EXHIBIT AAA

The CRS Report for Congress, Frequently Asked Questions Concerning the Federal Income Tax (Updated May 7, 2001) completely fails to address ANY of the specific questions raised in WTP’s ongoing Petition for Redress.

The CRS Report for Congress, Frequently Asked Questions Concerning the Federal Income Tax (Updated May 7, 2001) has a list of the questions it addresses. It’s list of questions serves as the report’s table of contents. Using that list/table of contents as a guide, WTP shows here that the CRS Report does not come close to answering our questions.

Our Petition for Redress of Grievances relating to the federal income tax included 538 questions that were delivered, on March 16, 2002, to Attorney General John Ashcroft, Treasury Secretary Paul O’Neil, Assistant to the President for Economic Policy Lawrence B. Lindsey, and Rep. Roscoe Bartlett. A copy of the questions and transmittal letter are attached to the letter from Bob Schulz to Daniel Bryant as Exhibit G

CRS Report Question #1

What Specific Limitations On The Power Of Congress To Tax Are Found In

The Constitution?

Not one of our questions are answered in this section of the CRS report, which merely repeats some of the language of Article I, Sections 8 and 9 and provides some historical information. No court cases are cited.

CRS Report Question #2

Is The Federal Income Tax A Direct Or Indirect Tax?

Question #2 of the CRS report, merely provides a brief narrative on the 16^th Amendment and the Pollack and Brushaber decisions.

As noted above, our Petition for Redress of Grievances relating to the federal income tax included 15 lines of inquiry and a total of 538 questions and were delivered, on March 16, 2002, to Attorney General John Ashcroft, Treasury Secretary Paul O’Neil, Assistant to the President for Economic Policy Lawrence B. Lindsey, and Rep. Roscoe Bartlett. A copy of the questions and transmittal letter are attached hereto as Exhibit F.

One line of inquiry is titled, “SIXTEENTH AMENDMENT.” It includes 113 Questions that are numbered as follows: 66-69, 62a-62d, 63, 63a-63e, 64-65, 70-74, 74a-74b, 75-78,78a, 79-94, 94a-94oo, 95-105, 105a-105g, 106-107, 11 0-110a, and 111 –121.

Aside from the CRS Report’s mere dismissal of the Constitutional necessity that all federal taxes, must be EITHER direct OR indirect, none of our substantive questions are answered under section 2 of the CRS Report.

For instance, the following is a sampling of our questions that relate to the subject matter of Section 2 of the CRS report but are not addressed and not answered in Section 2 or in any other section of the CRS report. Please note that the Eisner case was decided after the Brushaber case.[1]

101. Admit that in the Brushaber decision, the United States Supreme Court discarded the notion that a direct tax could be relieved from apportionment, because to so hold would destroy the two great classifications of taxes.

102. Admit that the Union Pacific Railroad was a United States Corporation located in the Utah Territory.

103. Admit that the privilege of operating as a corporation can be taxed as an excise.

104. Admit that in Eisner v. Macomber, 252 U.S. 189, 205-206 (1920), the United States Supreme Court held a tax on income was a direct tax, but could be imposed without apportionment because the 16th Amendment gave Congress the power to lay and collect taxes on incomes, from whatever source derived, without apportionment among the several States, and without regard to any census or enumeration.

105. Admit that the United States Supreme Court stated in Eisner:

a. The Sixteenth Amendment must be construed in connection with the taxing clauses of the original Constitution and the effect attributed to them before the Amendment was adopted. In Pollock v. Farmers’ Loan and Trust Co., 158 U.S. 601, under the Act of August 27, 1894, c. 349, section 27, 28 Stat. 509, 553, it was held that taxes upon rents and profits of real property were in effect direct taxes upon the property from which such income arose, imposed by reason of ownership; and that Congress could not impose such taxes without apportioning them among the States according to population, as required by Art. I, section 2, c1.3, and section 9, cl.4, of the original Constitution.

b. Afterwards, and evidently in recognition of the limitation upon the taxing power of Congress thus determined, the Sixteenth Amendment was adopted, in words lucidly expressing the object to be accomplished: “The Congress shall have power to lay and collect taxes on incomes, from whatever source derived, without apportionment among the several States, and without regard to any census or enumeration.” As repeatedly held, this did not extend the taxing power to new subjects, but merely removed the necessity which otherwise might exist for an apportionment among the States of taxes laid on income. (Citing Brushaber v. Union Pacific R.R. Co., 240 U.S. at 17-19) (other citations omitted).

c. A proper regard for its genesis, as well as its very clear language, requires also that this Amendment shall not be extended by loose construction, so as to repeal or modify, except as applied to income, those provisions of the Constitution that require an apportionment according to population for direct taxes upon property, real and personal. This limitation still has an appropriate and important function, and is not to be over ridden by Congress or disregarded by the courts.

d. In order, therefore, that the clauses cited from Article I of the Constitution may have proper force and effect, save only as modified by the Amendment, and that the latter also may have proper effect, it becomes essential to distinguish between what is and what is not “income” as the term is there used; and to apply the distinction, as cases arise, according to truth and substance, without regard to form. Congress cannot by any definition it may adopt conclude the matter, since it cannot by legislation alter the Constitution, from which alone it derives its power to legislate, and within whose limitations alone that power can be lawfully exercised.

105a. Admit that the U.S. Supreme Court, in the Sims case, declared that wages and salaries are property.

105b. Admit that the last time the U.S. Supreme Court addressed

the question of whether the income tax was a direct tax or an

indirect tax was in the Eisner case.

105c. Admit that the U.S. Supreme Court, in Eisner, declared the

income tax to be a direct tax.

105d. Admit that the 5^th Circuit Court of Appeals, in the Parker case, ruled that, “The sixteenth Amendment merely eliminates the requirement that the direct income tax be apportioned among the states…The sixteenth amendment was enacted for the express purpose of providing for a direct income tax.”

105e. Admit that the 7^th Circuit Court of Appeals, in the Coleman case, held that an argument that the income tax was an excise tax was frivolous on its face and that the court declared, “ The power thus long predates the Sixteenth Amendment, which did no more than remove the apportionment requirement.”

105f. Admit that the 8^th Circuit Court of Appeals, in the Francisco case, held that, “The cases cited by Francisco clearly establish that the income tax is a direct tax….”

105g. Admit that the 10^th Circuit Court of Appeals, in the Lawson case, ruled that, “The Sixteenth Amendment removed any need to apportion income taxes among the states that otherwise would have been required by Article I, Section 9, clause 4.”

106. Admit that Judges in the Courts of Appeal for the Second Circuit take the position that the income tax is an indirect tax.

107. Admit that Judges in the Courts of Appeal for the Fifth

Circuit take the position that the income tax is a direct tax.

110. Admit that when a law is ambiguous, it is unconstitutional

and cannot be enforced under the "void for vagueness doctrine" because it violates due process protections guaranteed by the Fifth and Sixth Amendments as described by the Supreme Court in the following decisions:

-- Origin of the doctrine (See Lanzetta v. New Jersey,

306 U.S. 451) (Ex. 59)

-- Development of the doctrine
(See Screws v. United States, 325 U.S. 91, Williams v. United States, 341 U.S. 97, and Jordan v. De George, 341 U.S. 223). (Ex. 59a) (Ex. 59b) (Ex. 59c)

110a. Admit that the "void for vagueness doctrine" of the Supreme Court was described in U.S. v. DeCadena as follows:

"The essential purpose of the "void for vagueness doctrine" with respect to interpretation of a criminal statute, is to warn individuals of the criminal consequences of their conduct. ... Criminal statutes which fail to give due notice that an act has been made criminal before it is done are unconstitutional deprivations of due process of law."

CRS Report Question # 3

What Does The Court Mean When It States That The Income Tax Is In The

Nature Of An Excise Tax?

Not one of our questions is even remotely touched on in this section of the CRS report, which consists of just two very short paragraphs and provides Mr. Lucky’s (unsupported) definition of an “excise tax.”

CRS Report Question # 4

Was the Sixteenth Amendment Properly Ratified?

None of our substantive questions are answered under section 4 of the CRS Report.

For instance, the following is a sampling of our questions that relate to the subject matter of section 4 of the CRS report but are not addressed and not answered in section 4 or in any other section of the CRS report.

74b. Admit that Philander Knox declared the 16th amendment ratified on February 25, 1913, naming the following 38 states as having approved it: Alabama, Kentucky, South Carolina, Illinois, Mississippi, Oklahoma, Maryland, Georgia, Texas, Ohio, Idaho, Oregon, Washington, California, Montana, Indiana, Nevada, North Carolina, Nebraska, Kansas, Colorado, North Dakota, Michigan, Iowa, Missouri, Maine, Tennessee, Arkansas, Wisconsin, New York, South Dakota, Arizona, Minnesota, Louisiana, Delaware, Wyoming, New Jersey and New Mexico.

94b. Admit that the proposed 16^th (income tax) Amendment was

never properly and legally approved by the Georgia State Senate.

94c. Admit that the actions taken by the state legislatures of Arizona, Arkansas, California, Colorado, Georgia, Idaho, Illinois, Kansas, Kentucky, Louisiana, Maryland, Michigan, Mississippi, Missouri, Montana, New Jersey, New Mexico, North Dakota, Tennessee, Texas, Washington, and Wyoming, in acting on the proposed 16^th Amendment, were violative of certain provisions of their state constitutions, which were in effect AND CONTROLLING at the time those states purportedly ratified the 16^th Amendment.

94d. Admit that the state of Tennessee violated Article II, Section

32 of the Tennessee Constitution by denying the people an

opportunity to vote for their state legislators between the time the

proposed 16^th (income tax) Amendment to the U.S. Constitution

was submitted to the Tennessee legislature and the time the

legislature voted to approve the amendment.

94e. Admit that the state legislature of Tennessee violated Article II, Section 18 of the Tennessee Constitution by failing to read (and pass), on three different days, the bill containing the proposed 16^th (income tax) Amendment to the U.S. Constitution.

94f. Admit that in voting to approve the income tax Amendment the Tennessee state legislature violated Article II, Sections 28 and 29 of the Tennessee Constitution, which prohibited the legislature from voting to impose an income tax on the people of Tennessee.

94g. Admit that in voting to approve the income tax Amendment the Arizona state legislature violated Article IX, Section 9 of the State Constitution, which prohibited the legislature from voting to pass any bill, which imposed a tax on the people of Arizona unless the amount of the tax was fixed in the bill.

94h. Admit that the state Senate of Arizona violated Article IV, Part 2, Section 12 of the State Constitution by failing to read, on three different days, the bill containing the proposed 16^th (income tax) Amendment to the U.S. Constitution.

94i. Admit that the presiding officer of the state Senate of Arizona violated Article IV, Part 2, Section 15 of the State Constitution by failing to sign, in open session, the bill containing the proposed 16^th (income tax) Amendment to the U.S. Constitution.

94j. Admit that in voting to approve the income tax Amendment the Arkansas state legislature violated Article XVI, Section 11 of the State Constitution, which prohibited the legislature from voting to pass any bill, which imposed a tax on the people of Arkansas, unless the bill specified the specific purpose to which the tax to be imposed under that bill would be applied.

94k. Admit that the state Senate of Arkansas violated Article V, Section 22 of the State Constitution by failing to read, on three different days, the bill containing the proposed 16^th (income tax) Amendment to the U.S. Constitution.

94l. Admit that after the Governor vetoed the bill approving the proposed 16^th (income tax) Amendment the Arkansas state legislature did not take the matter up again.

