January 2, 2001
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The Tax Freedom 101 Report

*Updates* - *News* - *Information*
The Constitutional Revival Movement's News Source
- January 2, 2001 -
This weekly HTML formatted e-newsletter contains:

* * * * * * * * * * * * * * * * * * * * * * * * * *
UPDATES:
* Abolish the IRS - If it Saves Just One Life...
* Winter Classes Now in Session
* The Constitutional Quiz Question of the Week!

NEWS:
* Charity Works Without Government Help

INFORMATION:
* W2's and 9's and 1099's... Oh My!

Why the Tax Freedom 101 Report?
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UPDATES:
* Abolish the IRS - If it Saves Just One Life...
Will Michael McDermott become the poster child for Alcohol, Tobacco, and Firearms? Under his picture the caption reading... "Be sure the law fits first, even if it save just one life." According to the mantra of the anti-gun and leftist media types maybe he should be their poster child. You see Michael McDermott obviously was wrong in his outrage since the warrantless levy presented to his employer for "back taxes" at Edgewater Technologies must have been for the past manufacture and sales of firearms. This an obvious conclusion considering the arsenal reportedly at his disposal at the time of the shootings by the press. So the levy the IRS was requesting Edgewater Technologies to make on Mr. McDermott's pay must have been for this exciseable and taxable activity. Right? If so the ATF should have seized the guns first, then they could have levied upon them, not Mr. McDermott's pay from Edgewater Technologies.

Oh but wait. You say Mr. McDermott was not involved in the manufacture and sale of firearms? Oh, well that changes everything then.

Latest Tragedy in Wakefield Massachusetts Due to IRS Levy?
Posted on 12/27/00 in the Tax Freedom 101 Discussion Forum by the editor of the Tax Freedom 101 Report

Most have now heard of the latest shooting in Wakefield Massachusetts, but it is unlikely that you have heard, or know of the details, or possible motives for the shootings.

Michael McDermott killed 7 today in a work related massacre. The latest motive being forwarded in the local news is that Mr. McDermott was scheduled to have a levy occur on his paycheck starting after the holidays, the news of which was relayed to him by his employer following a request for "back taxes" made by the IRS.

The employer agreed to oblige with the levy as requested by the IRS. Unfortunately, innocent people have been killed in a "random" shooting. Some of the 7 employees were said to be from accounting.

We will keep you posted if the motive by the suspect was indeed due to a pending levy. Regardless of this possible motive, these are obviously the actions of an emotionally and mentally unstable person.

A Point to Ponder: It may be shown later that this IRS levy was indeed the motive behind the suspect's shootings. If it can be proven that the IRS levy was indeed the catalyst for the shootings, and it is later shown that the levy was unlawful, which it is in most cases, would the victim's relatives have cause against the employer and the IRS in a wrongful death suit?

What are your thoughts?

A Thoughtful and On-Point Response:
Posted on 12/27/00 in the Tax Freedom 101 Discussion Forum

TF101,

It strikes me as a classic example of shooting the messenger. This poor soul felt totally helpless to affect those who had actually caused the damage to him, the IRS. Instead, he took out his frustration on the "robots" in the accounting department, who were merely operating (without thought) to the dictates of the IRS.

Bottom line: All it does is enhance the powers of the IRS. Such situations make them seem divine (or satanic, doesn't matter). They appear to be so above the fray that all the person harmed may do is attack the mere mortals who have enforced the orders of the "gods."

Worse: the gun control folks will be making hay on this for months to come. Wait for that shoe to fall.

By the time the spin doctors have done their work, We the People will be suffering further losses on several fronts. That considered, one can only wonder about what the real truths are here - but we'll never know, will we?

My opinion: It's all bad, very bad, for those who love freedom. The message sent to the subconscious minds of our countrymen is two-fold. We who oppose the IRS are loonies, potential mass-murderers, one and all. And we'd better be disarmed before we kill the innocent. The government couldn't have asked for a better situation. Which can only cause us to wonder what really drove the situation. But, hey, we're just a bunch of conspiratorial loonies, right? There's no way out of the circle they've built! Sad day.

Ralph

Legal Scholars Say Government Regs. Led to Boston Shootings
By Sierra Times - Posted: 12.29.00

Government’s Warrantless Search & Attempted Warrantless Seizure Leads to Shooting Rampage; Boston Again the Scene of Tax Revolt; Legal Scholar Says Government Evasion of Constitutional Requirements for Tax Searches and Seizures Led to Killings

Reports indicate an employee of a Boston Internet consulting firm shot and killed seven co-workers who apparently participated in plans to honor warrantless government searches for and seizures of the employee’s earnings, accrued and future.

