July 2, 1996

K. J. Sawyer, District Director
Arkansas-Oklahoma District
Internal Revenue Service
55 N. Robinson
Oklahoma City, Okla. 73102

PURPOSE:    Formal protest of assessment &
            administrative collection of alleged tax obligations.

AUTHORITY:  26 CFR  601.106

SUBJECT:    "Income tax" (1040 Return);
             administrative assessment & collection initiatives.
             Specifically, reference calendar years 1988 through
             1995.

COMPLAINING PARTY: Joe Victim,
                   SSN [100-00-0000 & 200-000-0000]

ENCLOSURES: Victim  power of  attorney to  Dan Meador; Dan Meador
declaration  of  representation;  IRS/IRC-related  Public  Notice
memorandum, published  first in Thayer County, Nebraska, June 12,
1996; photocopies  of IRS-generated  assessment Forms 4549-CG for
1993 & 1994.


Dear Director Sawyer:

     On behalf  of Mr.  Victim, please  consider  this  a  formal
protest and  four-square challenge  to Internal  Revenue  Service
administrative assessment  and collection  initiatives  allegedly
pertaining to  income and related tax prescribed in Subtitles A &
C of  the Internal  Revenue Code  (Vol. 68A,  Statutes at  Large,
1954, as amended in 1986 and since).

     At the onset, Mr.  refuses Service administrative collection
initiatives undertaken  by way  of Subtitle F authority as fraud,
and thus claims the right to recourse, whether civil or criminal,
on the following basis, provided at 26 U.S.C.  7851(a)(6)(A):

     (A) GENERAL  RULE -- The provisions of subtitle F shall take
     effect on  the day after the date of enactment of this title
     and shall  be applicable  with respect to any tax imposed by
     this title.


     All administrative assessment and collection actions will be
construed as  being under  color of  law to the point you produce
certified proof  that Title 26 of the United States Code has been
enacted as positive law.

     Please be  advised that constitutional matters are or may be
at issue  ( 601.106(b)),  but they are not the exclusive grounds
for the protest and, if necessary, subsequent appeal.

     You will  note that  Mr. Victim made certain stipulations in
the power  of attorney  conveyed to  me. The  power  of  attorney
provides the  factual basis  for this protest, and any subsequent
appeal, criminal  complaint or  civil initiative.  Should Service
principals fail  to rebut  any of  the stipulated matters of fact
set out  by Mr. Victim, the matters will be construed as presumed
fact for all legal purposes. The stipulations are as follows:

     Conveyance  of  this  power  of  attorney  incorporates  the
     following stipulations:  I am  a  Citizen  of  the  Oklahoma
     republic,  one   of  the   several  States   party  to   the
     Constitution for  the United  States of  America, I am not a
     Fourteenth Amendment  citizen of the United States, and I am
     not a resident of the geographical United States, as defined
     in the  Internal Revenue Code; I do not reside or have abode
     on   a   federal   enclave   under   Congress'   legislative
     jurisdiction, as identified at 18 U.S.C.  7(3); I am not an
     "employee" (officer, agent or employee of the United States,
     as identified  at  3401(c) of Vol. 68A, Statutes at Large);
     I am  not an "employer" ( 3401(d)); I am not an agent of an
     agency of a United States agency responsible for withholding
     and paying  over tax withheld from wages, salaries, etc., or
     required to  file tax reports for the same, and am therefore
     not a "person liable" under provisions relating to Subtitles
     A &  C of  the Internal  Revenue Code; I am not engaged in a
     United States  trade or  business, as the term is defined in
     the Internal  Revenue Code; and I am not now nor have I ever
     been engaged  in  transactions  and  services,  and  do  not
     produce or  distribute objects  of Subtitles  D &  E  excise
     taxes, or  objects subject  to excise  tax imposed by United
     States treaty.


     Although examination  of Individual  Master File information
relating to  people assailed by Service administrative assessment
and  collection   action  frequently  demonstrates  that  Service
personnel  fraudulently   classify  people  as  "tax  protesters"
engaged in  illegal drug  trade in  the  Virgin  Islands,  Cayman
Islands, etc., stipulations set out above rebut this presumption.
The  rebuttal   will  serve   as  estoppel   to  any  undisclosed
presumption made  by Service  personnel. This  protest  addresses
only federal  tax prescribed  in Subtitles  A & C of the Internal
Revenue Code  of 1954,  as amended in 1986 and since (Vol. 68A of
the Statutes  at Large;  see also, Act of Oct. 22, 1986, P.L. 95-
514,   2, 100  Stat.  2095).  Should  you  fail  to  immediately
disclose any  other taxing authority presumed by the Service, the
stipulation of fact set out above will serve as a bar against any
other presumption,  and will  be construed as cause sufficient to
sustain charges of fraud and oppression under color of law should
Service allegations  of federal tax obligations prove to be based
on anything  other than  tax prescribed in Subtitles A & C of the
Code.

     The Director  will please  note that  taxes collected by the
Internal Revenue  Service are  classified at 26 CFR  601.106, as
follows:

     (a)  Principal  divisions.   Internal  revenue   taxes  fall
     generally into the following principal divisions:

          (1)  Taxes collected by assessment.

          (2)  Taxes collected by means of revenue stamps.


     (b)  Assessed  taxes.   Taxes   collected   principally   by
     assessment fall into the following two main classes:

          (1)  Taxes within  the jurisdiction  of  the  U.S.  Tax
          Court. These include:

               (i)  Income and  profits taxes imposed by Chapters
               1 and  2 of  the 1939  Code and  taxes imposed  by
               subtitle A  of the  1954 Code,  relating to income
               taxes.

               (ii) Estate taxes imposed by Chapter 3 of the 1939
               Code and Chapter 11 of the 1954 Code.

               (iii) Gift  tax imposed  by Chapter  4 of the 1939
               Code and Chapter 12 of the 1954 Code.

               (iv) The  tax   on  generation-skipping  transfers
               imposed by Chapter 13 of the 1954 Code.

               (v)  Taxes imposed  by Chapters  41 through  44 of
               the 1954 Code.

          (2)  Taxes not  within the jurisdiction of the U.S. Tax
          Court. Taxes  not imposed  by Chapter  1, 2, 3, or 4 of
          the 1939  Code or Subtitle A or Chapter 11 or 12 of the
          1954 Code are within this class, such as:

               (i)  Employment taxes,

               (ii) Various sales taxes collected by return,

               (iii)  Miscellaneous  excise  taxes  collected  by
               return, and

               (iv) Miscellaneous excise  taxes collected by sale
               of revenue stamps.

