»»» T H E · I N F O R M E D · A
M E R I C A N «««
A.L.E.R.T. No. 1999-07-19 - "Stopping Tax
All Rights Reserved · Common Law Copyright by: INFORM AMERICA!
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Published pursuant to The First Amendment by Gordon M. Phillips
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LEGAL DISCLAIMER: The following consists of standing law, historical fact and other
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circumstances. If you find that you should need such advice, please seek the services of
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TODAY'S A.L.E.R.T. (America, Law, Education, Rights, Taxation) covers a Frequently
Asked Question (name withheld to protect the truly frustrated ;-) pertaining to stopping
tax withholding in the workplace. Reprinted verbatim as received.
* * *
FAQ: "Dear Gordon, Enclosed is a memo from my V.P. of Human Resources, declining
my request not to participate in the "voluntary" withholding program. He is
requesting I file an EXEMPT w-4 or else suffer the rapture of "zero" withheld,
single. I signed the W-4, including all rights reserved, without prejudice, UCC 1-207
under threat, duress and coercion. It sounds like he is already getting ill-advised
counsel from the IRS or my inept legal department. I sent him a copy of 26 Code of Federal
Regulations, section 31.3402(p)-1 Voluntary Withholding Agreements stating that W-4's are
optional. My question to you is, do I need a third party mediator to educate my legal and
payroll to not participate in the withholding program? I feel as though I am backing into
a trap. The IRS will receive my "exempt" status; call my employer and tell them
to withhold at zero, thus taking the maximum out of my paycheck. Any advice would be
appreciated. What would you recommend? God Bless."
A: Gordon Phillips comments:
As I state repeatedly, I do not ever give advice - love, marriage, tax or otherwise.
However, since the legal cul-de-sac in which you now find yourself attempting to stop tax
withholding may be leaving you sleepless with frustration, I'd be happy to explain tax
NON-tax withholding procedure in the real world. It goes something like this:
You present the payroll, accounting or "human resources" department with the
proper paperwork under the tax regulations - the actual written law, reproduced verbatim -
to stop all withholding of income and employment taxes, namely:
* the Statement of Citizenship (SOC) under 26 Code of Federal Regulations (CFR) section
1.1441-5 and referenced in IRS Publication 515 to stop withholding of income tax, and;
* the Termination of Voluntary Agreement under 26 CFR 31.3402-(p)(1) to stop
withholding of employment taxes.
Note: due to widespread exposure of the truth by the Save-A-Patriot Fellowship, INFORM
AMERICA! and others, 1.1441-5 was repealed January 1, 1999, however it makes no practical
difference. To illustrate, let's say that you, a citizen, come to work for me, also a
citizen. Am I going to expect you to tender me a Statement of Citizenship when we both
know you aren't the subject of the tax? Of course not. The SOC never did belong in the
regulations in the first place since citizens have never needed relief from a law which
doesn't apply to them. However, we continue to use it anyway as a tactical measure. Let
the IRS explain why it was "in there" for decades!
Back to our story: being for the most part products of the modern world, the fine folks
in the payroll department have never seen any of this paperwork before. All has been
smooth sailing up until now, and then you had to walk in and rock the boat.
"What do you mean you're an employee but you don't want taxes withheld?",
they ask. "All employees have taxes withheld! If they didn't, they wouldn't be
employees, they'd be subcontractors. Everyone knows that. Besides, there's no field in the
computer for a non-withheld-from employee. The software doesn't provide for that."
All of the above being presented as absolute proof that what you request cannot
possibly be done. These ordinarily amiable payroll folks have now become terse, perhaps
even a bit petulant, frozen in a state of denial that any such "stop
withholding" paperwork could possibly exist (they may even act as thought they wished
YOU didn't exist). After all, some of them have been working there for YEARS, and no such
paperwork has ever surfaced before, therefor - ergo - it cannot be true.