94m. Admit that the state Senate of California violated Article 4, Section 15 of the State Constitution by failing to read, on three different days, the bill containing the proposed 16^th (income tax) Amendment to the U.S. Constitution.

94n. Admit that the state Assembly of California violated Article 4, Section 15 of the State Constitution by failing to record the Yeas and Nays on the vote on the bill containing the proposed 16^th (income tax) Amendment to the U.S. Constitution.

94o. Admit that the Senate and the House of the Colorado legislature violated Article V, Section 22 of the State Constitution by failing to read, on three different days, the bill containing the proposed 16^th (income tax) Amendment to the U.S. Constitution.

94p. Admit that the state Senate of Idaho violated Article III, Section 15 of the State Constitution by failing to read, section by section, just prior to the vote, the bill containing the proposed 16^th (income tax) Amendment to the U.S. Constitution.

94q. Admit that the state legislature of Idaho violated Article VI, Section 10 of the State Constitution by failing to send to the Governor the “approved” bill containing the proposed 16^th (income tax) Amendment to the U.S. Constitution.

94r. Admit that in voting to approve the 16^th (income tax) Amendment the Illinois state Senate violated Article IV, Section 13 of the State Constitution, by failing to print the bill containing the proposed 16^th (income tax) Amendment before the final vote was taken and by failing to read the bill on three different days.

94s. Admit that in voting to approve the income tax Amendment the Kansas state legislature violated Article 11, Section 205 of the State Constitution, which prohibited the legislature from voting to pass any bill, which imposed a tax on the people of Kansas, unless the bill specified the specific purpose to which the tax to be imposed under that bill would be applied.

94t. Admit that in voting to approve the income tax Amendment the Kansas state Senate violated Article 2, Section 128 of the State Constitution, by failing to record the vote on the bill containing the proposed 16^th (income tax) Amendment to the U.S. Constitution.

94u. Admit that in voting to approve the income tax Amendment the Kansas state House of Representatives violated Article 2, Section 133 of the State Constitution, by failing to read, section by section, the bill containing the proposed 16^th (income tax) Amendment to the U.S. Constitution.

94v. Admit that in voting to approve the income tax Amendment the Louisiana state legislature violated Articles 224 and 227of the Louisiana Constitution, which prohibited the legislature from voting to impose a federal income tax on the people of Louisiana.

94w. Admit that in voting to approve the income tax Amendment the Michigan state legislature violated Article X, Section 6 of the State Constitution, which prohibited the legislature from voting to pass any bill, which imposed a tax on the people of Michigan unless the bill specified the specific purpose to which the tax to be imposed under that bill would be applied.

94x. Admit that in voting to approve the 16^th (income tax) Amendment the Mississippi state House of Representatives violated Article IV, Section 59 of the State Constitution, by failing to read, three times on three different days, the bill containing the proposed 16^th (income tax) Amendment to the U.S. Constitution.

94y. Admit that in voting to approve the 16^th (income tax) Amendment the Mississippi state Senate violated Article IV, Section 59 of the State Constitution, by failing to read the bill, in full, immediately before the vote on its final passage.

94z. Admit that in voting to approve the income tax Amendment the Missouri state legislature violated Article X, Section 1 of the Missouri Constitution, which prohibited the legislature from voting to impose a federal income tax on the people of Missouri.

94aa. Admit that the Missouri state legislature violated Article V, Section 14 of the Missouri Constitution, which required the legislature to submit to the governor, the bill “approving” the proposed 16^th (income tax) Amendment.

94bb. Admit that in voting to approve the 16^th (income tax) Amendment the Montana state House of Representatives violated Article V, Section 22 of the State Constitution by failing to print the bill containing the proposed 16^th (income tax) Amendment to the U.S. Constitution, prior to the vote on its passage.

94cc. Admit that in voting to approve the 16^th (income tax) Amendment the presiding officer of the Montana state Senate violated Article V, Section 27 of the State Constitution by failing to publicly read, in open session, the bill containing the proposed 16^th (income tax) Amendment to the U.S. Constitution, just prior to signing the bill.

94dd. Admit that in voting to approve the 16^th (income tax) Amendment the New Mexico state legislature (both the Senate and the House), violated Article IV, Section 20 of the State Constitution requiring enrollment and engrossment, public reading in full, signing by the presiding officers and the recording of all those acts in the journals.

94ee. Admit that in voting to approve the 16^th (income tax) Amendment the New Mexico state House of Representatives violated Article IV, Section 15 of the State Constitution, by failing to read, three times on three different days, the bill containing the proposed 16^th (income tax) Amendment to the U.S. Constitution.

94ff. Admit that in voting to approve the 16^th (income tax) Amendment the North Dakota state legislature (both the Senate and the House), violated the Article II, Section 64 of the State Constitution, which requires re-enactment and publication of amendments .

94gg. Admit that in voting to approve the 16^th (income tax) Amendment the North Dakota state legislature (both the Senate and the House), violated the Article II, Section 63 of the State Constitution, which required three readings of the bill, at length, on three separate days.

94hh. Admit that in voting to approve the 16^th (income tax) Amendment the Texas House of Representatives violated Article III, Section 37 of the State Constitution by voting on the bill before the bill was reported out of a Committee.

94ii. Admit that in voting to approve the income tax Amendment the Texas state legislature violated Article III, Section 48 of the Texas Constitution, which prohibited the legislature from voting to impose a federal income tax on the people of Texas.

94jj. Admit that in voting to approve the 16^th (income tax) Amendment the presiding officer of the Texas Senate violated Article III, Section 38 of the State Constitution by failing to publicly read, in open session, the bill containing the proposed 16^th (income tax) Amendment to the U.S. Constitution, just prior to signing the bill.

94kk. Admit that in voting to approve the 16^th (income tax) Amendment the Texas state legislature violated Article III, Section 33 of the State Constitution, which required the House to act first on all money bills.

94ll. Admit that in voting to approve the 16^th (income tax) Amendment the Washington state legislature violated Article VII, Section 2 of the State Constitution, which prohibited the legislature from imposing a tax upon the people of the state unless the tax was a uniform and equal rate of taxation.

94mm. Admit that the Washington state legislature violated Articles III, Section 12 of the Washington Constitution, which required the legislature to submit to the governor, the bill “approving” the proposed 16^th (income tax) Amendment.

94nn. Admit that in voting to approve the 16^th (income tax) Amendment the Wyoming state legislature violated Article XV, Section 13 of the State Constitution, which prohibited the legislature from voting to pass any bill, which imposed a tax on the people of Wyoming unless the bill specified the specific purpose to which the tax to be imposed under that bill would be applied.

94oo. Admit that in voting to approve the 16^th (income tax) Amendment the Wyoming state legislature violated Article III, Section 20 of the State Constitution, by voting only on the title of the bill.

95. Admit that the “income” tax at subtitle A of the Internal

Revenue Code cannot be lawfully and constitutionally collected if the 16th Amendment is not a valid amendment to the Constitution of the United States.

CRS Report Question # 4a

Did the President sign the resolution which became the Sixteenth Amendment?

Not one of our questions is even remotely touched on in this section of the CRS report, which merely reports that Presidents are not required to sign Acts of Congress that propose amendments to the U.S. Constitution.

CRS Report Question # 4b

Do clerical errors in the ratifying resolutions of the various state legislatures negate the ratification of the Sixteenth Amendment?

Not one of our questions is even remotely touched on in this section of the

CRS report, which merely addresses the issues of a) clerical errors is

ratifying resolutions, specifically, “punctuation, capitalization and/or

spelling errors”; b) violations of “the rules of legislative procedure”; and

c) the existence of a “political question.”

None of our substantive questions are answered under section 4b of

the CRS Report.

For instance, the following is a sampling of our questions that relate

to the subject matter of section 4b of the CRS report but are not

addressed and not answered in section 4b or in any other section of

the CRS report.

70. Admit that in 1913, the following law, Revised Statutes 205, was in effect:

“Sec. 205. Whenever official notice is received at the

Department of State that any amendment proposed to

the Constitution of the United States has been

adopted, according to the provisions of the

Constitution, the Secretary of State shall forthwith

cause the amendment to be published in the

newspapers authorized to promulgate the laws, with

his certificate, specifying the States by which the

same may have been adopted, and that the same has

become valid, to all intents and purposes, as a part of

the Constitution of the United States.”

71. Admit that Revised Statutes Section 205 provided that “official notice” of a State’s ratification of an amendment must be received at the State Department.

72. Admit that on or about July 31, 1909, Senate Joint Resolution 40 proposing the ratification of the 16th Amendment was deposited with the Department of State and the same was published at 36 Stat. 184, and that this resolution read as follows:

SIXTY-FIRST CONGRESS OF THE UNITED

STATES OF AMERICA AT THE FIRST SESSION

Begun and held at the City of Washington on

Monday, the fifteenth day of March, one thousand

nine hundred and nine.

JOINT RESOLUTION.

Proposing an amendment to the Constitution of the

United States.

Resolved by the Senate and House of Representatives of the United States of America in Congress assembled (two-thirds of each House concurring therein), That the following article is proposed as an amendment to the Constitution of the United States, which, when ratified by the legislatures of three-fourths of the several states, shall be valid to all intents and purposes as a part of the Constitution:

"Article XVI. The Congress shall have power to lay

and collect taxes on incomes, from whatever source

derived, without apportionment among the several

States, and without regard to any census or

enumeration."

J.C. CANNON,

Speaker of the House of

Representatives.

J.S. SHERMAN,

Vice-President of the United States,

and President of the Senate.

73. Admit that on July 27, 1909, the same Congress adopted Senate Concurrent Resolution 6, which read as follows:

CONCURRENT RESOLUTION

Resolved by the Senate (the House of Representatives concurring), That the President of the United States be requested to transmit forthwith to the executives of the several States of the United States copies of the article of amendment proposed by Congress to the State legislatures to amend the Constitution of the United States, passed July twelfth, nineteen hundred and nine, respecting the power of Congress to lay and collect taxes on incomes, to the end that the said States may proceed to act upon the said article of amendment; and that he request the executive of each State that may ratify said amendment to transmit to the Secretary of State a certified copy of such ratification.

Attest: Charles G. Bennett

Secretary of the Senate

A. McDowell

Clerk of the House of

Representatives

74. Admit that not only did this resolution request that certified

copies of favorable State ratification resolutions be sent to Washington, D.C., the States were expressly informed to do so by Secretary of State Philander Knox, who sent the following “form” letter to the governors of the 48 States then in the Union:

“Sir:

“I have the honor to enclose a certified copy of a

Resolution of Congress, entitled 'Joint Resolution

Proposing an Amendment to the Constitution of the

United States,' with the request that you cause the

same to be submitted to the Legislature of your State

for such action as may be had, and that a certified

copy of such action be communicated to the

Secretary of State, as required by Section 205,

Revised Statutes of the United States. (See overleaf.)

An acknowledgment of the receipt of this

communication is requested.

I have the honor to be, Sir,

Your obedient servant,

P.C. Knox”

74a. Admit that in 1909, there were 48 states and that three-

fourths, or 36, of them were required to give their approval in order

for it to be ratified.

75. Admit the following facts:

a. When California provided uncertified copies of its

resolution to Secretary of State Philander Knox, Knox

wrote the following to California Secretary of State

Frank Jordan: “I have the honor to acknowledge the receipt of your letter of the 27th ultimo, transmitting a copy of the Joint Resolution of the California Legislature ratifying the proposed Amendment to the Constitution of the United States, and in reply thereto I have to request that you furnish a certified copy of the Resolution under the seal of the State, which is necessary in order to carry out the provisions of Section 205 of the Revised Statutes of the United States”.

b. When Wyoming Governor Joseph Carey telegraphed Philander Knox news that the Wyoming legislature had ratified the 16th Amendment on February 3, 1913, Philander Knox telegraphed in return as follows: “Replying to your telegram of 3rd you are requested to furnish a certified copy of Wyoming’s ratification of Income Tax Amendment so there may be no question as to the compliance with Section 205 of Revised Statutes.”