          (3)  The difference  between these  two main classes is
          that only  taxes described  in subparagraph (1) of this
          paragraph, i.e.,  those within  the jurisdiction of the
          Tax Court,  may  be  contested  before  an  independent
          tribunal prior to payment. Taxes of both classes may be
          contested by  first making  payment, filing  claim  for
          refund, and  then bringing suit to recover if the claim
          is disallowed or no decision is rendered thereon within
          six months.


     (c)  Stamp taxes. Taxes collected by means of revenue stamps
     may in special circumstances be collected by assessment, but
     references hereinafter  to the  assessment  process  do  not
     contemplate taxes ordinarily collectible by means of stamps,
     except as  specially stated. For provisions special to taxes
     collected by  means of  revenue stamps, see  601.404. Taxes
     collectible by  assessment may  be collected by suit without
     assessment, but this is seldom done.

     [32 FR  15990, Nov.  22, 1967, as amended at 35 FR 7111, May
     6, 1970; 46 FR 26053, May 11, 1981]


     Where the  instant matter  is concerned, the tax or taxes at
issue will  be construed  to be in the jurisdiction of the United
States Tax  Court,  as  specified  in  provisions  of  26  CFR  
601.106(b)(1). Mr.  Victim has  stipulated that he is not engaged
in any  taxable activity classified under 26 CFR  601.108(a)(2),
and all  Service correspondence  to date  is  suggestive  of  the
United States Tax Court having jurisdiction over tax at issue.

     It is  convenient that  the Secretary  chose this  means for
classifying taxes  prescribed in  the Internal  Revenue  Code  as
jurisdiction of the United States Tax Court, as well as all other
courts, is  coextensive with  whatever  legislative  matters  the
court is  authorized to  rule on. In other words, all legislation
is territorial in nature, and the authority of any given court is
therefore premised  on the  law of legislative jurisdiction - the
authority of  a court  cannot exceed the territorial bounds under
jurisdiction  of   the  legislative   body  responsible  for  the
legislation. Therefore,  application of  taxes  identified  under
jurisdiction  of   the  United   States  Tax   Court  (26  CFR  
601.106(b)(1)), inclusive of taxes at issue in the instant matter
under Subtitles A & C of the Internal Revenue Code, do not exceed
the territorial jurisdiction of the Tax Court.

     The Director  will note  that Internal Revenue Code statutes
pertaining to  the United States Tax Court are listed in Title 26
of the United States Code, Chapter 76C,  7441-7487.

     Please reference  the  Parallel  Table  of  Authorities  and
Rules, beginning on page 751 of the 1995 Index volume to the Code
of Federal  Regulations: None of these statutes are listed in the
Table, which means that there are no regulations published in the
Federal Register  which extend  authority of  the  Court  to  the
several States  and the  population at  large. In  fact, the only
statute in this group which even references the several States is
 7462,  with the  statute specifying  that the  Tax  Court  will
publish reports  and the reports will be construed as prima facie
evidence of  publication in  courts of  the United States and the
several States.  There  is  no  regulation  prescribing  judicial
authority of  the United  States Tax  Court  within  the  several
States.

     Next the  Director will  please reference the Administrative
Procedures Act  (5 U.S.C.    552  et  seq.),  and  the  Federal
Register Act (44 U.S.C.  1501 et seq.) for provisions requiring
regulations, delegations  of authority,  etc., to be published in
the Federal  Register if they have general application within the
several States  and to the population at large. Where regulations
and delegations  are  not  published  in  the  Federal  Register,
application is  solely to  agencies  of  the  United  States  and
officers, agents  and employees of the United States (44 U.S.C. 
1505(a)). For  verification that each agency must publish its own
regulations, consult  Title 1 of the Code of Federal Regulations,
Chapter 1,  and where  agencies of the Department of the Treasury
are concerned,  consult 26  CFR   601.601. You  will also please
note that  matters reflected  in the  Code of Federal Regulations
are due  judicial notice, and publication in the Federal Register
is prima  facie evidence of original documents (44 U.S.C.  1507
& 1510).  Therefore, the Table of Authorities and Rules published
in the  Index volume  to the  Federal Register  warrants judicial
notice, and where the instant matter is concerned, administrative
notice,  and  will  be  presumed  to  be  accurate  until  proven
otherwise. The  implication is  that the  United States Tax Court
does not  have jurisdiction  in the  several  States  or  to  the
population at  large, and  as a  consequence, taxes classified as
being under  jurisdiction of  the United  States Tax  Court  have
application only  as prescribed  at 44  U.S.C.   1505(a):  Taxes
prescribed in  Subtitles A & C of the Internal Revenue Code apply
only to  agencies of  the United  States and officers, agents and
employees of  the United  States, as demonstrated in  3401(c) &
(d) of  Vol. 68A  of the  Statutes at  Large, and as particularly
demonstrated in 26 CFR  31.0.

     The character  and territorial  jurisdiction of  the  United
States Tax  Court is  affirmed in  The United  States  Government
Manual for  1995/96 under  the subheading,  "Special Courts" (see
pp. 78 & 79). In relative part, the Manual relates the following:

          United States  Tax Court   This  is a  court of  record
     under Article I of the Constitution of the United States (26
     U.S.C. 7441).  Currently an independent judicial body in the
     legislative branch,  the court was originally created as the
     United States Board of Tax Appeals, an independent agency in
     the executive  branch, by  the Revenue Act of 1924 (43 Stat.
     336) and  continued by  the Revenue  Act of  1926 (44  Stat.
     105), the  Internal Revenue  Codes of  1939, 1954, and 1986.
     The name  was changed  to the Tax Court of the United States
     by the Revenue Act of 1942 (56 Stat. 957), and the Article I
     status and  change in  name to  United States Tax Court were
     effected by the Tax Reform Act of 1969 (83 Stat. 730)...

          The  Tax  Court  tries  and  adjudicates  controversies
     involving the  existence of  deficiencies or overpayments in
     income, estate, gift, and generation-skipping transfer taxes
     in cases  where deficiencies  have been  determined  by  the
     Commissioner  of  Internal  Revenue.  It  also  hears  cases
     commenced by  transferees  and  fiduciaries  who  have  been
     issued notices of liability by the Commissioner ....

     ... All  proceedings are public and are conducted judicially
     in accordance  with the  court's Rules  of Practice  and the
     rules of evidence applicable in trials without a jury in the
     U.S. District Court for the District of Columbia ....


