01:43:58.920 --> 01:44:01.920
without a court order and without sending that letter
01:44:01.920 --> 01:44:04.920
without establishing whether or not the person is authorized, you sue the bank
01:44:04.920 --> 01:44:07.920
Now you can get triple damages for breach of contract
01:44:07.920 --> 01:44:11.920
You sue the bank, I don't care if it's... you sue them in a state court
01:44:11.920 --> 01:44:16.920
And the issue that you raise on your lawsuit is that they turned over the money
01:44:16.920 --> 01:44:19.920
to somebody who was not authorized to receive it
01:44:19.920 --> 01:44:24.920
And then the bank will have to bring in the IRS agent
01:44:24.920 --> 01:44:26.920
and he'll have to produce a delegation of authority
01:44:26.920 --> 01:44:29.920
which would have allowed him to send it out and he can't produce it
01:44:29.920 --> 01:44:35.920
Now, before I used to have a letter that we sent to the bank
01:44:35.920 --> 01:44:39.920
explaining that a notice of levy is not a levy
01:44:39.920 --> 01:44:45.920
that you don't have to honor it
01:44:45.920 --> 01:44:51.920
As a matter of fact, there are documents right in the IRS's revenue manual
01:44:51.920 --> 01:44:55.920
As a matter of fact, right in the book we explain here
01:44:55.920 --> 01:44:59.920
on page 112 of the Federal Mafia
01:44:59.920 --> 01:45:02.920
right out from the IRS's legal reference guide
01:45:02.920 --> 01:45:06.920
It says, where a notice of levy is served upon a third party
01:45:06.920 --> 01:45:08.920
and there is no response within ten days
01:45:08.920 --> 01:45:11.920
it is to be followed by a final demand
01:45:11.920 --> 01:45:16.920
And then it ends up, in the event that a final demand is not responded to
01:45:16.920 --> 01:45:19.920
a suit will ordinarily be required to reach the property
01:45:19.920 --> 01:45:23.920
A suit will be required. In other words, if the third party doesn't turn over the money
01:45:23.920 --> 01:45:25.920
sue them. We're going to have to sue them
01:45:25.920 --> 01:45:30.920
Now they won't. Basically what this says is if we can't intimidate the third party
01:45:30.920 --> 01:45:33.920
into turning over the money without a court order
01:45:33.920 --> 01:45:36.920
then we just won't get the property
01:45:36.920 --> 01:45:39.920
Now why do people turn over money to the IRS without a court order?
01:45:39.920 --> 01:45:42.920
Because the typical businessman is afraid to be audited
01:45:42.920 --> 01:45:45.920
and he thinks if he doesn't do what the IRS tells him, he'll be audited
01:45:45.920 --> 01:45:49.920
which basically is extortion under color of law
01:45:49.920 --> 01:45:51.920
Now one of the things I would say
01:45:51.920 --> 01:45:55.920
if you get any kind of a letter from the IRS saying you owe the money
01:45:55.920 --> 01:45:59.920
one of the things you can do is go up there with this notice
01:45:59.920 --> 01:46:03.920
and if you don't pay the amount of money, we're going to seize your property
01:46:03.920 --> 01:46:08.920
So I would go up there and I would say, well, remember we discussed under section 60.01 and 60.11
01:46:08.920 --> 01:46:11.920
you're told to comply with regulations
01:46:11.920 --> 01:46:15.920
Now you go up there and you say, okay, I got this letter from you telling me
01:46:15.920 --> 01:46:18.920
that if I didn't turn over my money, you're going to seize my property. Is that correct?
01:46:18.920 --> 01:46:22.920
Okay, I got my checkbook here. All I want you to do is show me the regulation
01:46:22.920 --> 01:46:26.920
that says I got to pay this and I'll be happy to write you a check right now
01:46:26.920 --> 01:46:31.920
Not unless you can show me a regulation that says I got to pay attention to what you tell me
01:46:31.920 --> 01:46:37.920
Show me the regulation and they won't have a regulation that has the force and effect of law
01:46:37.920 --> 01:46:41.920
Now if the IRS threatens to seize your property
01:46:41.920 --> 01:46:45.920
or you can trap the IRS agent several ways
01:46:45.920 --> 01:46:50.920
You can say, now let's say the IRS sends you a notice that if you don't pay this amount
01:46:50.920 --> 01:46:53.920
he's going to seize your property
01:46:54.920 --> 01:46:57.920
They send you a final notice prior to seizure
01:46:57.920 --> 01:47:01.920
You say to the IRS agent, okay, I want to pay this. What is my liability?
