November 28, 2000
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The
Tax Freedom 101 Report
*Updates* - *News* - *Information*
The Constitutional Revival Movement's News Source
- November 28, 2000 -
This weekly HTML formatted e-newsletter contains:

* * * * * * * * * * * * * * * * * * * * * * * * * *
UPDATES:
* The Latest Addition to the Lineup at LWRN
* Indianapolis Baptist Temple Update
* Test Your Knowledge with: The Constitutional Quiz Question of the Week!

NEWS:
* Sovereignty. Is it Worth it?

INFORMATION:
* Presto or Prego? It's still "in there".
-
Statement of Citizenship to Stop Tax Withholding?


Dear Netizen: Do you find the material in The Tax Freedom 101 Report interesting, useful, educational, and enjoyable? You do? Great! Then why don't you recommend this newsletter to a friend or two. They don't have to be a crazed liberty-lovin "radical" like you and me - even raging communists and everyone in between enjoy reading our newsletter! So spread the word... the forward button is just a click away...


Subscription and advertising information for The Tax Freedom 101 Report is contained at the end of this on-line report. If you received this ezine in text format and would like to view it in HTML with all visible links, then visit the archive site:
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You Have Heard of the Rest.  Now Learn About the Best!
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UPDATES:
* The Latest Addition to the Lineup at LWRN

Hold on to your hats America. Alex Jones is the latest talk show host to join the Liberty Works Radio Network. Alex Jones investigative reporter, film producer and talk show host can now be heard weekly on the Liberty Works Radio Network from noon to 3pm eastern standard time.

Alex's topics range from army and national guard patrols roaming our highways, civilian detention centers, martial law issues, government corruption and the evaporation of various rights of main stream America.

It should be very interesting how the public reacts to his controversial news reporting style and the topics which Alex covers, many of which can be found on his web site InfoWars.

* Indianapolis Baptist Temple Update
A simple poll question asks: "Do you agree with the seizure of the Indianapolis Baptist Temple?" Amazingly the yes or no poll a week ago was about dead even. Have a look at what it is now. Visit
www.theindychannel.com/news and cast your vote. For updates on the situation visit IBT's home page here.

* Test Your Knowledge with: The Constitutional Quiz Question of the Week!
This week's question: Was the Federal Government ever intended to possess power to act, or be permitted to act, as a consolidated government with sovereign unlimited power over all the people and things in the country?
The answer will be provided next Monday in the TAX FREEDOM 101 Discussion Forum at: www.egroups.com/group/taxfreedom101

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NEWS:
* Sovereignty. Is It Worth It?
What is a Sovereign? In a few words it is one that exercises supreme authority within a limited sphere. Also expressed as freedom from external control, or simply independence.

The following story is about a woman, we will call her "Betsy" and her family who contacted us regarding their plight to become Sovereign. She wanted to warn others of the pitfalls of obtaining bad information and advice, then acting upon it by sharing her personal experience. Here is her story...

[Begin Betsy's first email]

I have been in the "freedom movement" for many years. Recently, I followed the advice of a "professional" and got in a lot of trouble with the Federal government. Here's what happened:

My husband and I wanted to be "Sovereign" and followed the advice of a gentleman who said that one could do so by changing their name, changing their birth date to the date of conception, moving to a new location, never using a SSN again and just "stepping away" from the "system". This person provided new, sovereign documents (International Drivers Permits, Church Birth Certificates, Sovereign Marriage Certificate) to validate our new identities.

After we changed our identities, I applied for a US Passport. I was arrested and charged with "making a false statement on a passport application with intent to induce the issuance of a Passport, contrary to the laws of the United States." The alleged false statements were:


1. My birth date (it was my date of conception)
2. My birth place (it was my place of conception)
3. That I didn't have a SSN (I did not have one in my new name)
4. That I didn't have a passport (I did not have one in my new name)

I went to jury trial the first week of October this year. The judge was so restrictive in his instructions to the jury, i.e., the jury could not consider my motives, what I meant when I answered the questions, how I interpreted the questions, what I believed about the answers I gave, they only could consider the facts of whether ANY of the statements made were false, they did not have to agree on which statement was false, and if they all agreed that even one statement was false (according to fact alone) they had to find me "guilty". Of course, under such strict guidelines, they returned a "guilty" verdict.

