To: bio-info@net.bio.net
From: ckank@cco.caltech.edu (Christopher Kankel)
Subject: The Federal Zone
Date: 15 Aug 1994 07:59:39 GMT
What kind of effect would the following information have on the one of the
most complex biological systems known, human society.
Disclaimer
This book is designed to educate you about federal income tax law,
the Treasury regulations which promulgate that law, and the various court
decisions which have interpreted both. It is sold with the understanding
that the Author and Publisher are not engaged in rendering legal services
of any kind. The right to author and publish this book, no matter how
often the statutes, regulations and case law are quoted, is explicitly
guaranteed by the First Amendment to the Constitution for the United
States of America, a written contract to which the federal government, the
50 States, and their respective agencies are all parties. Federal and
State laws are changing constantly, and no single book can possibly
address all legal situations in which you may find yourself, now or in the
future.
User Instructions
The Federal Zone:
Cracking the Code of Internal Revenue
third edition
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The Federal Zone:
Cracking the Code of Internal Revenue
(third edition: electronic version)
by
Mitch Modeleski
Published by
Account for Better Citizenship
c/o USPS Post Office Box 6189
San Rafael, California Republic
Postal Code 94903-0189/TDC
January 1, 1993
Disclaimer
This book is designed to educate you about federal income tax law,
the Treasury regulations which promulgate that law, and the various court
decisions which have interpreted both. It is sold with the understanding
that the Author and Publisher are not engaged in rendering legal services
of any kind. The right to author and publish this book, no matter how
often the statutes, regulations and case law are quoted, is explicitly
guaranteed by the First Amendment to the Constitution for the United
States of America, a written contract to which the federal government, the
50 States, and their respective agencies are all parties. Federal and
State laws are changing constantly, and no single book can possibly
address all legal situations in which you may find yourself, now or in the
future.
The Federal Zone:
Cracking the Code of Internal Revenue
Common Law Copyright
January 1, 1993
Mitch Modeleski
The information contained in this book is lawfully protected from
reproduction infringements for purposes of generating revenue of any kind.
Violators are hereby warned that they can and will be prosecuted to the
full extent of American law, at the sole discretion of the Author and
Publisher. The only other restriction on the use and dissemination of the
electronic third edition is the requirement that users not modify the
content of the character stream in any way. The purpose of this
requirement is faithfully to preserve all punctuation, Capitalization,
bold, italics and underlines exactly as found in the original text.
Permission is hereby given to translate the electronic third edition into
formats compatible with different word processors, resulting at most in
cosmetic changes like different margins which may cause changes in
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Postal Code 94903-0189/TDC
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ARTICLE 1, SECTION 207
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Publication History
First Edition January
1992 hard-copy
Second Edition July
4th 1992 hard-copy
Third Edition January
1993 electronic
Dedication
If Frank Brushaber was a Nonresident Alien,
then so am I,
and so are millions of other Americans.
Mitch Modeleski, Founder
Account for Better Citizenship
San Rafael, California Republic
January 1, 1993
Notations
The Supreme Court has officially defined the key term "United
States" to have three separate and distinct meanings:
(1) It may be the name of a sovereign occupying the position
of other sovereigns in the family of nations.
(2) It may designate the limited territory over which the
sovereignty of the federal government extends.
(3) It may be the collective name for the fifty States which
are united by and under the Constitution.
Understanding these several meanings is absolutely crucial to
understanding the remainder of this book. Much confusion will result from
failing to recognize (or decipher) the meaning that is used in any given
context. In order to reinforce their importance, these three meaningswill
be identified by using the following convention whenever possible:
(1) United States* or U.S.* (first meaning)
The name of the sovereign nation, occupying the position
of other sovereigns in the family of nations.
(2) United States** or U.S.** (second meaning)
The federal government and the limited territory over
which it exercises exclusive sovereign authority.
(3) United States*** or U.S.*** (third meaning)
The collective name for the States united by and under the
Constitution for the United States of America.
At the risk of being criticized for violating formal English
style, quotations have also been modified with this notation. The risk of
misunderstanding was judged to be far more serious than any violations of
conventional style. It is the Author's sincere intent that the addition
of asterisks will be obvious in all cases, even if the meaning of "United
States" is not obvious in any particular case.