01:47:01.920 --> 01:47:05.920
And let's say he says you owe him $30,000 or whatever it is
01:47:05.920 --> 01:47:10.920
Is that what I'm liable for? Yes. But suppose I can't pay it
01:47:10.920 --> 01:47:15.920
What can you do to me? Well, the IRS say, well, we can seize your car, we can seize your house
01:47:15.920 --> 01:47:19.920
In other words, if I don't pay you a portion on this, you can seize my car?
01:47:19.920 --> 01:47:22.920
Yeah. Well, in that case, I'm certainly going to pay you
01:47:22.920 --> 01:47:26.920
Now you can actually take your checkbook and you start writing out your checkbook
01:47:26.920 --> 01:47:30.920
Who should I make the check payable? The Treasury Department or the Internal Revenue? You fill it up
01:47:30.920 --> 01:47:35.920
And you say, well, there's one thing. I want to make the check payable for 10 or 15,000
01:47:35.920 --> 01:47:40.920
I want to put the code section in here that makes me liable for the tax
01:47:40.920 --> 01:47:45.920
Now would you help me out? And you can open up your code right here
01:47:45.920 --> 01:47:50.920
Where it says liability for tax
01:47:50.920 --> 01:47:54.920
Here it is
01:47:54.920 --> 01:47:59.920
You would have it already tabbed and you say, you know, I'm having a problem here
01:47:59.920 --> 01:48:05.920
Finding it. You open the code section, you can see very clearly it says liability for tax
01:48:05.920 --> 01:48:10.920
Then you say, you tell me the code section. You just said I was liable for this tax
01:48:10.920 --> 01:48:15.920
And if I didn't pay it, you're going to seize my property
01:48:15.920 --> 01:48:20.920
Well, I'm going to pay you. Just tell me the code section that makes me liable
01:48:20.920 --> 01:48:25.920
He won't find it. So what do you mean you can say that?
01:48:25.920 --> 01:48:30.920
You just told me I was liable. I got it on tape. You told me I was liable and if I didn't pay you a tax for which I was
01:48:30.920 --> 01:48:35.920
You're going to seize my car? Bring your manager in here. Maybe he knows the code section
01:48:35.920 --> 01:48:40.920
Now he just told me and I got on tape that he was going to seize my property
01:48:40.920 --> 01:48:45.920
Unless I paid a tax for which I was liable. Now he can't even produce the law that made me liable
01:48:45.920 --> 01:48:50.920
You know what he just did? He broke the law and I got it on tape because the minute he does that
01:48:50.920 --> 01:48:55.920
Now I turn to the last tab here, which is 7214
01:48:55.920 --> 01:49:00.920
And as a matter of fact, I'd go up there and I'd photocopy this statute and I'd leave it with him
01:49:00.920 --> 01:49:05.920
Let me read you what section 7214 says
01:49:05.920 --> 01:49:10.920
It says offenses by officers and employees, unlawful acts of revenue, officers or agents
01:49:10.920 --> 01:49:15.920
It says any officer or employee of the United States in connection with any revenue laws who is guilty of any extortion
01:49:15.920 --> 01:49:20.920
or willful oppression under color of law or who not only demands other or greater sums than authorized by law
01:49:20.920 --> 01:49:25.920
shall be fined not more than $10,000 or imprisoned not more than five years
01:49:26.920 --> 01:49:31.920
So what do I have? I have on tape an IRS agent telling me he's going to seize my car if I don't pay this liability
01:49:31.920 --> 01:49:36.920
Then I ask him to produce the liability. He can't. What did he just do?
