May 18, 1996

Agent Name, Revenue Agent
Internal Revenue Service
Name of Your District
Department of the Treasury, Puerto Rico
1515 E. Fulton
Garden City 67846/tdc
KANSAS STATE

Re:         Your letters of May 13, 1996

Enclosure:  IRS & IRC Memorandum by Dan Meador, Ponca City,
            Oklahoma state


Revenue Agent Puckett:

     We are  going to combine response to your letters of May 13,
1996 as  it seems  a fruitless  exercise to duplicate response on
basically the same matter: In your letter, you failed to disclose
authorities and  particulars which  we have previously requested,
and have  otherwise failed to cite either statutory or regulatory
authorities requiring  us to  provide you information from any of
our private records.

     With all  due respect,  we will  at  this  juncture  decline
appointments scheduled  for May  30 as you have failed to provide
sufficient information  for us  to be responsive to, and you have
failed to  otherwise establish Internal Revenue Service authority
to issue  summons, conduct  audits, engage  in canvassing  or any
other tax  assessment  or  collection  activity  in  the  several
States, Kansas included.

     We would  surmise that  you allege authority under 26 U.S.C.
 7602  & 6020.   However,  it  will  be  found  that  the  only
regulatory authority  for either is under Title 27 of the Code of
Federal Regulations,  said title  being under  Bureau of Alcohol,
Tobacco &  Firearms administration.   There  is no  corresponding
authority under 26 CFR, Part 1 or 31.

     If your  demand is  premised on 26 U.S.C.  6020, it appears
that you  have misrepresented  the statute:    6020(a)  requires
consent  on  the  part  of  whomever  wishes  to  file  a  return
authorized by  the title,  and  6020(b) authorizes the Secretary
to make  returns required by the title.  The "person made liable"
is the  person required to file the return ... see  6001 & 6011
as antecedent to  6020.

     Based on  our research,  and that  of Mr.  Dan  Meador  (see
enclosed memorandum), we do not believe we are persons liable for
taxes prescribed  in the Internal Revenue Code, particularly with
respect to  Subtitles A  & C,  and we certainly aren't liable for
taxes prescribed  by Subtitled  D & E or tax treaties -- we don't
engage in  any off-shore  or foreign  enterprises which  might be
construed as falling under such treaties.

     Therefore, there  are two  antecedent requirements  prior to
submitting to  an audit:  First, we have not received notice from
the Secretary  that we  are liable for any particular tax and are
required to  keep books  and  records  pertaining  to  any  given
financial activity;  and second,  you have  failed to  provide  a
taxing statute  which specifically  sets out  what tax  is  being
imposed and the basis of liability -- see requirements set out in
United States  v. Community  TV, Inc.,  327 F.2d  797, at  p. 800
(1964) for  particulars: "Without question, a taxing statute must
describe with  some certainty the transaction, service, or object
to be  taxed...", citing Hassett v. Welch, 303 U.S. 303, 58 S.Ct.
559, 82 L.Ed. 858.

     Certainly  you  don't  want  books  and  records  on  diaper
training and  banjo picking; we have yet to find Internal Revenue
Code tax  liability on  those enterprises, and to the best of our
knowledge, we  are not liable for filing returns under provisions
of 26 CFR  301.7512-1(a)(1)(iii) -- at least we have received no
notice to that effect.

     Therefore, we respectfully demand that you:  (1) comply with
the requirement  that the  Secretary serve  notice  that  we  are
required to  keep books  and records,  and (2) provide a specific
taxing statute  which  discloses  what  transaction,  service  or
object is  to be  taxed.   To that  point, any  audit would be an
exercise in  futility as  we wouldn't know what books and records
IRS  is  entitled  to  examine  and  what  obligations  we  might
legitimately have.

     To the  point these  antecedent  requirements  are  met,  we
respectfully decline  the invitation  to disclose  our records to
you or  any other  officer  or  agent  of  the  Internal  Revenue
Service.   When you  comply with provisions set out in applicable
statutory  and   regulatory  provisions,  we  will  compile  such
information as  is  responsive  to  obligations  imposed  by  the
Internal Revenue  Code, and  if necessary, submit the records for
audit providing  you establish  regulatory authority  to  conduct
such an  audit.  It is our belief, based on information enclosed,
that IRS  does not  have legal  standing in  the several  States,
being an  agency of  the Department of the Treasury, Puerto Rico,
and that  Internal Revenue  Code taxing authority does not extend
to the population at large within the several States.

     To the  best of our knowledge and understanding, all matters
of law and fact presented herein are accurate and true.


Regards,


Jack and Jill Patriot


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