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Miscellaneous Questions and Answers

How are evolution, Communism, the new-world order and the IRS connected?(updated 3-13-2000)

Go to Seminar Online--Part 5

A:  People occasionally ask me what I mean when I say (in my seminar part 5 of my creation seminar series) that income tax and Social Security are voluntary. I only intended to point out the connection between evolution and Communism. Everything Karl Marx (the father of Communism) proposed in his 10 planks of the Communist Manifesto (1848) was deliberately anti-God and anti-Bible. Since the graduated income tax (our current system in the US and Canada) was plank #2, the subject inevitably came up. The income tax system is one of the main ways to destroy a country and bring it under communism. Since I have studied this subject quite a bit over the last 30 years, I have put together this response to try to answer the most commonly asked questions about the subject and direct interested people to good sources for more information. I do chase a few rabbits in my seminar and I have chased this white rabbit quite a ways down the hole. I don't have time to fight all the battles in the world so I try to concentrate on the major ones. You may notice that the entire IRS/S.S. issue takes about 10 seconds in my 15-hour seminar.

If you have any questions about the issue after reading this letter please contact one of the professionals listed later. Please do not call me about the tax issue. I am not afraid of the subject and have nothing to hide but I simply do not have time to waste so I have chosen the evolution battle as the focus of my attention. I will add to this letter from time to time as the need arises but I will try to not be distracted from my main goal in life.

I do not want people to misunderstand or misrepresent my position about taxes. I also do not wish my reputation or the effectiveness of my ministry for the Lord to be harmed so I have spent many hours researching this subject to be sure my position is in line with God's Word and the laws of the land. In light of the scripture: "He that answereth a matter before he heareth it, it is folly and shame unto him." Proverbs 18:13, please prayerfully consider this (regrettably lengthy) letter.

I am not anti-government. I love my country and my Lord. Although it is tempting for me to go off on a tangent from my creation ministry and spend much time warning people of the communist origin (Karl Marx thought it up in 1848 and pro communists Colonel E. House, Roosevelt, Rockefeller and Sen. Nelson Aldrich implemented it in 1913.) and unconstitutional nature (it violates the 4th, 5th, 13th and 14th amendments) of the current tax system, I will resist that temptation and leave it to others to fight that battle. I am not afraid of the IRS, I know the truth and have been set free. I have chosen the red pill. I believe it is my duty as a child of God to obey Him.

Gal. 5:1 Stand fast therefore in the liberty wherewith Christ hath made us free, and be not entangled again with the yoke of bondage. Proverbs 22:7 The rich ruleth over the poor, and the borrower is servant to the lender. I Tim. 6: 10 For the love of money is the root of all evil.

For those who want the red pill only. (See the movie Matrix) Be aware of Ecclesiastes 1:17-18 "And I gave my heart to know wisdom, and to know madness and folly: I perceived that this also is vexation of spirit. For in much wisdom is much grief: and he that increaseth knowledge increaseth sorrow." For the timid I suggest you take the blue pill and stop reading now.

Here is a short version of a long story: if I create something, it belongs to me. I can do with it as I please. God created people. God is the sovereign and can make any rules He wants for His creation "We the people" like Benjamin Franklin, John Doe, etc. created a GOVERNMENT over 200 years ago. The employees of THE GOVERNMENT are to be our servants. They are even referred to as "public servants". Some people in the GOVERNMENT do not seem to like the idea of being our servants so a mirror image artificial world was created sort of like the real world of Kansas and the mirror, artificial world of OZ or the Matrix. (BTW-OZ is the abbreviation for ounces-of gold like the "yellow brick road".) The united States Government created a UNITED STATES corporation. The name looks the same to deceive people into thinking it was the same thing. This "corporation" created STATES and PERSONS. A trust account was created for each PERSON as part of a grand scheme of deception. This 'straw man' (the one without a brain in the movie) has the same letters as your name but in all capital letters (ie. KENT HOVIND, STRAW MAN instead of Kent Hovind a real person created by God). It was created by the government so it belongs to them and the government has the authority to create laws, require permits and licenses, and do anything they desire to their straw man. Look at any driver's license, marriage license, social security card, or any government issued permit or license. The 'name' will be in all capital letters. This is not you, it is your straw man. The problem is that they are using your name. It is the same as if I started a McDonalds without their permission and ran a great business for years. At any time the real McDonalds can lay claim to their name and make me stop doing business in their name. Over the years most people have accepted many "benefits" the GOVERNMENT offers to their STRAW MAN so it would be easy to prove a connection in a court of law. I fear that we have been deceived into tricked into selling ourselves into bondage as security for the national debt to the money-lenders. They have made us into a "copper top" in order to suck us dry of energy.

The GOVERNMENT has been doing business in your name for years and you have several options: 1.) Do nothing. Accept the rules and regulations they place on you (as most Americans do) and pray that their chains rest lightly upon you. 2.) Try to distance yourself from this straw man and claim your God given liberty. Many do this with varying degrees of success. Some of the people listed later in this letter recommend this approach. 3.) Look for loopholes in the laws the GOVERNMENT has created for their straw man and fight within their rules for your freedoms. Most of the people listed later in this letter recommend this method and many have had great success. 4.) Lay claim to the straw man and use 'him' as a partner when dealing with the GOVERNMENT. Call Right Way Law 330-699-1605, John D'Arcy 941-629-7017 or Ernie Land 850-956-1296 for information on how to redeem the "straw man" that was created by our government to bring us into bondage. You may want to order the video titled "Straw Man" (from my office for $10) to get more information. After watching our video I suggest you watch or re-watch the movies Wizard of Oz and Matrix to see how they have given us warning as to how to get from the phony world to the real world by following the yellow brick road which is the money trail.

Be aware that this subject is bewildering and much study should be done before you make any decisions. I offer this information not as legal advice but to give you a boost in researching this topic. Many fine people disagree about this subject and of course each one argues that their approach is best. The following information is offered to help you investigate the options and decide what is best for you.

You have a constitutional and God given right to be free but you also have the right to make contacts. Most court cases are just settling contracts we have signed. A signature on a bank card, marriage license, SS card, etc may actually be a contract that brings you into bondage.

It is perfectly fine, legal (and wise I think) to not have (or use) a Social Security (SS) # or participate in the voluntary SS system. Irwin Schiff has a great book The Social Security Swindle How Anyone Can Drop Out. His phone number is listed later. Also, Dr. Joe Sweet (listed later 941-798-3970) has an information packet (for about $10) explaining step by step procedure to legally get out of the SS system as does Pastor Richard Mooneyhan (listed later 352-481-4266). There is no SS trust fund! Money paid in goes into the General Fund of the UNITED STATES GOVERNMENT. Money paid out in the name of SS comes out as welfare payments! Recipients of SS have no "right" to the money regardless of how much they paid in. Millions of Americans have been deluded and defrauded! SS is just another "income tax". Be sure to read the web site www.teamlaw.org to put it all in perspective. Social Security is a voluntary retirement scam. I do not understand how my lack of participation in a voluntary "retirement program" should be of any concern to anyone else however some seem to be bothered by the fact that I do not have or use a SS#.

Actually, no real person has a social security number. Notice on your SS card that your name is spelled with all capital letters. This designates a STRAW MAN business, trust or corporation not a person. If you accept a SS # you have just entered a contract and become surety for the government debt. See verses at the bottom of last page for more on this. Team Law in Colorado can give you much more on this complex subject if you are interested. 303-364-4134 or Contact PMS c/o 535 Cordova Road Suite 405 Santa Fe, New Mexico 87501 Tel 505-660-3081 for their information on getting rid of, and living without, a SS #. Inform America 800-677-1207 ex 1505 also has a great audiotape on the subject. Also see DEPARTMENT OF TRESURY letter near the end of this letter.