01:49:36.920 --> 01:49:41.920
He just violated this criminal statute and I could go right down to the U.S. Attorney's office and swear on a criminal complaint
01:49:41.920 --> 01:49:46.920
Instead what I would do is I would make a tape of that interview and send it to the district director
01:49:46.920 --> 01:49:51.920
and say I just went down and this is what your agent threatened me
01:49:52.920 --> 01:49:57.920
He's breaking the law. I was willing to pay if he could show me where I was liable
01:49:57.920 --> 01:50:02.920
He couldn't show me where I was liable. He violated section 7214 and if you bother me anymore
01:50:02.920 --> 01:50:07.920
I am going to charge you and him for violating section 7214
01:50:07.920 --> 01:50:12.920
So it's not that we are without weapons except that the American public doesn't know about section 7214
01:50:12.920 --> 01:50:17.920
and they assume that they're liable and they assume that IRS agents have the authority to do all this
01:50:17.920 --> 01:50:22.920
The other thing I will tell you is this. If an IRS agent attempts to take your car, seize anything
01:50:22.920 --> 01:50:27.920
You resist. You absolutely resist. If he goes to take your car you can tell him
01:50:27.920 --> 01:50:32.920
You put your hand on that car if he doesn't have a court order
01:50:32.920 --> 01:50:37.920
In rare cases, now this only has to do with income tax. This doesn't have to do with Bureau of Alcohol, Tobacco and Firearms
01:50:37.920 --> 01:50:42.920
Let me read from the IRS's own manuals which they violate all the time
01:50:43.920 --> 01:50:48.920
Listen to what it says. This is from the IRS's own legal reference guide. This is paragraph 332
01:50:48.920 --> 01:50:53.920
It says, during the course of administratively collecting a tax an occasion may arise
01:50:53.920 --> 01:50:58.920
where service of a levy or notice of levy is not adequate to seize property
01:50:58.920 --> 01:51:03.920
Listen to this. However, it cannot be emphasized too strongly that constitutional guarantees
01:51:03.920 --> 01:51:08.920
and individual rights must not be violated. Property should not be forcibly removed from the person of a tax payer
01:51:08.920 --> 01:51:13.920
So if they try to take your car and you shove them away, they cannot use force to take your car
01:51:13.920 --> 01:51:18.920
Such conduct may leave a revenue officer open to an action in trespass, assault and battery and conversion
01:51:18.920 --> 01:51:23.920
It says, if there is reason to suspect a failure to honor a levy or an interference
01:51:23.920 --> 01:51:28.920
the matter should be returned for legal action against the offending party
01:51:28.920 --> 01:51:33.920
Let me tell you how the IRS wants to seize your car. The IRS wants to go up, bring your car up, seize your car
01:51:33.920 --> 01:51:38.920
Now what they actually do many times is they stop and they pick up, they stop at the sheriff's office
01:51:38.920 --> 01:51:43.920
or the police station and they say, look, I have a guy here, I have this notice of seizure
01:51:43.920 --> 01:51:48.920
I got to serve and we think there's a problem here. Now the policeman or the sheriff
01:51:48.920 --> 01:51:53.920
he wants to stay on a good side of the IRS too. And he thinks what he has is something like a court order
01:51:53.920 --> 01:51:58.920
He doesn't. Now if it was a legal document, he would have a legal document
01:51:58.920 --> 01:52:03.920
he knows he doesn't. So he cons the local police and the local sheriff into accompanying him
01:52:03.920 --> 01:52:08.920
Now ring your doorbell. Now the person comes to the door and the IRS says, I have a notice of seizure for your car
01:52:08.920 --> 01:52:13.920
And the person sees a policeman there and he's afraid to do anything. So he doesn't do anything
01:52:13.920 --> 01:52:18.920
and he doesn't resist. The person says, give me the keys. And many times he'll actually give them the keys
01:52:18.920 --> 01:52:23.920
or they'll call a tow truck and he'll give them the keys and he'll give them the keys
01:52:23.920 --> 01:52:28.920
And the IRS agent could then claim, well this was an administrative levy
01:52:28.920 --> 01:52:33.920
I mean we didn't use any force, we just told the guy we're going to take his car and he took his car
01:52:33.920 --> 01:52:38.920
In a situation like that, if he shows up with the police, you ask the police, what are you doing here?
01:52:38.920 --> 01:52:43.920
Did I violate any local statute? What are you doing here?
01:52:43.920 --> 01:52:48.920
And do you usually go and enforce federal law?
01:52:48.920 --> 01:52:53.920
And in other words, does your supervisor know you're here? What law have I violated?
01:52:53.920 --> 01:52:58.920
What are you here for? Well I'm here with him. Well what is he here for? Do you have a court order?