The law, constitutional and statutory, requires a Fourth Amendment warrant, executive or judicial, for tax searches and seizures, but the IRS has routinely operated without them, provoking an outcry, producing litigation, and fomenting office stress that has now resulted in violence. "Without a valid warrant, no legally valid proof of a tax debt exists," said Virginia L. Cropsey, J.D., a graduate of Wayne State University School of Law and the University of Michigan, and author of an Internet newsletter and new website that expose the legal insufficiency of IRS notices of levy.

For the rest of the story, click here.

Learn the Fine Points of Legally Deficient Levys.
In the October 10th issue of The Tax Freedom 101 Report we ran an informational piece called: "NOTICE OF LEVY - A Frightening Fraud" - by John L. Sasscer. For this related article, click here.

* Winter Classes Now in Session

If you would like more information on our weekly Internet Conference Call and the Live Audio and Video Web Broadcast from Save-A-Patriot Headquarters go here: http://www.taxfreedom101.com/pages/gbentry.htm

If you would like to watch the last web broadcast from the December 16th fellowship class, click here. (Requires Windows Media Player and a high speed connection)

* Test Your Knowledge with: The Constitutional Quiz Question of the Week!
This week's question: Are those who who declare that the Constitution is out-moded or inadequate unintelligent? Example: Former Presidential candidate Ross Perot declaring that the Constitution is a document for a horse and buggy era.

The answer will be provided next Monday in the TAX FREEDOM 101 Discussion Forum at: www.egroups.com/group/taxfreedom101



The Tax Research Compendium - It's All on One Compact Disk!
Students of Tax Freedom 101 - don't be without this gem. The TRC has it all!
Legislative History of the Internal Revenue Code, The Victory Tax Act, 9 major
Titles. Complete 1939, 1954 and 1986 IRC. Plus much, much more.
Visit
www.taxfreedom101.com/pages/TRC.htm for further details!

NEWS:
* Charity Works Without Government Help
The news story below shows that you do not need to have supplemental funding come from the government to get a worthy charity off the ground, and that charity works without government help, as it did for decades prior to the advent of state sanctioned 501(c)3 non-profits. This story was submitted by a subscriber who is a member of "The Brotherhood", a medical needs foundation, Interestingly, this foundation does not require SSN's to take part in their insurance-like medical needs plan. The article "Stockbroker Invests His Life in the Poor", is taken from the February 2000 issue of The Brotherhood Newsletter. The phone number for The Brotherhood is 800-269-4030.

Stockbroker Invests His Life in the Poor

Bel Air MD (BP News) Kevin Bradley had it made. He lived in a Baltimore suburb and at age 23 was one of the youngest traders at Legg Mason brokerage. He would take a bus to the city each day and walk from his stop, sometimes flipping spare change to beggars.

But God was drawing Bradley to do more, he said. He began to take an interest in Al, one of the beggars. He made a deal, telling Al he would take him to breakfast if Al would "tell me your story."


The next morning over pancakes, Al described losing his job, friends, and house because of bad choices and misfortune. Finally Al had lost heart and given up.
Bradley said he was captivated by the story of a normal life gone bad. He started taking an early bus to work so he could take more downcast men to breakfast. He heard similar stories from men who had lost hope and self-respect, had poor communication skills, and little or no vision and motivation. "At one point they had a dream, but had lost it," he told Religion Today.


"Everyone is created by a loving and caring God and has something that is unique and needs to be brought out," Bradley says. A lot of the homeless are ordinary people "who fell on hard times and could not figure a way out. They hit a downward spiral and ended up on the streets." Others grew up in welfare families and "didn't know any other way."

Bradley began having fun with his new interest in the poor. He got together with a number of brokers who bought all day fares for air-conditioned buses and handed them out so the homeless could escape the summer sun. One broker would place $50 bills on trashcans, then sneak around the comer to watch as a homeless person found it.

But Bradley knew those things wouldn't really change lives, either. The poor needed dreams, and to learn how to make them a reality.

Bradley, an evangelical Christian, had no "natural inclination" to give up his affluent lifestyle, but "my faith required me to," he said. "God was calling me to do something I didn't like a whole lot."

With the support of his wife, Marilyn, Bradley decided to take a big risk. He resigned as a broker, found a few investors, appointed a board of directors, and founded, The Outreach Foundation. Its mission was to reach the hard-core needy and "inspire them to discover their God-given potential, and restore dreams."