I am now on supervised release awaiting sentencing. My sentencing hearing is Jan. 8th 2001. My attorney is trying to get the charge reduced to a misdemeanor. He also says there is a chance for appeal.

The next step is to get a copy of the trial transcript. However, the cost for the transcript is $1,500.00! All of our resources have been spent just paying for my defense. This ordeal has been financially devastating and for several months, we have not had any source of financial support. We are surviving on borrowed funds. We have nothing left to pay $1,500.00 for a transcript.


[End Betsy's first email]

We here at Tax Freedom 101 wanted to know what "Sovereign" meant to her so we asked. See if you can relate.

[Begin Betsy's response]


What my husband and I were trying to accomplish by becoming "Sovereign" was to live our lives free from government intervention into our personal business. We feel that as free individuals that we shouldn't have to seek the government's "permission" to do things that we have a RIGHT to do under the Constitution. We believe we have the right to travel and shouldn't be required to have a "license" to operate any sort of transportation for personal, private, family use. We also believe that we have the right to be married to each other without having a state issued marriage license. Our being married is a matter between ourselves, the church and God, and the government has no business being involved in our marriage.

We also don't want our lives to be an "open book" by having all our information in various data banks accessible to anyone who wants information about us. We don't want our Birth Certificates to be on file with the government. We don't want ANY personal documents on file with the government. We don't want to be tracked, numbered or recorded in government data banks at all, anywhere, period! We don't want to be part of the "public", we want to be "private". We don't want any form of "credit" because credit only encourages one to be in debt. We don't want to be listed in anyone's "credit report" data banks such as TRW, CBI, etc., etc. We want to be private, free individuals who mind our own business, who don't interfere with anyone else's rights or freedoms and who are left alone to live our lives in peace.


We don't want to be "dependent" on the government for all kinds of financial benefits such as Social Security, Medicare, Medicaid, Welfare, Food Stamps, Home Loans, Government subsidies, Grants or Giveaways. We want to be "independent" to take care of ourselves and our financial needs (both present and future) "dependent" only on God for our sustenance. We want to take personal responsibility for our decisions and our actions.

Does that answer your question about what we were trying to accomplish and what "Sovereign" means to us?

After this experience with the federal government, I am beginning to believe that it is not possible to be "Sovereign" in this country unless you want to go join the Amish or go off by yourself and "live off the land". I am re-assessing my goals and objectives and trying to determine where to go from here. I just don't want anyone else to get hurt trying to do what we were trying to do. People need to know what is realistic to hope for and what is not.

[End Betsy's response]

We appreciate Betsy's desire to be independent and free. We also appreciate her willingness to share her story. When one truly realizes how enslaved they are to the state [government] it can become overwhelming and frustrating. This can lead some to take desperate and unusual measures, especially after listening to the siren songs of a Libertine selling the latest freedom flavor of the month. Yes sometimes Libertines are well intentioned, but unorthodox use of forms or documents initially devised by the state for the purpose of interfacing with the state usually does not go over well. Ergo Betsy's current predicament.

It is true that the courts [judges in particular] are extremely corrupt, bias, and act in the interests of their politburo. This may be why the judge's instructions to the jury, our fellow "citizens" were so restrictive. Since our neighbors are ignorant and have no idea what freedom truly is with respect to Sovereignty issues, relating the facts in Betsy's case to an uninformed jury was a monumental task, and became more so as she was hindered to defend herself by the instructions to the jury by the "judge". Now Betsy's fate rests in the hands of the judge. If the judge in Betsy's case can be shown that she has caused no damage, that the state has failed to state a claim for which relief can be granted, then he may consider reducing the charge of a felony to that of a misdemeanor.

Betsy has requested that the Sovereign community be alerted to these issues and be cautious and weigh the costs prior to any action. We agree! Betsy has also requested that the community of freedom fighters assist her in obtaining the needed funds to acquire a copy of the trial transcript for her defense. You can reach her by email at: learn2bfree@yahoo.com

Many of us in the past unknowingly placed the shackles of servitude, bondage, and man imposed "security" on our own wrists. The chafe and scars of the cuffs from past actions of selling our freedom for a little security will be with us for many years. We assert these wounds will be a constant and needed reminder for those who wish their future posterity to avoid the same mistakes as we forge a new future together.