     Clearly, the  United States  Tax Court  is an administrative
law court, which while conferred Article I status, operates under
Congress' Article IV legislative jurisdiction in the geographical
United States  (see territorial bounds under Congress' Article IV
 3.2  legislative jurisdiction,  page 75  of the  Manual, and 18
U.S.C.   7, with   7(3)  prescribing  territorial  jurisdiction
within the several States; also, 4 U.S.C. 110(d) & (e)). The last
paragraph  from   the  Manual   cite  reproduced   above  clearly
demonstrates that  the United  States Tax Court is incompetent at
law and  is therefore not an Article III judicial court ("... All
proceedings ... are conducted ... in accordance with ... rules of
evidence applicable to trials without a jury in the U.S. District
Court for  the District  of Columbia...).  Congress'  Article  IV
legislative jurisdiction  is disclosed  by way  of attaching  the
United States  Tax Court  to rules of the U.S. District Court for
the District  of Columbia,  which is  a federal  State within the
definition of "State" prescribed in the Internal Revenue Code and
the Buck Act (26 U.S.C.  7701(a)(10); 4 U.S.C.  110(d)).

     Where jurisdiction of the United States Tax Court is clearly
limited to  the geographical  United  States,  inclusive  of  the
District of  Columbia, Puerto  Rico, Guam,  the  Virgin  Islands,
etc., application  of taxes  prescribed in Subtitles A & C of the
Internal Revenue  Code is  clearly limited  to  the  geographical
United   States    under   Congress'   Article   IV   legislative
jurisdiction. This  jurisdiction  is  exclusive  of  the  several
States and the population at large, save as applicable to federal
enclaves ceded  to the  United States for constitutional purposes
(18 U.S.C.  7(3)).

     The  approximate  territorial  jurisdiction  of  the  United
States Tax  Court is  articulated in  the Buck  Act at 4 U.S.C. 
110:

     (d)  The term  "State" includes  any Territory or possession
     of the United States.

     (e)  The term  "Federal area"  means any  lands or  premises
     held or  acquired by  or for the use of the United States or
     any department,  establishment,  or  agency  of  the  United
     States; and  any Federal area, or any part thereof, which is
     located within  the exterior  boundaries of any State, shall
     be deemed to be a Federal area located within such State.


     The Director  will note  that Mr. Victim has stipulated that
he is  a Citizen  of Oklahoma  and  has  abode  in  the  Oklahoma
republic, he is not a Fourteenth Amendment citizen or resident of
the geographical  United States,  and he is not an officer, agent
or employee  of the  United States.  The Director  will also note
that Oklahoma  is not  a "State", as defined at 4 U.S.C.  110(d)
or 26  U.S.C.  7701(a)(10). Therefore, Mr. Victim is not subject
to tax prescribed in Subtitles A & C of the Internal Revenue Code
either by  territorial application,  or as  provided in Vol. 68A,
Statutes at Large, the Internal Revenue Code:

     SEC. 3403. LIABILITY FOR TAX

          The employer shall be liable for the payment of the tax
     required to be deducted and withheld under this chapter, and
     shall not be liable to any person for the amount of any such
     payment.


     SEC. 3404. RETURN AND PAYMENT BY GOVERNMENTAL EMPLOYER.

          If the  employer is  the United  States,  or  a  State,
     Territory, or political subdivision thereof, or the District
     of Columbia,  or any agency or instrumentality of any one or
     more of the foregoing, the return of the amount deducted and
     withheld upon  any wages  may be  made  by  any  officer  or
     employee of  the United States, or of such State, Territory,
     or political subdivision, or of the District of Columbia, or
     of such  agency or  instrumentality, as  the  case  may  be,
     having  control   of  the   payment  of   such   wages,   or
     appropriately designated for that purpose.


     For  further  details  concerning  who  is  liable  for  tax
prescribed in  Subtitles A  & C  of the  Internal  Revenue  Code,
please reference item #4 in the enclosed memorandum: The Employer
or Agent  is Liable  (p. 4 & 5). All matters set forth in item #4
of the  memorandum will  be construed  as  applicable  where  the
instant matter is concerned.

     Next is  the matter  of Internal  Revenue Service authority:
The following provision is found at 26 CFR  601.101:

     (a)  General.   The Internal  Revenue Service is a bureau of
     the Department of the Treasury under the immediate direction
     of the Commissioner of Internal Revenue ....


     The instant  concern is  authority of  the Internal  Revenue
Service, via the Commissioner, in the several States. There are a
couple of  significant clues  in the  Code of Federal Regulations
which shed  light on  the matter.  At 26  CFR   301.7805-1,  the
following is found:

      7805-1 Rules and regulations

     (a) Issuance.  The Commissioner,  with the  approval of  the
     Secretary,  shall     prescribe   all  needful   rules   and
     regulations for the enforcement  of the  Code (except  where
     this   authority   is expressly  given   by the  Code to any
     person other  than an  officer or  employee  of the Treasury
     Department), including  all rules and regulations as  may be
     necessary by  reason of any alteration of law in relation to
     internal revenue.


     The  more   revealing  truth  concerning  authority  of  the
Commissioner, and  the Internal  Revenue Service,  is found at 26
CFR  601.601:

      601.601 Rules and regulations.

     (a)  Formulation. (1)  Internal revenue  rules take  various
     forms. The  most important  rules are  issued as regulations
     and Treasury  decisions prescribed  by the  Commissioner and
     approved by the Secretary or his delegate.


     In other  words, the Commissioner of Internal Revenue is not
the delegate  of the Secretary of the United States Department of
Treasury. If  a delegation  of authority with general application
existed, there  would be  no reason  for the Commissioner to seek
approval of the Secretary for proposed regulations, and certainly
no need to seek approval of the Secretary's delegate. This notion
is further  confirmed by  the two delegations to the Commissioner
thus far located. The first is Treasury Delegation Order No. 150-
42, dated July 27, 1956:

     The Commissioner  shall, to  the  extent  of  the  authority
     vested in  him, provide  for the  administration  of  United
     States internal  revenue laws  in  the  Panama  Canal  Zone,
     Puerto Rico and the Virgin Islands.


     The second  is Treasury  Department Order  No. 150-01, dated
February 27, 1986:

     The Commissioner shall, to the extent of authority otherwise
     vested in  him, provide for the administration of the United
     States internal  revenue laws  in the  U.S. Territories  and
     insular possessions and other authorized areas of the world.