There are well over 50 taxes listed in the Internal Revenue Code books that I have on my shelf and nearly 50 different forms referred to in these books. These are all approved by congress. None of the taxes or forms apply to an individual's earnings. You are required only to pay the taxes (of the 50+) for which you are made "liable" by the code. It would be silly look at the laws regarding taxes on making tobacco products, notice that I don't pay any tobacco taxes, and then accuse me of not paying my taxes! Of course I don't pay the taxes imposed by congress on the manufacture of tobacco products because I don't manufacture tobacco products! If I did I would be "liable for" that tax and pay it. No person alive pays all the taxes imposed by the tax code; only those for which you are "liable" (unless they have been 'tricked into paying others). AntiShyster Magazine vol. 7 #4 has a great article about this subject (972-418-8993).

"Simply put, pay from a job is a 'wage', and wages are not taxable. Congress has taxed INCOME, not compensation (wages and salaries)." - Conner v. U.S. 303 F Supp. 1187 (1969)

"The claim that salaries, wages and compensation for personal services are to be taxed as an entirety and therefore must be returned by the individual who has performed the services which produced the gain is without support either in the language of the Act or in the decisions of the courts construing it. Not only this, but it is directly opposed to provisions of the Act and to regulations of the U.S. Treasury Dept. which either prescribe or permit that compensation for personal services be not taxed as an entirety and be not returned by the individual performing the services. It is to be noted that by the language of the Act it is not salaries, wages or compensation for personal services that are to be included in gross income. That which is to be included is gains, profits and income derived from salaries, wages or compensation for personal service."- Lucas v. Earl, 281 US 111 - see www.no1040s.com

Section 26 of the Code of Federal Regulations (26 CFR 1.861) tells us what sources of income or activities are taxable. They are as follows:

  1. Overall limitation to the foreign tax credit.
  2. [reserved]
  3. DISC and FSC taxable income
  4. Effectively connected taxable income. Nonresident alien individuals and foreign corporations engaged in business in the United States
  5. foreign base company income
  6. Other- foreign source items of tax, foreign mineral income, foreign oil and gas extractions income, Residents of Puerto Rico, income tax liability incurred in the Virgin Islands, income derived from Guam, China Trade Act corporations, income of a controlled foreign corporation, income from the insurance of U.S. risks, international boycott factor, section 999, income attributable to the operation of an agreement vessel under section 607 of the Merchant Marine Act of 1936.

The "Privacy Act and Paperwork Reduction Act Notice" printed on the "Instructions for Form 1040" booklet references certain sections of the Internal Revenue Code and alludes to their regulations and states: "Internal Revenue Code sections 6001, 6011, and 6012 (a) say that you must file a return or statement with us for any tax for which you are liable." I intend to comply with the law, and I know of no tax that I am liable for. I do not have "gross income" from any of the taxable sources listed in the CFR so I do not need to keep records or file a return.

I sincerely believe that I am not a person required to file a Federal Income Tax Return. This belief is a result of extensive research that I have done. I have also sought the advice of professionals in the field (IRS enrolled agents, CPA's and lawyers) and they have told me I am not required to file any forms with the IRS. (copies of their professional opinion letters to me can be obtained from my office for $10) In addition to this I have sent letters to the IRS asking about my status (taxpayer or non-taxpayer) and what tax I owed and what form I was to file. By their non-reply within the 20 days required by law they have also told me I was not required to file any forms or keep any records. Moreover, this research has convinced me that the incomes of most U.S. citizens and residents living and working within the Fifty States are constitutionally non-taxable and are not the subject of the income tax laws of the Internal Revenue Code and its implementing regulations. Therefore, the filing of a Form 1040 U.S. Individual Income "Tax" return is strictly voluntary in most cases.

Internal Revenue Code (IRC) Section 6012 and regulation 1.6012-1 Individuals Required To Make Returns Of Income. 1.6012-1(a) Individual Citizen Or Resident; 1.6012-1(a)(1) In General. Except as provided in subparagraph (2) of this paragraph, an income tax return must be filed by every individual for each taxable year beginning before January 1, 1973, during which he receives $600 or more of gross income, and for each taxable year beginning after December 31, 1972, during which he receives $750 or more of gross income, if such individual is:

1.6012-1(a)(1)(I) A Citizen Of The United States [see below], Whether Residing At Home Or Abroad, 1.6012-1(a)(1)(ii) A Resident Of The United States Even Though Not A Citizen Thereof, Or 1.6012-1(a)(1)(iii) An Alien Bona Fide Resident Of Puerto Rico During The Entire Taxable Year.

The only section that includes me was 1.6012-1(a)(1)(I). This is defined by the definition of Citizen of the United States at section 7701(a)(30) which reads; 7701(a) When used in this title, where not otherwise distinctly expressed or manifestly incompatible with the intent thereof, then at paragraph (30) United States Person, The term "United States person" means--

7701(a)(30)(A) a citizen or resident of the United States,

7701(a)(30)(B) a domestic partnership,

7701(a)(30)(C) a domestic corporation,

7701(a)(30)(D) any estate (other than a foreign estate, within the meaning of paragraph (31)

The definitions for United States and States at section 7701(a)(9) and (10) which reads as follows; The term "United States" when used in a geographical sense includes only the States and the District of Columbia. 7701(a)(10) The term "State" shall be construed to include the District of Columbia, where such construction is necessary to carry out provisions of this title.

The fact that there is no mention of the state of Florida or any of the 50 states is not by accident. Congress and the Congressional Research Service are very aware of the use of terms and where they apply. (EXHIBIT A) For instance see section 4612 relative to petroleum. At sub-paragraph (a)(4)(A) which reads as follows; The term "United States" means the 50 States, the District of Columbia, the Commonwealth of Puerto Rico, any possession of the United States, the Commonwealth of the Northern Mariana Islands, and the Trust Territory of the Pacific Islands. At section 6103 (b)(5)(A) relative to sharing information with other agencies a state is identified as; any of the 50 States, the District of Columbia, the Commonwealth of Puerto Rico, the Virgin Islands, the Canal Zone, Guam, American Samoa, and the Commonwealth of the Northern Mariana Islands. These sections are clear that when jurisdiction needs to be clarified the use of the term "the 50 states" is used when legally required.

If someone asks you if you are a citizen of the United States, be very careful how you answer the question because there are several "United States's" as follows. Pay close attention to the spelling and capitalization in the definitions.

United States (of America)-- The Federal entity defined by article I, Section 8, Clause 17 (1.8.17)

united States (of America)-- One of the fifty sovereign states.

United States citizens--District of Columbia citizens.

UNITED STATES OF AMERICA- Plaintiff pleading in a case having the venue and jurisdiction originating in the Philippines. Ref: Title 48 (1441 i)

UNITED STATES -- Plaintiff pleading in a case having the venue and jurisdiction originating in the District of Columbia. Ref: Title 48 (1441 i)

I am a citizen of the united States not any of the others. Claiming to be a citizen of one of the others may cause someone to assume authority over you that they would not otherwise have.

