EDITORIAL NOTES:
The Internal Revenue Code nowhere defines the term "alien" or "alien individual". The regulation at 26 C.F.R. §1.1441 defines "alien individual" but does NOT actually USE the term "alien individual" in its provisions. They use the term "foreign person" i.e. not a U.S. person. The definition of alien individual therefore is a red herring to make it look like a foreign person does not include nationals of the United States (contradicting the IRC).
Alll aliens are presumed nonresident aliens. This is probably why they need to create the "shall be TREATED AS a resident alien" nexus at 26 U.S.C. §7701(b)--to establish a way to overcome the presumption of nonresident alien status.
"alien individual" is used only twice in the IRC. it is used in some other regulations, but in every case the context indicates that the term is being used to refer to a "nonresident alien".
Types of Individuals
| # |
Description |
Definition |
"U.S. person" |
Foreign Person |
Notes |
| citizen |
resident |
alien individual |
nonresident alien individual |
nonresident alien |
| 1 |
Defined in |
NA |
26 U.S.C. §3121;
26 C.F.R. §1.1-1(c) |
26 U.S.C. §7701(b)(1)(A) |
26 C.F.R. §1.1441-1(c)(3)(i). Described as an "alien individual" |
26 C.F.R. §1.1441-1(c)(3)(ii). Described as an "individual" |
26 U.S.C. §7701(b)(1)(B). Described as an "individual". |
|
| 2 |
An office within U.S. Inc? (personal jurisdiction) |
|
Y |
Y |
N |
N |
N |
|
| 3 |
Domestic (within the CORPORATION, not the geography)? |
|
Y |
Y |
N |
N |
N |
|
| 4 |
Domicile in the statutory geographical "United States" because the corporation "U.S. Inc." is domiciled there? |
|
Y |
Y |
N |
N |
N |
|
| 5 |
File 1040? |
|
Y |
Y |
N |
N |
N |
|
| 6 |
File 1040NR? |
|
N |
N |
Y |
Y |
Y |
|
| 7 |
Present in the United States test? |
26 U.S.C. §7701(b)(7) |
Y |
Y |
Y |
Y |
Y |
Uses the word "individual" |
| 8 |
Can have tax home? |
26 C.F.R. §301.7701(b)-2(c) |
Y |
Y |
Y |
Y |
Y |
Uses word "individual" |
| 9 |
Substantial Presence Test |
26 U.S.C. §7701(b)(3) |
N |
N |
Y |
N |
N |
Uses the word "individual" but is mentioned only by 26 U.S.C. §7701(b)(1)(A)(ii), which is only in the context of "alien individuals". |
| 10 |
Closer connection to foreign country |
26 C.F.R. §301.7701(b)-2(d) |
N |
N |
Y |
N |
N |
Uses the word "alien individual" |
| 11 |
First year of residency test |
26 U.S.C. §7701(b)(2)(A) |
N |
N |
Y |
N |
N |
|
| 12 |
Last year of residency test |
26 U.S.C. §7701(b)(2)(B) |
N |
N |
Y |
N |
N |
|
| 13 |
First year of election test |
26 U.S.C. §7701(b)(4) |
N |
N |
Y |
N |
N |
|
| 14 |
Expatriation to avoid tax in 26 U.S.C. §877? |
26 U.S.C. §7701(b)(10) |
Y |
N |
N |
Y |
Y |
Uses the word "alien individual" |
NOTES:
- All privileges come with associated offices in the government:
privilege \ˈpriv-lij, ˈpri-və-\ noun
[Middle English, from Anglo-French, from Latin privilegium law for or against a private person, from privus private + leg-, lex law] 12th century: a right or immunity granted as a peculiar benefit, advantage, or favor: prerogative especially: such a right or immunity attached specifically to a position or an office
[Mish, F. C. (2003). Preface. Merriam-Websters collegiate dictionary. (Eleventh ed.). Springfield, MA: Merriam-Webster, Inc.]
- Domicile is a PRIVILEGE. See:
Lawrence v. State Tax Commission, 286 U.S. 276 (1932); SOURCE: https://scholar.google.com/scholar_case?case=10241277000101996613
- The income tax is upon the DOMICILE of the "taxpayer" and NEVER on the NATIONALITY of the officer.
- Domicile is always GEOGRAPHICAL and never VIRTUAL.
- The OFFICE and the OFFICER can have domiciles completely independently of each other. This is shown in Federal Rule of Civil Procedure 17.
- The domicile of the United States federal corporation under 28 U.S.C. §3002(15)(A) is the District of Columbia per 4 U.S.C. §72 and Article 1, Section 8, Clause 17 of the Constitution.
- While you are representing the United States Inc. federal corporation as an officer of that corporation, your effective domicile is that of the corporation you work for under Federal Rul of Civil Procedure 17.