Bradley resolved to treat the needy with the dignity that his Christian beliefs tell him every person deserves. He hired high-powered corporate trainers and motivational, speakers, and offered a program he called WINGS free of charge to his unlikely clientele.

On the first day of the program in 1994, only one of 18 scheduled participants, June Rammer, showed up. The dejected staff started anyway, determined to provide her with the entire five-day 40 hours of training. Rammer told others, and nine people graduated from the first course. She is now off welfare and works to support herself and her daughter.

The point of the class is to help members find their gifts and talents, and learn what Bradley calls "life skills," including setting goals, managing time, and improving communications skills. Graduates can get small, interest-free loans to help them move into the work force.

Volunteers mentor and support students as they graduate, and walk them through the challenges of setting and keeping a job.

They "cheerlead, pray, send cards, and stay in contact for those times when he students hit a bump in he road, he said.

WINGS proved to be a success. Seventy percent of he hundreds of graduates have moved off of welfare and into productive lives, Bradley said. Finances were tight and his six-figure income plummeted, but he stuck to his decision to reject government money for the center, feeling it would be hypocritical to take funding while telling his clients to get off government assistance.

The program soon began to get more help from local sponsoring churches, faith-based nonprofit organizations, and corporations. In 1998 it became affiliated with Operation Blessing a Virginia Beach, Va., ministry, which is helping replicate the program in a dozen medium-size cities as well as Chicago and Houston.

One of Bradley's favorite success stories involves a young woman who had been told all of her life that she was unattractive and, had no purpose, he said. At age 21 she went through the program in Baltimore and was inspired to pursue her dream to be a singer and dancer. She went to New York City, won a talent contest and a modeling contract, and is doing well, he said.

WINGS doesn't push Christianity, but many people have become Christians because of it, Bradley said. People respond when they see that others really care about them and "demonstrate grace," he said. "If you only feed me, I don't especially want to pray with you. But if you give me a 40-hour piece of your life, integrity, unconditional love -- then I am willing to listen."

The Outreach Foundation is headquartered at 816 South Main Street, Suite 5, Bel Air, Md. 21014. Its phone number is (410)-839-2353.

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INFORMATION:
* W2's and 9's and 1099's... Oh My!
by Bryan Rusch
Financial Educator

By now you may have noticed that IRS reporting forms have again began to flood our quasi governmental and publicly subsidized parcel delivery system, a.k.a. - the United States Postal Service. Sometimes we tend to forget what these forms represent, who is required to use them, and for whom they're intended. The following article is an informational summary on some of the most common forms, and what the law has to say about these forms.

The following is for those who are employed:

First, the W-4 although not sent through the mail is used to initialize "covered employment" and finds it's statutes in subtitle C employment taxes, primarily under the General Provisions of subchapter C in section 3121 which is dependent upon the Social Security Act. As we have repeatedly explained in the past, and as the SSA has said, participation in Social Security is voluntary for citizens, hence the payment of the taxes connected with Social Security is voluntary. However if you elect to have these taxes withheld on form W-4 and contribute to Social Security via the employment or Social Security Tax, then you are "covered" for Social Security purposes, and your voluntary contribution will be warmly welcomed by the IRS/SSA. Your voluntary contribution will be used to determine funds available for others requesting benefits in the near future.

The W-2 is a year end report generated by the covered employer based upon the quarterly 940 and 941 reports which show how much a covered employee has accumulated and been paid over the previous year by the covered employer. The W-2 shows all the taxes paid by the covered employee and those taxes which were matched by the covered employer on behalf of the covered employee. The W-2 reflects the rate of withholding by the percentage of taxes withheld to the amount "earned" as determined by the information given by the employed's execution of the W4.

The following is for those who are self-employed for Social Security purposes:

If you received a 1099 from a private citizen or business be aware that the 1099 is being used by companies to claim compensation as a business expense. The private citizen or business will forward this information return to the IRS to substantiate their claim of expense, thereby reducing their perceived tax liability. Some companies "1099" (ten ninety-nine) others for goods besides just services rendered. If the person you have rendered services for does not have a Taxpayer Identification Number (T.I.N) on file for you they may request one. Just because they request a "number" does not mean they're entitled to another's number. Some companies issue W-9's to request the number.