Some taxes are mandatory. As many experts understand the laws, the payment of the so-called "income tax" is also being paid voluntarily by millions of duped Americans. Unless you "liable for" a tax because you are involved in the manufacture of tobacco products, alcohol or firearms or are a withholding agent for persons earning foreign income (see #5 and #6 below) or you have income from one of the sources listed above, there is no need to file a return or keep any records. The list of quotes given later will illustrate that the mis-named income tax is indeed voluntary. The best book I know of on the subject of taxes is "The Biggest Tax Loophole of All" by Otto Skinner PO Box 6609 San Pedro, CA (90734) 310-835-3770, www.ottoskinner.com.

I understand how foreign this entire idea sounds to many typical Americans. If you told a Buddhist he did not have to pray to Buddha; or a Catholic that praying to Mary or praying the rosary could not help save him or gain favor with God; or a Mormon that they do not have to baptize for the dead they would all react in shock, horror and disbelief. They would cry out instantly, "Of course you do! That's what we have been taught to do all our lives." Likewise when I mention to some people that they are may not be required to pay income tax in America they often react with the same shock and disbelief. Some even look at you like you are Un-American or from outer space or something. They often express feelings of concern that the IRS is going to "come after you" or "find out". This fear reaction is also present in the members of the false religions mentioned above. There is an ingrained fear of the priest, pope, spirits, etc. This fear of course, is precisely what the priests (and IRS) use to keep people in line (and keep their money coming in). It always helps to make an example of a few people and be sure the results are well publicized especially just before April fools day, (April 15th, for many Americans) to keep the peasants from revolting.

It is not necessary to fear the IRS. Understand the laws and obey them. If you are "liable for" a tax then pay it. If they contact you be sure it is in writing not on the phone or at the door and always challenge their jurisdiction. Make them show you what statute makes you liable. I have not filed a 1040 form or kept tax records for over 25 years since no law requires me to do this. Call the IRS and tell them to arrest me if I am breaking a law! It is great to know the truth and be free! The 13th amendment outlawed slavery. Does the IRS pay you to keep all those records and fill out those forms? How can they require you to keep records for them and not pay you for your time? That sounds like slavery to me!

Just like Paul was amazed that the Galatian Christians so easily gave up the liberty given to them by Christ, I feel that our founding fathers would be shocked that we have so easily given up the liberties they won for us with their blood sweat and tears.

The human brain rejects things that are contrary to what it has already accepted as being true. All followers of false religion face this dilemma when confronted with the truth. Catholics have often said, "Give us a child until he is 7 and he will remain a Catholic all of his life." The founding fathers of this once great nation of ours faced the same problem. It was unheard of in those days of monarchy to disobey the king's (tyrant's) wishes! By the way, it has been estimated that only about 3% of the population actively supported the "rebels" like Patrick Henry and George Washington before and during the "revolution". After the war was over (and even today) of course many were glad for the liberties won by the blood sweat and tears of those noble patriots. Today, we adorn their graves, brag about their courage in our schools and put their faces on our money. See Matthew 23:29. Where would you have been during the revolution. Would you have been a Patriot, a Tory or tried to stay out of the whole thing?

With all of this in mind: please allow me to make a few points on the tax subject.

1. I believe everyone, including our leaders and government agencies, should obey the law and the Bible and I do so with regard to taxes. I do pay all my taxes and resent anyone saying or implying that I don't. I am not a tax dodger, cheat or rebel. I love America and am dedicated to helping her get back to what our founding fathers intended. I travel and leave my gorgeous wife and three children every week to help bring our country back to its' Godly heritage. Our founding fathers fought and died so we could have a great nation governed by law embodied in a Constitution not a tyrant or group of fickle men. We have (had?) a constitutional republic not a democracy. There is a tremendous difference!

2. I am not against taxes or tax laws. Our ministry pays many thousands of federal reserve notes each year in taxes. We do not object to paying lawfully assessed taxes. We cheerfully pay to help build and maintain the roads (gas tax, tolls and tariffs), the fire department, public schools (not as cheerfully), airports, etc. (real estate and property taxes). We have not become a 501-c3 corporation in order to avoid paying the 7% sales tax and real estate taxes in Florida as most churches, "non-profit organizations" and Christian colleges have done. (Call Pastor Richard Mooneyhan 352-481-4266, or David Marvin 941-923-5603, to find out why this is bad for ministries to become 501 c3 corporations). We have purchased an incredible quantity of supplies (about 500,000 video tapes, tens of thousands of books, audio tapes, boxes, duplication equipment, computers, office supplies, etc.) for our ministry and pay all required sales taxes and every other tax required by law for each item. We, like all Americans, are paying over 120 taxes and tariffs on every loaf of bread we buy. Most of these taxes, tariffs and import duties are used to fund the lawful functions of our government in Washington DC. We pay lots of money each year in taxes so please do not accuse me of not paying my taxes! Anyone who says I don't pay my taxes or that I am a tax protester is either ignorant or a liar or both.

3. We cannot, however, in good conscience donate money God has entrusted to us for a voluntary, unconstitutional "tax" that we are not required to pay. If we are "liable for" any tax, we will pay it. It has been estimated that nearly 60 million Americans do not file or pay the so-called "income tax" each year. As explained in the book Good News for Form 1040 Filers by Dr. Joe Sweet (available from my ministry for $20 FRN's [Federal Reserve Notes] or Dr. Sweet's video for $15.) there is no section of the code that makes me (or most other people) "liable for" the income tax. I do not pay any money to the IRS for the same reason I do not pay the Italian or French government money; I do not owe them any! If I did I would pay it. I am not "getting out of paying" income tax, I never owed it!

The following points 4 and 5 are moot since no law makes me "liable for" the tax but they are interesting non-the-less. It is not recommended that this be used as a defense or reason for not paying "income tax." Not being "liable for" the tax is all the reason you will ever need.

4. Trading labor property for wages is not "income" any more than trading your home grown peppers for your neighbors tomatoes (or me trading my tie for your tie, etc.) is income to either party. Probably everyone has made a trade without filing income tax forms or paying income tax on the transaction. If I trade my employer 40 hours of my time for $400, how is that income for me and not for him? There are two different definitions of the word income. Most people think of income as all that comes in. This is the common usage of the word to the average citizen. However, "Income" is defined, for tax purposes, as corporate profits. I am not a corporation and do not make a profit. Everything that comes in is not "income" for the sake of taxes. Confusion of terms is a common way the priests keep their people from the truth. For example, Catholics, Mormons, Jehovah's witnesses, etc., will use words like "saved, receive Christ, born again, etc. but they mean something different than the Bible definition of the words.

Notice the words used by Irwin Shiff in the letter he attaches to his 1040 form which he fills out with all zeros:

"It should also be noted that I had "zero" income according the Supreme Court's definition of income (See Note #1) since in Merchant's Loan & Trust Co. V. Smietanka, 255 U.S. 509, (at pages 518 & 519) that Court held that "The Word (income) must be given the same meaning in all of the Income Tax Acts of Congress that was given to it in the Corporation Excise Tax Act (of 1909)." Therefore, since I had no earning in 199- that would have been taxable under the Corporation Excise Tax Act of 1909 as "income," I can only swear to having "zero" income in 199-. Obviously, since I know the legal definition of "income," if I were to swear to having received any other amount of "income," I would be swearing falsely, and thus would be committing a crime under both 18 U.S.C. 1621 and 26 U.S.C. 7206. So, not wishing to violate either statute, I can only swear to having "zero" income for 199-.

Note #1. The word "income" is not defined in the Internal Revenue Code.  U.S. v. Ballard, 535 F.2d 400, 404, but, as stated above, it can only be a derivative of the corporate activity. The Supreme Court has held this numerous times. "Whatever difficulty there may be about a precise and scientific definition of 'income' it imports, as used here... the idea of gain or increase arising from corporate activities," Doyle v. Mitchell, 247 U.S. 179.