Exceptions to this convention will be made for book titles, for
United States Codes (abbreviated USC or U.S.C.), for the United States (or
U.S.) Constitution, and for the United States (or U.S.) Supreme Court.
Other notations should be obvious from their context, but will be
repeated here for extra clarity:
IR means Internal Revenue (e.g. IR Manual refers to the IRS
Internal Revenue Manual)
IRC means Internal Revenue Code (also known as Title 26)
IRS means Internal Revenue Service in the Department of the
Treasury
USC means United States Code (e.g. 26 USC 7701 refers to
Title 26, United States Codes, Section 7701)
CFR means Code of Federal Regulations (e.g. 26 CFR 1.871-1 are
the regulations for Section 871 of Title 26)
T.D. means Treasury Decision, a written decision published in
the Federal Register by the Treasury Department.
U.S. means United States decision when used to cite a ruling of
the Supreme Court (e.g. 324 U.S. 652 refers to volume 324, page 652 of
Supreme Court decisions)
If a nation expects to be ignorant and free,
it expects something it cannot be.
Thomas Jefferson
Help us to abolish the
specter of modern slavery
which now threatens to destroy
the essential rights and freedoms
which made this a great nation
and the envy of others
around the world.
Help us to restore a government
which has drifted so far off course
it hardly resembles
the constitutional republic
it was designed to be.
from Cover Page
Notice to 50 Governors
Account for Better Citizenship
Table of Contents
Contents: Page
Disclaimer ii
Special Notice iii
Dedication v
Notations vi
Table of Contents . viii
Introduction intro - 1
Chapter 1: The Brushaber Decision 1 - 1
Chapter 2: Status and Jurisdiction 2 - 1
Chapter 3: The Matrix 3 - 1
Chapter 4: The Three United States 4 - 1
Chapter 5: What State Are You In? . 5 - 1
Chapter 6: Empirical Results 6 - 1
Chapter 7: Inside Sources 7 - 1
Chapter 8: Is it Voluntary? 8 - 1
Chapter 9: The Law of Presumption 9 - 1
Chapter 10: The Fundamental Law 10 - 1
Chapter 11: Sovereignty . 11 - 1
Chapter 12: Includes What? 12 - 1
Chapter 13: Amendment Post Mortem 13 - 1
Chapter 14: Conclusions 14 - 1
Appendices (see next pages)
Table of Contents
Appendices: Page
A Letter to John Knox A - 1
B Omnibus Acts B - 1
C Treasury Decision 2313 C - 1
D Form 1040 for 1913 not available in electronic version
E Viacom Transcript . E - 1
F Affidavit of Revocation F - 1
G Deceptive IRS Code Words G - 1
H Analysis of U.S. vs Hicks H - 1
I Notice to 50 Governors . I - 1
J Petitions to Congress . J - 1
K IRS Form 1040NR not available in electronic version
L IRS Form W-8 . not available in electronic version
M List of Organizations M - 1
N Bibliography . N - 1
O Constructive Notice and Demand O - 1
P Miscellaneous Letters P - 1
Q Apportionment Statute Q - 1
R Affirmations: Within & Without R - 1
S Affidavit of Foreign Status S - 1
T Revocation of Birth Certificate T - 1
U Revocation of Voter Registration U - 1
V Memo on 6th and 16th Amendments V - 1
W Memos on Downes vs Bidwell . W - 1
X Certificate of Exemption from Withholding X - 1
Y Memoranda of Law Y - 1
Z The Nature and Cause: Case Law Z - 1
Introduction
In the late Spring of the year 1990, our small beach town in
Northern California was visited by a minor political controversy. A local
writer for the weekly newspaper, a man named Kirby Ferris, had a number of
neighbors buzzing about his recent sequence of articles challenging the
16th Amendment, the so-called "income tax" amendment in the U.S.