     Authority conveyed via these two orders, in conjunction with
provisions of  26 CFR   301-7805-1(a)  & 601.601(a), reinforces
evidence found  in the  Parallel Table  of Authorities  and Rules
(cited earlier): There are no implementing regulations listed for
26 U.S.C.   7621,  7801, 7802 & 7803. Which is to say, there is
no regulatory  authority for  the Service  to  establish  revenue
districts in  the several  States; the Department of the Treasury
has no  authority in  the several  States;  the  Commissioner  of
Internal Revenue and assistant commissioners have no authority in
the several  States; and  no other  Department  of  the  Treasury
personnel have  authority in  the several  States. The  fact that
Congress never  created a Bureau of Internal Revenue, predecessor
to the  Internal Revenue  Service, speaks to the character of the
Service as  an agency  of the  Department of the Treasury, Puerto
Rico rather than an agency of the United States Department of the
Treasury (see  Federal Register  at 36  F.R. 849-890 [C.B. 1971 -
1.698], 36  F.R. 11946  [C.B. 1971 - 2,577], and 37 F.R. 489-490;
Internal Revenue  Manual 1100  at 1111.2; IRS is not listed as an
agency of  the United  States Department of Treasury in the table
of contents for Chapter 3, Title 31 of the United States Code).

     Reference item  #1 of  the enclosed Public Notice memorandum
(pp. 1  & 2) for further details implicating the Internal Revenue
Service as  an agency  of the  Department of the Treasury, Puerto
Rico, serving  as a  collection agency  for  undisclosed  foreign
principals, namely,  the International  Monetary Fund and the so-
called World  Bank. Since  Congress never  created  a  Bureau  of
Internal Revenue,  predecessor to  the Internal  Revenue Service,
the agency  has no  legitimate authority  for the  United States.
Additionally, the  Internal Revenue  Service is not registered to
conduct business  in the  several States,  so even if the Service
was legitimately an agency of the United States Department of the
Treasury, authority would extend only to federal enclaves subject
to Congress' Article IV legislative jurisdiction (see 18 U.S.C. 
7(3) &  4 U.S.C.   110(d)  & (e)).  Therefore,  there  are  most
certainly civil  and criminal  implications for Service personnel
under territorial  and  judicial  applications  of  26  U.S.C.  
7804(b) (see item #2 of the enclosed Public Notice memorandum).

     Matter concerning  the necessity of due process presented in
item #2  of the  enclosed memorandum  is hereby  incorporated  as
effective in this instrument.

     The Director  will note  that Rule I governing consideration
of appeals officers specifically acknowledges Fifth Amendment due
process rights, and officers and agents of the Service cannot use
the shield of ignorance where due process rights are concerned as
the Handbook  for Revenue  Agents, at  paragraph  332(1),  issues
specific warning  concerning due process rights, citing authority
of Larson  v. Domestic  and Foreign  Commerce Corp.  337 U.S. 682
(1949).

     Jurisdiction and  venue matters  are antecedent to all other
considerations as  no act,  ruling or  decision made  by de facto
authority, whether  government or  otherwise, is  of  any  lawful
effect (Wortham  v. Walker,  128 S.W.2d  1138). Therefore, unless
and until  you establish  the lawful  character of  the  Internal
Revenue Service  and authority  applicable to the several States,
Service  personnel   responsible  for   initiatives  which   have
adversely affected  the Victim  will be  considered  unregistered
foreign agents who represent and provide services for undisclosed
foreign principals, subject to criminal prosecution for treason.

     There are  certain other  matters which need to be addressed
so this will be done as expeditiously as possible:


           Notice of Deficiency/Statutory Assessments

     Please reference  item #7  of the  Public Notice memorandum,
page 6:  26 U.S.C.   6001  requires that  the Secretary  provide
notice to  whoever is  liable for any given tax prescribed by the
Internal Revenue  Code either  by direct notice or by regulation.
You will  please provide  either (1)  notice provided directly by
the Secretary  to Mr. Victim, or (2) cite the general application
regulation which  makes Mr.  Victim  liable  for  any  given  tax
prescribed by the Internal Revenue Code.

     Next, you  will please  specify  the  taxing  statute  which
describes the  transaction, service or object to be taxed (United
States v.  Community TV, Inc., 327 F.2d 797 F.2d 797, at page 600
(1964), Hassett  v. Welch,  303 U.S.  303, 58 S.Ct. 559, 82 L.Ed.
858; see p. 6 of Public Notice memorandum).

     You will  please provide  a certified  copy  of  a  properly
executed Form 23C, which provides legal authority for the Service
to collect any given tax from Mr. Victim.

     Next, please  reference item #8, page 7 of the Public Notice
memorandum: Proper  assessment and collection of taxes prescribed
in  the   Internal  Revenue   Code  must  comply  with  procedure
prescribed by  statute, with  administrative  sequence  beginning
with 26  U.S.C.   6001,  then  running  the  appropriate  course
through   6201, 6212,  6213, 6303 and 6331 (Rodriguez v. United
States 629  F.Supp 333  (N.D. Ill.  1986)). You  will note in the
Public  Notice   memorandum  that   there  are   no  implementing
regulations for  any of these statutes under 26 CFR, Part 1 or 31
(see Parallel  Table of  Authorities and  Rules, cited above, for
verification). Statutes  in this  group which do have regulations
have  application   under  Title   27  of  the  Code  of  Federal
Regulations, particularly  Part 70.  The Director  will note that
Title 27  of the  United States  Code and  the  Code  of  Federal
Regulations are  under exclusive  administrative authority of the
Bureau of  Alcohol, Tobacco and Firearms as relates to Subtitle E
taxes and  related matters.  This authority  is exclusive  of IRS
jurisdiction relating  to Subtitle A & C tax. Therefore, you will
please  demonstrate   Service  personnel   compliance  with   the
prescribed  assessment   and  collection   process,  and  provide
implementing regulations applicable to the several States and the
population at large, Mr. Victim in particular.

     Particulars of assessment from 26 CFR, Part 301

      301.6201-1 Assessment authority.

     (a)  In general.  The district  director is  authorized  and
     required to make all inquires necessary to the determination
     and assessment  of all taxes imposed by the Internal Revenue
     Code of 1954 or any prior internal revenue law ....

     (1)  Taxes shown  on return.  The district  director or  the
     director of  the regional  service center  shall assess  all
     taxes determined by the taxpayer or by the district director
     or the director of the regional service center and disclosed
     on a return or list.