Certainly the term 'income' has no broader meaning in the 1913 Act than in that of 1909 (See Straton's Independence v. Howbert, 231 U.S. 399, 416,417), and ...we assume that there is no difference in its meaning as used in the two acts." Southern Pacific Co. V. John Z. Lowe, Jr., 247 U.S. 330, 335." [Note- little of this is necessary. All you need to do is find out if you are liable.]

5. The 1040 form is for agents who withhold taxes for people earning foreign income. This can be seen by looking up the cross-reference for the OBM # at the top of the 1040 form. I am not such a person. There is no form for an individual earning money in lawful ways in the united States because congress knows such a tax would be un-constitutional. For me to fill out and sign the 1040 form "under penalty of perjury" would be a lie and therefor a sin against God.

6. There is a lawful tax imposed on those involved in the manufacture and sale of alcohol, tobacco and firearms under title 27 of the Internal Revenue Code (IRC). I am not involved in any of these taxable activities. If I were, I would pay the lawful tax. There is also a lawful tax imposed on the salaries of Federal employees (I am not one of those either.).

7. "The fear of man bringeth a snare: but whoso putteth his trust in the LORD shall be safe." Proverbs 29:25. I know the IRS is a powerful and ruthless agency (like the KGB, Mafia, ATF, MJTF, FEMA, etc.) and that many people have been ruined financially, jailed, etc. by them. I also know that some people in the agency are capable of lying and deceiving to accomplish their goal. I am not looking to fight them or antagonize them but I must keep a clear conscience before God by not lying. If I were to fill out a 1040 form I would violate my conscience before God by lying and claiming to be an individual mentioned in #5 or #6 above. I must obey God. If you or anyone you know can show me the law that I am not obeying I will quickly obey it. This is true of any lawful taxes. I repeat what I said earlier, I pay all my taxes and resent anyone saying or implying that I do not. We are not to decide our actions based on outcomes (jail, financial ruin, etc) or based on what everyone else is doing, but by obedience to God's Word. We must obey God rather than man.

8. I have responded correctly and in a timely manner to every letter I have ever received from the IRS and have asked for a response from them each time. I have never received a response from them to any of the questions I asked (including when I asked for them to send me the proper forms for individuals who are not withholding agents.) The only response I got was in Feb., 1996 when they illegally stole my cars without a warrant or any proper authority (I got the cars back). Now that I am suing the IRS over this event, I am getting a response (and should soon be getting a check)!

One of my early attempts to force the IRS to return my stolen property was to file a chapter 13-bankruptcy suit. By law they should have returned the vehicles immediately until the suit was settled. I was new at the legal system and made some minor errors in filing my suit, which resulted in the case being dismissed. Some ill-informed people have spread the lie via Internet and mail that I am in trouble with the IRS and our ministry is bankrupt. These slanderers would be wise to get their facts straight before opening their mouth. I am not in trouble with the IRS; they are in trouble with me! They broke the law and I am suing them for it. Our ministry is not bankrupt and never has been. We have always operated in the black (just barely sometimes but in the black none the less). We are growing rapidly. Stop in for a visit!

9. The payment of the "income tax" is totally voluntary for most people. U.S. Attorney Metcaff said, "there is no law requiring the filing of a 1040 Form, and if there was such a law it would be declared unconstitutional." You cannot be forced to offer evidence against yourself. (but, many have been tricked into doing just that via a 1040 form) Doing so would be in violation of the 5th amendment. See the list of quotes at bottom of this letter.

10. If you write the IRS under the freedom of information act (FOIA) and ask for your Individual Master File (IMF), (be sure to ask for both files) they are required to send them to you. When it comes it will be in code. You must have a special book (Several of the people on the enclosed list have the book) to decode the file. I have been told that one of the codes on this form is the IRS code for drug dealers from the Virgin Islands. The IRS lists most people that way to make it appear that they have a right to assess taxes on you. They must fool their own computer into accepting information on you. (By the way, I have never taken or dealt in drugs and have never been to the Virgin Islands.) The IRS wants you to volunteer and tell them you are "liable for" a tax. Then, they have authority to do many things to you.

Some well meaning but ill informed people try to use Matthew 17 saying we should pay the "income tax" lest we be an offense to the lost. I certainly do not want to offend the lost but I also do not want to lie and offend my Lord! For many years churches have been legally not paying billions of dollars in real estate taxes and sales taxes and I am legally not paying the so-called income tax. Why should there be a problem over this? Very few people have ever been offended by my position on income tax yet many have been offended at churches and other "tax-exempt" organizations for not paying real estate and sales tax. I think what they really mean is we should pay them so they don't bother us. That would be like paying "protection" money to the Mafia in order to not "offend" them! "The fear of man bringeth a snare."

Some will say, "The Bible teaches us to obey the authority over us." I agree and I do. The IRS is not the authority over me any more than the government of Japan is. I am not a "taxpayer" by the lawful meaning of the word. Also, many don't seem to remember that Paul was in jail as he wrote those words so evidently there are times when you should obey a higher authority even if it gets you in trouble with a lower one. These same people also don't seem to comprehend that in our country the authority lies in "We the people" and the constitution. The government and the elected officials are bound by the constitution and the common law just like the rest of the people are. I do obey the laws regarding taxes. I pay every tax I am required by law to pay. We are told in Mt. 22:21 And Luke 20:25 to render unto Caesar that which is Caesar's, we are not told to render unto Fred that which is Caesar's! **

Some people do not have the knowledge to feel confident in declaring their freedom and not filing. I understand the fear very well. For those people it would be wise to have professionals handle the IRS for you. Groups like American Rights Litigators and Save-A-Patriot will handle everything related to IRS for you if you prefer. You simply pay them a few hundred dollars to become a member and $30-$60 every time they answer a letter to the IRS for you. If you get any correspondence from the IRS, send it to them right away and they will take care of it. After a few letters the IRS will normally leave you alone.

The so-called "income-tax" is being paid voluntarily and unnecessarily by most people in America. Unless you have specifically been made liable by law it is a waste of God's money and time to keep all those records and fill out all those incriminating forms. The imposition and collection of this "tax" on the average working person is illegal, unconstitutional, unscriptural and unnecessary for the function of our government. If you would like to know more about what to do to "un-volunteer" I would suggest you contact some experts in the field for their professional opinion. Some people you may want to contact are below. Be aware that there are varying opinions on how to handle the problems that may arise and some of these people do not agree with each other. Study before you make any decisions.

"The Biggest Tax Loophole of All" by Otto Skinner PO Box 6609 San Pedro, CA (90734) 310-835-3770. www.ottoskinner.com

other great web sites for information on taxes.







Dr. Joe Sweet (a fine Christian friend of mine and an expert on IRS law.) EDM Enterprises, 5726 Cortez Rd. W., Suite 118, Bradenton, Florida 34210 tdc*. (941) 798-3970;

*Floyd Wright CPA 1240 E. Main St. Grass Valley, Calif. 95945 tdc (961) 273-9501;

*Michael Kailing Tax Accountant PO Box 10335 Honolulu, Ha. 96816 tdc (808) 377-3445; or 808-377-3445.