- A "qualified individual" under 26 U.S.C. §911(d)(1) is a STATUTORY U.S. citizen or U.S. resident whose "tax home" is situated in a "foreign country" as defined in 26 C.F.R. §301.7701(b)-2(b) AND who is:
8.1 A citizen of the United States and establishes to the satisfaction of the Secretary that he has been a bona fide resident of a foreign country or countries for an uninterrupted period which includes an entire taxable year, or
8.2 A citizen or resident of the United States and who, during any period of 12 consecutive months, is present in a foreign country or countries during at least 330 full days in such period.
- A "tax home" simply means that they have declared privileged "trade or business" deductions under 26 U.S.C. §162.
9.1
That is what it says in 26 C.F.R. §301.7701(b)-2(c). Thus, they are engaging in a privilege and thus an OFFICE that has a domicile in the District of Columbia.
9.2
In that scenario, they are in effect "resident agents" situated abroad representing an office in the District of Columbia. As "resident agents".
9.3 In the absence of "trade or business" deductions under 26 U.S.C. §162, the "tax home" becomes the abode of the OFFICER rather than the OFFICE under 26 C.F.R. §301.7701(b)-2(c).
- 26 C.F.R. §301.7701(b)-2(c):
10.1 Defines a "tax home" as the place where you engage in a privileged "trade or business" under 26 U.S.C. §162 as an officer of the United States. That office is VIRTUAL and not PHYSICAL, but it is domiciled in the location of its corporate parent. Thus, pursuant to Federal Rule of Civil Procedure 17(b), the OFFICE is domiciled where the United States Inc. is domiciled, which is the District of Columbia under Article 1, Section 8, Clause 17 and 4 U.S.C. §72.
10.2 Also says that if there is NO privileged "trade or business" activity, the "tax home" devolves to that of the OFFICER rather than the OFFICE, which is usually in a "foreign country".
- 26 C.F.R. §301.7701(b)-2(b):
11.1 Defines "foreign country" as anything OTHER than the statutory geographical United States in 26 U.S.C. §7701(a)(9) and (a)(10).
11.2 Establishes the states of the Union, territories, and even possessions are all foreign countries and identifies "individuals" in these places foreign and thus a "nonresident alien" under 26 U.S.C. §7701(b)(1)(B) instead of a "U.S. person" under 26 U.S.C. §7701(a)(30).
- A "national", Fourteenth Amendment citizen, or STATUTORY "citizen" under 8 U.S.C. §1401 or 26 C.F.R. §1.1-1(c) are NEVER subject to the Substantial Presence Test in 26 U.S.C. §7701(b)(3).
Black’s Law Dictionary,
Sixth Edition, p. 773
Individual.
As a noun, this term denotes a single person as distinguished
from a group or class, and also, very commonly, a private or natural
person as distinguished from a partnership, corporation, or association;
but it is said that this restrictive signification is not
necessarily inherent in the word, and that it may, in proper cases, include [be limited to] artificial persons.
[Black’s Law Dictionary,
Sixth Edition, p. 773]
TITLE 5 >
PART I >
CHAPTER 5 >
SUBCHAPTER II > § 552a
§ 552a. Records maintained on individuals
(a)
Definitions.— For
purposes of this section—
(2) the term ''individual'' means a citizen
of the United States or an alien lawfully admitted for permanent
residence;
TITLE 26 > Subtitle F > CHAPTER 79 > § 7701
§ 7701. Definitions
(b) Definition
of resident alien and nonresident alien
(1) In general
For purposes
of this title (other than subtitle B)—
(B) Nonresident
alien
An individual
is a nonresident alien if such individual is
neither a citizen of the United States nor a resident of the
United States (within the meaning of subparagraph (A)).
26 C.F.R.
§1.1441-1 Requirement for the deduction and withholding of tax on payments
to foreign persons.
(c ) Definitions
(3)
Individual.
(i)
Alien individual.
The term
alien individual means an individual who is not a citizen or a national
of the United States. See Sec. 1.1-1(c).
26 CFR § 1.911-2 - Qualified individuals.
§ 1.911-2 Qualified individuals.
(a) In general. An individual is a qualified individual if:
(1) The individual's tax home is in a foreign country or countries throughout—
(i) The period of bona fide residence described in paragraph (a)(2)(i) of this section, or
(ii) The 330 full days of presence described in paragraph (a)(2)(ii) of this section, and
(2) The individual is either—
(i) A citizen of the United States who establishes to the satisfaction of the Commissioner or his delegate that the individual has been a bona fide resident of a foreign country or countries for an uninterrupted period which includes an entire taxable year, or
(ii) A citizen or resident of the United States who has been physically present in a foreign country or countries for at least 330 full days during any period of twelve consecutive months.