76. Admit that on February 15, 1913, a State department

attorney, J. Rueben Clarke, informed Secretary of State Philander Knox, in reference to the State of Minnesota, “the secretary of the Governor merely informed the Department that the state legislature had ratified the proposed amendment.”

77. Admit that, in the official records deposited in the Archives

of the United States, there is no certified copy of the resolution of the Minnesota legislature ratifying the 16th Amendment.

78. Admit that in the documents possessed by the Archives of

the United States, there are no certified copies of the resolutions ratifying the 16th Amendment by California and Kentucky.

78a. Admit that the Kentucky Senate voted 22 to 9 against ratification of the 16^th Amendment.

79. Admit that Mr. John Ashcroft is currently the Attorney General of the United States.

80. Admit that when Mr. Ashcroft was Governor of Missouri, the Missouri Supreme Court rendered the following decision in a case involving Mr. Ashcroft, that case being Ashcroft v. Blunt, 696 S.W.2d 329 (Mo. banc 1985), where the Missouri Supreme Court held:

“The senate and the house must agree on the exact text of any bill before they may send it to the governor. There may not be the slightest variance. The exact bill passed by the houses must be presented to and signed by the governor before it may become law (laying aside as not presently material alternative procedure by which a bill may become law without the governor's signature.) The governor has no authority to sign into law a bill which varies in any respect from the bill passed by the houses.”

81. Admit that during hearings regarding the ratification of the 16th Amendment in Massachusetts, Mr. Robert Luce made the following statement to the Massachusetts Committee on Federal Relations: “Question by the committee: Are we able to change it? Mr. Luce: No, you must either accept or reject it.”

82. Admit that on February 11, 1910, Kentucky Governor Augustus Wilson wrote a letter to the Kentucky House of Representatives wherein he stated as follows:

“This resolution was adopted without jurisdiction of the joint resolution of the Congress of the United States which had not been transmitted to and was not before the General Assembly, and in this resolution the words “on incomes” were left out of the resolution of the Congress, and if transmitted in this form would be void and would subject the Commonwealth to unpleasant comment and for these reasons and because a later resolution correcting the omission is reported to have passed both Houses, this resolution is returned to the House of Representatives without my approval.”

83. Admit that no State may change the wording of an amendment proposed by Congress.

84. Admit that on February 15, 1913, J. Reuben Clarke, an attorney employed by the Department of State, drafted a memorandum to Secretary Knox wherein the following statements were made: “The resolutions passed by twenty-two states contain errors only of capitalization or punctuation, while those of eleven states contain errors in the wording” (page 7). “Furthermore, under the provisions of the Constitution a legislature is not authorized to alter in any way the amendment proposed by Congress, the function of the legislature consisting merely in the right to approve or disapprove the proposed amendment.”

85. Admit that the Sixteenth Amendment reads as follows:

“Article XVI. The Congress shall have power to lay and collect taxes on incomes, from whatever source derived, without apportionment among the several States, and without regard to any census or enumeration.”

86. Admit that the Sixteenth Amendment does not read as follows:

“Article 16: The Congress shall have power to lay and collect taxes on incomes, from whatever source derived, without apportionment among the several states, and from any census or enumeration.”

87. Admit that the Sixteenth Amendment does not read as follows:

“Article XVI. Congress shall have power to lay and collect taxes on incomes from whatever source derived without apportionment among the several states, and without regard to census enumeration.”

88. Admit that the Sixteenth Amendment does not read as follows:

“Article XVI. The Congress shall have power to lay and collect taxes on incomes, from whatever source derived, without apportionment among the several states, and without regard to any census or renumeration.”

89. Admit that the Sixteenth Amendment does not read as follows:

“Article XVI. The Congress shall have power to lay and collect taxes from whatever source derived, without apportionment among the several States, and without regard to any census or enumeration.”

90. Admit that the Sixteenth Amendment does not read as follows:

“The Congress shall have power to levy and collect taxes on income from whatever sources derived without apportionment among the several States, and without regard to any census or enumeration, which amendment was approved on the ---- day of July, 1909.”

91. Admit that the Sixteenth Amendment does not read as follows:

“Article XVI. The Congress shall have power to lay and collect taxes on incomes from whatever source derived without apportionment among the several states, and without regard to any census of enumeration.”

92. Admit that the Sixteenth Amendment does not read as follows:

“Article XVI. The Congress shall have power to lay and collect taxes on incomes, from whatever source derived, with-out apportionment among the several states, and without regard to any census of enumeration:”

93. Admit that the Sixteenth Amendment does not read as follows:

“Article XVI. The congress shall have power to levy and collect taxes on incomes, from whatever source derived, without apportionment among the several states, and without regard to any census or enumeration, and did submit the same to the legislatures of the several states for ratification;”

94. Admit that state officials who prepare and send “official

notice” of ratification of constitutional amendments to federal officials in Washington, D.C., do not have any authority to change the wording of the ratification resolution actually adopted by the State legislature.

CRS Report Question # 5

Do Taxpayers Have The Right, Under The Fifth Amendment, Not To Answer Questions On Their Tax Returns?

One line of inquiry is titled, “FIFTH AMENDMENT.” It includes 22 Questions that are numbered as follows: 281- 286, 287a- 287c, 288-292, 292a, 293-294, 295a-295b, 296-299

None of our substantive questions are answered under section 4 of the CRS Report.

The following are our questions that relate to the subject matter of section 5 of the CRS report but are not addressed and not answered in section 5 or in any other section of the CRS report.

281. Admit that 26 U.S.C. º 6001 requires the keeping of records.

282. Admit that 26 U.S.C. 7203 makes it a federal crime not to keep the records required under section 6001.

283. Admit that the records required under 26 U.S.C. 6001 contain information that will appear on the tax returns pertaining to federal income taxes.

284. Admit that the Fifth Amendment prohibits the government from compelling an American to be a witness against himself.

285.Admit that the IRS currently uses the following: Non-Custodial Miranda warning:

“In connection with my investigation of your tax liability I would like to ask you some questions. However, first I advise you that under the fifth Amendment to the Constitution of the United States I cannot compel you to answer any questions or to submit any information. If such answers or information might tend to incriminate you in any way, I also advise you that anything which you say and any documents which you submit may be used against you in any criminal proceeding which may be undertaken. I advise you further that you may, if you wish, seek the assistance of an attorney before responding.”

286. Admit that the Privacy Act and Paperwork Reduction Act notices currently used by the IRS provides that the information provided in the preparation of a tax return can go to the Department of Justice who prosecutes criminal cases against the filers of tax returns.

287a. Admit that the United States Attorneys’ Bulletin, April 1998 edition, contained an article written by Joan Bainbridge Safford, Deputy United States Attorney, Northern District of Illinois, entitled: “Follow That Lead! Obtaining and Using Tax Information in a Non-Tax Case,” hereinafter “Follow that Lead!”.

287b. Further admit that the article states the following:

“In any criminal case where financial gain is the prominent motive, tax returns and return information can provide some of the most significant leads, corroborative evidence, and cross-examination material obtainable from any source.”

287c. Further admit that the article states the following;

“In even the most straightforward fraud case, the usefulness of tax returns should be apparent . . . the tax return information provides a statement under penalty of perjury which may either serve as circumstantial evidence of the target’ misrepresentation of his economic status or as helpful cross-examination material . . . Disclosure of tax returns may also provide critical leads and impeachment material.”

288. Admit that the Disclosure, Privacy Act, and Paperwork

Reduction Act Notice set out in the IRS Form 1040 Instruction Booklet states the following:

“[W]e may disclose your tax information to the Department of Justice, to enforce the tax laws, both civil and criminal, and to cities, states, the District of Columbia, U.S. Commonwealths or possessions, and certain foreign governments to carry out their tax laws.”

289. Admit that tax returns are used by the IRS to develop civil and criminal cases against the filers of the tax returns.

290. Admit that tax returns of a filer are used as evidence against the filer in both civil and criminal income tax cases.

291. Admit that the United States Supreme Court has held that a fifth amendment privilege exists against requiring a person to admit or deny he has documents which the government believes is related to the federal income tax.

292.Admit that the Fifth Amendment provides an absolute defense to tax crimes.

292a. Admit that the U.S. Court of Appeals for the 10^th Circuit took the position in U.S. v. Conklin, (1994), WL 504211, that the filing of an income tax return (Form 1040) is not compelled and, therefore, the principle that no one may be forced to waive their 5^th Amendment rights in order to comply with a law is not applicable to federal income tax returns.

293. Admit that the Supreme Court has held that if one wants to assert the Fifth Amendment to an issue pertaining to a federal income tax return, one must make that claim on the form itself.

294. Admit that if one claims Fifth Amendment protection on an income tax form, that act can result in criminal prosecution for failure to file income tax returns, income tax evasion, or conspiracy to defraud.

295a. Admit that the Paperwork Reduction Act Notice (the “Notice”) set out in the IRS Form 730 states that:

“You must file Form 730 and pay the tax on wagers under section 4401(a) if you: Are in the business of accepting wagers, or Conduct a wagering pool or lottery.”

295b. Further admit that the Notice states the following:

“[C]ertain documents related to wagering taxes and information obtained through them that relates to wagering taxes may not be used against the taxpayer in any criminal proceeding. See section 4424 for more details.”

296. Admit that in 1997, 5,335 tax audits resulted in criminal investigations of those tax filers.

297. Admit that Judge Learned Hand stated that:

“Logically, indeed, he (the taxpayer) is boxed in a paradox for he must prove the criminatory character of what it is his privilege to suppress just because it is criminatory. The only practicable solution is to be content with the door’s being set a little ajar, AND WHILE AT TIMES THIS NO DOUBT PARTIALLY DESTROYS THE PRIVILEGE, ...nothing better is available.”

298. Admit that the Constitution is the Supreme Law of the Land.

299. Admit that the American people do not have to tolerate an income tax system in which the federal government requires a citizen to give up any constitutional rights.

CRS Report Question # 6

Is Title 26 Of The United States Code (Internal Revenue) Law?

Not one of our questions is even remotely touched on in this section of the

CRS report, which consists of four short paragraphs and merely defines

what is meant by “positive law,” and explains why Title 26 is not positive

law.

CRS Report Question # 7

Are Wages Taxable As Income?

One line of inquiry is titled, “RIGHT TO LABOR.” It includes 82 Questions that are numbered as follows: 122-127, 127a–127d, 128–186,

186a–186i, and 187-191.

None of our substantive questions are answered under section 7 of the CRS Report.

The following are our questions that relate to the subject matter of section 7 of the CRS report but are not addressed and not answered in section 7 or in any other section of the CRS report.

122. Admit that it was the intent of Congress to require “individuals” to make income tax returns based upon receipt of more than a threshold amount of gross income even if the individual ends up not “liable for” a tax on that gross income.

123. Admit that the “gross income” mentioned in Section 6012 of the Internal Revenue Code is the “gross income” as set forth at Section 61(a) of the Internal Revenue Code.

124. Admit that Section 61(a) of the Internal Revenue Code defines “gross income” as “all income” from whatever source derived, but does not define “income.”

125. Admit that in Eisner v. Macomber, 252 U.S. 189, 206 (1920), the United States Supreme Court held that Congress cannot by any definition it may adopt conclude what “income” is, since it cannot by legislation alter the Constitution, from which alone it derives its power to legislate, and within whose limitations alone that power can be lawfully exercised.