      301.6203-1 Method of assessment

     The district  director and  the  director  of  the  regional
     service  center   shall  appoint   one  or  more  assessment
     officers.  The   district  director   shall   also   appoint
     assessment  officers  in  a  Service  Center  servicing  the
     district. The  assessment shall  be made  by  an  assessment
     officer  signing  the  summary  record  of  assessment.  The
     summary record,  through supporting  records, shall  provide
     identification  of   the  taxpayer,  the  character  of  the
     liability assessed,  the taxable  period, if applicable, and
     the amount  of the  assessment. The amount of the assessment
     shall, in the case of tax shown on a return by the taxpayer,
     be the amount so shown, and in all other cases the amount of
     the assessment  shall be  the amount shown on the supporting
     list or  record. The  date of the assessment is the date the
     summary record  is signed  by an  assessment officer. If the
     taxpayer requests  a copy  of the  record of  assessment, he
     shall be  furnished a  copy of  the pertinent  parts of  the
     assessment which  set forth  the name  of the  taxpayer, the
     date of assessment, the character of the liability assessed,
     the taxable period, if applicable, and the amounts assessed.
     (emphasis added)


     Considering  these  provisions,  it  is  necessary  for  the
Service to  comply with  demands for  authority  set  out  above.
Without providing proper documentation, under certified signature
of a  properly authorized  Service office (GS-12 or above), those
responsible for  issuing assessments,  whether by way of original
substitute return  or statutory  additions, have failed to comply
with regulatory  mandates and therefore have operated under color
of law to impose unauthorized tax and/or penalties.

     It appears  that penalties assessed against Mr. Victim issue
under 26  U.S.C.   6651(a)(1) and/or   6654.  Mr. Victim rebuts
this authority  as Internal Revenue Manual 5400 at 546(19) denies
use  of   noncompliance   penalty   statutes   absent   a   court
determination on  the underlying  issue, i.e., whether or not Mr.
Victim was ever required to file a return. The Director will also
note  that  the  above  provision  specifies  that  according  to
Department of  the Treasury  Order 120-01,  all of  the  statutes
utilized by IRS to date for the additions to tax are only penalty
statutes for  failing to  file and  fraud relating to an activity
under Alcohol,  Tobacco and  Firearms. This  is clarified  at  26
U.S.C.  6651(a)(1):

     To file a return required under authority of subchapter A of
     Chapter 61  (other than  part III  thereof), Subchapter A of
     Chapter 51 (relating to distilled spirits, wines, and beer),
     or of  Subchapter A  of Chapter  52  (relating  to  tobacco,
     cigars, cigarettes,  and cigarette  papers and  tubes) or of
     Subchapter A  of Chapter  53 (relating  to machine  guns and
     certain other  firearms), on  the date  prescribed  therefor
     (determined  with  regard  to  any  extension  of  time  for
     filing), unless  it is  shown that  such failure  is due  to
     reasonable cause and not due to willful neglect, there shall
     be added  to the  amount required to be shown as tax on such
     return 5  percent for  each  additional  month  or  fraction
     thereof during  which such  failure continues, not exceeding
     25 percent in the aggregate.


     According to 26 U.S.C.  6211, the Service, which appears to
be one  and the  same as  the  Bureau  of  Alcohol,  Tobacco  and
Firearms, can  only issue  deficiencies on  Subtitles A  and B of
Chapters 41,  42, 43  and 44.  Further, Delegation  Order No.  77
authorizes only  deficiencies on Subtitle A, B or Chapter 41, 42,
43, or  44 taxes  and not  with any  deficiency under  employment
taxes found  in Subtitle  C. Further,  Delegation  Order  No.  24
grants authority  to require  records to  be  kept  only  to  the
Assistant Commissioner  (International) and District Directors in
established internal  revenue districts  (per lack of regulations
for 26  U.S.C.   7621, this  authority does  not extend  to  the
several States),  and in general the authority applies only under
27 CFR,  Part 70. The Service's only record to date pertaining to
Mr. Victim reflects pursuit of Subtitle C, Chapter 24 Withholding
from source  of the  Income Tax.  In the  absence  of  statutory,
regulatory or  delegation authority  for assessments  against Mr.
Victim, the matter is foreclosed as fraud, extortion, oppression,
and bogus  claims of  authority under  color of  law.  Where  the
instant matter  is concerned,  the Service cannot claim authority
other than  as relates  to Subtitle  A &  C tax  collected  under
Subtitle  C  authority  without  first  overcoming  Mr.  Victim's
estoppel  with   concrete  proof  that  he  is  engaged  in  some
exclusively  United   States  or  offshore  activity  subject  to
Subtitle E  excise tax  or tax  imposed by  United States treaty.
However, this inconsistency would be construed as fraud by intent
as at  all times  Service-issued instruments  have reflected that
the type  of tax  being assessed  and the object of collection is
"income" and  related tax  prescribed by  Subtitles A  & C of the
Internal Revenue  Code (Vol.  68A of  the Statutes  at Large,  as
amended in 1986 and since).

     Further, 26 CFR  301.6020 does not authorize preparation of
Form 1040  or 1040A  (original or amended 1040 returns). Treasury
Delegation Order 182 is made pursuant to 26 USCS  6020(b), which
is reproduced below within 26 USCS  6020(a) bounds:

     (a)  Preparation of  Return by  Secretary. -  If any  person
     shall fail  to make  a return  required by  this title or by
     regulation  prescribed  thereunder,  but  shall  consent  to
     disclose  all  information  necessary  for  the  preparation
     thereof, then,  and in  that case, the Secretary may prepare
     such return,  which, being  signed by  such person,  may  be
     received by the Secretary as the return of such person.


     (b)  Execution of Return by Secretary. -

     (1)  Authority of  Secretary to  Execute return.  -  If  any
     person fails  to make  any return  required by  any internal
     revenue law  or  regulation  made  thereunder  at  the  time
     prescribed therefor,  or makes,  willfully or  otherwise,  a
     false or  fraudulent return,  the Secretary  shall make such
     return from  his own  knowledge and from such information as
     he can obtain through testimony or otherwise.

     (2)  Status of  Returns. - Any return so made and subscribed
     by the  Secretary shall  be prima  facie good and sufficient
     for all legal purposes.


     The Secretary  is authorized to prepare a return and execute
it if  he follows the rules: He can prepare a return provided the
"taxpayer" consents  to disclose the information and subsequently
signs the  return, as  detailed in  26 USCS  6020(a), or  he  can
prepare a  return and  sign it provided he has personal knowledge
of the  facts and/or  information which  would be admissible in a
court of  law.  But  he  cannot  exceed  statute  and  regulatory
authority, which  doesn't extend  to the  family of  1040  forms,
inclusive of  original and  amended 1040  and 1040A return report
forms (see Delegation Order 182, Service Center Collection Branch
Procedures Manual  5400-33 at  page 5400-541,  section 5474.5 for
application).