(b) Tax home. For purposes of paragraph (a)(i) of this section, the term “tax home” has the same meaning which it has for purposes of section 162(a)(2) (relating to travel expenses away from home). Thus, under section 911, an individual's tax home is considered to be located at his regular or principal (if more than one regular) place of business or, if the individual has no regular or principal place of business because of the nature of the business, then at his regular place of abode in a real and substantial sense. An individual shall not, however, be considered to have a tax home in a foreign country for any period for which the individual's abode is in the United States. Temporary presence of the individual in the United States does not necessarily mean that the individual's abode is in the United States during that time. Maintenance of a dwelling in the United States by an individual, whether or not that dwelling is used by the individual's spouse and dependents, does not necessarily mean that the individual's abode is in the United States.
(c) Determination of bona fide residence. For purposes of paragraph (a)(2)(i) of this section, whether an individual is a bona fide resident of a foreign country shall be determined by applying, to the extent practical, the principles of section 871 and the regulations thereunder, relating to the determination of the residence of aliens. Bona fide residence in a foreign country or countries for an uninterrupted period may be established, even if temporary visits are made during the period to the United States or elsewhere on vacation or business. An individual with earned income from sources within a foreign country is not a bona fide resident of that country if:
(1) The individual claims to be a nonresident of that foreign country in a statement submitted to the authorities of that country, and
(2) The earned income of the individual is not subject, by reason of nonresidency in the foreign country, to the income tax of that country.
If an individual has submitted a statement of nonresidence to the authorities of a foreign country the accuracy of which has not been resolved as of any date when a determination of the individual's bona fide residence is being made, then the individual will not be considered a bona fide resident of the foreign country as of that date. (d) Determination of physical presence. For purposes of paragraph (a)(2)(ii) of this section, the following rules apply.
(1) Twelve-month test. A period of twelve consecutive months may begin with any day but must end on the day before the corresponding day in the twelfth succeeding month. The twelve-month period may begin before or after arrival in a foreign country and may end before or after departure.
(2) 330-day test. The 330 full days need not be consecutive but may be interrupted by periods during which the individual is not present in a foreign country. In computing the minimum 330 full days of presence in a foreign country or countries, all separate periods of such presence during the period of twelve consecutive months are aggregated. A full day is a continuous period of twenty-four hours beginning with midnight and ending with the following midnight. An individual who has been present in a foreign country and then travels over areas not within any foreign country for less than twenty-four hours shall not be deemed outside a foreign country during the period of travel. If an individual who is in transit between two points outside the United States is physically present in the United States for less than twenty-four hours, such individual shall not be treated as present in the United States during such transit but shall be treated as travelling over areas not within any foreign country. For purposes of this paragraph (d)(2), the term “transit between two points outside the United States” has the same meaning that it has when used in section 7701(b)(6)(C).
(3) Illustrations of the physical presence requirement. The physical presence requirement of paragraph (a)(2)(ii) of this section is illustrated by the following examples:
Example 1.
B, a U.S. citizen, arrives in Venezuela from New York at 12 noon on April 24, 1982. B remains in Venezuela until 2 p.m. on March 21, 1983, at which time B departs for the United States. Among other possible twelve month periods, B is present in a foreign country an aggregate of 330 full days during each of the following twelve month periods: March 21, 1982 through March 20, 1983; and April 25, 1982 through April 24, 1983.
Example 2.
C, a U.S. citizen, travels extensively from the time C leaves the United States on March 5, 1982, until the time C departs the United Kingdom on January 1, 1984, to return to the United States permanently. The schedule of C's travel and the number of full days at each location are listed below:
| Country |
Time and date of arrival |
Time and date of departure |
Full days in foreign country |
| United States |
|
10 p.m. (by air) Mar. 5, 1982 |
|
| United Kingdom |
9 a.m. Mar. 6, 1982 |
10 p.m. (by ship) June 25, 1982 |
110 |
| United States |
11 a.m. June 30, 1982 |
1 p.m. (by ship) July 19, 1982 |
0 |
| France |
3 p.m. July 24, 1982 |
11 a.m. (by air) Aug. 22, 1983 |
393 |
| United States |
4 p.m. Aug. 22, 1983 |
9 a.m. (by air) Sept. 4, 1983 |
0 |
| United Kingdom |
9 a.m. Sept. 5, 1983 |
9 a.m. (by air) Jan. 1, 1984 |
117 |
| United States |
1 p.m. Jan. 1, 1984 |
|
|
Among other possible twelve-month periods, C is present in a foreign country or countries an aggregate of 330 full days during the following twelve-month periods: March 2, 1982 through March 1, 1983; and January 21, 1983 through January 20, 1984. The computation of days with respect to each twelve month period may be illustrated as follows:
First twelve-month period (March 2, 1982 through March 1, 1983):
|
Full days in foreign country |
| Mar. 2, 1982 through Mar. 6, 1982 |
0 |
| Mar. 7, 1982 through June 24, 1982 |
110 |
| June 25, 1982 through July 24, 1982 |
0 |
| July 25, 1982 through Mar. 1, 1983 |
220 |
| Total full days |
330 |
Second twelve-month period (January 21, 1983 through January 20, 1984):
|
Full days in foreign country |
| Jan. 21, 1983 through Aug. 21, 1983 |
213 |
| Aug. 22, 1983 through Sept. 5, 1983 |
0 |
| Sept. 6, 1983 through Dec. 31, 1983 |
117 |
| Jan. 1, 1984 through Jan. 20, 1984 |
0 |
| Total full days |
330 |
(e) Special rules.
