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Couple Receive Full Refund of Amounts Withheld by Feds

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United States
11/08/2012 01:28 PM
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Couple Receive Full Refund of Amounts Withheld by Feds
[link to losthorizons.com]

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What Am I Doing Wrong?

FOR NINE YEARS NOW, I've been posting an ever-growing body of unambiguous government admissions that the United States income tax is exactly what I reveal it to be in 'Cracking the Code- The Fascinating Truth About Taxation In America' (CtC): a federal claim to a "piece of the action" upon economic activity in which certain tangible or intangible federal property plays a contributory role.

It's a very simple affair. If United States property is used by someone to make money, the feds get some of the profits. Conversely, if United States property is NOT used in someone's economic activity, the feds have no claim.

CtC explains the nature of the relevant federal connections by which the tax can arise; how non-federally-connected activity can be, and often is, mistaken for connected activity; and how to prove which is true in regard to any particular receipts. It also explains how to re-claim amounts collected against the fed's prospective "piece of the action" when it turns out that they have no outstanding claim.

UNDERSTANDABLY, those in the business of collecting as much money as possible for the United States operate from an institutional perspective that any given economic activity should be presumed to involve federal stuff until proven otherwise (one unfortunate side-effect of which is the suggestion of an institutional position that ALL economic activity is subject to the tax, a mistaken notion that has taken up residence in many minds over the years).

Understandably, those in the business of collecting as much money as possible for the United States are sometimes resistant to proof that any given activity had no federal connection. This results in the occasional throwing of a series of "Do you really mean it?" impediments in front of an educated claimant in hope that this balkiness will prompt a default in the government's favor. These impediments can be an inconvenience to their victims, but at the same time they constitute further admissions of the true nature of the tax.

POSTED BELOW IS THE LATEST of the thousands and thousands of cases in the enormous and ever-growing body of evidence of the truth about the tax. It is a fully-documented example of the use of CtC's liberating revelations by educated, upstanding American grown-ups who take the rule of law and their individual rights seriously, along with, as it happens, an illuminating sequence of tax agency efforts to discourage and resist their evidence and claims.

Normally I would post this as simply the next in the series I call the 'Every Which Way But Loose' collection of [now] several dozen particularly illuminating cases of claims, resistance, and outcomes. That collection is posted on several other pages to which one would have to navigate in order to read the episode.

Today, though, I am making this episode the central element of this newsletter edition. I want to ensure that you all see it. After you do, I hope that you'll take the trouble to explain to me what I'm doing wrong.

Here's the episode:

On April 17, 2012, CtC-educated American grown-ups George and Sheila called upon the United States to obey the law. George and Sheila called on the feds to acknowledge that while the couple had earned a fair chunk of money during 2010 and 2011, none of it was through activity in which the feds had a stake, and through which a federal claim to a portion thereof had arisen.

Further, because the feds had no skin in their game and no claim to its proceeds, the couple demanded the return of every penny that had been held back by payers and advanced to the United States during those years against the possibility that George and Sheila might have discovered, upon examining their records at the close of those years, that they HAD done taxable things upon which a tax liability HAD arisen.

George and Sheila went to pains to ensure that their claims and declarations were crystal-clear. With each of their testimonials and claims they included a cover letter explaining their filings. Here, for instance is the one that accompanied George and Sheila's 2011 1040 and rebuttal instruments:

You can see the complete filing made for 2011 here. You'll note that the claim is for the return of every penny withheld-- SS and Medicare taxes included-- a total of $3,470.00. The filing George and Sheila submitted concerning 2010 and involving two "Forms 4852", also for every penny and this time totaling $5,029.00, can be seen here.

About nine weeks later, just about the interval at the end of which most CtC-educated claimants simply get their money back, the IRS instead dropped a couple of speedbumps in front of George and Sheila. These consisted of notices alleging that no 2008 filing had been received from the couple, that the IRS was therefore proposing an assessment of its own for that year totaling more than $8,400.00, and that George and Sheila's 2010 and 2011 refunds were being held back and would be devoted to this alleged liability unless the couple proved that they didn't owe it.

Here are the notices:

(See the other four pages of this doc here.)

(The common second page to these notices can be seen here.)

OK, so let's summarize: Someone at the IRS reviewed George and Sheila's 2010 and 2011 filings and agreed that they are valid and correct. BUT, that someone is alleging that the couple didn't file a valid self-assessment for 2008, and contends that based on the agency's information the couple owe a liability for that years totaling more than $8,400.00.

George and Sheila knew better, and said so:

You'll have noted that George and Sheila indicate that the challenged 2008 filing is attached to this response. You can see that attachment here. Don't overlook the fact that this, too, is testimony of $0 "income" received, with both Form 4852 rebuttals and 1099-MISC rebuttals, and a claim for the return of all amounts withheld during 2008.

