Miscellaneous Questions and Answers
How are evolution, Communism, the new-world order and the IRS
Go to Seminar
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
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
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
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
"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:
- Overall limitation to the foreign
- DISC and FSC taxable income
- Effectively connected taxable
income. Nonresident alien individuals and foreign corporations
engaged in business in the United States
- foreign base company income
- 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:
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
citizen or resident of the United States,
estate (other than a foreign estate, within the meaning of paragraph
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
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.
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,
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
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
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
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
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.).
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.
"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
"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.)
5726 Cortez Rd. W., Suite 118, Bradenton, Florida 34210 tdc*. (941)
*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
*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
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
Mooneyhan Box 825 Hawthorn, Florida  352-481-4266
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)
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 email@example.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
"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)
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.
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
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
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.]
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
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
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.
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
[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?
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
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
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.
"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
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
"Taxes, Taxes and More Taxes," Washington Times, August
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:
- be incorporated
- have a recognized creed and IRS
- Have ordained ministers
- Be neutral on political issues
- Have tax exempt status issued by IRS
- Pay a tax to the IRS for tax exempt
- Be engaged in activities furthering
exclusively public purposes
- Open it's services to the public
- Have the pastor answer to the IRS as
to the daily activities of the church
- Let the IRS be privy to all financial
transactions including sources, donors, expenditures and cash.
- Have books and records available to
the IRS at all times
- 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.
5726 Cortez Road W. PMB
Bradenton, FL 34210
(941) 798-3970 (voice
From: Dr. Joe Sweet, M.Div., and
Number of Pages (including this
Per Dr. Kent Hovind's
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
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
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
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
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
Sections 6721(e) and
6722(c), in part, set forth greater penalties for intentionally
failing to include required information on a return or payee
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
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
(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.
(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
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
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.
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
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
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.
(e)(2) of the regulations provides that the manner of making
solicitations may be by mail or by telephone.
301.6724-1(e)(2)(I) of the regulations provide that mail solicitations
- 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.
- A Form W-9 or an acceptable
substitute form on which the payee can include his or her TIN;
- a return envelope for the payee to
mail Form W-9 to the filer.
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-
- complete a call to each person
with a missing TIN;
- request the TIN of the payee;
- 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;
contemporaneous records showing that the solicitation was properly
contemporaneous records to the IRS upon request.
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
- state the specific provisions
under which the waiver is being requested;
- set forth all the facts alleged as
the basis for reasonable cause;
- contain the signature of the
person required to file the return; and
- 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.
Page #2 of 3
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.
Rudolf M. Pllannert
Assistant Chief Counsel
(Income Tax &
Chief, Branch 4
Page #3 of 3
Pastor Richard and Anna
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
In the surety of His
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.
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