Some may even secretly suspect you of manufacturing the paperwork on your computer,
never once dreaming of actually looking it up and reading it for themselves. The law, they
reason, is not within the purview of the average person. That's why God created lawyers,
so they can understand it and explain it to the rest of us. Presumably.
In rapid response to this newly unfolding crisis in the usually placid payroll
department, the employer (the same boss you work for who isn't remotely interested in all
this, just in running the business and making money), calls in his in-house shaman
(licensed attorney) to "interpret" the submitted paperwork and provide a
To digress for a moment, I use the word "attorney" when speaking of the
modern day law school graduate who belongs to the private, closed-shop labor union known
as the "Bar Association", thereby accredited by his peers with the power of
"practicing" (i.e., inferring) and otherwise diving law. I use the term
"lawyer" when referring to the constitutionally literate legal scholar who
represents his clients using the Law as actually written.
Among America's most prominent lawyers who never attended law school, Patrick Henry
passed his oral bar exams in 1760 at the age of 19. By the age of 30 he had handled more
than 1,100 cases. He was a member of the Continental Congress, governor of Virginia, and
he was one of the most famous of the anti-federalists. Most of his predictions about a
strong central government have come to pass in the last 50 years.
John Jay was admitted to the bar in 1768. Subsequently he distinguished himself as the
first Chief Justice of the U.S. Supreme Court. He never attended law school.
John Marshall passed his bar exams in 1780 and later became a Supreme Court Chief
Justice. Marshall was most noted for Marbury v. Madison. He never attended law school.
Roger Taney was admitted to the practice of law in 1799. He served as the first
Secretary of the Treasury and then as Chief Justice of the U.S. Supreme Court. He never
attended law school.
Daniel Webster was admitted to the Boston bar in 1805. His legal reputation was so
impressive, opposing lawyers upon learning that they would be facing him in oral argument
before the United States Supreme Court would withdraw from the case rather than face
Webster. Webster also served as Secretary of State in 1841. He never attended law school.
Salmon Chase gained his early prominence as a defense attorney for runaway slaves. He
later became a Chief Justice of the U.S. Supreme Court. He never attended law school.
Stephen Douglas was admitted to the bar in 1834. He later became a U.S. Representative
and then a United States Senator from Illinois. He is best remembered for his debates with
Abraham Lincoln. He never attended law school.
Abraham Lincoln gained his experience as a lawyer in Illinois and became the 16th
President of the United States. He never attended law school either.
Today, some of the very best paper lawyers, being self-trained, are not allowed to
appear in a court of law because the credentialed profession defends itself. Often times,
it seems, eclipse of the freedom to use the court system by laymen is merely a ploy to
keep some upstart from mopping up the floor with license-protected lawyers.
Back to our story: Since the company's law school educated and peer-certified
professional has no copy of the Internal Revenue Code or Federal Tax Regulations in his
office and has never seen these foundational materials, let alone actually READ them (and
probably thinks "Title 26" pertains to EPA residential septic system approval),
he is forced to punt in order to save face.
So our designated deal killer skulks back to his office, furtively locking his door
behind him, and proceeds to consult his pouch of magic beans (IRS pamphlets and other
publications which are not law). He sits staring for hours at the submitted paperwork as
if, by doing so, the statutes and regulations referenced therein would magically transform
themselves before his eyes to conform with his existing mind set.
When this etymological alchemy fails to occur after many hours of intense staring
punctuated by frantic and random searches across the Internet (stopping by sites such as
http://www.informamerica.com to leave a disbelieving jibe in the Guest Book), and ever
mindful of the necessity of preserving his lucrative position as in-house legal expert,
our legal beagle turns to that magical mystery pile of legal decisions know as "case
law" to bolster his "position".
Another aside is necessary here: Article 1, Clause 1 of the Constitution states:
"All legislative Powers herein granted shall be vested in a Congress of the United
States, which shall consist of a Senate and a House of Representatives". Please take
a minute to go read this for yourself. Please note that it does NOT state "Some
legislative powers ..." or "Most legislative powers ...". It states
"ALL legislative powers ...".