*Guy Curtis, Attorney 610 Broadway Imperial, Neb. 69033 tdc (308) 882-4215;

*Stephen Frekin, CPA 6422 Bellingham Ave. Suite 210 North Hollywood, California 91606 tdc (818) 762-9814;

Eddie Kane / American Rights Litigators 25525 State Rd. 46 Suite 1 Mt. Plymouth, Florida 32776 tdc (352)-383-9100. Fax-352-383-0808. You can become a member and they handle everything for you. All of their clients get left alone after a few responses and none have gone to jail.

Eric Madsen of Team Law in Denver, Colorado 303-364-4134. www.teamlaw.org

Save-a-Patriot (410)857-4441; www.save-a-patriot.org

Pastor Richard Mooneyhan Box 825 Hawthorn, Florida [32640] 352-481-4266

Irwin Schiff (702)-877-2833; www.ischiff.com

AntiShyster Magazine has lots of information on these topics. 800-477-5508.

Fred Allnut fought the IRS for years and won. (410)-988-9015.

The American Institute for the Republic 80 East 100 North Suite 100 Provo, UT 84606

(801) 377-0570. They have a great video called, "The IRS Investigated"

For Canadian tax questions call John Fehr Box 105 Morden, Manitoba R6M 1A2 ph. (204) 822-6008


All state income taxes are dependant on federal taxes. If you don't owe any federal you don't owe any state taxes either.

You should be aware that some Christians and (non-Christians) will not understand or agree with my position. For example, Pensacola Christian College (my friends, neighbors and the reason I moved to this town in 1989) has blacklisted me and harassed the people who work in our ministry or associate with me over this very subject. Students are told that if they work for me, or my ministry they will be kicked out of school! My son was even arrested at the "Campus Church". I have the entire unbelievable story exposing the real happenings at PCC in an 18-page letter I can furnish if you like. Call my office 850-479-3466 or e-mail dino@drdino.com and they will send it to you. There are many godly people there and I want to help them not hurt them but the truth must be told.

During the American Revolution of 1775, it has been estimated that only 3% of the people supported George Washington and the troops. Most colonists did not care about the issues and some colonists (called Tories), Christians and non-Christians, actively opposed the "rebels". I have had very few oppose me in my stand on the IRS but some have. This does not mean they do not love the Lord. I think it means they do not understand all the issues involved. I cannot decide what is right for me to do based on what others think. I must serve God with a clear conscience. While many well meaning Christians would apparently rather be red than dead this is not my position.

I am currently suing the IRS for their illegal seizure of my cars in Feb. 1996. Had I known then what I know now they would never have taken my cars to begin with. On the advice of some friends I filed bankruptcy to force the IRS to return the cars but having had zero experience in the legal system I made some mistakes in the filing and the case was dismissed without prejudice. (Some ill-informed atheists have tried to use this failed bankruptcy case to attempt to discredit me in some way. I don't comprehend how they see a connection. Our ministry is not bankrupt and never has been. The fact that these scoffers resort to Ad Hominum attacks like this shows how desperate they are!) If some posing as an IRS agent comes to get your cars, refuse to give them up, sit in the car and lock the door or drive off unless they have a valid court issued warrant. One friend of mine had the IRS come to get his car. He simply got in his car and the agent said, "If you don't get out and give us the car we will leave!" He said, "OK, you may leave." And they did. Wow, what a threat! He has never heard from them again. The IRS works 90% on bluff and intimidation. Don't be fooled, make them obey the laws like we do. No court order and warrant-no seizure of my property. They should be treated like you would treat any potential thief.

The Bible is full of examples of people using the legal system to defend their rights. Throughout the Bible much time, money and energy is expended in developing, maintaining and enforcing a just legal system (Leviticus, Deuteronomy, Judges, etc.). Paul refused to be quietly dismissed from jail after his rights as a Roman citizen had been violated. (Acts 16). He later spent much time, money and energy in his appeal to Caesar for justice.

I have no assurance of victory and know full well that the battle may have already cost me more money than paying the mis-named income "tax" would have cost. (Being on the offense with them instead of the defense is certainly more fun though!) I also know that the IRS is not above using ruthless tactics that may cause emotional, financial, social and time stress on me, my family and my ministry. John Bunyon (author of Pilgrim's Progress) spent 13 years in the Bedford county jail for refusing to take a license to preach. He felt it would be wrong to put God under the state. Daniel continued to pray knowing what the results might be (Daniel 6:10). Shadrach, Meshach and Abednego refused to bow to the idol knowing it could mean their death (Daniel 3:17). They did not know they would not be burned. A Christian's job is to do right. The results are up to God.

Should you decide to stop "volunteering" your money to the IRS you may want to consider some practical steps to protect yourself, your family and your assets since some IRS agents seem to think they are above the law. Many people take the offense to establish the fact that they are not obligated to file. Those with an * on the above list of names of lawyers, tax professionals and IRS enrolled agents are some to whom you can write asking for their professional opinion letter. Their response will explain the laws and show that most people are not required to file a 1040 form or pay the so-called "income-tax". (These letters cost about $50 each). I have 3 such letters for myself. If you would like a copy of my letters from these people please send $10 for copying costs to my office and request the file on taxes. If you are relying on professional advice you cannot go to jail for "willful failure to file."

You can then send copies (certified mail return receipt requested) of these letters to your local, state and national IRS offices and ask them for a rebuttal (I sent a package to 13 key IRS people from the local agents up to Janet Reno). If they do not respond in 20 days (and they never do) you have established (according to the Federal Rules of Civil Procedure) that you are not committing "willful failure to file".

It may also be wise to create an unincorporated Business Trust Organization (UBTO) as a second shield for the assets of your beneficiaries. This is sometimes called the rich man's secret trust or a Massachusetts trust because Kennedy is rumored to have several. Most of the very wealthy pay $0 income tax because they have transferred everything into a UBTO which, by law, pays no taxes and has no filing requirements with the IRS. Dr. Joe Sweet 941-798-3970 or Ernie Land 850-956-1296 (both fine Christians and personal friends of mine) would be helpful in setting up such a trust and answering any questions you have. A trust may cost anywhere from $500-$2000.


Quotable Quotes about the so-called "Income Tax showing that it is voluntary to Citizens of the united States"

"Our system of taxation is based upon voluntary assessment and payment, not upon distraint." Chief Justice Earl Warren, Flora v. U.S., 362 US 145, at 176.

"You are among the millions of Americans who comply with the tax laws voluntarily." Shirley Peterson, former IRS Commissioner on 1040 instructions booklet. [If it is a law it cannot be voluntary!]

"This year there was a very large voluntary response by the taxpayers; over half a trillion dollars came in and virtually all of it was self-assessed." Fred Goldberg, former IRS Commissioner. [Be careful about accepting the label "taxpayer" from the IRS. They will try to get you to admit being one to draw you into their jurisdiction. If you get any letters from them where they call you a "taxpayer" make you respond and ask them to show you the code that makes you a "taxpayer" or gives them jurisdiction over you.]

"Thank you for making this nation's tax system the greatest system of voluntary compliance in the world." Margaret Milner Richardson, former (till 1997) IRS Commissioner. (On 1040 booklet)

"Your income tax is 100 percent voluntary tax, your liquor tax is 100 percent enforced tax. Now the situation is as different as day and night. Consequently your same rules just will not apply." William E. Avis, Head, Alcohol, Tobacco Division of IRS.

"Every employee hired by the IRS is told that their primary mission is to encourage in order to achieve the highest degree of voluntary compliance in accordance with the tax laws." Jack Wade, former IRS Revenue Officer.

