Your Name and Address April 24, 1996 Name of Business Owner or Payroll Officer Address Re: Exempt Filing Enclosure: Memorandum of Law Dear Owner or Payroll Officer: You are probably getting tired of (Name) and other area employees filing exempt forms to discontinuing withholding of state and federal taxes, so I would like to take a somewhat different approach by offering the possibility of a carrot being hidden in the mess: Your business, which I presume is incorporated in Oklahoma, is no more subject to income and related tax prescribed in Subtitles A & C of the Internal Revenue Code than the various people who work for you are. I will address the major issues briefly, then let the enclosed memorandum tell the rest of the story: The Internal Revenue Code compiles federal taxes enacted by Congress since early in the century. Subtitle A is income tax, B is estate and inheritance tax, C is Social Security, Railroad Retirement and withholding from wages for Subtitles A & C, D prescribes excise taxes on gambling, certain types of manufacturing, and petroleum, and E prescribes taxes on alcohol, tobacco and firearms, with drugs of various sorts hidden in the folds. Subtitle F prescribes administrative and judicial authority. Where your business and people who work for you are concerned, Subtitles A & C are at issue. So the most immediate question is where these taxes originate. And it turns out that the Internal Revenue Code of 1954, as amended in 1986 and since, is simply reorganization and amendment of the Internal Revenue Code of 1939. Income taxes prescribed in Subtitle A originate in the Public Salary Tax Act of 1939, applicable only to officers, agents, and employees of the United States, and taxes prescribed in Subtitle C stem from the Social Security Tax which commenced after 1936, and that, too, applies only to federal employees. The rest of the Subtitle C taxes emerge from Social Security legislation. None of these taxes have ever been mandatory for the general population. The next question concerns the Internal Revenue Service. You will find in the enclosed memorandum that Congress never created a Bureau of Internal Revenue, which is the predecessor of IRS, and information published last September cements a solid link between IRS and the Department of the Treasury, Puerto Rico. The principals of interest are the International Monetary Fund and the World Bank. In the past year, you have heard increasing numbers in Congress condemn IRS and propose either a flat tax or national sales tax to replace the current income tax system. Don't for a minute think Congress has turned altruistic. Dedicated researchers across the country were at the brink of breaking the Internal Revenue Code and defaulting IRS about 18 months ago, so the handwriting was on the wall. For the last year, it has been a foot race. Can Congress replace a fraud with a fraud before the IRS corpse gets dragged up on the Capitol steps and laid at Congress' feet. The enclosed memorandum is the product of cutting-edge research, and should prove to be the coup de grace against the IRS. We have the numbers, and as the information moves into legal and public information forums, it will be condemning for Congress as well as IRS. The question, of course, is where business owners such as yourself are in the midst of the struggle. Do you capitalize on information which can now work to your advantage, or do you risk third-party liability? Our research group, to a greater extent than many, believes in trying to share solid information in such a way that the American people understand not only the fraudulent system, but the necessity of posturing to restore constitutional government, and with it, the nation's sovereignty and solvency. We're obviously at the brink of shipwreck, with an extremely high probability of epochal economic meltdown. In order to avert disaster, we feel that it is necessary to be patient and diligent in the effort to share information one with another and seat responsible people in both state and national government. Business owners play a particularly important role, particularly where state-based business is concerned. The letter terminating withholding that (Name) is submitting complies with statutory and regulatory provisions. If you have questions, or if your attorney would like to visit about details of law relating to state and federal tax systems, I will make myself available on your request or his. Regards, Name # # #
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