Does Article 1, Section 1 say "All legislative Powers herein granted shall be
vested in a Congress of the United States and also in what comes out of a judge's
mouth"? No, it does not say that. So apparently what comes out of the mouths of
judges (modern law school graduates appointed to sit on federal benches by members of the
executive branch, 99% of whom are also law school graduates - a total violation of the
separation of powers doctrine) is NOT Law for citizens within the States after all, is it?
And where does the Constitution apply? Being geographic in its application, ONLY within
the (now) 50 States of the Union. So can judicial utterances make Law for citizens within
the Union? No. Otherwise, this power of judicial legislation would be included within
Article 1, Section 1. Isn't this easy to understand? As I'm fond of saying, even
12-year-olds can easily understand Law.
Unfortunately, modern law school students do not receive even this modicum of
education, receiving about as many hours of classroom instruction on the Constitution as
do allopathically trained medical students on nutrition.
Today, a fledgling attorney is taught that s/he could switch sides in a heartbeat -
right in the middle of a trial - and, using the other side of the exact same mountain of
conflicting case law to "cherry pick" several select supporting opinions, defend
the other side to a successful conclusion.
Now that, Dear Reader, is a fiction. A great deception. A vast illusion. A grand hoax.
A total fallacy. Our nation's Framers knew that a moral, informed electorate was the only
real safeguard of Liberty. They also knew that every American must take personal
responsibility for his or her own actions according to a clear understanding of the
It is a long established principle that the Law is written to mean exactly what it
says, and is not subject to interpretation or inference in any way whatsoever. Regarding
the federal rules governing statutory construction, the Supreme Court stated in the case
U.S. v. Goldberg (1897): "... the intent of the lawmaker is to be found in the
language that he has used".
Wherefore, consider the following factual statements:
* America was founded as a constitutional Republic.
* All Law in a Republic is written Law, not verbal.
* The legislature presumably understands the English language and the rules of statutory
* The intent of the Law is the force of the Law.
* The words in the Law mean exactly what they say and say exactly what they mean.
* The Law is not subject to interpretation or inference.
* Any law which cannot be understood by any person of average intelligence is to be held
"void for vagueness".
* A specific court action (trial) applies to the litigants in that case only.
Now ask yourself this logical question. If the above statements are all true (and they
are!) then ... WHY IS THERE CASE LAW AT ALL?
Could it be because our finest legal institutions have been churning out generations of
lawyers and judges who don't understand English? Or our form of government? Or the Law
itself? Or ALL of the above?
OK, back to our unfolding story: Our stalwart fee-based tax professional emerges from
his office armed with a choice grouping of case law decisions, carefully selected to
bolster his paradigm. He issues a stern and gravely worded memorandum condemning and
perhaps even subtly ridiculing the submitted paperwork, thereby preserving his status as
an expert (Note: periodic attendance at ongoing government-sponsored continuing
professional education seminars assists in the maintenance of this peer-reviewed mind set).
In response to this specious legal broadside, you return fire with your own salvo,
restating the law for the ostensibly illiterate barrister, demanding that it be followed
EXACTLY AS WRITTEN, and perhaps threatening to take legal action to enforce the stopping
of withholding. Unfortunately, your salvo falls short since the counselor knows the judge
personally and can be comfortably assured that His Honor shares the same common mindset
(the so-called "status quo"), a fact reinforced during many a game of golf when
the loony antics of "tax protesters" were discussed.
Meanwhile, to make matters worse, our designated hitter, being nothing if not
resourceful, has contacted the local IRS office. This nest of essentially unproductive
(that is, feeding on the output of the truly productive), government-trained tax
extortionists consists mostly of public school (i.e., government- and not home-educated)
graduates who have never once been exposed to the Law other than occasional reruns of the
"The People's Court" or "Perry Mason".
Upon squeaking through the civil service exam (meaning that they now cannot be fired
without great difficulty and red tape), these newly sworn-in bureaucrats (*) chose an
opening at the IRS where the routine is even more perfunctorily bureaucratic than at the
Post Office, a fact not many would believe possible.