126. Admit that the definition of income as it appears in Section 61(a) is based upon the 16th Amendment and that the word is used in its constitutional sense.

127.Admit that the United States Supreme Court has defined the term income for purposes of all income tax legislation as: The gain derived from capital, from labor or from both combined, provided it include profit gained through a sale or conversion of capital assets.

127a. Admit that the United States Supreme Court defined "income" to mean the following:

“…Whatever difficulty there may be about a precise scientific definition of ‘income,’ it imports, as used here, something entirely distinct from principal or capital either as a subject of taxation or as a measure of the tax; conveying rather the idea of gain or increase arising from corporate activities.”

“This court had decided in the Pollock Case that the income tax law of 1894 amounted in effect to a direct tax upon property, and was invalid because not apportioned according to populations, as prescribed by the Constitution. The act of 1909 avoided this difficulty by imposing not an income tax, but an excise tax upon the conduct of business in a corporate capacity, measuring, however, the amount of tax by the income of the corporation…Flint v. Stone Tracy Co., 220 U.S. 107, 55 L.Ed. 389, 31 Sup.Ct.Rep. 342, Ann. Cas.”

127b. Admit that the term "corporation" as used above infers a federally chartered and not a state chartered corporation.

127c. Admit that the United States Government is defined as a federal corporation:

United States Code

TITLE 28 - JUDICIARY AND JUDICIAL PROCEDURE

PART VI - PARTICULAR PROCEEDINGS

CHAPTER 176 - FEDERAL DEBT COLLECTION PROCEDURE

SUBCHAPTER A - DEFINITIONS AND GENERAL PROVISIONS

Sec. 3002. Definitions

(15) ''United States'' means -

(A) a Federal corporation;

(B) an agency, department, commission, board, or other entity of the United States; or

127d. Admit that individuals as defined in Subtitle A of the Internal Revenue Code and in 26 CFR §1.1441-1 are not federal corporations, and therefore cannot have "profit" or "gain" as constitutionally defined above.

128. Admit that in the absence of gain, there is no “income.”

129. Admit that there is a difference between gross receipts and gross income.

130. Admit that the United States Supreme Court recognizes that one’s labor constitutes property.

131. Admit that the United States Supreme Court stated in Butchers’ Union Co. v. Crescent City Co., 111 U.S. 746, 757 (concurring opinion of Justice Fields) (1883), that:

It has been well said that, “The property which every man has in his own labor, as it is the original foundation of all other property, so it is the most sacred and inviolable.”

132. Admit that the United States Supreme Court recognizes that contracts of employment constitute property.

133. Admit that the United States Supreme Court stated in Coppage v.Kansas, 236 U.S. 1, 14 (1914) that: “The principle is fundamental and vital. Included in the right of personal liberty and the right of private property--partaking of the nature of each--is the right to make contracts for the acquisition of property. Chief among such contracts is that of personal employment, by which labor and other services are exchanged for money or other forms of property.”

134. Admit that the United States Supreme Court recognizes that a contract for labor is a contract for the sale of property.

135. Admit that the United States Supreme Court has stated in Adair v. United States, 208 U.S. 161, 172 (1908) that:

“In our opinion that section, in the particular mentioned, is an invasion of the personal liberty, as well as of the right of property, guaranteed by that Amendment (5th Amendment). Such liberty and right embraces the right to make contracts for the purchase of the labor of others and equally the right to make contracts for the sale of one’s own labor.”

136. Admit that Congress recognizes at Section 64 of the Internal Revenue Code that “ordinary income” is a gain from the sale or exchange of property.

137. Admit that Internal Revenue Code Sections 1001, 1011 and 1012 provide the method Congress has set forth for determining the gain derived from the sale of property.

138. Admit that Section 1001(a) states that: “The gain from the sale or other disposition of property shall be the excess of the amount realized there from over the adjusted basis provided in section 1011 for determining gain . . . .”

139. Admit that Section 1001(b) states that: “The amount realized from the sale or other disposition of property shall be the sum of any money received plus the fair market value of the property (other than money) received.”

140. Admit that Section 1011 states that: “The adjusted basis for determining the gain or loss from the sale or other disposition of property, whenever acquired, shall be the basis (determined under section 1012...), adjusted as provided in section 1016.”

141. Admit that Section 1012 states that: “The basis of property shall be the cost of such property . . . .”

142. Admit that the cost of property purchased under contract is its fair market value as evidenced by the contract itself, provided neither the buyer nor seller were acting under compulsion in entering into the contract, and both were fully aware of all of the facts regarding the contract.

143.Admit that in the case of the sale of labor, none of the

provisions of Section 1016 of the Internal Revenue Code are applicable.

144. Admit that when an employer pays the employee the amount agreed upon by their contract, there is no excess amount realized over the adjusted basis, and thus no gain under Section 1001 of the Internal Revenue Code.

145. Admit that if one has no gain, one would have no income in a constitutional sense.

146. Admit that if one has no income, one would have no “gross income.”

147. Admit that in the absence of “gross income,” one would not be required to make a return under Section 6012 of the Internal Revenue Code.

148. Admit that Section 6017 of the Internal Revenue Code requires individuals, other than nonresident alien individuals, to make a return if they have net earnings from self-employment of $400 or more

149. Admit that the term “net earnings from self-employment” is defined at Section 1402(a) of the Internal Revenue Code as follows:

“The term ‘net earnings from self-employment’ means the gross income derived by an individual from any trade or business carried on by such individual ...”

150. Admit that in the absence of “gross income,” one would not have more than $400 of “net earnings from self-employment.” (See 26 U.S.C. º 1402(a).) (Ex. 085.)

151.Admit that the “taxable income” upon which the income tax is imposed in Section 1 of the Internal Revenue Code is defined at Section 63 of the Internal Revenue Code.

152. Admit that the term “taxable income” is defined differently for those who itemize deductions and those who don’t itemize deductions.

153. Admit that for those who do itemize deductions, the term “taxable income” means “gross income” minus the deductions allowed by Chapter 1 of the Internal Revenue Code, other than the standard deduction.

154. Admit that for those who do not itemize deductions, the term “taxable income” means “adjusted gross income” minus the standard deduction and the deduction or personal exemptions provided in section 151 of the Internal Revenue Code.

155. Admit that for individuals, the term “adjusted gross income” means gross income minus certain deductions.

156. Admit that in the absence of “gross income” an individual would have no “adjusted gross income” and no “taxable income.”

157. Admit that in the absence of taxable income, no tax is imposed under Section 1 of the Internal Revenue Code.

158. Admit that employment taxes are contained in Subtitle C of the Internal Revenue Code.

159. Admit that the taxes imposed in Subtitle C of the Internal Revenue Code are different than the taxes imposed in Subtitle A of the Internal Revenue Code.

160. Admit that The Federal Insurance Contributions Act (FICA) tax contained in Subtitle C at Section 3101 of the Internal Revenue Code is imposed on the individual’s “income.”

161. Admit that the rate of the tax set out at Section 3101 of the Internal Revenue Code is a percentage of the individual’s wages.

162. Admit that the term “income” as used at Section 3101 of the Internal Revenue Code is the same income as used in Subtitle A of the Internal Revenue Code.

163. Admit that if one has no income, one is not subject to the tax imposed at Section 3101 of the Internal Revenue Code.

164. Admit that The Federal Insurance Contributions Act (FICA) tax on employers contained in Subtitle C at Section 3111 of the Internal Revenue Code is an excise tax on employers with respect to their having employees.

165. Admit that at Section 3402 of the Internal Revenue Code, employers are directed to withhold from wages paid to employees, a tax determined in accordance with tables prescribed by the Secretary of the Treasury.

166. Further admit that Congress does not identify the Section 3402 “tax determined” as either a direct tax, an indirect tax, and/or an “income” tax.

167.Admit that Congress made the employer liable for the

Section 3402 tax at Section 3403 of the Internal Revenue Code

168. Admit that at Section 3501 of the Internal Revenue Code, Congress directed the Secretary of the Treasury to collect the taxes imposed in Subtitle C and pay them into the Treasury of the United States as internal revenue collections.

169. Admit that Congress has not anywhere imposed the tax described at Section 3402 of the Internal Revenue Code.

170. Admit that at Section 31 of the Internal Revenue Code, the amount of the Section 3402 tax on wages is allowed as a credit against the income tax imposed in Subtitle A.

171. Admit that if one does not have any tax imposed at Subtitle A for any reason whatsoever, the law enacted by Congress at Section 3402(n) of the Internal Revenue Code constitutes an exemption of the tax described at Section 3402(a) of the Internal Revenue Code.

CRS Report Question # 8

Do We Have A Voluntary Tax System?

One line of inquiry is titled, “LIABILITY.” It includes 42 Questions that are numbered as follows: 1 – 31, 32a – 32j

None of our substantive questions are answered under section 8 of the CRS Report.

The following are our questions that relate to the subject matter of section 8 of the CRS report but are not addressed and not answered in section 8 or in any other section of the CRS report.

1. Admit that the Internal Revenue Code is found at Title 26 of the United States Code.

2. Admit that Title 26 of the United States Code is broken down into Subtitles.

3. Admit that income taxes are set forth in Subtitle A of Title 26.

4. Admit that Subtitle A contains Sections 1 through 1563.

5. Admit that estate and gift taxes are set forth in Subtitle B of Title 26.

6. Admit that Subtitle B contains Sections 2001 through 2704.

7. Admit that employment taxes are set forth in Subtitle C of Title 26.

8. Admit that Subtitle C contains Sections 3101 through 3510.

9. Admit that miscellaneous excise taxes are set forth in Subtitle D of Title 26.

10. Admit that Subtitle D contains Sections 4001 through 5000.

11. Admit that alcohol, tobacco, and certain other excise taxes are

set forth in Subtitle E of Title 26.

12. Admit that Subtitle E contains Sections 5001 through 5882.

13. Admit that procedures and administration to be followed with respect to the different taxes addressed in Subtitles A through E are set forth in Subtitle F of Title 26.

14. Admit that Subtitle F contains Sections 6001 through 7873.

15. Admit that Congress enacted the Privacy Act at 5 U.S.C. º 552a(e)(3).

16. Admit that when the Internal Revenue Service requests information from an individual, the Privacy Act requires the IRS to inform each individual whom it asks to supply information, on the form which it uses to collect the information or on a separate form that can be retained by the individual --

(a) the authority which authorizes the solicitation of the information and whether disclosure of such information is mandatory or voluntary;

(b) the principal purpose or purposes for which the information is intended

to be used;

(c) the routine uses which may be made of the information, as published pursuant to paragraph (4)(D) of this subsection; and

(d) the effects on him, if any, of not providing all or any part of the requested information.

17. Admit that Congress enacted the Paperwork Reduction Act at 44 U.S.C. 3504(g)(2).

18. Admit that the Paperwork Reduction Act requires the Director of the Office of Management and Budget to include with any information requests, a statement to inform the person receiving the request why the information is being collected, how it is to be used, and whether responses to the request are voluntary, required to obtain a benefit, or mandatory.

19. Admit that the Internal Revenue Service complies with the Privacy Act and Paperwork Reduction Act by setting out the required statements on the IRS Form 1040 Instruction Booklet.

20. Admit that the Privacy Act and Paperwork Reduction Act statements which the Internal Revenue Service currently uses with respect to the federal income tax state that: “Our legal right to ask for information is Internal Revenue Code Sections 6001, 6011, 6012(a) and their regulations. They say that you must file a return or statement with us for any tax you are liable for. Your response is mandatory under these sections.”

