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Edited by Frederick
Mann
11/6/97
IRS, Schiff, and
Economic Freedom
Introduction
This is the sixth in a series of articles on the Economic Means to Freedom. The first five
articles are available at this website. The emphasis of the
Economic Means to Freedom is on: (a) Building freedom, rather than "fighting
tyranny" or "fighting for freedom"; (b) Bringing about a massive shift of
economic power into the hands of individuals.
This article deals with my seventh principle of the
Economic Means to Freedom: Exit tax systems to the extent you can do so legally -- with an
acceptable level of risk; and the eighth principle: Terrocrats (coercive political agents
or terrorist bureaucrats) are neither omniscient nor omnipotent.
Disclaimer: This article constitutes the
dissemination of information in accordance with the right to free speech. Nothing in this
article is to be interpreted as legal, accounting, tax, currency, banking, or investment
advice. Anyone seeking such advice should consult a properly qualified and accredited
professional. All readers of this article are emphatically advised to obey all
laws on Earth and in the Universe to the letter.
Irwin Schiff's 'PUBLIC NOTICE'
The following paid advertisement appeared in the Las Vegas Review-Journal of
November 6, 1997:
Irwin Schiff
620 South 11th St. Suite 7 Las Vegas, Nevada 89101 (702)
385-6920 FAX (702) 385-6917 Web Site: http://www.ischiff.com
An open letter to:
U.S. Senator Harry Reid
U.S. Senator Richard Bryan
Congressman John Ensign
Congressman Jim Gibbons
Dear Honorable Gentlemen,
During the last 20 years I have been exposing - in numerous
books, publications, lectures and litigation - the unlawful activities of the l.R.S. I
have also, during this time, developed procedures that allow Americans to protect
themselves from such I.R.S./government behavior. Essentially, I have been doing your job
which is to protect the constitutional rights of your constituents - a task for which you
took a sworn oath. In conformity with that oath, l would ask you just one question,
"Are there specific laws making Americans 'liable' for and/or requiring them 'to pay'
income taxes?"
I am herein requesting that you, individually or
collectively, provide me and your constituents with the date and time when you would be
available to appear at a Town Hall meeting to be held in Las Vegas, where you would
identify those laws which specifically make Americans 'liable' for and/or requiring them
'to pay' income taxes. If no such laws exist, then there is no reason why Americans should
sustain the kind of I.R.S. harassment and abuse recently documented on "60
Minutes" and revealed in the recent Senate hearings.
I will assume all costs for the Town Hall meeting and
further agree to pay $50,000.00 to any charity of your choice, if you can cite the
specific laws as requested above.
Looking forward to your immediate reply,
Constitutionally yours,
(signed) Irwin Schiff
CC: ABC, CBS, NBC, FOX News, Wall Street Journal, API, IRS,
US Attorney
Paid for by The Freedom Foundation and the Schiff For
Sheriff committee
Terrocrats are Neither Omniscient Nor Omnipotent
The eighth principle of the Economic Means to Freedom is that terrocrats and their systems
are often laughingly incompetent and inefficient. I don't think the IRS is any exception!
There are millions of people who don't pay and who don't get in trouble.
 As an informed
individual, your chances of beating the IRS are very high. Tax attorney Donald W.
MacPherson (Tax Fraud & Evasion: The War Stories -- 1-800-BEAT-IRS)
calculates the chances of an individual being prosecuted in any given year being about 1
in 70,000; and the chances of being jailed at 1 in 146,000. As a general rule, the IRS
goes after the "easy pickings."
In reality you don't deal with the "IRS monster,"
but with individual bureaucrats -- often not the most competent individuals. Once you know
the major weaknesses of the IRS -- the soft belly of the monster -- you have little to
fear. You don't have to passively submit to their "taxtortion." To the informed
individual, the IRS may be a paper tiger.
The year 2000 date problem may spell the death knell of the
IRS as it is now constituted. Not only do they have to review 62 million lines of computer
program code, they almost certainly have to reformat hundreds of computer files and data
bases. And they almost certainly have to write programs to convert their data.
But some of the IRS terrocrats do carry guns, and they can
be vicious and capricious. Some of them are probably quite sadistic and may enjoy
destroying your business and/or your life. So you have to be very careful!
The BUILDFREEDOM.COM website contains a wealth of
information on dealing with bureaucrats, including "taxtortionists."
Is the IRS Dead?
"Under cross-examination by nationally prominent tax attorney Lowell H. Becraft, Jr.,
Ms. Jeu (expert IRS witness) conceded that the IRS uses a secret code to classify people.
Mr. Long (the defendant) was classified by the secret code of the IRS as not liable to
file a tax return or pay income tax." -- Recent landmark tax case lost by IRS -- #TL16F: The Becraft Landmark Case.
Many Americans May Not Be Liable for Federal Income
Tax!