(*) My favorite definition of bureaucrat is "one who works at a fixed routine
without exercising intelligent judgment".
Mentally conditioned in IRS employee training workshops to believe that tax collection,
like trash collection, is a dirty job which someone must do to keep the wheels of a
civilized society well-greased, and never once taught a word of truth about the REAL
reason for an income tax under a system of fractional reserve generated credit
"money", these federally licensed plunder specialists now view the "tax
cheating" citizenry much as a zookeeper does the inmates.
And so these federally pensioned products of ongoing government education cluck in full
agreement that indeed no mere peon-citizen can possibly ever stop tax withholding, the law
(or whatever it's supposed to say) be damned. And thus the matter ends in a cul-de-sac
with you, the hapless employee, now certified as nuts by both the attorney and the IRS,
which may brand you a "tax protester".
The IRS will now instruct the employer to withhold at single:zero EVEN WITHOUT A W-4 ON
FILE. And poor you, who has read the Law and knows the truth, will have to lie and commit
perjury next April 15th by filing a Form 1040 to get back the over-withheld taxes which,
as a citizen with no sources of subtitle A foreign income and choosing not to volunteer to
participate in subtitle C employment tax withholding, you don't owe in the first place.
Further efforts to stop withholding will likely result in your immediate termination
(from employment, that is) on some contrived basis, accompanied by concerned displays of
anguished hand-wringing and copious apologies. That, folks, is "Attempting To Stop
Tax Withholding In The Real World". At least, most of the time.
Paralegals at the Save-A-Patriot Fellowship routinely (and daily) assist our members in
presenting the proper paperwork to stop tax withholding in the workplace. Are these
legally perfected efforts successful? Sometimes. Most often at small companies where there
is the opportunity to befriend and influence the owner, who himself may be no friend of
the federal mafia (a/k/a, the "IRS"). The larger the company and the more
"in bed" it finds itself with government at all levels, the less likely the Law
will be upheld.
If you wish to continue working at the same company, the only solution at this point
will be to turn to the services of a non-covered employee contacting company such as
American Contracting Services (http://www.americancontracting.com). The best solution?
QUIT AND GO TO WORK FOR YOURSELF!
After all, by working for yourself and following the Law AS ACTUALLY WRITTEN, your
standard of living will leap by at least 1/3 overnight, thereby removing much of the
financial pressure in undertaking your new entrepreneurial venture.
And by the way, sue the employer anyway because you never know if you'll be the one who
prevails in court and establishes the precedent for the Law to actually be upheld. Again,
our paralegals can assist, and at very affordable rates. Who knows, you just might educate
the attorney and turn him in to lawyer.
A Message From Gordon To Friends Of INFORM AMERICA! -
Each week, our office receives a torrent of questions from fellow Americans struggling
to get to the truth about their lawful duties and obligations with regard to the paying of
income and employment tax, to tax withholding, to the requirement to file returns, to the
use of the SSN and EIN, and far more.
While no one, including us, has all the answers, our particular area of expertise lies
in our understanding of the limited application of those taxing clauses in the
Constitution which pertain to lawful taxation, and the statutes and regulations written
pursuant thereto. For without a proper understanding of the constitutional protections
afforded private property, or as Jefferson referred to it, "the Pursuit of
Happiness", it is impossible to begin to understand Liberty itself.
Our mandate here at INFORM AMERICA! has, from day one, been to help educate our fellow
Americans about their rights and liberties. To expedite that process, our staff takes the
opportunity to share with those on this mailing list the answers to some of the best
questions we receive each week.
If you have a question you'd like answered, please forward to it me at the e-mail
address below and I or my staff will do our best to handle it. Special attention will be
given to those questions with the greatest general interest to all.
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Yours For Liberty In Our Lifetime,
Founder and President: INFORM AMERICA!
Nat'l Representative: Save-A-Patriot Fellowship
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separated." -- Thomas Jefferson (1821) in a letter to Gideon Granger.