21. Admit that Internal Revenue Code Section 6001 states: “Every person liable for any tax imposed by this title, or for the collection thereof, shall keep such records, render such statements, make such returns, and comply with such rules and regulations as the Secretary may from time to time prescribe. Whenever in the judgment of the Secretary it is necessary, he may require any person, by notice served upon such person or by regulations, to make such returns, render such statements, or keep such records as the Secretary deems sufficient to show whether or not such person is liable for tax under this title. The only records which an employer shall be required to keep under this section in connection with charged tips shall be charge receipts, records necessary to comply with Section 6053(c) and copies of statements furnished by employees under Section 6053(a).”

22. Admit that Internal Revenue Code Section 6011 states: “(a) General Rule. When required by regulations prescribed by the Secretary any person made liable for any tax imposed by this title, or for the collection thereof, shall make a return or statement according to the forms and regulations prescribed by the Secretary. Every person required to make a return or statement shall include therein the information required by such forms or regulations . . .(g) Income, estate and gift taxes. For requirement that returns of income, estate, and gift taxes be made whether or not there is tax liability, see subparts B and C.”

23. Admit that subparts B and C referred to at Internal Revenue Code Section 6011(g) contain Internal Revenue Code Sections 6012 through 6017a.

24. Admit that Congress displayed its knowledge of how to make someone “liable for” a tax at 26 U.S.C. 5005, which states that: “(a) The distiller or importer of distilled spirits shall be liable for the taxes imposed thereon by section 5001(a)(1).”

25. Admit that Congress displayed its knowledge of how to make someone liable for a tax at 26 U.S.C. 5703, which states that: “(a)(1) The manufacturer or importer of tobacco products and cigarette papers and tubes shall be liable for the taxes imposed therein by section 5701.”

26. Admit that the persons made liable at Internal Revenue Code

Sections 5005 and 5703, for the taxes imposed at Internal Revenue Code Sections 5001(a)(1) and 5701, respectively, are the persons described at Sections 6001 and 6011 required to make returns and keep records.

27. Admit that Section 1461 is the only place in Subtitle A of the

Internal Revenue Code where Congress used the words: “liable for.’

28. Admit that the person made liable by Congress at Section 1461 is a

withholding agent for nonresident aliens.

29. Admit that there is a canon of statutory construction, “expressio

unius est exclusio alterius”, which means the express mention of one thing means the implied exclusion of another.

30. Admit that Congress could have, but did not, make anyone else other than the withholding agent referred to in Section 1461, “liable for” any income tax imposed in Subtitle A.

31. Admit that up until 1986, the statement required by the Privacy and Paperwork Reduction Acts set out in the IRS Form 1040 instruction booklet, mentioned only Internal Revenue Code Sections 6001 and 6011 as the authority to request information.

32. Admit that the United States Supreme Court has held in C.I.R. v.

Acker, 361 U.S. 87, 89 (1959), and in U.S. v. Calamaro, 354 U.S. 351, 358-359 (1957), that a regulation that purports to create a legal requirement not imposed by Congress in the underlying statute is invalid.

32a. Admit that the 26 CFR 1.1-1 uses the following phrase:

"...all citizens of the United States, wherever resident, and all resident alien individuals are liable to the income taxes imposed by the Code whether the income is received from sources within or without the United States."

32b. Admit that the statute the above regulation, 26 CFR §1.1-1 implements, which is 26 U.S.C. §1, nowhere uses the word "liable" to describe the taxes imposed in that section 1.

32c. Admit that because the corresponding statute in 26 U.S.C. §1 does not use the word "liable" or "liable to", then the implementing regulation for the section, 26 CFR §1.1-1 cannot, which makes the implementing regulation imposing the otherwise nonexistent liability invalid and unenforceable.

32d. Admit that there is no statute anywhere in Subtitle A of the Internal Revenue Code which makes any person liable for the tax imposed in 26 U.S.C. §1 or 26 U.S.C. §871.

32e. Admit that 26 CFR §1.1441-1 defines the term "individual" to mean the following:

26 CFR 1.1441-1 Requirement for the deduction and withholding of tax on payments to foreign persons.

(c ) Definitions

(3) Individual.

(i) Alien individual.

The term alien individual means an individual who is not a citizen or a national of the United States. See Sec. 1.1-1(c).

(ii) Nonresident alien individual.

The term nonresident alien individual means a person described in section 7701(b)(1)(B), an alien individual who is a resident of a foreign country under the residence article of an income tax treaty and Sec. 301.7701(b)-7(a)(1) of this chapter, or an alien individual who is a resident of Puerto Rico, Guam, the Commonwealth of Northern Mariana Islands, the U.S. Virgin Islands, or American Samoa as determined under Sec. 301.7701(b)-1(d) of this chapter. An alien individual who has made an election under section 6013 (g) or (h) to be treated as a resident of the United States is nevertheless treated as a nonresident alien individual for purposes of withholding under chapter 3 of the Code and the regulations there under.

32f. Admit that there is no other place anywhere in the Internal Revenue Code or 26 CFR where the word "individual" is defined.

32g. Admit that 26 CFR §1.1441-1 is the definition for the term "individual" that appears at the top of the IRS form 1040 in the phrase "U.S. Individual Income Tax Return".

32h. Admit that IRS form 1040NR is the form required to be used by nonresident aliens.

32i. Admit that if Form 1040NR is used for nonresident aliens, the only thing left that an "individual" appearing in 26 U.S.C. §7701(a)(1) can be is an "alien" based on 26 CFR §1.1441-1.

32j. Admit that the term "citizen of the United States" is defined as follows in 26 CFR:

26 CFR §31.3121(e) State, United States, and citizen.

(b)…The term 'citizen of the United States' includes a citizen of the Commonwealth of Puerto Rico or the Virgin Islands, and, effective January 1, 1961, a citizen of Guam or American Samoa.

CRS Report Question # 9

Do The Internal Revenue Service’s Collection And Auditing Procedures

Violate The Fourth Amendment?

One line of inquiry is titled, “FOURTH AMENDMENT.” It includes 18 Questions that are numbered as follows: 400-417.

None of our substantive questions are answered under section 9 of the CRS Report.

The following are our questions that relate to the subject matter of section 9 of the CRS report but are not addressed and not answered in section 9 or in any other section of the CRS report.

400. Admit that 26 U.S.C. 6331 is the alleged authority by which distraint in the collection of Subtitle A income taxes against individuals is instituted.

401.Admit that 26 U.S.C. 6331(a) identifies the only entities against whom distraint may be instituted.

402. Admit that 26 U.S.C. 6331(a) identifies that levy may be made against only the following individuals:

(a)...Levy may be made upon the accrued salary or wages of any officer, employee, or elected official, of the United States, the District of Columbia, or any agency or instrumentality of the United States or the District of Columbia, by serving a notice of levy on the employer (as defined in section 3401(d)) of such officer, employee, or elected official.

403. Admit that 26 CFR 31.3401(c ) identifies the definition of

"employee" as: "...the term [employee] includes officers and employees, whether elected or appointed, of the United States, a [federal] State, Territory, Puerto Rico or any political subdivision, thereof, or the District of Columbia, or any agency or instrumentality of any one or more of the foregoing. The term 'employee' also includes an officer of a corporation."

404. Admit that the IRS Form 668-A(c)(DO) is the Notice of Levy form routinely delivered to private, nongovernmental employers by the IRS to institute distraint against their employees.

405. Admit that the reverse side of IRS Form 668-A(c)(DO) shows 26 U.S.C. §6331 but has paragraph (a) removed.

406. Admit that the removal of 26 U.S.C. §6331(a) from the reverse side of IRS Form 668-A(c)(DO) could lead private employers who do not employ federal "employees" to incorrectly honor a Notice of Levy.

407. Admit that inclusion of 26 U.S.C. §6331(a) on the reverse side of the IRS Form 668-A(c)(DO) would make it less likely to cause private employers to misinterpret or misapply the law in processing an IRS Notice of Levy.

408. Admit that the Fourth Amendment requires that all seizures of

property by the U.S. government must be preceded by service of a warrant upon the party whose property is to be seized.

409. Admit that the Fourth Amendment requires that the person who signs or issues the warrant authorizing seizure must be a neutral magistrate as indicated in the annotated Fourth Amendment:

Issuance by Neutral Magistrate .--In numerous cases, the Court has referred to the necessity that warrants be issued by a ''judicial officer'' or a ''magistrate.''[2][1] ''The point of the Fourth Amendment, which often is not grasped by zealous officers, is not that it denies law enforcement the support of the usual inferences which reasonable men draw from evidence. Its protection consists in requiring that those inferences be drawn by a neutral and detached magistrate instead of being judged by the officer engaged in the often competitive enterprise of ferreting out crime. Any assumption that evidence sufficient to support a magistrate's disinterested determination to issue a search warrant will justify the officers in making a search without a warrant would reduce the Amendment to a nullity and leave the people's homes secure only in the discretion of police officers.''[3][2] These cases do not mean that only a judge or an official who is a lawyer may issue warrants, but they do stand for two tests of the validity of the power of the issuing party to so act. ''He must be neutral and detached, and he must be capable of determining whether probable cause exists for the requested arrest or search.''[4][3] The first test cannot be met when the issuing party is himself engaged in law enforcement activities,[5][4] but the Court has not required that an issuing party have that independence of tenure and guarantee of salary which characterizes federal judges. [6][5] And in passing on the second test, the Court has been essentially pragmatic in assessing whether the issuing party possesses the capacity to determine probable cause. [7][6]

410.Admit that the IRS routinely seizes property from citizens without first litigating to obtain a warrant from a neutral magistrate.

411. Admit that the Supreme Court said that persons are entitled to a due process hearing prior to the seizing of property as follows:

“The right to a prior hearing has long been recognized by this Court [Supreme Court] under the Fourteenth and Fifth Amendments…[T]he court has traditionally insisted that, whatever its form, opportunity for that hearing must be provided before the deprivation at issue takes place.”

Bell v. Burson, 402 U.S. 535, 542, Wisconsin v. Constantineau, 400 U.S. 433, Goldberg v. Kelly, 397 U.S. 254, Armstrong v. Manzo, 380 U.S. 551, United States v. Illinois Central R. Co.

412. Admit that the due process hearing prior to seizure must occur at the point where the seizure of property can be prevented as follows:

“If the right to notice and a hearing is to serve its full purpose, it is clear that it must be granted at a time when the deprivation can still be prevented. At a later hearing, an individual’s possessions can be returned to him if they were unfairly or mistakenly taken in the first place. Damages may even be awarded him for wrongful deprivation. But no later hearing and no damage award can undo the fact that the arbitrary taking that was subject to the right of due process has already occurred. This Court [the Supreme Court] has not embraced the general proposition that a wrong may be done if it can be undone.” Stanley v. Illinois, 405 U.S. 645, 647, 31 L.Ed.2d 551, 556,.Ct. 1208 (1972).

413. Admit that 26 U.S.C. §7805(a) authorizes and empowers the Secretary of the Treasury as follows:

Sec. 7805. - Rules and regulations

(a) Authorization

Except where such authority is expressly given by this title to any person other than an officer or employee of the Treasury Department, the Secretary shall prescribe all needful rules and regulations for the enforcement of this title, including all rules and regulations as may be necessary by reason of any alteration of law in relation to internal revenue.

414. Admit that there are no implementing regulations applicable to Part 1 of Title 26 of the Code of Federal Regulations which authorize assessment of the tax imposed under 26 U.S.C. §1 or 26 U.S.C. §871 by other than the taxpayer filling out the form.