Faced with inarguable evidence that George and Sheila HAD, in fact, filed dispositive testimony for 2008, and with no valid way to overcome that testimony, but really wanting to in the worst way, the someone at the IRS took what has become the standard agency shot at evasion. He or she fired off "LTR 3176" paper missiles-- for the new filings.

These threat letters were plainly an effort to get George and Sheila to rescind their inconvenient testimony so the United States could keep their money even despite the "no return filed for 2008" nonsense having failed. Here is a sample (first page only-- see the generic 2nd and 3rd page of each of these here if interested), followed by George and Sheila's educated response (essentially duplicated in response to the 2011-related threat letter):

George and Sheila, good students of the law that they are, had plainly paid attention to posts on this subject such as those here and here. They responded appropriately:

Not quite ready to wave the white flag, the IRS agent took one final shot-- another "LTR 3176" sent right after the responses to the first one's arrived at the agency, but this time for the 2008 filing (because if that got by George and Sheila, the agent would regain the original pretext for keeping their 2010 and 2011 refunds). This was met with the same educated, point-by-point shredding of the "frivolous" allegation premise.

That was it for the IRS agent. Recognizing that he (or she) was dealing with stalwart, resolute and well-educated Americans who take the rule of law seriously and mean to see it prevail, the agent packed up his tent and moved on. The next thing George and Sheila got from the government-- just last week, as it happens-- were two checks for everything claimed for 2010 and 2011, plus interest:


Now, as I mentioned earlier, these victories by George and Sheila in enforcing the law by knowing it, invoking it properly, and then sticking to their guns in the face of corrupt government efforts to evade it are just the latest of the endless river of such victories that I've been showing you week after week for nine long years now. You will have noted that the government's actions didn't involve to any dispute of George and Sheila's views, conclusions or calculations. On the contrary, those government actions all constituted acknowledgements of George and Sheila's views conclusions and calculations-- ending with the most concrete acknowledgement possible.

In fact, if you've been paying attention over the years, and especially lately, when government resistance to CtC and its efforts to suppress the spread of the book's information have become increasingly intense, you'll have noted that ALL government responses to CtC-educated filings ALWAYS amount to evasions and efforts to discourage those filings-- never to actual disputation of the information on which they are based.

In short, if you've been paying attention, you'll have noted that what is presented in CtC is the truth about the tax-- not only unequivocally and undisputedly so, but routinely and unambiguously acknowledged to be so in every possible way and by every possible authority, ranging from the Constitution through all the legislatures addressing the subject over the centuries, the Treasury Department, judges, and federal and state tax agencies.

Even the protracted and vicious efforts to attack me personally, to salt the internet (and even the CtC community) with moles and trolls spreading disinformation about the contents of the book and distractions from its study, and to produce a body of adverse-seeming judicial pronouncement by careful misrepresentation of issues and arguments in the couple of cases in which CtC-educated filers, tired of waiting for lawful behavior from particularly balky tax agents, have sued for the return of their property, are all acknowledgements. Misrepresentations are only resorted-to when you've got no legitimate argument.


I don't mean the "MSM"-- that crowd is firmly attached to the statist teat and fears and loathes anything that threatens the power and prestige of its patron. The cover of CtC isn't going to be on the cover of 'TIME' in the foreseeable future.

But what about the "altmedia"? What about the pundits that every day write passionately about how critical it is that Leviathan be brought to heel and again bound down by the chains of the Constitution, and who wisely warn against inaction? Why do we not at least see stories about warriors for the law like George and Sheila?

THE CtC COMMUNITY IS AMERICA IN ACTION-- serious men and women standing up and laying down the law as the Founders intended-- sometimes in the face of dire threats and the unambiguous hostility of the powers-that-be, and often at great personal sacrifice. This is the community of grown-up Americans doing just what these pundits plead for and long for (or so they say). Yet I've never seen a single article on LewRockwell.com or antiwar.com or fff.com or anywhere else in which this uniquely activist and effective collection of outstanding Americans is mentioned among all the dark warnings calling for just such behavior.

More, why do we not see articles helping to spread the liberating truth about the tax, so that this enormously important and effective activism goes viral and infects the body politic with a raging fever of liberty and real respect for the people's law? There is nothing that better instructs as to the true nature of the government actually established by the United States Constitution than gaining an accurate understanding of the limited federal tax authority.

Surely it is clear how much of an activating potential is represented by the prospect of a suddenly regaining control of 30-40% of your wealth, coupled with the revelation that previously the same portion of wealth had just been being snookered away by the corrupt exploitation of ignorance! Nonetheless, those articles are not being written.