"Before proceeding with a summons, consider the adverse effect on voluntary compliance by others should our enforcement efforts be unsuccessful." IRS Handbook for Special Agents. [In other words, if they fight back, and others may see them win, leave them alone.]

"The IRS tabby cat, created to collect taxes in a system of voluntary compliance, has grown into a full-sized saber-toothed tiger." Former Idaho Congressman George Hansen.

"Soon 113 million of us will commit the greatest act of voluntary compliance in the world." Money Magazine, April, 1991, p. 103. [Estimates are that between 40-60 million working Americans do not file any forms with the IRS!]

"I regard the income tax as the one of all others most obnoxious to the genius of our people, being inquisitorial in nature, and dragging into public view an exposition of the most private pecuniary affairs of the citizens . . . I recommend its unconditional repeal." Alfred Pleasanton, Commissioner, Bureau of Internal Revenue, 1871. [It was repealed soon after but was reintroduced in 1913 as amendment 16 but was never ratified. Erwin Schiff (mentioned above) has quite a story about this.]

"A high-ranking IRS official told me recently that if the American people ever knew that ninety percent of what the IRS does is pure bluff, the entire system would collapse." Senator Henry Bellmon.

"I have come to the point that I need outside help in filing a return, and I serve on the committee that writes the laws and ought to be in a better position than most to figure out a Form 1040." Bill Archer, Chairman, House Ways and Means Committee.

"There is no provision of the Internal Revenue Code that specifically and unequivocally requires an individual to pay income tax." Hawaii Senator Daniel Inouye declaring the results of research performed by the Congressional Research Service. [His words "specifically and unequivocally" add nothing to the meaning of the sentence.]

"Any person required to deduct and withhold any tax under this chapter is hereby made liable for such tax." Internal Revenue Code, Subtitle A (Income Tax), Section 1461. [The "any person" is only those involved in Alcohol, Tobacco and firearms it does not apply to all people as some mistakenly believe.]

"Know the tax laws, comply with the tax laws, and require the government to do the same!" Dr. Joe Sweet, author of Good News for Form 1040 Filers, Bad News for the IRS! (Available from CSE for $20. We also have Dr. Sweet's video for $15, call 850-479-3466)

"You can fool some of the people all of the time, and all of the people some of the time, but you cannot fool all of the people all of the time." Abraham Lincoln.


An interesting letter to the editor that was sent to me (Kent Hovind) in April, 1998. I cannot prove it is right but it is good reading.

Editor, The Record,

As a libertarian, I read with interest the recent letters to the editor by Mr. and Mrs. Surfass which questioned the legality of the income tax. There is competent scholarship to support their contention that the 16th Amendment to the US Constitution was never properly ratified by the required number of states. Unfortunately, it is irrelevant.

There is a legal maxim that "specificities in evidence supersede generalities in evidence." We all are supposed to have some general protections and rights under the constitution, such as freedom of speech. However, if I am hired by a client and sign an agreement not to reveal his confidential information, I cannot later publish it and claim my 1st Amendment right of freedom of speech. My general right to freedom of speech was superseded by my specific contractual agreement not to publish this information.

When you open a bank account, you usually sign an agreement, which includes some seemingly innocuous clause that you will abide by the rules of the bank. If you read all the fine print you will find that you agreed to abide by all of the administrative rulings of the Secretary of the Treasury.

When new Federal Judges are confirmed they are told how to manage "Tax Protester" trials-violations of title 26. Federal Judges have been instructed that the Supreme Court ruled in 1896 (Davis vs. Elmira Savings, 161 U.S. 275), that banks are instrumentalities of the Congress. In other words, the interstate system of banks is the private property of the state. So as an operation of law, anyone who has a depository relationship, or a credit relationship, with a bank, such as checking, savings, charge cards, loans, mortgages, etc., are experiencing profit and gain created by the state.

During Willful Failure to File trials the IRS surveys the local banks in the vicinity of the tax protester, and obtains a copy of his signature card. During the prosecution the Federal Judge is sitting up there on the bench with that agreement with the state in front of him while the tax protester cites his Constitutional rights.

The judge will ignore all Constitutional related arguments. He is operating on the penal clause to a civil contract. And since there is an agreement to be bound by Title 26, what difference does it make whether or not Title 26 was ever enacted by the Congress? A contract does not have to be enacted by Congress in order to make it enforceable.

In the words of Supreme Court Justice Felix Frankfurter: "Equality is brutal, but we are merely enforcing agreements." Another legal maxim is that "justice must satisfy appearance of justice." Until we have separation of banking and state, we will not have the choice to avoid this "invisible contract", we will not have justice.

Pat Fallon

[Editors' note: There are ways to bank without being trapped into a secret contract. Call Ernie Land, listed above, for more on this.]

** By the way, if blind obedience to civil authority is really the rule to live by, I have some thought provoking questions for those who preach that false doctrine to answer:

1. Was it right for Moses parents to disobey the civil authority over them and not kill their baby?

The Hebrew midwives disobeyed the civil authority and God blessed them. See Ex. 1.

2. Was it right for Peter and the disciples to disobey civil authority and keep preaching Christ?  See Acts 5.

3. Was it right for Samson to disobey the civil authority (the Philistines ruled the land)? See Judges 16.

4. Was it right for the prophets to disobey the civil authority and proclaim their message at the risk of life, limb and property? See Hebrews 11.

5. Was it right for Daniel to disobey the civil authority and pray to God in spite of the command by the absolute dictator not to do so? See Daniel 6.

6. Was it right for the founding fathers like Patrick Henry, George Washington, etc. to disobey King George, the civil authority over them, and begin this great land we now freely enjoy? I suggest you re-read the Declaration of independence and try to see the motive of those great and godly men.

7. If tyranny is not the government ordained by God, is it right to resist tyranny? See the entire history of the nation of Israel in their struggle against various tyrants.

8. Was it right for the Germans at the concentration camps to obey their elected or appointed civil authority and kill the Jews?

9. Have the IRS's chains of slavery become comfortable to you and you prefer them and the peace and safety of not standing for what is right over liberty? See Patrick Henry's famous speech. It applies very well here.

10. Was it right for the French underground to disobey the civil authority and blow up German tanks, bridges etc during WW II?

11. Was it right for the men in the book of Judges to disobey the civil authority over them and rebel against their rulers?

12. Was it right for the united States to oppose the aggression of Hitler? Sadam Hussein? Japan at Pearl Harbor? Etc.

13. If someone steals your car, kidnaps your kids or rapes your wife will you call the police (use the civil authorities and legal system) and/or defend your family physically and legally?

14. If the pacifist position is what some are now preaching, should Bible colleges and churches expel students and church members who go into the military or refuse entrance or membership to those who are in or have been in the military in order to be consistent?

15. Was it right for Shadrach, Meshach, and Abednego to disobey the civil authority by not bowing on command? See Daniel 3.

16. In Acts 5 and 12 Peter disobeyed the civil authorities over him. He walked past the sleeping guards, out of jail and fled the country. This was illegal for him to do. Is this the same Peter who wrote the I Peter passage we preach from about obeying authority?


Interesting statistics:

  • The Gettysburg address is 269 words, The Declaration of Independence is 1,337 words, the Holy Bible is only 773,000 words. However, the tax law has over 7 million words today.

  • The IRS sends out 8 billion pages of forms and instructions each year. Laid end to end, they would stretch around the earth 28 times!

  • There are at least 480 different tax forms, each with many pages of instructions. The easiest form, the 1040E has 33 pages of instructions, all in fine print.