01:52:58.920 --> 01:53:03.920
As a matter of fact, you say then come back with a court order. You're not taking that car and you physically resist
01:53:03.920 --> 01:53:08.920
The IRS agent takes the car and if he resists back, he is committing
01:53:08.920 --> 01:53:13.920
You can get him for assault and battery and trespass. In other words, the final analysis is this
01:53:14.920 --> 01:53:19.920
The government needs a court order to take property, but they never use a court order
01:53:19.920 --> 01:53:24.920
What they do is they rely on the duplicity and the malfeasance of lawyers to turn over money without court orders
01:53:24.920 --> 01:53:29.920
And they rely on the ignorance of the public who think that IRS agents are operating legally
01:53:29.920 --> 01:53:34.920
But in any given community, if anybody called the sheriff and if the sheriff made one call to the IRS
01:53:34.920 --> 01:53:39.920
In that community saying, look if anybody from your office comes down here and attempts to seize any property
01:53:39.920 --> 01:53:44.920
And they can't produce a delegation of authority from the secretary, I'm going to arrest that person
01:53:44.920 --> 01:53:49.920
For illegal conversion and extortion and that would stop all IRS seizures in any given county
01:53:49.920 --> 01:53:54.920
Before I go, there's one other thing I'd like to mention. You know the IRS has filed over a million tax liens
01:53:54.920 --> 01:53:59.920
Actually they call them notices of liens because they're not actually liens
01:53:59.920 --> 01:54:04.920
They're certain that they're filed as notices of lien and the IRS hopes that your county recorder files them as a lien
01:54:04.920 --> 01:54:09.920
But they're not really a lien, but in any case these notices of liens violate both federal and state law
01:54:09.920 --> 01:54:14.920
So all these liens the IRS have filed, again I want to repeat, violate both federal and state law
01:54:14.920 --> 01:54:19.920
And how you can prove this? Well in Title 28 you'll find the Federal Debt Collection Procedures Act
01:54:19.920 --> 01:54:24.920
It's in Section 301 and you will see that before a lien can be filed against any American
01:54:24.920 --> 01:54:29.920
Only U.S. Marshals can file liens and they need rid of a tax liability
01:54:29.920 --> 01:54:34.920
And then if you check the garnishment laws of your own state you will find that there are 35 states
01:54:34.920 --> 01:54:39.920
That have adopted the Federal Uniform Lien and Registration Act
01:54:39.920 --> 01:54:44.920
And 35 states in their statute say that all federal liens have to be certified by the Secretary of the Treasury
01:54:44.920 --> 01:54:49.920
Or his delegate. 35 states say that. Those states that haven't adopted the Federal Debt Collection Procedures Act
01:54:49.920 --> 01:54:54.920
They're not going to be able to get a federal lien. They're going to have to be able to get a federal lien
01:54:54.920 --> 01:54:59.920
35 states say that. Those states that haven't adopted the Federal Debt Collection Procedures Act
01:54:59.920 --> 01:55:04.920
Use the same wording anyway. So it says that tax liens have to be certified by the Secretary of the Treasury
01:55:04.920 --> 01:55:10.920
Or his delegate. Now none of the IRS liens are certified, that's number one
01:55:10.920 --> 01:55:15.920
They say notice is hereby given and they're always signed by a revenue agent who has no delegation of authority
01:55:15.920 --> 01:55:20.920
From the Secretary to file liens against anybody. So what you do is you take
01:55:21.920 --> 01:55:26.920
What they filed against you which will not be certified and not by anybody delegated by the Secretary of the Treasury
01:55:26.920 --> 01:55:31.920
And you show that to the county recorder and you show her that she's filed a lien against you
01:55:31.920 --> 01:55:36.920
Which according to state law should not have been filed. If she doesn't remove the lien
01:55:36.920 --> 01:55:41.920
I would also go then to the county attorney and point out that the county has filed a lien against you
01:55:41.920 --> 01:55:46.920
That pursuant to state law should not have been filed. Because they've done this
01:55:46.920 --> 01:55:51.920
They've interfered with your credit, maybe you can't get a credit card. If they don't remove that lien
01:55:51.920 --> 01:55:56.920
You could sue them under the tort laws of your state. Tort means an injury
01:55:56.920 --> 01:56:01.920
And by recording a lien against you that should not have been filed
01:56:01.920 --> 01:56:06.920
They've injured you and you can sue them under the tort laws. And as a matter of fact you can even sue the
01:56:06.920 --> 01:56:11.920
Revenue officer who filed the lien because he clouded your title. It's called slander of title
01:56:11.920 --> 01:56:16.920
Again let me repeat all Irish liens are filed in violation of both federal and state law
01:56:22.920 --> 01:56:27.920
Here on the dollar bill just to show you how clever these guys are and how crafty they are
01:56:27.920 --> 01:56:32.920
On the one dollar bill at the top you'll see this little image right here
01:56:32.920 --> 01:56:37.920
This is just an enlargement
01:56:37.920 --> 01:56:42.920
This is an enlargement from a photocopy machine so it's not really that clear
01:56:42.920 --> 01:56:47.920
But if you blow it up from an actual photograph you'll see it as a little owl
01:56:47.920 --> 01:56:52.920
It's a symbol of a bohemian society. The bohemian society meets in California
01:56:52.920 --> 01:56:57.920
On the last two weeks of July of every year. The bohemian society meets in California
01:56:57.920 --> 01:57:02.920
On the last two weeks of July of every year. The bohemian society is another secret society
01:57:02.920 --> 01:57:07.920
That was spun off of a larger secret society. The Colombians have a little fun club
01:57:07.920 --> 01:57:12.920
That they meet for two weeks out of the year in northern California
01:57:12.920 --> 01:57:17.920
And they're called the bohemian society. They meet in something called the bohemian grove
01:57:17.920 --> 01:57:22.920
I have pictures which I don't have with me tonight but I'm going to have on my next lecture
01:57:22.920 --> 01:57:27.920
Showing all of the presidents, all of the living presidents
01:57:27.920 --> 01:57:32.920
Excluding the new one, but all of the living presidents