415. Admit that there are no implementing regulations applicable to Part 1 of Title 26 of the Code of Federal Regulations which require record keeping for the tax imposed under 26 U.S.C. §1 or 26 U.S.C. §871 by other than the taxpayer filling out the form.

416. Admit that there are no implementing regulations applicable to Part 1 of Title 26 of the Code of Federal Regulations which authorize IRS collection of the tax imposed under 26 U.S.C. §1 or 26 U.S.C. §871.

417. Admit that there are no implementing regulations applicable to Part 1 of Title 26 of the Code of Federal Regulations which authorize imposition by the government of penalties or interest for nonpayment of the tax imposed under 26 U.S.C. §1 or 26 U.S.C. §871.

CRS Report Question # 10

Do Such Aspects Of The Federal Income Tax As Graduated Rates, Deductions, And Exemptions Violate The Equal Protection Guarantees Of The Constitution?

Our questions do not reach the subject matter covered in Section 10 of the CRS Report. Not one of our questions is even remotely touched on in section 10 of the CRS Report.

CRS Report Question #11

Has The Withholding Act Been Repealed (Victory Tax Act Questions)?

Our questions do not reach the subject matter covered in Section 11 of the CRS Report. Not one of our questions is even remotely touched on in section 11 of the CRS Report.

CRS Report Question #12

When Was The Internal Revenue Service Established And Where Does It Get Its Power To Tax?

Our questions do not reach the subject matter covered in Section 12 of the CRS Report. Not one of our questions is even remotely touched on in section 12 of the CRS Report.

CRS Report Question #13

8. Does The Internal Revenue Service Have Authority To Operate Outside Of The District Of Columbia (Seat Of Government Act Questions)?

One line of inquiry is titled, “JURISDICTION.” It includes 45 Questions that are numbered as follows: 33-34a, 35-52a, 53-53a, 54-58, 58a-58b, 59-60, 60a-60f, 61-62, 62a-62d

None of our substantive questions are answered under section 13of the CRS Report.

The following are our questions that relate to the subject matter of section 13of the CRS report but are not addressed and not answered in section 13 or in any other section of the CRS report.

33. Admit that at Section 7608(a) of the Internal Revenue Code, Congress set forth the authority of internal revenue officers with respect to enforcement of Subtitle E and other laws pertaining to liquor, tobacco, and firearms.

33. Admit that at Section 7608(b) of the Internal Revenue Code,

Congress set forth the authority of internal revenue officers with respect to enforcement of laws relating to internal revenue other than Subtitle E.

34a. Admit that the only persons authorized to enforce Subtitle A are special agents and investigators.

35. Admit that the term “person” as that term is used in Internal Revenue Code Section 6001 and 6011 is defined at Section 7701(a)(1).

36. Admit that Internal Revenue Code Section 7701(a)(1) states:

“The term person shall be construed to mean and include an individual, a trust, estate, partnership, association, company or corporation.”

37. Admit that trusts, estates, partnerships, associations, companies and corporations do not have arms and legs, do not get married, do not eat, drink and sleep, and are not otherwise included in what one not trained in the law would recognize as a “person.”

38. Admit that Internal Revenue Code Section 6012(a) states that:

“(a) General Rule. Returns with respect to income taxes under subtitle A shall be made by the following: (1)(A) Every individual having for the taxable year gross income which equals or exceeds the exemption amount or more . . . .”

39. Admit that Internal Revenue Code Section 1 imposes a tax on the taxable income of certain “persons” who are “individuals” and “estates and trusts.”

40. Admit that the “individual” mentioned in Internal Revenue Code Section 6012 is the same individual as mentioned in Internal Revenue Code Section 1.

41. Admit that the “individual” mentioned by Congress in Internal Revenue Code Section 6012 and Internal Revenue Code Section 1 is not defined anywhere in the Internal Revenue Code.

42. Admit that 26 C.F.R. 1.1-1 is the Treasury Regulation that corresponds to Internal Revenue Code Section 1.

43. Admit that at 26 C.F.R. 1.1-1(a)(1), the individuals identified at Section 1 of the Internal Revenue Code are those individuals who are either citizens of the United States, residents of the United States, or non-resident aliens.

44. Admit that the “residents” and “citizens” identified in 26 C.F.R. 1.1- 1(a)(1) are mutually exclusive classes.

45. Admit that as used in 26 C.F.R. Sec. 1.1-1, the term “resident” means an alien.

46. Admit that 26 C.F.R. 1.1-1(c) states that: “Every person born or naturalized in the United States, and subject to its jurisdiction, is a citizen.”

47. Admit that a person who is born or naturalized in the United States but not subject to its jurisdiction, is not a citizen within the meaning of 26 C.F.R. 1.1-1.

48. Admit that on April 21, 1988, in the United States District Court, Southern District of Indiana, Evansville Division, in the case of United States v. James I. Hall, Case No. EV 87-20-CR, IRS Revenue Officer Patricia A. Schaffner, testified under penalties of perjury that the terms “subject to its jurisdiction” as used at 26 C.F.R. 1.1-1(c) meant being subject to the laws of the country, and that meant the “legislative jurisdiction” of the United States.

49. Admit that in the same case, Patricia A. Schaffner testified under oath the term “subject to its jurisdiction” could have no other meaning than the “legislative jurisdiction” of the United States.

50. Admit that when Patricia A. Schaffner was asked to tell the jury what facts made Mr. Hall subject to the “legislative jurisdiction” of the United States, the prosecutor, Assistant United States Attorney Larry Mackey objected, and the court sustained the objection.

51. Admit that the Internal Revenue Service is never required by the Federal courts to prove facts to establish whether one is subject to the jurisdiction of the United States.

52. Admit that the United States Department of Justice and United States Attorneys, and their assistants, always object when an alleged taxpayer demands the Government prove that they are subject to the jurisdiction of the United States, and the federal courts always sustain those objections, which means that the federal courts routinely prohibit the introduction of potentially exculpatory evidence in tax crime trials.

52(a). Admit that the IRS has been directed to maintain a system of financial records on all federal judges, all IRS Criminal Investigation Division Special Agents, and all U.S. Attorneys, which records cannot be accessed by the subject(s) under the FOIA or Privacy Act.

53. Admit that unless specifically provided for in the United States

Constitution, the federal government does not have legislative jurisdiction in the states.

53a. Admit that 40 U.S.C. §255 identifies the only method by which the federal government may acquire legislative jurisdiction over a geographic area within the outer limits of a state of the Union, which is by state cession in writing.

54. Admit that on December 15, 1954, an interdepartmental committee was commissioned on the recommendation of the Attorney General of the United States, Herbert Brownell, Jr., and approved by President Eisenhower and his cabinet, named the Interdepartmental Committee for the Study of Jurisdiction Over Federal Areas Within the States, and charged with the duty of studying and reporting where the United States had legal authority to make someone subject to its jurisdiction.

55. Admit that in June of 1957, the “Interdepartmental Committee for the Study of Jurisdiction over Federal Areas Within the States” issued “Part II” of its report entitled “Jurisdiction Over Federal Areas Within the States.”

56. Admit that the Report makes the following statements:

a. “The Constitution gives express recognition to but one means of Federal acquisition of legislative jurisdiction -- by State consent under Article I, section 8, clause 17... Justice McLean suggested that the Constitution provided the sole mode for transfer of jurisdiction, and that if this mode is not pursued, no transfer of jurisdiction can take place.”

b. “It scarcely needs to be said that unless there has been a transfer of jurisdiction (1) pursuant to clause 17 by a Federal acquisition of land with State consent, or (2) by cession from the State to the Federal Government, or unless the Federal Government has reserved jurisdiction upon the admission of the State, the Federal Government possesses no legislative jurisdiction over any area within a State, such jurisdiction being for exercise by the State, subject to non- interference by the State with Federal functions,”

c. “The Federal Government cannot, by unilateral action on its part, acquire legislative jurisdiction over any area within the exterior boundaries of a State,”

d. “On the other hand, while the Federal Government has power under various provisions of the Constitution to define, and prohibit as criminal, certain acts or omissions occurring anywhere in the United States, it has no power to punish for various other crimes, jurisdiction over which is retained by the States under our Federal-State system of government, unless such crime occurs on areas as to which legislative jurisdiction has been vested in the Federal Government.”

57. Admit that the phrase “subject to their jurisdiction” as used in the Thirteenth Amendment means subject to both the jurisdiction of the several states of the union and the United States.

58. Admit that the “subject to its jurisdiction” component of the

definition of citizen set out at 26 C.F.R. 1.1-1(c) has a different meaning than the phrase “subject to their jurisdiction” as used in the Thirteenth Amendment to the Constitution of the United States.

58a. Admit that the term "foreign" is nowhere defined in the Internal Revenue Code.

58b. Admit that the term "foreign" means anything outside of the legislative jurisdiction of the Congress, which means anything outside of federal property ceded, in most cases, to the federal government by the states as required by 40 U.S.C. §255.

59. Admit that a Treasury Regulation cannot create affirmative

duties not otherwise imposed by Congress in the underlying statute, corresponding Internal Revenue Code section.

60. Admit that Congress defined a “taxpayer” at Section 7701(a)(14) of the Internal Revenue Code, as any person subject to any Internal Revenue tax.

60a. Admit that "subject to" is defined in Black’s Law Dictionary, Sixth Edition, page 1425 as:

“Liable, subordinate, subservient, inferior, obedient to; governed or affected by; provided that; provided; answerable for.” Homan v. Employers Reinsurance Corp., 345 Mo. 650, 136 S.W.2d 289, 302.

60b. Admit that based on the above definition of "subject to", use of the term "taxpayer" in describing anyone creates a presumption of liability for tax on the part of the person being referred to.

60c. Admit that the IRS uses the term "taxpayer" to refer to everyone, including those not necessarily subject to or liable for Subtitle A income taxes.

60d. Admit that in Botta v. Scanlon, 288 F.2d. 504, 508 (1961), a federal court said:

"A reasonable construction of the taxing statutes does not include vesting any tax official with absolute power of assessment against individuals not specified in the states as a person liable for the tax without an opportunity for judicial review of this status before the appellation of 'taxpayer' is bestowed upon them and their property is seized..."

60e. Admit that, based on the above, it is a violation of due process and a violation of delegated authority for any IRS tax official to refer to any person as a "taxpayer" who does not first identify him or herself as such voluntarily.

60f. Admit that the federal courts, in the case of Long v. Rasmussen, 281 F. 236 (1922) stated at 238:

"The revenue laws are a code or system in regulation of tax assessment and collection. They relate to taxpayers, and not to nontaxpayers. The latter are without their scope. No procedure is prescribed for nontaxpayers, and no attempt is made to annul any of their rights and remedies in due course of law. With them Congress does not assume to deal, and they are neither of the subject nor of the object of the revenue laws..."

"The distinction between persons and things within the scope of the revenue laws and those without is vital."

61. Admit that one who is not a citizen, resident, or non-resident alien, is not an individual subject to the tax imposed by Section 1 of the Internal Revenue Code.

62. Admit that an individual who is not subject to the tax imposed by Section 1 of the Internal Revenue Code, is not an individual required to make a return under the Requirement of Internal Revenue Code Section 6012.

62a. Admit that the Supreme Court, in a dissenting opinion of Judge Harlan in the case of Downes v. Bidwell, 182 U.S. 244 (1901), stated:

“The idea prevails with some, indeed it has found expression in arguments at the bar, that we have in this country substantially two national governments; one to be maintained under the Constitution, with all of its restrictions; the other to be maintained by Congress outside the independently of that instrument, by exercising such powers [of absolutism] as other nations of the earth are accustomed to…I take leave to say that, if the principles thus announced should ever receive the sanction of a majority of this court, a radical and mischievous change in our system of government will result. We will, in that event, pass from the era of constitutional liberty guarded and protected by a written constitution into an era of legislative absolutism. It will be an evil day for American liberty if the theory of a government outside the supreme law of the land finds lodgment in our constitutional jurisprudence. No higher duty rests upon this court than to exert its full authority to prevent all violation of the principles of the Constitution.”