Constitution. It seems that Kirby had come across some huge collection of
documents which allegedly proved that the 16th Amendment was never
ratified. Instead of obtaining the required approval of 36 State
legislatures, the proposed amendment was simply "declared" ratified on
February 25, 1913 by Philander C. Knox, a man who purported to be
Secretary of State. Kirby Ferris had, evidently, visited one of the men
responsible for assembling this collection of 17,000 State-certified
documents and returned entirely convinced that the so-called 16th
Amendment was a complete and total fraud. The man he visited was Martin
J. "Red" Beckman, a Montana rancher whose name now appears as co-author
with Bill Benson on the cover of The Law That Never Was, a book that has
already become a classic in American historical literature.
Up to that point in time, I had not been much of a Ferris fan.
Too often for me, his style bordered on being too inflammatory and lacking
necessary details. After all, Kirby had spent his youth surfing waves,
drinking beer, and chasing bikinis. When this little controversy erupted,
I made no secret of my bachelor's degree in Political Science from UCLA,
and my master's degree from the University of California at Irvine in
public administration. Trotting out these credentials, of course, was
invariably my preface to answering the several questions which friends and
neighbors put to me about Kirby's allegations, as if to underscore my
obvious qualifications to repudiate Kirby's claims. "If there's a
problem, Congress will just fix it," I must have said more times than I
care to admit.
One day at breakfast in the Parkside Cafe, a favorite hang-out for
all the "locals", the same conversation began again, this time with a
Vietnam War veteran by the name of Mike Taylor. Mike is an intense man,
with fierce convictions, a booming voice, a few lingering effects of
combat shell shock, and a habit of getting right to the point. "What do
you think of Kirby's columns on income tax?" he queried. Again, as if to
practice a polished art, I repeated the same old answer one more time,
"Congress will just fix it, if there really is a problem with the 16th
Amendment." The answer had worked in the past; there was no reason why
it wouldn't work on Mike too. Wrong! Mike shot right back, "OK. You're
so smart. How is Congress going to fix it?" he retorted. "They'll pass a
law. How else do you think they would fix it?" I answered, somewhat
surprised from pride to be challenged so directly. And then Mike lowered
the boom, "Are you telling me that Congress can amend the Constitution by
passing a law? Is that what you're telling me?"
My jaw fell, as if to begin my next sentence, but no words came
out of my mouth. I knew that he had me. Congress cannot amend the
Constitution. Of course, Mike was right. In a feeble attempt to recover,
I retreated by admitting that two-thirds of the States were required to
amend the Constitution, and that Congress alone did not have the power to
do so. Then Mike delivered the knockout punch, "It takes three-fourths of
the States to amend the Constitution, Mitch, not two-thirds." I was had.
All those years in school, all those high school civics classes, all those
papers on political theory, and all those months of management science had
left me woefully unprepared to spar with Mike when it came to the Supreme
Law of our Land. The lesson was a good one, one that I will never forget
for the rest of my days.
My embarrassed defeat was a terrific motivation. I went to work
ordering books and reading everything I could get my hands on. A purchase
order flew up to Red Beckman in Billings, Montana. Within a week I was
devouring my own copy of The Law That Never Was. I had to repent for my
errors, or so my religious training had led me to believe. The book was a
turning point, in more ways than one. I knew enough about the rules of
evidence to question every page. "How could this problem have gone
undetected for such a very long time?" I asked myself. Here were
allegations which appeared to undermine a major source of revenue for the
entire federal government of the United States. I needed more proof.
I wrote to Kirby and explained my situation. It had been many
years since my college political activism. I was now a senior systems
consultant for a major investment bank in San Francisco, with almost 20
years of computer experience under my belt. I was often seen blending in
among the "grey men" of the financial district, not too far from a
regional Federal Reserve Bank. If I was going to take this problem very
seriously and, in particular, if I was ever going to do anything about the
16th Amendment fraud, then I was going to need something more than a
printed book from some Montana rancher I had never met. After all, with
enough money, anybody can put ink to paper and put almost anything into
circulation these days. I needed something more; I needed material
evidence, as they call it in court rooms and in law schools -- material
evidence, not hearsay, and certainly not unsubstantiated allegations that
a massive fiscal fraud had been perpetrated on the American people for
more than two generations.
