May 6, 1996
EMPLOYER NAME
EMPLOYER ADDRESS
Dear Payroll Officer:
This letter is to notify you that I no longer wish to
participate in State and Federal Tax systems prescribed in
Subtitles A & C of the Internal Revenue Code and corresponding
provisions of the Oklahoma Income Tax Code (Title 68, Oklahoma
Statutes). Therefore, you will please discontinue deducting State
and Federal income tax, Social Security tax, and other such taxes
from my pay.
Please consult 26 U.S.C. § 3402(p) and attending regulations
at 26 CFR 31.3402(p)-1(b)(2) to verify that deductions prescribed
by the W-4 Form previously filed effected my side of a voluntary
agreement to participate in these tax programs. At 26 CFR §
3402(f)(2)-1(g), you will find that there is no form prescribed
to effect the revocation and notice of discontinuation, but
notice should be given by letter.
In order to effect the agreement termination, I am obligated
to inform you that I incurred no liability as a "taxpayer" under
provisions of Subtitles A & C of the Internal Revenue Code of
1954, as amended in 1986 and since, and that I do not expect to
incur liability in the coming year. I hereby attest that to the
best of my knowledge and understanding, I was not liable for
these taxes last year nor do I expect to be made liable in the
current and coming years.
Please consult provisions in Sections 3401 through 3405 of
Vol. 68A of the Statutes at Large (1954), as this is the true
Internal Revenue Code. These statutes clarify that the Internal
Revenue Code of 1954, as amended in 1986 and since, is merely
reorganization of the Internal Revenue Code of 1939, which was
codification of the Public Salary Tax Act of 1939, applicable
only to officers, agents and employees of the United States. You
will find in the Parallel Table of Authorities and Rules,
beginning on page 751 of the 1995 Index volume to the Code of
Federal Regulations, that there is no supportive regulation for
26 U.S.C. § 63, which defines "taxable income", so there is no
authority applicable to the several States. Further, you will
find that 26 U.S.C. § 11 is not listed in the Parallel Table of
Authorities and Rules. This is significant as § 11 prescribes
corporate income tax, and the absence of the statute listing
means no regulations have been published in the Federal Register
to extend general application to the several States and the
population at large, corporations incorporated in the several
States included. Subtitle A & C taxes are mandatory only for
officers, agents and employees of the United States, at defined
at 26 U.S.C. § 3401(c), and for agencies of the United States, as
defined at 26 U.S.C. § 3401(d), particularized at 5 U.S.C. §§ 102
& 105.
Further, please consult 26 CFR, Part 601.401, as the five
pages in this Subpart clarify that I as an "employee" am to bill
you as an "employer" for any tax overpayment and that you in
return are to bill the Internal Revenue Service for refunds paid
directly to me. The mandate for an "employee" filing a 1040 Form
for a special refund of employment taxes (26 CFR §
601.401(d)(4)), is applicable only with respect to foreign-earned
income relating to employment taxes (see OMB number application,
page 170, 26 CFR, Part 600-End; Department of Treasury OMB
numbers published in the Federal Register, November 1995).
Please be advised that this notice of termination is
sufficient to constitute legal notice, so you have due diligence
obligation to determine and comply with the law.
Thank you for compliance with termination of the W-4
deduction agreement, per 26 CFR § 31.3402(p)-1(b)(2).
Regards,
/s/ Your Signature
Your Name [typed]
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