"They that can give up essential liberty to obtain a little temporary
safety deserve neither liberty nor safety. - Benjamin Franklin

Post Script: Betsy has also asked for prayers from those of you who read this story and that God will be with her through this trial. Also that God will soften the judge's heart, and that the judge will see that Betsy is not a threat to anyone and does not deserve to be punished.


The Three Maxims for Tax Freedom!
Rule #1 - Protect Your Property and Earnings! Rule #2 - Get Educated! Rule #3 - Take Action!*
*Have you completed Rule # 1 first? Do you know how to properly protect your property and Income?
If you do know about asset protection and have not taken the steps to protect what is yours
what are you waiting for?! Learn about the "Three Maxims" for Tax Freedom here.

INFORMATION:
* Presto or Prego? It's still "in there".
- Statement of Citizenship to Stop Tax Withholding?
by Bryan Rusch
Financial Educator


Many people became concerned when the Code of Federal Regulations for Title 26 of the Internal Revenue Code was revised in 1999 to exclude the language for the Statement of Citizenship under Sec. 1.1441-5 "Claiming to be a person not subject to withholding".

Actually if you really, and we should stress "really" understand the law there is no need for the language contained within this section of the implementing regulations of Title 26. This may explain the published Treasury Decisions of indecision whether it should stay or should go. It reminds me of that old Clash tune... "Should I Stay or Should I Go? The theme and lyrics of the song were if I remember correctly: "...if I stay there will be trouble, and if I go it will be double...so you got to let me know...should I stay or should I go?"

The section "stays" so I guess there will be trouble for the IRS' Philadelphia Service Center as more SOC's flow in. It is important to note that as long as the parties involved in contract with each other both understand the law with respect to withholding of income taxes there is no need for such statements to be tendered when the contracting parties are citizens. However if one party remains ignorant of the law (usually the employer in this case) one may use section 1.1441-5 in the regs to halt withholding of the "tax". We say "tax" unspecific here since it is has become evident that the employer and the employer's CPA or attorney usually do not know which "tax" the regulations are referring to in the Internal Revenue Code. It is subtitle 'A' - income taxes if anyone is taking notes, not wage and employment taxes found under subtitle C. These "taxes" income and wage/employment taxes are totally and completely divided from each other with respect to whom they apply.

Let's remember however if you work for wages and were labeled as a covered employee for Social Security purposes by executing a W4 for that tax year and you wish to stop the withholding of the wage and employment tax you must terminate that voluntary withholding agreement as provided for by law. According to the law either the employer or the employee may terminate the voluntary withholding agreement, better known as the W4. Why must one also terminate the W4 if a Statement of Citizenship is tendered? Remember that the only tax citizens living and working in the US have withheld are wage and employment taxes connected to Social Security, not income taxes. When you enroll in the Tax Freedom 101 Accelerated Adult Home-Study Program you will learn that the persons/individuals who are taxed on "income" can be found under sections 1441, 1442, 1443 and 1461. These persons/individuals are foreigners who are required to be withheld from, and the withholdings are to be paid to the Treasury by the withholding agents. So make sure you do that as the withholding agent the next time you retain a nonresident alien.

Again the question arises, well then if the only issue is the W4, which it is since citizens are not required to have numbers, Social Security or otherwise, why then would one need to present a Statement of Citizenship under Sec. 1.1441-5? As we stated earlier there would be no need if the Citizens contracting together understood the law, and further still would not be necessary if the CPA's and tax attorneys who represent covered employers also understood it, but they don't. So the story continues and we will now finish the question of whether an SOC is needed. To set up the answer to this question we should explain that an unwitting employer will make "application", there's that word again, at the direction of either their CPA or tax attorney for an employer identification number or EIN on form SS4 "Application for Employer Identification Number". Apparently the employer will be retaining the services from nonresident aliens as the SS4 application asks at what date this will be happening. Imagine if people actually read and asked questions. The business owner could say to his CPA or attorney... "Hey what does this line mean here in the application?" It says "...withholding agent, enter date income will first be paid to nonresident alien." It is unlikely the employer will ever hire a non-resident alien (foreigner or foreign corporation). This is the "person" required to be numbered when working in the US, but because the business owner made application for the EIN the IRS could presume that the business owner has or will in fact retained foreigners for service.