62b. Admit that the jurisdiction that Honorable Justice Harlan above was referring to where "legislative absolutism" would or could reign was in areas subject to the legislative jurisdiction of the U.S. government, which includes the District of Columbia, federal enclaves within the states, and U.S. territories and possessions.

62c. Admit that the Internal Revenue Manual says the following, in section 4.10.7.2.9.8 (05-14-1999):

Importance of Court Decisions

1. Decisions made at various levels of the court system are considered to be interpretations of tax laws and may be used by either examiners or taxpayers to support a position.

2. Certain court cases lend more weight to a position than others. A case decided by the U.S. Supreme Court becomes the law of the land and takes precedence over decisions of lower courts. The Internal Revenue Service must follow Supreme Court decisions. For examiners, Supreme Court decisions have the same weight as the Code.

3. Decisions made by lower courts, such as Tax Court, District Courts, or Claims Court, are binding on the Service only for the particular taxpayer and the years litigated. Adverse decisions of lower courts do not require the Service to alter its position for other taxpayers.

62d. Admit that the Internal Revenue Service, in its responsive letters to tax payers, routinely and chronically violates the above requirements by citing cases below the Supreme Court level, which do not apply to more than the individual taxpayer in question according to the above.

CRS Report Question #14

What Is The Liberty Amendment?

Our questions do not reach the subject matter covered in Section 14 of the CRS Report. Not one of our questions is even remotely touched on in section 14 of the CRS Report.

CRS Report Question #15

Is The Federal Telephone Excise Tax Used To Fund The Military?

Our questions do not reach the subject matter covered in Section 15 of the CRS Report. Not one of our questions is even remotely touched on in section 15 of the CRS Report.

CRS Report Question #16

Does Withholding On Wages Constitute Involuntary Servitude In Violation Of The Thirteenth Amendment?

One line of inquiry is titled, “RIGHT TO LABOR.” It includes 82 Questions that are numbered as follows: 122-127, 127a–127d, 128–186,

186a–186i, and 187-191.

None of our substantive questions are answered under section 16 of the CRS Report.

The following are our questions that relate to the subject matter of section 16 of the CRS report but are not addressed and not answered in section 16 or in any other section of the CRS report.

172. Admit that a typical American family works until noon of every working day just to pay its alleged tax obligations.

173. Admit that the typical American family pays more in taxes than they spend on food, clothing, and housing combined.

174. Admit that there are currently over 480 tax forms.

175. Admit that the federal tax code contains over 7 million words

176. Admit that over 1/2 of Americans are paying some sort of tax

professional to help them comply with alleged tax law

requirements.

177. Admit that each year the Internal Revenue Service sends out approximately 8 billion pages of tax forms and instructions, generating enough paper to stretch 28 times around the Earth.

178. Admit that Americans spend approximately 5.4 billion labor hours and $200 billion dollars per year attempting to comply with alleged tax requirements, which is more time and money than it takes to produce every car, truck, and van each year in the United States.

179. Admit that in 1913, the average American family had to work only until January 30th before earning enough to pay all alleged tax obligations.

180. Admit that the average American family had to work all the way through May 12th in order to pay their alleged federal, state, and local tax bills for the year 2000.

181. Admit that economist Daniel J. Mitchell recently observed that: “[Medieval serfs] only had to give the lord of the manor a third of their output and they were considered slaves. So what does that make us?”

182. Admit that the average Wisconsin citizen had to work until May 9th this year to pay all alleged tax obligations.

183. Admit that Americans own less of their labor than feudal serfs.

184. Admit that the 13th Amendment to the U.S. Constitution states: “Neither slavery nor involuntary servitude, except as a punishment for crime whereof the party shall have been duly convicted, shall exist within the United States, or any place subject to their jurisdiction. Congress shall have power to enforce this article by appropriate legislation.”

185. Admit that if Congress can constitutionally tax a man’s labor at the rate of 1%, then Congress is free, subject only to legislative discretion, to tax that man’s labor at the rate of 100%.

186. Admit that “peonage” is a condition of servitude compelling a

man or woman to perform labor in order to pay off a debt.

186a. Admit that the Federal Reserve Act was passed in 1913, within a few months of the ratification of the Sixteenth Amendment that allegedly authorized a tax on the incomes of most Americans.

186b. Admit that the Federal Reserve Act allowed the U.S. government to borrow large sums of money from private banking institutions at interest, and thereby potentially create a large public debt.

186c. Admit that U.S. Congress' inability to balance the federal budget or lack of fiscal discipline could create large volumes of public debt to the Federal Reserve.

186d. Admit that the result of increasing public debt must be an increase in income tax revenues to pay off the debt in order to maintain solvency of the federal government.

186e. Admit that an increase in income tax revenues would require a larger percentage of the wage (labor) income of average Americans to be extracted as income tax, because more than half of federal income tax revenues derive from personal income taxes rather than corporate income taxes.

186f. Admit that there is an incentive for politicians to buy votes with borrowed money that will be paid off by unborn children at interest.

186g. Admit that requiring unborn children of tomorrow paying off extravagances of today at interest amounts to taxation without representation, which was the very reason our country rebelled from Great Britain to become an independent nation.

186h. Admit that Thomas Jefferson, one of our founding fathers and author of our Declaration of Independence, said the following :

"I sincerely believe... that banking establishments are more dangerous than standing armies, and that the principle of spending money to be paid by posterity under the name of funding is but swindling futurity on a large scale." --Thomas Jefferson to John Taylor, 1816. ME 15:23

"Funding I consider as limited, rightfully, to a redemption of the debt within the lives of a majority of the generation contracting it; every generation coming equally, by the laws of the Creator of the world, to the free possession of the earth He made for their subsistence, unencumbered by their predecessors, who, like them, were but tenants for life." --Thomas Jefferson to John Taylor, 1816. ME 15:18

"[The natural right to be free of the debts of a previous generation is] a salutary curb on the spirit of war and indebtment, which, since the modern theory of the perpetuation of debt, has drenched the earth with blood, and crushed its inhabitants under burdens ever accumulating." --Thomas Jefferson to John Wayles Eppes, 1813. ME 13:272

"We believe--or we act as if we believed--that although an individual father cannot alienate the labor of his son, the aggregate body of fathers may alienate the labor of all their sons, of their posterity, in the aggregate, and oblige them to pay for all the enterprises, just or unjust, profitable or ruinous, into which our vices, our passions or our personal interests may lead us. But I trust that this proposition needs only to be looked at by an American to be seen in its true point of view, and that we shall all consider ourselves unauthorized to saddle posterity with our debts, and morally bound to pay them ourselves; and consequently within what may be deemed the period of a generation, or the life of the majority." --Thomas Jefferson to John Wayles Eppes, 1813. ME 13:357

"It is incumbent on every generation to pay its own debts as it goes. A principle which if acted on would save one-half the wars of the world." --Thomas Jefferson to A. L. C. Destutt de Tracy, 1820. FE 10:175

“To preserve [the] independence [of the people,] we must not let our rulers load us with perpetual debt. We must make our election between economy and liberty, or profusion and servitude. If we run into such debts as that we must be taxed in our meat and in our drink, in our necessaries and our comforts, in our labors and our amusements, for our callings and our creeds, as the people of England are, our people, like them, must come to labor sixteen hours in the twenty-four, give the earnings of fifteen of these to the government for their debts and daily expenses, and the sixteenth being insufficient to afford us bread, we must live, as they now do, on oatmeal and potatoes, have no time to think, no means of calling the mismanagers to account, but be glad to obtain subsistence by hiring ourselves to rivet their chains on the necks of our fellow-sufferers." --Thomas Jefferson to Samuel Kercheval, 1816. ME 15:39

186i. Admit that with an unlimited source of credit in the Federal Reserve, and an ability to claim any percentage of the income of the Average American in income taxes, the growth of the federal government and the smothering and complete extinguishment of liberty is inevitable given the vagaries and weaknesses of the humankind who occupy public office.

187. Admit that “peonage” is a form of involuntary servitude prohibited by the Thirteenth Amendment to the Constitution of the United States.

188. Admit that the U.S. Congress abolished peonage in 1867.

189. Admit that holding or returning any person to a condition of peonage is a crime under 18 U.S.C. Section 1581.

190. Admit that involuntary servitude means a condition of servitude in which the victim is forced to work for another by use or threat of physical restraint or injury, or by the use or threat of coercion through law or legal process.

191. Admit that if an American stops turning over the fruits of his or her labor to the federal government in the form of income tax payments, he suffers under the risk of possible criminal prosecution and incarceration.

CRS Report Question #17

Are Not Individuals Who Are Too Young To Vote Or Who Are Residents Of The District Of Columbia Unconstitutionally Subjected To Taxation Without Representation?

Our questions do not reach the subject matter covered in Section 17 of the CRS Report. Not one of our questions is even remotely touched on in section 17of the CRS Report.

CRS Report Question #18

What Is Meant By The Term United States In The Context Of The Internal Revenue Code?

Our questions do not reach the subject matter covered in Section 18 of the CRS Report. Not one of our questions is even remotely touched on in section 18 of the CRS Report.

CRS Report Question #19

May Congress Tax Occupations Of Common Law Right?

Our questions do not reach the subject matter covered in Section 19of the CRS Report. Not one of our questions is even remotely touched on in section 19 of the CRS Report.

CRS Report Question #20

What Is Meant By The Term “Includes?”

One line of inquiry is titled, “WORD ‘INCLUDES’.” It includes 23 Questions that are numbered as follows: 418-440

None of our substantive questions are answered under section 20 of the CRS Report.

For instance, the following is a sampling of our questions that relate to the subject matter of section 20 of the CRS report but are not addressed and not answered in section 20 or in any other section of the CRS report.

418. Admit that the word "includes" is defined in 26 U.S.C. §7701(c) as follows:

TITLE 26 . Subtitle F . CHAPTER 79 .

Sec. 7701. - Definitions

The terms ''includes'' and ''including'' when used in a definition contained in this title shall not be deemed to exclude other things otherwise within the meaning of the term defined.

419. Admit that the word "includes" is defined by the Treasury in the Federal Register as follows:

Treasury Definition 3980, Vol. 29, January-December, 1927, pgs. 64 and 65 defines the words includes and including as:

“(1) To comprise, comprehend, or embrace…(2) To enclose within; contain; confine…But granting that the word ‘including’ is a term of enlargement, it is clear that it only performs that office by introducing the specific elements constituting the enlargement. It thus, and thus only, enlarges the otherwise more limited, preceding general language…The word ‘including’ is obviously used in the sense of its synonyms, comprising; comprehending; embracing.”

420. Admit that the definition of the word "includes" found in Black's Law Dictionary, Sixth Edition, page 763 is as follows:

“Include. (Lat. Inclaudere, to shut in. keep within.) To confine within, hold as an inclosure. Take in, attain, shut up, contain, inclose, comprise, comprehend, embrace, involve. Term may, according to context, express an enlargement and have the meaning of and or in addition to, or merely specify a particular thing already included within general words theretofore used. “Including” within statute is interpreted as a word of enlargement or of illustrative application as well as a word of limitation. Premier Products Co. v. Cameron, 240 Or. 123, 400 P.2d 227, 228.”