  • Nearly 300,000 trees are cut down each year to produce the paper for all the IRS forms and instructions. (Where is Al Gore when you really need him?)

  • American taxpayers spend $200 billion and 5.4 billion hours working to comply with federal taxes each year, more than it takes to produce every car, truck and van in the US.

  • The burden of compliance is equivalent to a staff of 3 million people working full time for a year, just to comply with the taxes on individuals and businesses. That's more than 3% of the workforce. [nearly all this effort is unnecessary to please a government in violation of the constitution]

  • The IRS employs 114,00 people; that's twice as many as the CIA and five times more than the FBI!

  • 60% of taxpayers must hire a professional to get through their own return.

  • Taxes eat up 38.2% of the average family's income; that's more than for food, clothing and shelter combined.

  • All this is only for the Federal Tax--- not counting state, local, sales, gas, property tax, etc.

  • It is time to know and exercise our rights.

  • The group "Americans for Tax Reform" has identified at least 30 different taxes which work their way into the prices of consumer goods. The proportion of taxes involved is startling.

  • Within the price of a $1.14 loaf of bread, taxes amount to 35 cents - or 30 percent of the total.

  • For a 50 cent can of soda, the real tax-excluded cost would be only 32 cents.

  • Some 72 percent of the cost of a 750 ml bottle of liquor goes to cover taxes.

  • Taxes on an average $80 per night hotel room average $34.40 -- or 43 percent.

  • On a airline ticket, taxes make up 43 percent of the price - or $63.60.

  • On an average monthly electric bill of $153.09, some 25.7 percent - or $39.35 -- is due to taxes.

  • Some 54 percent of the cost of a $1.33 gallon of gasoline goes for taxes.


  • It all boils down to a consumer/taxpayer choice between more government or more bread.

Source: Editorial, "Taxes, Taxes and More Taxes," Washington Times, August 25, 1996.

Subject: RE: 120 taxes and tariffs on every loaf of bread


In order for a church to maintain it's 501c3 tax exempt status they must:

  1. be incorporated
  2. have a recognized creed and IRS approved worship
  3. Have ordained ministers
  4. Be neutral on political issues
  5. Have tax exempt status issued by IRS
  6. Pay a tax to the IRS for tax exempt status
  7. Be engaged in activities furthering exclusively public purposes
  8. Open it's services to the public
  9. Have the pastor answer to the IRS as to the daily activities of the church
  10. Let the IRS be privy to all financial transactions including sources, donors, expenditures and cash.
  11. Have books and records available to the IRS at all times
  12. Have pastor inform IRS of the names of all donors. Etc.

Churches which are incorporated have asked the government for permission to exist. Churches do not need to be incorporated not have 501c3 status. Donors can deduct 15% of their income for gifts to any ministry even if the ministry is not 501c3.

EDM Enterprises

5726 Cortez Road W. PMB #118

Bradenton, FL 34210

(941) 798-3970 (voice and FAX)


From: Dr. Joe Sweet, M.Div., and D.M.Th.

Number of Pages (including this cover-page): 4


Per Dr. Kent Hovind's request?


I am sending some informational materials that evidence that no obligation exists for anyone to have and disclose a Social Security Number (SSN) as a condition for anything, including employment, banking, investing, getting a driver's license, attending a school, going to a hospital, ETC. Furthermore, no one can discriminate against anyone who does not have and will not use a SSN for either religious or political reasons. Consider Amish and Mennonite folks. They get bank accounts, jobs; some may even join the military. On the form used to register for Selective Service, found in the lobby of the Post Office, are these instructions for "Block 3"; "If you have a Social Security Account Number, it is mandatory that you include this information. If you don't have one, leave this block blank."


You will find attached here a reproduction of a letter from the IRS Office of Chief Counsel that furnishes all the provisions of the Internal Revenue Code and implementing Regulations regarding the process anyone is to follow who is "required to make a return, list, statement, or other document with respect to another person." Particular application is made with respect to another person." Particular application is made with respect to employers regarding the instructions for them to follow when hiring a person who does not have and will not use a Social Security Number. However, the provisions of the Code cited apply to any kind of TIN (Taxpayer Identification Number). The "filer" shall request the number (IRC 6109) at the beginning of the relationship (26 CFR 301.6724-1 (e)(l)(I)). If the initial solicitation fails, the filer must again solicit the TIN at the end of the first calendar year and, if necessary, at the end of the second calendar year, end of obligation. If the filer can substantiate having fulfilled the solicitation requirements, "no penalty shall be imposed for any failure if it is shown that the failure is due to reasonable cause as not to willful neglect."(IRC 6724 (a)). Feel free to call if you have further questions.

Dr. Joe Sweet



Department of the Treasury

Internal Revenue Service

Washington, D.C. 20224


Office of Chief Counsel

Dear Mr. Frost:

This is in response to your letter, dated October 25, 1996, referring to this office for consideration the inquiry of your Constituent, Mr. Vance Lee Meurer. Mr. Meurer requests instructions for an employer to follow when hiring a person who does not have and will not use a social security number, or any other identifying number, because of his or her religious beliefs.

Mr. Meurer's question involves the liability for penalties of an employer who does not provide an employee's taxpayer identification number (TIN) when required. The following provisions of the law and regulations provide guidance as to an employer's obligations for providing the Service and an employee with the employee's TIN in connection with tax administration.

Section 6109 (a) of the Internal Revenue Code provides in part that any person required to make a return, statement, or other document with respect to another person shall request from such other person, and shall include in any such return, statement, or other document, such identifying number as may be prescribed for securing proper identification of such other person.

Section 6721(a) of the Code provides as a general rule that any person failing to include all of the required information on a return shall pay a penalty of $50 for each uncorrected return with respect to which the failure occurs, with the total penalty not exceeding $250,000 during the calendar year.

Section 6722(a) of the Code provides, in part, that any person failing to include all of the information required to be shown on a payee statement shall pay a penalty of $50 for each statement with respect to which such a failure occurs; with the total penalty not exceeding $100,000 during the calendar year.

Sections 6721(e) and 6722(c), in part, set forth greater penalties for intentionally failing to include required information on a return or payee statement.

Section 6724(a) of the Code provides that no penalty shall be imposed for any failure if it is shown that the failure is due to reasonable cause and not to willful neglect.

As a general rule, the question of whether a taxpayer has reasonable cause for failing to comply with specific requirements of the Code is in the first instance a question of fact which must be resolved on the basis of all the facts and circumstances surrounding each particular case. Commissioner v Lane-Well Co., 321 U.S. 219 (1944).

Section 301.6724-1 (a) of the Regulations on Administration and Procedure provides for a waiver of the penalty if the filer (employer) establishes significant mitigation factors for the failure or that the failure arose from events beyond the filer's control. The filer must also establish that he or she acted in a responsible manner before and after the failure occurred.

Section 301.6724-1 (c)(l)(v) of the regulations includes in the definition of "events beyond the filer's control" certain actions of the payee (employee) or other person with necessary information.

Section 301.6724-1 (c)(6)(I) of the regulations includes in "actions of the payee" the failure of the payee to provide the filer with necessary information to comply with information reporting requirements.

Section 301.6724-1(e) of the regulations provides special rules for acting in a responsible manner in the case of missing TINs. A filer seeking a waiver for reasonable cause will have acted responsibly if the failure to provide a TIN on an information return resulted from a payee's failure to provide the filer with the information. However, this provision applies only if the filer makes an initial solicitation, and if required additional annual solicitations.