     Should the  Director fail  to rebut  particulars set  out in
this section,  matters of  fact and  law set  out herein  will be
construed as  presumed fact,  and will be construed as sufficient
cause to secure appropriate remedies by whatever means.


        Defective & Fraudulent Notice of Federal Tax Lien

     The definition  of "Security  interest", located at 26 CFR 
301.6323(h)-1(a), provides a beginning-point for this section:

     (a)  Security  interest   --  (1)  In  general.    The  term
     "security interest"  means any interest in property acquired
     by  contract   for  the   purpose  of  securing  payment  or
     performance of an obligation or indemnifying against loss or
     liability ....


     In the absence of a contract, the only lawful way to acquire
a security interest in something belonging to another party is by
judgment issued via a court of competent jurisdiction (see 26 CFR
 301.6323(h)-1(g)). In the absence of such a judgment, any claim
of a  security interest  (notice of  federal tax  lien)  must  be
premised on  a preexisting  contract (license)  which sets  forth
certain obligations  and the  objects which are encumbered by the
contract. This  will be  found to  be the  case where the instant
matter is  concerned  as  the  only  published  regulation  which
extends the authority of 26 U.S.C.  6321, et seq. (lien for tax)
and   6331, et  seq. (levy  and distraint) is under 27 CFR, Part
70, relating  to tax  prescribed in  Subtitle E  of the  Internal
Revenue Code  (alcohol, tobacco  & firearms).  Administration  of
these taxes  is under  the exclusive  authority of  the Bureau of
Alcohol, Tobacco  and Firearms,  exclusive  of  Internal  Revenue
Service administration  of Subtitle  A &  C taxes.  The  property
subject to  forfeiture where the "license" agreement is concerned
is  listed  at  26  U.S.C.    7301,  with  property  subject  to
forfeiture when  used in  violation of internal revenue laws at 
7302. In  other words,  the  original  lien  by  contract,  as  a
condition of  licensing, applies only to those things used in the
manufacture and  distribution of  the object  of the tax, and the
object itself,  with criminal  liability expanded  under 26 CFR 
601.326:

      601.326 Seizure and forfeiture of personal property

     Part 72 of Title 27 CFR contains the regulations relative to
     the personal  property seized  by officers  of the  Internal
     Revenue Service  or  the  Bureau  of  Alcohol,  Tobacco  and
     Firearms as subject to forfeiture as being used, or intended
     to be  used, to  violate certain Federal laws; the remission
     or mitigation  of such  forfeiture; and  the  administrative
     sale or  other disposition,  pursuant to forfeiture, of such
     seized  property   other  than  firearms  seized  under  the
     National Firearms  Act and  firearms and  ammunition  seized
     under title  1 of  the Gun Control Act of 1968. For disposal
     of firearms  under the  National Firearms Act, see 28 U.S.C.
     5872(b). For disposal of firearms and ammunition under Title
     1 of  the Gun Control Act of 1968, see 18 U.S.C. 924(d). For
     disposal of  explosives under  Title XI  of Organized  Crime
     Control Act of 1970, see 18 U.S.C. 844(c).

     [38 FR  4969, Feb.  23, 1973, as amended at 45 FR 7256, Feb.
     1, 1980]


     Notices of  federal tax  lien issued by revenue officers and
various other  Service personnel  are nonspecific with respect to
what is  encumbered, and it fails to reflect that the encumbrance
is premised  on  a  contract  or  judgment.  Where  there  is  no
provision for such encumbrance under Subtitles A & C of the Code,
the Notice  of Federal  Tax Lien  is obviously  fraud when  it is
premised on alleged "income tax" obligations unless a judgment is
in place.  Where Mr.  Victim is concerned, this is not the case -
there is no judgment, and Mr. Victim's proclamation of status set
out earlier  forecloses contractual  obligations under Subtitle E
and/or United States treaties.

     Next, notice  of federal  tax lien  instruments are  clearly
fraudulent under  the Four  Corners Doctrine: A notice of federal
tax lien  must be sufficient on its face for a court to determine
the existence  or nonexistence  of a  lien. In  other words,  the
document  must   cite  the   taxing  authority  which  authorizes
contractual obligations or reference a judgment issued by a court
of competent jurisdiction.

     Note in  the left  documentation column  on  the  Notice  of
Federal Tax  Lien that  "1040" is listed where the column heading
specifies "Kind  of Tax".  The "1040"  is a reporting form, not a
type of  tax. In order for the notice of federal tax lien form to
be properly  completed, the  column would  have  to  reflect  the
taxing statute  applicable to  whoever the  assessment is  issued
against (26 U.S.C.  6001 requiring regulations or direct notice;
see mandate  for taxing  statute, per  United States v. Community
TV, Inc.,  327 F.2d  797, at p. 800 (1964); Hassett v. Welch, 303
U.S. 303,  58 S.Ct.  559, 82  L.Ed 858). Use of "1040" is clearly
fraud.

     Next, the "Date of Assessment" column is contemplative of an
actual assessment.  Unless  an  assessment  which  complies  with
provisions addressed  above is  in evidence,  the date entered in
this column is fraudulent.

     Next, the form must be certified:

     26 U.S.C.  6065

     Except as  otherwise provided  by the Secretary, any return,
     declaration, statement,  or other  document required  to  be
     made under  any provision  of the  internal revenue  laws or
     regulations shall  contain  or  be  verified  by  a  written
     declaration that it is made under the penalties of perjury.


     26 CFR  1.6065-1 Verification of returns

     (a)  Persons signing  returns.  If  a  return,  declaration,
     statement, or  other document  made under  the provisions of
     subtitle A  or F of the Code, or the regulations thereunder,
     with respect to any tax imposed by subtitle A of the Code is
     required by  the regulations  contained in  this chapter, or
     the form  and instructions,  issued  with  respect  to  such
     return,  declaration,   statement,  or  other  document,  to
     contain or  be verified  by a written declaration that it is
     made under  the  penalties  of  perjury,  and  such  return,
     declaration,  statement,  or  other  document  shall  be  so
     verified by the person signing it.


     This requirement  does  not  stand  alone,  as  the  Uniform
Federal Tax  Lien Filing Act, adopted by 37 states since released
by the National Conference of Commissioners on Uniform State Laws
released it  in 1978,  clearly stipulates that (1) all notices of
federal tax lien will be filed with the proper office designed by
the States,  and (2)  the instrument must be certified by someone
who is authorized to make the filings.