A W-9 is titled, Request for Taxpayer Identification Number. What if you're a "person" not required to have a T.I.N., such as a citizen - what do you do if you receive a W-9? Do not worry, the W-9 lacks an OMB control number. An OMB (Office of Management and Budget) control number is required to be issued to every federal government information form which requests information from a citizen. This procedure was required under the Paperwork Reduction Act of 1980 and named OMB the government watchdog to oversee the various executive agencies who had been requesting and collecting information from citizens not specifically required by law. The Office of Management and Budget uses these control numbers to show that the form is approved to gather information, however only when required by law. A federally issued information retrieval form such as the W-9 which lacks an OMB control number has been ruled to be an unofficial government document, and the courts have ruled that it can be considered bootlegged, and therefore may be ignored. We go into this subject further in The Tax Freedom 101 Accelerated Adult Home Study Program.

Also the W-9 requests the number under the penalties of perjury. The Secretary can only require that someone provide the number pursuant to penalties of perjury under IRC section 3406 subsection (e) paragraph 1. That section is concerned only with respect to interest, dividends, patronage dividends, and amounts subject to broker reporting. The Secretary may require that a TIN required to be furnished under section 3406 "Backup withholding" as specified in subsection (a)(1)(A) of 3406 only in the respect to the applicable code section of 3406(e)1.

Also, why in the left hand corner of the W9 does it instruct the receiver of the W-9 to: "Give form [W-9] to the requester. Do not send to the IRS." where the OMB control number normally would appear? Could it be that the IRS wishes to have plausible deniability that they do not actually require the information being requested? If so why? Could it be that backup withholding would not apply to citizens as well? You can find out in the Tax Freedom 101 Home Study Program.

I think the directions in the upper right hand corner should include the language "If a citizen of the United States, circular file in the closest receptacle."

Have a nice day form W-9.

The following is for those foreigners who are raping this country of its wealth, and the ignorant and not so ignorant citizens who claim "foreign status":

The W-8, titled: "Certificate of Foreign Status" has been used by foreigners to elude known duties, and requirements of paying taxes in areas that are otherwise required (i.e. foreign earned income). The IRS either turns a blind eye to this or they just miss the transactions. Or it may be that the IRS is more concerned with attacking their own citizens over laws which do not apply to them, then actually investigating their foreign buddies. Then of course there are those citizens who are playing the non resident alien game.

In the purpose section on the W-8 it explains:

"Use Form W-8 or a substitute form containing a substantially similar statement to tell the payer, mortgage interest recipient, middleman, broker, or barter exchange that you are a nonresident alien individual, foreign entity, or exempt foreign person not subject to certain U.S. information return reporting or backup withholding rules. Caution: Form W-8 does not exempt the payee from the 30% (or lower treaty) nonresident withholding rates."

Interestingly again no OMB control number issued for the W-8 either, which explains why the form in the purpose section explains to the claimant of "foreign status" that he can notify the payer [read withholding agent and/or employer], mortgage interest recipient, etc., etc., with a "substantially similar statement" that they are a nonresident alien individual, foreign entity, or exempt foreign person not subject to certain U.S. information return reporting or backup withholding rules."

<< WARNING... Social Commentary On! >> Besides the plethora of foreigners eluding the requirement to pay taxes (again only the foreigners from countries with whom we have current tax treaties) on "income" as specified and derived from certain activity within the United States, we also have our own citizens' capital fleeing these shores to setup offshore IBC's, and trusts to operate in. Citizens setup these statutorily recognized structures in jurisdictions where they can trade freely here and abroad to either escape a perceived tax requirement, or in some cases the citizen knows it is not necessary to take this route of offshore structuring according to the law, but because the law is being so grossly misapplied here by the IRS they feel they have no choice but to venture off to a friendly foreign jurisdiction which will protect their money. Funny but true. I certainly do not blame citizens who feel it necessary to play the offshore game, for as long as it lasts, but the framers, whose idea of taxation and requirements for such to fund the government here, and which can be summed up in six words: "Citizens abroad, and foreigners at home", are certainly rolling over in their graves. And the founders, who knows how they must feel, they may be laughing uncontrollably at how foolish they were to leave a country such as this to a bunch of spineless idiots. What a mixed-up world we do live in. << Social Commentary Off >>

The following is for those who truly just work for themselves in the good ol' U. S. of A:

Congratulations! Keep up the good work - this year you did not subsidized all social welfare programs which are tearing apart our Republic and which are repugnant to the US Constitution. You can hold your head up with pride as you put that much more stress upon the backs of the mindless Joe six-packs who whine... "pay your fair share."
Wishing you a tax-free new Millennium,
The Tax Freedom 101 Staff



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