Kirby rose to the occasion. "Tell me what you need," he said. I
thought about it and invited him to come over for coffee. If there really
were 17,000 documents, all officially certified by the Secretaries of
State in the Capitol buildings of 48 of the United States***, there was no
point in plowing through such a huge mound of paperwork. Paperwork was
something which I put somewhere below a necessary evil. We put our heads
together and came up with a plan. The feds have admitted in writing that
6 States did not ratify the 16th Amendment. Since three-fourths of the
States were required to ratify it, the amendment could have passed with at
most 12 States opposing it. If we could find only 7 additional States
which obviously failed to ratify the amendment, that would make a total of
13 NAY's, and we would have defeated the "income tax". What a tantalizing
thought! Before the night was over, we had our list of "The Dirty Seven",
as Kirby liked to call them.
Kirby Ferris went home to call Red Beckman. Two days later, Kirby
left a short note on my front door: Red Beckman had agreed to photocopy
all the relevant documents for The Dirty Seven States, and would ship them
to us as soon as the copying was done. Within a week, two large cardboard
boxes were sitting on my front porch when I returned home from work.
There it was, the evidence I needed. It was incontrovertible: the 16th
Amendment was never ratified. The act of declaring it ratified was an act
of outright fraud by Secretary of State Philander C. Knox, a man who was
sworn to obey the Constitution. This was an awesome discovery.
The events which have transpired since that moment have literally
changed my life. I have filed formal petitions with two Representatives
in the Congress of the United States. A detailed notice of fraud and
deception has been served on all the governors of the 50 States. I have
requested a Grand Jury investigation into the fraud committed by Secretary
of State Philander C. Knox. I have studied and debated and learned
everything I could about the laws and regulations which bear on this
question. It has been an exhilarating and challenging experience. Almost
all of the opposition has come from government personnel, mostly officials
of the Internal Revenue Service. That opposition has been most
instructive.
For those of you who may not know exactly how and where the U.S.
Constitution is relevant to this subject matter, the text of the failed
16th Amendment follows:
The Congress shall have power to lay and collect taxes on incomes,
from whatever source derived, without apportionment among the several
States, and without regard to any census or enumeration.
[Constitution for the United States of America]
[text of so-called 16th Amendment]
[emphasis added]
>From the beginning, the U.S. Constitution has empowered Congress to levy
two different kinds of taxes: direct and indirect. These are powers
which Congress has always had, with or without the so-called 16th
Amendment. The power to levy indirect taxes is authorized by Article 1,
Section 8, Clause 1, as follows:
The Congress shall have Power To Lay and collect Taxes, Duties,
Imposts and Excises, to pay the Debts and provide for the common Defense
and general Welfare of the United States; but all Duties, Imposts and
Excises shall be uniform throughout the United States; ....
[Constitution for the United States of America]
[Article 1, Section 8, Clause 1]
[emphasis added]
Federal excise taxes on the sale of gasoline and tires are
examples of indirect taxes. The requirement that indirect taxes be
uniform throughout the several States is known as the "uniformity rule".
The power to levy direct taxes is authorized by two separate clauses of
the Constitution, as follows:
Representatives and Direct Taxes shall be apportioned among the
several States which may be included within this Union, according to their
respective Numbers ....
[Constitution for the United States of America]
[Article 1, Section 2, Clause 3]
[emphasis added]
No Capitation, or other direct, Tax shall be laid, unless in
Proportion to the Census or Enumeration hereinbefore directed to be taken.
[Constitution for the United States of America]
[Article 1, Section 9, Clause 4]
[emphasis added]
Thus, the requirement that direct taxes be apportioned was
considered by the Framers to be so important, it is mentioned twice in the
U.S. Constitution. This requirement is known as the "apportionment rule",
and its application is easy to understand. If California has 10 percent of
the nation's population, then California's "portion" would be 10 percent
of any direct tax imposed by Congress. A "capitation" is another word for
a direct tax imposed on each "head" or person (caput is Latin for "head").
Federal taxes on personal property, or on the income of personal property,
are examples of direct taxes. Appendix Q shows the State portions of a
lawful direct tax that was levied by Congress in the year 1798.
For the entire text of the book follow the ordering instructions given at
the beginning of the post.