Time: Fri Nov 14 06:30:10 1997
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Date: Fri, 14 Nov 1997 05:59:45 -0800
To: (Recipient list suppressed)
From: Paul Andrew Mitchell [address in tool bar]
Subject: SLS: Confirm (fwd)
<snip>
>
> Tax Attorney Confirms Article on W-4
>
> by Larry Becraft, Jr.
>
>
>Presently, I have an appeal in a criminal tax case pending before the
>Eleventh Circuit which raises the issue as to who is liable for the federal
>income tax.
>
>The government filed its brief in this case and I was utterly amazed at the
>government's answer to my argument.
>
>Due to the admission so made, I now realize that my argument is monumentally
>significant and I feel compelled to tell other attorneys involved in similar
>litigation.
>
>Last year, I tried a case in Orlando, Florida wherein Dehur D. Ward was
>charged with tax evasion. Ward was a student and follower of a man named
>George Arlen, who, like Irwin Schiff, advocated the who's liable argument
>built around 26 USC sections 6001, 6011, and 6012.
>
>Ward had engaged in a constant stream of letters to both the IRS and his
>employers which squarely raised the issue that he didn't believe he was
>liable for the tax because he found no section of the Code that made him
>expressly liable.
>
>This position formed the factual foundation for our defense that he didn't
>act willfully. It also afforded me the excellent opportunity to raise the
>same legal argument via requested instructions and motions for judgement of
>acquittal.
>
>The essence of my argument was that the income tax, pursuant to Subchapter N
>of the Code, imposed the tax only on aliens and foreign corporations who had
>sources of income outside the U.S., and also within U.S. possessions. The
>only persons expressly made liable for the income tax are section 1461
>withholding agents for aliens and foreign corporations.
>
>This was the legal argument created by my requested instructions and my Rule
>29 Motion.
>
>My brief in Ward's case to the Eleventh Circuit had several major parts
which
>constitute my ultimate conclusion that state citizens were not taxed on
their
>sources of income within the states.
>
>First, I treated the question of the jurisdiction of the United States and
>showed that its jurisdiction was only in Washington, D.C., the federal
>enclaves within the states and the territories and insular ~possessions of
>the United States.
>
>Next, I discussed all the federal income tax statutes from the 1913 act
>forward and showed that, statutorily, the tax was one imposed only in its
>jurisdiction.
>
>I then treated all prior regulations promulgated for all the prior income
tax
>acts and showed that the regulations clearly stated that the tax was
>jurisdictional.
>
>My argument was thus ended with the conclusion that state citizens are
>outside the jurisdiction of the United States and were not thus taxed. As
my
>brief says:
>
> For U.S. citizens, the sources subjected to taxation are treated in
> Section 911 and 931. In Section 911, a U.S. citizen living and working
> abroad, and thus having sources without the U.S., is subjected to
> taxation. In Section 931, the sources subjected to taxation are those
> sources earned within a possession of the United States. For U.S.
> citizens, who were born in the U.S., who are domiciled in the U.S., and
> who have sources of income within the U.S., there is no income tax
> imposed.
>
> Since Ward did not fall within the statutory classes of individuals
> subject either to the tax or filing requirement under section 6012, the
> District Court committed error in denying his motions for acquittal.
>
>I then presented the subchapter N argument and concluded that the only
>persons liable for the tax pursuant to 26 USC sections 6001, 6011, and 6012,
>were section 1461 withholding agents.
>
>I had expected that the government would respond with a lengthy, detailed
>argument showing that state citizens were taxed via some complicated manner
>that directly or indirectly so imposed the tax.
>
>But, when I received the government's brief, I found one page thereof that
>addressed my issue;.. After calling my argument frivolous, the U.S.
attorney
>then stated as follows:
>
> The government is unable, therefore, to offer case authority for the
> universally accepted proposition that a citizen of the United States,
> working and residing in the United States, subject to federal law,
> earning wages, and responsible for filing an income tax return, is
> liable for taxation.
>
>Although these are the words of Bruce Hinshelwood, I feel confident that
most
>other prosecutors would have been compelled to make the same admission.
>There, indeed, is no case, or statute, that expressly holds a state citizen
>liable for the income tax.
>
>It is my hope that you and other attorneys will study this issue... From my
>viewpoint, we certainly need to raise this issue in other circuits.
>
>
>P.S. Why is it that the only court which has been given jurisdiction of
>Title 26 crimes is the U.S. District Court in Guam? See 48 USC 1421.
>
>
>[Reprinted from `American Information Network', Sept/Oct. 1988; from `The
>Correspondent']
>
<snip>
===========================================================================
Paul Andrew Mitchell, Sui Juris : Counselor at Law, federal witness 01
B.A.: Political Science, UCLA; M.S.: Public Administration, U.C.Irvine 02
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_____________________________________: Law is authority in written words 09
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