How would an employer know who he was retaining for services, a citizen or foreigner? He could ask. He certainly will ask, but how does an employer ask? In other words what is the first thing an employer wants to know? The number. In a perfect world, or at least a halfway knowledgeable one, if you do not have a number the employer should know immediately you are a citizen, or an illegal alien who has entered the US unlawfully. It is the foreigner that requires to be numbered before they can lawfully enter the country to work. Since we do not live in a perfect world or halfway knowledgeable one maybe we should consult the law? A Statement of Citizenship provided for in the law is merely an affidavit presented by the service provider (the employed) to the business owner/employer that they are indeed a Citizen of one of the fifty states of the Union. The National Workers Rights Committee, a division of the Save-A-Patriot Fellowship, drafts these documents and statements on behalf of its members.

The employer/business owner can rely upon this affidavit as proof of citizenship of the hiree and is required to retain the original for his records. The employer must then file this pursuant to section 1.1441-5 with a letter of transmittal to Internal Revenue Service Center, Philadelphia, PA 19255 and then forward a duplicate copy of each statement. The Philadelphia IRS Service Center is the international office for such issues as this, so don't bother calling your local IRS Service Center. They will have no clue what you are talking about, as is the case with most issues.

In closing, because of the rampant ignorance of the law nearly every employer in America shoots themselves in the foot by numbering their business. Most do this because that is the way it is done in Corporate America. Take a number, you will be served shortly. That is the quandary we are all in. And as I like to quote: "There is nothing more terrifying than ignorance in action." In this case the terror has become evident as we grew this self destructing monster ourselves. The stranglehold of "taxes" will not be beaten down until employers learn this fact. Are you ready to step up to the plate and take a swing?

Well, section 1.1441-5 is still here (see below)..... I guess we have to let them know, whether it should stay or whether it should go!


Effective Date Note: By T.D. 8734, 62 FR 53452, Oct. 14, 1997, Sec. 1.1441-5 was revised, effective Jan. 1, 1999. By T.D. 8804, 63 FR 72183, Dec. 31, 1998, the effective date of Sec. 1.1441-5 was delayed until Jan. 1, 2000. By T.D. 8856, 64 FR 73408, 73410, Dec. 30, 1999, the effective date was delayed until Jan. 1, 2001 and paragraph (g) was revised effective Jan. 1, 2001. For the convenience of the user, the superseded text is set forth as follows:

Sec. 1.1441-5 Claiming to be a person not subject to withholding.

(a) Individuals. For purposes of chapter 3 of the Code, an individual's written statement that he or she is a citizen or resident of the United States may be relied upon by the payer of the income as proof that such individual is a citizen or resident of the United States. This statement shall be furnished to the withholding agent in duplicate. An alien may claim residence in the United States by filing Form 1078 with the withholding agent in duplicate in lieu of the above statement.
(b) Partnerships and corporations. For purposes of chapter 3 of the Code a written statement from a partnership or corporation claiming that it is not a foreign partnership or foreign corporation may be relied upon by the withholding agent as proof that such partnership or corporation is domestic. This statement shall be furnished to the withholding agent in duplicate. It shall contain the address of the taxpayer's office or place of business in the United States and shall be signed by a member of the partnership or by an officer of the corporation. The official title of the corporate officer shall also be given.
(c) Disposition of statement and form.
The duplicate copy of each statement and form filed pursuant to this section shall be forwarded with a letter of transmittal to Internal Revenue Service Center, Philadelphia, PA 19255. The original statement shall be retained by the withholding agent.

Wishing you a tax-free day,
The Tax Freedom 101 Staff



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"When we got organized as a country ... we wrote a fairly radical Constitution with a radical Bill of Rights, giving a radical amount of individual freedom to Americans ... A lot of people say there's too much personal freedom. When personal freedom's being abused, you have to move to limit it." -- William Jefferson Clinton, March 22, 1994 on MTV (Music Television).
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