The Federal Zone:

Cracking the Code of Internal Revenue

by Mitch Modeleski (fourth edition: electronic version)

Note: Mr. Modeleski analyzes the Title 26 IRS tax code (among others) to elucidate the subtleties of our complex Republic and it's modern distortions. This is not simple "tax protest," this book is about much more than taxes. Also, there are certain notations used throughout the text which are absolutely essential to understanding the concepts presented. dimitri

Published by: Account for Better Citizenship
c/o USPS Post Office Box 6189
San Rafael, California Republic, Postal Code 94903-0189/TDC
July 4, 1993

Table of Contents


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
July 4, 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 fourth 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 fourth edition into formats compatible with different word processors, resulting at most in cosmetic changes like different margins which may cause changes in pagination.

Published by:

Account for Better Citizenship
c/o USPS Post Office Box 6189
San Rafael, California Republic
Postal Code 94903-0189/TDC

(see Appendix F)

Special Notice

This book is protected by a Common Law Copyright under the name of the author.

One of the main purposes of this book is to explain how we, the American People, have been deliberately deceived by government officials who have systematically exploited this deception to defraud us of our wealth and our freedom.

If you make unauthorized copies of this book without paying the Author for those copies, you are obtaining unjust enrichment by doing so, and therefore you are no different from the government officials who are stealing from you.

Your continued financial support will be most appreciated and will be spent to cover the time and expenses of people in the Freedom Movement who are now dedicating precious time and energy to defend your rights and your freedoms.

To order additional copies, or to donate funds to cover unauthorized photocopies, please dispatch first class mail to:

Account for Better Citizenship
c/o USPS Post Office Box 6189
San Rafael, California Republic
Postal Code 94903-0189/TDC
This U.S. Post Office box requires first class mail to bear postage at the minimum rate of $0.29 for the first ounce.
Single Copy Cost:
$25.00 (includes shipping and handling via first class U.S. mail)
Express Mail:
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The electronic version is shipped on a 3.5in floppy disk formatted by MS-DOS to contain 1.44 megabytes. Appendices D, K and L are missing from the electronic version. Printed copies of these appendices can be obtained by writing to the publisher.

The printed second edition remains $40 will supplies last.

We will accept cash, checks and blank postal money orders. A blank postal money order shows nothing on the 'payee' line, allowing us to write our own payee on this line and to negotiate the money order freely. Sorry, but we do not take credit cards. We reserve the right to endorse your checks 'without prejudice UCC 1-207' and without granting jurisdiction (see Appendix F).

Thank you very much for your interest and support.

Publication History:

First Edition January 1992 hard-copy
Second Edition July 4th 1992 hard-copy
Third Edition January 1993 electronic
Fourth Edition July 4th 1993 electronic


If Frank Brushaber was a Nonresident Alien, then so am I, and so are millions of other Americans who will know the truth if we teach them.
We have in our political system a Government of the United States** and a government of each of the several States.

Each one of these governments is distinct from the others, and each has citizens of its own .... Slaughter-House Cases
[United States vs Cruikshank, 92 U.S. 542 (1875)]

It is quite clear, then, that there is a citizenship of the United States** and a citizenship of a State, which are distinct from each other and which depend upon different characteristics or circumstances in the individual.
[Slaughter House Cases, 83 U.S. 36 (1873)]

Mitch Modeleski, Founder
Account for Better Citizenship
San Rafael, California Republic
July 4, 1993


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 meanings will 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

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