In the above amazing court case the jury agreed with the defendant -- prosecuted for
willful failure to file income tax returns for 1989 and 1990 -- that the "income
tax" is actually an excise tax and applies only to certain classes of people.
Maybe Neither You Nor Your Business Is Liable!
Imagine what your life or business would be like if you didn't have to keep records for
the IRS, if you didn't have to file tax returns, if you didn't have to pay the IRS, if you
didn't have to fear IRS audits. Maybe there are practical ways to effectively eliminate
the IRS from your life and reduce the risk to almost zero!
What If The IRS Runs on 90% Bluff, 10% Terror, and
0% Substance?
Maybe through Freedom Technology you can acquire
the KNOWLEDGE and PERSONAL POWER to call their bluff, deflect their terror, and render
them harmless to you.
Many people will agree that one of the biggest indignities
they suffer is having to deal with the IRS. Of course, most of all, the IRS hurts our
pockets. Fortunately the IRS can be defeated, as happened in the landmark case mentioned
above and described in 'Report #TL16F: The Becraft Landmark Case'.
You may want to check out the following reports --
available free of charge for personal use:
See also Fiscal Freedom.
Safeguarding Yourself
Good-Faith Reliance Defense -- You have Sovereign Individual Rights when it comes to
taxes. What if you honestly can conclude in good faith, based on expert legal advice and
U.S. Supreme Court decisions, that you personally have no obligation to file returns and
pay income taxes?
Of course, everyone should obey the law. Anyone who is
liable to file and pay income taxes should do so. But what if you personally come to the
good-faith decision that such statutes do not apply to you?
What we mean, in part, by Freedom Technology is practical
methods by which to live free. What if there exists a proven, lawful method for you to be
free from many taxes?
Many freedom groups through the years have offered
information on tax freedom. Some of the methods advocated, while interesting, probably are
not always effective. I believe the Reliance Defense Method, properly applied in good
faith, is one of the most effective tax freedom strategies yet devised. It is based on
U.S. Supreme Court decisions such as Cheek v U.S., 111 S.Ct. 604 (1991).
The Cheek decision says, in pertinent part: "If the
defendant had a subjective good faith belief, no matter how unreasonable, that he was not
required to file a tax return, the government cannot establish that the defendant acted
willfully." The Reliance Defense Method is covered in detail in 'Report #TL16G'.
Most people can probably save 1000's of dollars per year
with this method. Some people can likely save tens of thousands of dollars per year. Now,
it should be noted that all actions you take must be in good faith. This means you should
never call yourself a "tax protester" or say that you don't have to obey the
law; these statements would demonstrate bad faith.
You do not challenge the right of the Legislature to pass
tax statutes and regulations. But, if after (1) getting advice letters from licensed
attorneys and CPA's and (2) studying U.S. Supreme Court decisions yourself, you come
personally to the honest, good faith subjective belief that you personally are not
required to file and pay, you're in a position of power. This method has proven itself --
when properly applied.
The most important element of the Reliance Defense Method
is that you must have at least one letter from an attorney, licensed at the time of
writing the letter, addressed to you personally. In general, appellate courts have held
that reliance on an attorney's professional advice (or U.S. Supreme Court decisions)
absolutely shows good faith as a matter of law. 'Report TL16G'
contains a listing of attorneys and CPA's willing to write such opinion letters for you,
personally.
If you would like to know the bottom line of why this
method is so powerful even though the tax man hates it: If you truly in good faith
believe, based on expert legal advice that you don't have to file, then it doesn't even
matter whether it was a reasonable belief or not! You beat the IRS because ALL YOU HAVE TO
SHOW IS THAT YOU HONESTLY IN GOOD FAITH BELIEVED THE EXPERT ADVICE. This is quite
effective -- all you need to learn is HOW to study and obtain advice such that you might
be able to reach and hold such honest good-faith beliefs.
Note that, in his advertisement above, Irwin Schiff is
offering $50,000.00 to charity, if the "honorable gentlemen" addressed are able
to cite any "specific laws making Americans 'liable' for and/or requiring them 'to
pay' income taxes."
Such studying and obtaining advice is a brilliant
application of Individual Sovereignty that you can apply right now. The methodology meshes
perfectly with my emphasis on Personal Power -- 'Report #TL10'
-- in which you exercise your own personal solutions, rather than try to change the
beliefs of others. After all, all that matters for you personally to use this method is
that you develop a good-faith personal belief concerning the tax man. And the real bottom
line is that the probability is high that you can make it work for you!
There are a number of people like Irwin Schiff, who
advocate a range of different approaches to dealing with the IRS. Any of these approaches
can be considerably strengthened by bolstering them with the Reliance Defense Method.
You simply cannot afford to miss out on this powerful
application of Freedom Technology!
If you have any questions, or if you're an expert in this
area and want to assist others to exit the tax system, subscribe to the Free World Order
and Advanced Freedom Solutions lists. To subscribe to the FWO list, click
here. To subscribe to the AFS list, click here.
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