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»»»          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 Withholding" =================================================================
All Rights Reserved · Common Law Copyright by: INFORM AMERICA!
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LEGAL DISCLAIMER: The following consists of standing law, historical fact and other established matters of public record which can be consulted at any law library. It is not intended to be construed as legal or tax advice. We do not give such advice under any circumstances. If you find that you should need such advice, please seek the services of competent, licensed tax professionals - assuming, of course, that any can be found.

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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.

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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:

Dear Frustrated,

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 suitable response.

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 written Law.

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 construction.
* 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.

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A Message From Gordon To Friends Of INFORM AMERICA! -
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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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A) You asked to be;
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Yours For Liberty In Our Lifetime,

Gordon Phillips,

Founder and President: INFORM AMERICA!
Nat'l Representative: Save-A-Patriot Fellowship

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THEY TOLD THE TRUTH!
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"When all government, in little as in great things, shall be drawn to Washington as the Center of all Power, it will render powerless the checks provided of one government on another and will become as venal and oppressive as the government from which we separated." -- Thomas Jefferson (1821) in a letter to Gideon Granger.