     Information on  the Uniform  Federal Tax  Lien Filing Act is
located in  West's Uniform  Laws Annotated,  Volume 7A, 1985 ed.,
Sec. 3,  found on  page 365 deals with execution of the notice of
federal tax  lien. Execution requires certification by a properly
delegated official.  Comment to  this section  states as follows:
"This section  addresses only  the validity of the filing and not
the validity of the lien."

     This in  support, premised  on a  1992  U.S.  Supreme  Court
decision:

     We have  stated time and again that courts must presume that
     a legislature says in a statute what it means and means in a
     statute what  it says  there. See, e.g. United States v. Ron
     Pair Enterprises,  Inc. 489  U.S. 235,  241-242,  109  S.Ct.
     1026, 1030-1031  (1989); United  States v.  Goldenberg,  168
     U.S. 95, 102-103, 18 S.Ct. 3, 4 (1897); Oneal v. Thornton, 6
     Cranch 63,  68 (1810).  When the  words  of  a  statute  are
     unambiguous, then,  this  first  canon  is  also  the  last:
     "judicial inquiry  is complete." Rubin v. United States, 449
     U.S. 424, 430, 101 S.Ct. 698, 701, (1981); see also Ron Fair
     Enterprises, supra,  489 U.S.,  at 241,  109 S.Ct., at 1030.
     Connecticut National  Bank v.  Germain, 112 S.Ct. 1146, 1149
     (1992).


     Premises considered,  notices of  federal  tax  lien  issued
against Mr.  Victim by Service personnel are fraud on their face,
failing to  meet requirements  of Internal  Revenue Code statutes
and attending  regulations, and  State law.  Premises considered,
any  encumbrance   of  Victim  assets  effected  by  these  bogus
instruments will  be removed. Failure to comply will be construed
as sufficient cause to seek appropriate remedies.


       Bogus Use of "Notice of Levy" and Levy instruments

     Use of  "notice  of  levy"  instruments  as  the  basis  for
garnishment,   third-party   seizure,   etc.,   is   particularly
fraudulent as the "notice of levy" is defined by use at 26 U.S.C.
 6335(a):

     (a)  NOTICE OF  SEIZURE. -  As  soon  as  practicable  after
     seizure of property, notice in writing shall be given by the
     Secretary to  the owner  of the property (or, in the case of
     personal property,  the possessor thereof), or shall be left
     at his  usual place  of abode  or business  if he  has  such
     within the  internal revenue  district where  the seizure is
     made. If  the owner  cannot be  readily located,  or has  no
     dwelling or  place of  business within  such  district,  the
     notice may  be mailed to his last known address. Such notice
     shall specify  the sum  demanded and  shall contain,  in the
     case of personal property, an account of the property seized
     and, in  the case  of  real  property,  a  description  with
     reasonable certainty of the property seized.


     Clearly, notice  is given after the fact, not as the vehicle
for seizure. Consult Black's Law Dictionary, 6th Edition, for the
legal definition  of "notice",  which corresponds with definition
by use set out above.

     The next  matter of  some import  is alleged  authority  for
administrative initiatives reflected on the back of the notice of
levy instruments:  The Director will note that the various notice
of levy  forms begin  with 26  U.S.C.  6331(b) where the general
authority paragraph  is 26  U.S.C.  6331(a). When properly read,
this dual-purpose  general authority  paragraph clearly addresses
BATF authority  to collect  Subtitle E  and related  taxes in the
first sentence, and "officers, agents and employees of the United
States" (see  26 U.S.C.   3401(c) & (d)) in the second. In other
words, by  design and  common use, the notice of levy instruments
engage fraud  by design. There is no provision for administrative
seizure without  proper jeopardy assessment, supported by a court
order, even  where a  legitimate lien  by way  of contract  under
provisions of Subtitle E is in existence.

     Again, the  Parallel Table  of Authorities  and Rules, cited
supra, lists only 27 CFR, Part 70 authority for 26 U.S.C.  6331.
This is  confirmed at  26 CFR  601.326, which is in 26 CFR, Part
601, Subpart C, relating to distilled spirits, wines, etc., where
there are  no corresponding  provisions in Subpart D, relating to
employment and certain excise taxes.

     As is  the case with notices of federal tax lien, the notice
of levy  and levy  instruments list "1040" in the column which is
supposed to  identify the  "Kind of Tax" being collected, and the
"Date  of   Assessment"  is  fraud  unless  a  properly  executed
assessment is  in evidence. Finally, in order to be an executable
instrument, levies  and/or notices  of levy must be certified, as
is the  case for notices of lien and all other instruments issued
by Service  personnel. Unless  these instruments are issued under
sworn statement  (under penalties  of perjury,  per 28  U.S.C.  
1746(1) or (2)), they are of no legal effect.

     As something  of a  coup de  grace, the Director will please
reference the  statute which  authorizes the Secretary to collect
payment for tax, located at 26 U.S.C.  6311(a):

     (a)  Authority To  Receive. --  It shall  be lawful  for the
     Secretary to  receive for  internal  revenue  taxes,  or  in
     payment for internal revenue stamps, checks or money orders,
     to  the   extent  and   under  the  conditions  provided  in
     regulations by the Secretary.


     Once again,  the Director will please reference the Parallel
Table of Authorities and Rules, beginning on page 751 of the 1995
Index volume  to the  Code of  Federal Regulations,  to find that
regulatory authority for receiving payment under internal revenue
laws of  the United States is prescribed only under 27 CFR, Parts
19, 24,  25, 53, & 70. There is no authority under 26 CFR, Part 1
or 31.  Therefore, any  supposition of  a taxing  authority under
"1040" relating to income, employment and other tax prescribed in
Subtitles A  & C  of the  Internal Revenue  Code is defaulted for
something more  than  detail.  There  is  no  authority  for  the
Secretary to  receive payment  of taxes  from within  the several
States except  as  pertains  to  imports  under  Subtitle  E  and
conceivably under United States treaty authority.

     Premises considered, the Director will examine all notice of
levy and  levy instruments issued against the Victim, and if they
fail to  comply with  provisions of law, inclusive of due process
necessary to  effect seizure  (Fifth Amendment  and corresponding
provisions of  State  constitutions),  administrative  collection
will immediately cease and all property will be returned.