Page #1 of 3


Section 301.6724-1(e)(l)(I) of the regulations provides that the filer must make an initial solicitation for the payee's TIN when the relationship between filer and payee begins.

Section 301.6724-1(e)(l)(ii) of the regulations provides that the filer must undertake an annual solicitation if a TIN is not received as a result of an initial solicitation. The first annual solicitation must be made on or before December 31 of the year in which the relationship began or January 31 of the following year if the relationship began in December.

Section 301.6724-1(e)(l)(iii) of the regulations provides that if the filer does not receive a TIN as a result of the first annual solicitation, the filer must undertake a second annual solicitation. This solicitation must be made after the expiration of the annual solicitation period and on or before December 31 of the year immediately succeeding the calendar year in which the relationship began.

Section 301.6724-1(e)(l)(v) of the regulations provides that the initial and first annual solicitations relate to the failures on returns filed for the year in which the relationship begins. The second annual solicitation relates to failures on returns filed for the year immediately following the year in which the relationship begins and for seceding calendar years.

Section 301.6724-1 (e)(2) of the regulations provides that the manner of making solicitations may be by mail or by telephone.

Section 301.6724-1(e)(2)(I) of the regulations provide that mail solicitations must include-

    1. a letter informing the payee that he or she must provide his or her TIN and that he or she is subject to a $50.00 penalty imposed by the IRS under section 6723 if he or she fails to provide the TIN.
    2. A Form W-9 or an acceptable substitute form on which the payee can include his or her TIN; and
    3. a return envelope for the payee to mail Form W-9 to the filer.

Section 301.6724-1(e)(2)(ii) of the regulations provides that a telephone solicitation must be reasonably designated and carried out in a manner conducive to obtaining a TIN. The filer must-

    1. complete a call to each person with a missing TIN;
    2. request the TIN of the payee;
    3. inform the payee that he or she will be subject to a $50.00 penalty under section 6723 if he or she fails to furnish his or her TIN;

(D) maintain contemporaneous records showing that the solicitation was properly made; and

(E) provide contemporaneous records to the IRS upon request.


Section 301.6724-1(m) of the regulations provides that when seeking an administrative determination (after a penalty has been assessed), a filer must submit a written statement to the district director or the director of the service center where the returns are required to be filed. The statement must-

    1. state the specific provisions under which the waiver is being requested;
    2. set forth all the facts alleged as the basis for reasonable cause;
    3. contain the signature of the person required to file the return; and
    4. contain a declaration that it is made under penalties of perjury.


Thus, to summarize the foregoing: An employer who files with the Service certain information returns, with respect to an employee, must include the required identifying number under section 6109 of the Code. In the cases of an individual the identifying number is the individual's SSN. If an employer fails to include an employee's TIN on the information return and payee statement, the employer is subject to penalties under sections 6721 and 6722 of the Code.

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The regulations under section 6724 establish criteria for determining whether an employer has reasonable cause for failing to include an employee's TIN on a return, document, or information statement. The employer must solicit a new employee's Tin when that employee begins working for the employer. If the initial request fails, the employer must solicit the employee's TIN on or before December 31 of the employee's first year of employment, or by January 31 if employment began in December. If the second request fails, the employer must request the employee's TIN on or before December 31 of the employee's second year of employment. The employer's annual solicitations, by mail or by telephone, must inform the employee that he or she is subject to a $50.00 penalty, and must maintain records of the various requests for the employee's TIN. An employer complying with these requirements will likely satisfy the reasonable cause standard of section 6724 of the Code. Generally, no more than two annual solicitations are required in order for an employer to establish reasonable cause.

Thus, the cited Code and regulations sections do not establish a blanket exemption from penalties for an employer who has not provided the employee's TIN because the employee has failed to obtain or furnish a SSN. Rather, these sections provide a method whereby an employer can establish, subject to verification by the Service, that the failure to provide an employee's TIN is due to reasonable cause and not to willful neglect. Further, compliance with the solicitation provisions of section 301.6724-1 of the regulations will not preclude the Service from contacting the employer every time a return, statement, or other document is filed that lacks a required TIIN. In light of this, the employer must maintain documentation of its efforts to secure a TIN from any employee failing to provide the employer with his or her SSN for the duration of that employee's employment.

We hope this information will be helpful to you in replying to your constituent.


Sincerely yours,



Rudolf M. Pllannert

Assistant Chief Counsel

(Income Tax & Accounting)

Chief, Branch 4


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Pastor Richard and Anna Rose Mooneyhan
PO Box 825 Hawthorne, Florida 32640

July 16, 1999

Dear Bro. Hovind

I thought the following information would be of interest to you, concerning whether a church should incorporate or not.

A pastor friend of mine, in Washington D.C., called recently and related this story, as it happened to him last week. He was involved some months ago with an attorney for Benny Hinn, the Pentecostal evangelist, in a financial dealing. The attorney has since come under investigation by the S.E.C (security and exchange commission) Keep in mind that it is the attorney, not Benny Hinn, under investigation. When my friend's church bank account number showed up in the attorney's records the S.E.C. obtained a copy of the church records, and my friend found out after the fact.

He immediately called his personal attorney, and complained that his church records had been obtained and that he was angry. He said they could not do that to a church. His attorney said, and this is what I am writing you about, " Pastor, if you were a church, you would be correct and be sovereign. The government would have to get a court order first, and then you would have to agree to the records being given. However, you are not a church, but a corporation, and are now subject to all of the statutes, rules, regulations, concerning corporations, and banking laws. Your records belong to the state also. You gave up your sovereign status when you incorporated. NO CHURCH should be incorporated, and there is no reason to do so."

My pastor friend was shocked. He did not know, as most pastors in this country probably do not know, that he gave up his church sovereignty to the government when he incorporated.

The sad thing is, all lawyers know this, and still put the churches in bondage to the government, for the sake of a few hundred dollars.

Pastors need to WAKE-UP and see what they have done to the Lordship of Christ over their church.

In the surety of His blood,

Pastor Mooneyhan


Verses to consider before getting into a trap or hidden contract with our government by letting them make you think some law applies to you when it does not.

Proverbs 6:1 My son, if thou be surety for thy friend, if thou hast stricken thy hand with a stranger, Thou art snared with the words of thy mouth, thou art taken with the words of thy mouth. Do this now, my son, and deliver thyself, when thou art come into the hand of thy friend; go, humble thyself, and make sure thy friend. Give not sleep to thine eyes, nor slumber to thine eyelids. Deliver thyself as a roe from the hand of the hunter, and as a bird from the hand of the fowler. Go to the ant, thou sluggard; consider her ways, and be wise:

Pro. 11:15 He that is surety for a stranger shall smart for it: and he that hateth suretiship is sure.

Pro. 17:18 A man void of understanding striketh hands, and becometh surety in the presence of his friend.

Pro. 22:26-27 Be not thou one of them that strike hands, or of them that are sureties for debts. If thou hast nothing to pay, why should he take away thy bed from under thee.


I hope this has been helpful in answering your questions about my position on taxes. It is interesting to note that Jesus had both Simon the Zealot and Matthew the tax collector as disciples. The Zealots were the anti-Roman, guerrilla warfare, blow up the bridges kind of guys while the tax collectors were those who cooperated with the Romans. There is room for a wide political variance in the service of the Lord. I can still have fellowship with those who disagree. In the matter of taxes I believe my heart is right at least. I want to please the Lord and reach others with the gospel.

Please feel free to have any attorney or IRS agents review and critique this letter. Also feel free to copy and distribute this letter if no changes or alterations are made.

In Christ,

Kent Hovind

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