421. Admit that if the meaning of the word "includes" as used in the Internal Revenue Code is "and" or "in addition to" as described above, then the code cannot define or confine the precise meaning of the following words that use "include" in their definition:

“State” found in 26 U.S.C. §7701(a)(10) and 4 U.S.C. §110

“United States” found in 26 U.S.C. §7701(a)(9)

“employee” found in 26 U.S.C. §3401(c ) and

26 CFR §31.3401(c )-1 Employee

“person” found in 26 CFR 301.6671-1 (which governs who is liable for penalties under Internal Revenue Code)

422. Admit that if the meaning of "includes" as used in the definitions above is "and" or "in addition to", then the code cannot define any of the words described, based on the definition of the word "definition" found in Black's Law Dictionary, Sixth Edition, page 423:

definition: (Black's Law Dictionary, Sixth Edition, page 423) A description of a thing by its properties; an explanation of the meaning of a word or term. The process of stating the exact meaning of a word by means of other words. Such a description of the thing defined, including all essential elements and excluding all nonessential, as to distinguish it from all other things and classes."

423. Admit that absent concrete definitions of the above critical words identified in question 417, the meaning of the words becomes ambiguous, unclear, and subjective.

424. Admit that when the interpretation of a statute or regulation is unclear or ambiguous, then the by the rules of statutory construction, the doubt should be resolved in favor of the taxpayer as indicated in the cite from the Supreme Court below:

"In view of other settled rules of statutory construction, which teach that a law is presumed, in the absence of clear expression to the contrary, to operate prospectively; that, if doubt exists as to the construction of a taxing statute, the doubt should be resolved in favor of the taxpayer..." Hassett v. Welch., 303 US 303, pp. 314 - 315, 82 L Ed 858. (1938) (emphasis added)

425. Admit that in the majority of cases, doubts about the

interpretation of the tax code are not resolved in favor of the taxpayer by any federal court as required by the Supreme Court above.

426. Admit that an ambiguous meaning for a word violates the

requirement for due process of law by preventing a person of average intelligence from being able to clearly understand what the law requires and does not require of him, thus making it impossible at worst or very difficult at best to know if he is following the law.

427. Admit that Black's Law Dictionary, Sixth Edition, page 500, under the definition of "due process of law" states the following:

The concept of “due process of law” as it is embodied in Fifth Amendment demands that a law shall not be unreasonable, arbitrary, or capricious and that the means selected shall have a reasonable and substantial relation to the object being sought.

428. Admit that if the definition of the word "includes" means that it is used synonymously with the word "and" or "in addition to", then it violates the requirement for due process of law found in the Fifth Amendment.

429. Admit that the violation of due process of law created by the abuse of the word "includes" found in the preceding question creates uncertainty, mistrust, and fear of citizens towards their government because of their inability to comprehend what the law requires them to do.

430. Admit that the violation of due process caused by the abuse of the word "includes" (in this case, making it mean "and" or "in addition to”) identified above could have the affect of extending the perceived jurisdiction and authority of the federal government to tax beyond its clear limits prescribed in the U.S. Constitution.

431. Admit that an abuse of the word “includes" to mean "and" or "in addition to" indicated above could have the affect of increasing and possibly even maximizing income tax revenues to the U.S. government through the violation of due process, confusion, and fear that it creates in the citizenry.

432. Admit that fear and confusion on the part of the citizenry towards their government and violation of due process by the government are characterized by most rational individuals as evidence of tyranny and treason against citizens.

433. Admit that the U.S. Constitution provides the following definition for "treason":

U.S. Constitution, Article III, Section 3, Clause 1:
“Treason against the United States shall consist only of levying war against them, or adhering to their enemies…”

434. Admit that Black's Law Dictionary, Sixth Edition, page 1583, provides the following definition for "war":

"Hostile contention by means of armed forces, carried on between nations, states, or rulers, or between citizens in the same nation or state."

435. Admit that agents of the IRS involved in seizures of property use guns and arms and against citizens, making the confrontation an armed confrontation.

436. Admit that IRS seizures can and do occur without court orders, warrants, or due process required by the Fourth Amendment and at the point of a gun.

437. Admit that property seizures as described above amount to an act of war of the government against the citizens.

438. Admit that acts of war against citizens, when not based on law, are treasonable offenses punishable by execution.

439. Admit that violation of due process produces injustice in society, which is why the founding fathers required us to have a Fifth Amendment.

440. Admit that the purpose of the government is to write laws to prevent, rather than promote, injustice in society, and thereby protect the right to life, liberty, property, and pursuit of happiness of all citizens equally.

CRS Report Question #21

Do The IRC Source Of Income Rules Exempt The Income Of U.S. Citizens?

One line of inquiry is titled, “TAXABLE SOURCES.” It includes 17 Questions that are numbered as follows: 441-456

None of our substantive questions are answered under section 21 of the CRS Report.

For instance, the following is a sampling of our questions that relate to the subject matter of section 21 of the CRS report but are not addressed and not answered in section 21 or in any other section of the CRS report.

441. Admit that the term "from whatever source derived" as used in the Sixteenth Amendment does not mean that the source of income or the situs for taxation is irrelevant or inconsequential in determining taxable income.

442. Admit that interpreting the phrase "from whatever source derived" to mean that the source or situs is irrelevant, makes the federal income tax applicable to any country or location in the world and renders 26 U.S.C. §861 and 26 U.S.C. §862 irrelevant and unnecessary, which clearly is an irrational and nonsensical conclusion to reach.

443. Admit that the federal income tax applies only to taxable income, which, generally speaking, is “gross income” minus allowable deductions.

444. Admit that the federal income tax regulations generally define “gross income” to mean “all income from whatever source derived, unless excluded by law.” as follows:

26 CFR § 1.61-1(a):

(a) General definition. Gross income means all income from whatever source derived, unless excluded by law. Gross income includes income realized in any form, whether in money, property, or services. Income may be realized, therefore, in the form of services, meals, accommodations, stock, or other property, as well as in cash. Section 61 lists the more common items of gross income for purposes of illustration. For purposes of further illustration, Sec. 1.61-14 mentions several miscellaneous items of gross income not listed specifically in section 61. Gross income, however, is not limited to the items so enumerated.

445. Admit that there are certain types of income which Congress has exempted by statute as identified in 26 CFR §1.61-1(a).

446. Admit that there are other types of income not enumerated above which are not exempted by statute, but are nonetheless excluded by law, for income tax purposes, because they are excluded from taxation by the Constitution itself.

26 CFR § 39.21-1 (1956):

(a) The tax imposed by chapter 1 is upon income. Neither income exempted by statute or fundamental law, nor expenses incurred in connection therewith, other than interest, enter into the computation of net income as defined by section 21.

26 CFR § 39.22(b)-1 (1956):

Certain items of income specified in section 22(b) are exempt from tax and may be excluded from gross income. These items, however, are exempt only to the extent and in the amount specified. No other items may be excluded from gross income except (a) those items of income which are, under the Constitution, not taxable by the Federal Government; (b) those items of income which are exempt from tax on income under the provisions of any act of Congress still in effect; and (c ) the income excluded under the provisions of the Internal Revenue Code (see particularly section 116).

447. Admit that the phrase "fundamental law" indicated above in the older regulations means the U.S. Constitution.

448. Admit that the above older regulation, 26 CFR §39.21-1 (1956) and 26 CFR § 39.22(b)-1 (1956) has never been explicitly repealed or superceded by newer regulations and is still in force.

449. Admit that the regulations under 26 U.S.C. §863 state:

26 CFR § 1.863-1(c)

“Determination of taxable income. The taxpayer's taxable income from sources within or without the United States will be determined under the rules of Secs. 1.861-8 through 1.861-14T for determining taxable income from sources within the United States.”

450. 26 USC § 61 lists some of the more common “items” of income which are taxable, such as compensation for services, interest, and dividends, among others. Admit that section 1.861-8(d)(2) of the federal income tax regulations are to be consulted in determining in which situations these “items” of income are excluded for federal income tax purposes?

26 CFR § 1.861-8(d)(2)

(2) Allocation and apportionment to exempt, excluded, or eliminated income. [Reserved] For guidance, see Sec. 1.861-8T(d)(2).

451. Admit that 26 CFR § 1.861-8T(d)(2) of the regulations lists several types of income which are, quote, not considered to be exempt, eliminated, or excluded income, end quote as follows:

26 CFR § 1.861-8T(d)(2)(iii)

(iii) Income that is not considered tax exempt. The following items

are not considered to be exempt, eliminated, or excluded income and, thus, may have expenses, losses, or other deductions allocated and apportioned to them:

(A) In the case of a foreign taxpayer (including a foreign sales corporation (FSC)) computing its effectively connected income, gross income (whether domestic or foreign source) which is not effectively connected to the conduct of a United States trade or business;

(B) In computing the combined taxable income of a DISC or FSC and its related supplier, the gross income of a DISC or a FSC;

(C) For all purposes under subchapter N of the Code, including the computation of combined taxable income of a possessions corporation and its affiliates under section 936(h), the gross income of a possessions corporation for which a credit is allowed under section 936(a); and

(D) Foreign earned income as defined in section 911 and the regulations thereunder (however, the rules of Sec. 1.911-6 do not require the allocation and apportionment of certain deductions, including home mortgage interest, to foreign earned income for purposes of determining the deductions disallowed under section 911(d)(6)).

452. Admit that only income derived from certain activities related to international or foreign commerce are included on that list of non-exempt types of income appearing in 26 CFR § 1.861-8T(d)(2)(iii) above.

453. Admit that the domestic income of most U.S. citizens is absent, and therefore excluded, from the list appearing in 26 CFR § 1.861-8T(d)(2)(iii).

454. Admit that 26 USC § 861(b), and the related regulations beginning at 26 CFR § 1.861-8, the sections to use to determine one’s taxable income from sources within the United States, regardless of citizenship and residency.

455. Admit that for U.S. citizens living and working exclusively in the 50 states and receiving all income from within the 50 states, that 26 U.S.C. §861(b) and related regulations beginning at 26 CFR §1.861-8 do not show such income to be taxable.

456. Admit that "items" of income are identified in 26 U.S.C. §61

while "sources" of income are identified in 26 U.S.C. §861 and 26 U.S.C. §862.

CRS Report Question #22

What Is The Frivolous Income Tax Penalty?

Our questions do not reach the subject matter covered in Section 22 of the CRS Report. Not one of our questions is even remotely touched on in section 22 of the CRS Report.

NOTE: In addition to those of our 538 questions we have already quoted above, as not being addressed by the CRS Report, there are many other questions included on our list of 538 questions that were not addressed by the CRS Report. These include our questions under the following lines of inquiry asked during the Citizens’ Truth-In-Taxation Hearing and included in the 538 questions that were delivered, on March 16, 2002, to Attorney General John Ashcroft, Treasury Secretary Paul O’Neil, Assistant to the President for Economic Policy Lawrence B. Lindsey, and Rep. Roscoe Bartlett. A copy of the questions and transmittal letter are attached to the letter from Bob Schulz to Daniel Bryant as Exhibit G.

(See the Index in Exhibit G)

· IRS FRAUD: CREATION OF TIME-BARRED ASSESSMENTS

· IRS VIOLATES CITIZENS’ DUE PROCESS RIGHTS

· PAPERWORK REDUCTION ACT and ADMINISTRATIVE

PROCEDURES ACT REGULATIONS

· 26 USC 6020(b): SUBSTITUTE RETURNS

· INDIVIDUAL MASTER FILES (IMFs)

[1] The questions are in the order in which they were asked at the Citizens’ Truth-In-Taxation Hearing.