                     Summary and Conclusion

     Reference item  #9 of  the Public  Notice memorandum  to see
that there  is no statutory authority for Citizens of the several
States to  either elect  or contract participation in federal tax
and benefits  programs effected  by the Internal Revenue Code and
other titles  of the  United States  Code. Therefore,  implied or
adhesion contracts  effected against  Mr. Victim are of no lawful
effect as  whatever colorable  authority the  Service has  in the
continental United  States does  not extend to the several States
and the population at large:

     In order  for there  to be  an opportunity for a nonresident
     alien of  the United States (a Citizen of one of the several
     States) to  elect to  be taxed  or treated  as a  citizen or
     resident of the United States, one or the other of a married
     couple, or  the single "individual" making the election must
     be a  citizen or  resident of the United States (26 U.S.C. 
     6013(g)(3)). Some party must in some way be connected with a
     "United  States  trade  or  business"  (performance  of  the
     functions of  a public  office (26  U.S.C.  7701(a)(26)). A
     nonresident alien never has self-employment income (26 CFR 
     1.1402(b)-1(d)_. In the event that a nonresident alien is an
     "employee" (26 U.S.C.  3401(c), the "employer" (26 U.S.C. 
     3401(d)) is  liable for collection and payment of income tax
     (26 CFR   1.1441-1).  And in  order for real property to be
     treated as  effectively connected with a United States trade
     or business  by way  of election,  it must be located within
     the geographical United States (26 U.S.C.  871(d)).


     Item #9 of the Public Notice memorandum, without alternative
statutory authority  other than  that cited,  defaults  even  the
basis of  lien authority  (26 U.S.C.   6321  et seq.) within the
several States  without the Service securing judgment in favor of
the United  States via  a judicial court of the State. Therefore,
any encumbrance  issued against Mr. Victim must be terminated and
vacated unless such a judicial award is entered into evidence.

     Please be  advised that  this protest, under authority cited
above, will be construed as adequate to abate and serve notice of
appeal relating  to any and all "notice of lien" encumbrances (26
CFR  301.6326-1) and/or "notice of levy" seizure of property (26
CFR   6343-1(b)(2)). You will please immediately discontinue any
administrative assessment  and/or seizure  action in  process, or
which Service  personnel might be contemplating, to the point the
appeals process  is complete,  or if  you fail  to rebut  matters
addressed in  this instrument  and the  Public Notice memorandum,
until an  appropriate offer in compromise can be executed. Should
you acquiesce  to matters  of law  and  fact  presented  in  this
instrument and  the Public  Notice memorandum by failing to rebut
in a  reasonable period  of 30  days, Service  liability will  be
presumed and an appropriate offer in compromise will be forwarded
for your consideration.

     Should  you   fail  to  comply  with  the  demand  to  cease
administrative collection  initiatives, including  termination of
notice of lien instruments, garnishment or whatever other actions
Service personnel  might have  initiated, Mr. Victim reserves the
right to  initiate criminal  and/or civil  complaints  under  the
following provisions and/or applicable provisions of State law:

     18 USCA  4 -- misprision of felony ....

     18 USCA  242 --  definition and  penalty for  deprivation of
     Citizen's rights under color of law ....

     18 USCA 1621 -- criminal penalties for perjury of oath ....

     18 USCA  871 --  criminal penalties for extortion via actual
     or threatened force ....

     18 USCS  1341 -- mail fraud (frauds & swindles)

     18 USCS  2382 -- misprision of treason (failure to disclose
     and acting  on behalf  of foreign  principal  &  serving  as
     foreign agent) ....

     18  USCS   Appx.     3C1.1,  obstructing  or  impeding  the
     administration of justice ....

     26 USC   7206  -- fraud and false statements -- fine of not
     more than  $100,000 or imprisonment of not more than 3 years
     ....

     26 USC   7207  -- fraudulent  returns, statements, or other
     documents --  any person who willfully delivers or discloses
     to the  Secretary any  list, return,  account, statement, or
     other document, known by him to be fraudulent or to be false
     as to  any material  matter, shall  be fined  not more  than
     $10,000, or imprisoned not more than 1 year ....

     26 USC   7214(a) -- extortion, oppression, etc., by revenue
     officers ....

     26 USC   7431 -- subject to the greater of $1,000 or actual
     punitive damages  for each  unauthorized  disclosure  action
     ....

     28 USCA  1745 --  whoever willfully  subscribes as  true any
     material matter  which party  does not believe to be true is
     guilty of  perjury and  shall except  as otherwise expressly
     provided by law, be fined under this title or imprisoned not
     more than  five years,  or both.  This section is applicable
     whether the  statement or  subscription is  made  within  or
     without the U.S. (28 USC  1746(1) & (2)).

     42 USCA   1983 -- injury  to Citizen's  due process rights,
     failure to  uphold equal  protection provisions  (see  notes
     319, 337,  concerning policy & custom; also, notes 333, 349,
     350, 351, 352 & 355 ....)

     42 USCA   1985 -- where  two or  more conspire to act under
     color of  law to  deprive American Citizen of constitutional
     rights,  all   parties  are   subject  to   prosecution  for
     conspiracy (extortion).

     42 USCA   1986 -- anyone  with knowledge  of constitutional
     infractions has a liability, where it is within their power,
     to correct such wrong. Failure or neglect to correct results
     in a year in jail and a $1,000 fine.


     The appeal  process, should  you dispute  matters of law and
fact, requires  an administrative hearing. However, antecedent to
engaging an appeal, there must be contested matters of law and/or
fact. Should  you acquiesce  to matters of law and fact presented
in this  instrument and  the enclosed  Public Notice  memorandum,
administrative remedies  will be  deemed to  have been exhausted,
with  the   Service  having  confessed  liability.  An  offer  in
compromise premised on that liability will be forwarded.

     The Director  will please  note  that  in  Bothke  v.  Flour
Engineers, 713, F.2d 1405 (1983), the U.S. Court of Appeals ruled
that if  a "taxpayer"  has informed an IRS agent that he believes
there is  an error  in assessment  and the  agent continues  levy
action, without  first determining if the taxpayer's argument has
merit, such  agent loses  his  immunity.  Additionally,  the  5th
Circuit, in Hollingshead v. United States, 85-2 USTC 9772 (1985),
concluded that  26 U.S.C.   7421  is a waiver of immunity by the
Government for  a Citizen who claims that his or her property has
been subject  to wrongful  levy: "The  government consents  to be
sued when  the IRS  violates a congressionally-mandated procedure
during the  administrative assessment  [and] collection process."
The Director  will also  please consult provisions of 26 U.S.C. 
7804(b) to  find that  liability issues  directly against Service
personnel for wrongful assessment and collections activity.

     By my signature, I attest under penalties of perjury, per 28
U.S.C.   1746(1), that  to the  best of my current knowledge and
understanding, all  matters of  law and  fact set  out herein are
accurate and true.


Regards,

Dan Meador


copy:  Mr. Victim


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