For purposes only of establishing that an individual is a qualified individual under paragraph (a) of this section, residence or presence in a foreign country while there employed by the U.S. government or any agency or instrumentality of the U.S. government counts towards satisfaction of the requirements of § 1.911–2(a). (But see section 911(b)(1)(B)(ii) and § 1.911–3(c)(3) for the rule excluding amounts paid by the U.S. government to an employee from the definition of foreign earned income.) Time spent in a foreign country prior to January 1, 1982, counts toward satisfaction of the bona fide residence and physical presence requirements, even though no exclusion or deduction may be allowed under section 911 for income attributable to services performed during that time. For purposes or paragraph (a)(2)(ii) of this section, the term “resident of the United States” includes an individual for whom a valid election is in effect under section 6013 (g) or (h) for the taxable year or years during which the physical presence requirement is satisfied.
(f) Waiver of period of stay in foreign country due to war or civil unrest. Notwithstanding the requirements of paragraph (a) of this section, an individual whose tax home is in, a foreign country, and who is a bona fide resident of, or present in a foreign country for any period, who leaves the foreign country after August 31, 1978, before meeting the requirements of paragraph (a) of this section, may as provided in this paragraph, qualify to make an election under section 911(a) and § 1.911–7(a). If the Secretary determines, after consultation with the Secretary of State or his delegate, that war, civil unrest, or similar adverse conditions existed in a foreign country, then the Secretary shall publish the name of the foreign country and the dates between which such conditions were deemed to exist. In order to qualify to make an election under this paragraph, the individual must establish to the satisfaction of the Secretary that the individual left a foreign country, the name of which has been published by the Secretary, during the period when adverse conditions existed and that the individual could reasonably have expected to meet the requirements of paragraph (a) of this section but for the adverse conditions. The individual shall attach to his return for the taxable year a statement that the individual expected to meet the requirements of paragraph (a) of this section but for the conditions in the foreign country which precluded the normal conduct of business by the individual. Such individual shall be treated as a qualified individual, but only for the actual period of residence or presence. Thus, in determining the number of the individual's qualifying days, only days within the period of actual residence or presence shall be counted.
(g) United States.
The term “United States” when used in a geographical sense includes any territory under the sovereignty of the United States. It includes the states, the District of Columbia, the possessions and territories of the United States, the territorial waters of the United States, the air space over the United States, and the seabed and subsoil of those submarine areas which are adjacent to the territorial waters of the United States and over which the United States has exclusive rights, in accordance with international law, with respect to the exploration and exploitation of natural resources.
(h) Foreign country.
The term “foreign country” when used in a geographical sense includes any territory under the sovereignty of a government other than that of the United States. It includes the territorial waters of the foreign country (determined in accordance with the laws of the United States), the air space over the foreign country, and the seabed and subsoil of those submarine areas which are adjacent to the territorial waters of the foreign country and over which the foreign country has exclusive rights, in accordance with international law, with respect to the exploration and exploitation of natural resources.
[EDITORIAL: The "qualified individual" in 26 C.F.R. 1.911-2(c) above is treated as an ALIEN for the purposes of the residence test. Thus, all taxpayers are aliens at home (26 C.F.R. §1.1441-1(c)(3)(i) and 26 U.S.C. §7701(b)(1)) and citizens acting as aliens while abroad in relation to the foreign country they are in under a tax treaty.
Individual has a VERY specific meaning depending on context: 1. DOMESTIC: an alien that satisfies the presence test in 26 U.S.C. §7701(b)(1).
2. FOREIGN: An qualified individual acting as an alien in a foreign country and coming under a tax treaty under the presence test at 26 C.F.R. §1.911-1(c). This person claims the VOLUNTARY status of "citizen of the United States" as United States is defined geographically and not corporately in 26 U.S.C. §7701(a)(9) and includes no part of a state of the Union.
It is therefore IMPOSSIBLE to BE a statutory "individual" without being a privileged alien, either at home or abroad and there is NO presence test for those NOT acting as aliens in some capacity. Thus, all citizens and nationals DOMESTICALLY are ALWAYS nonresidents and therefore NONRESIDENT ALIENS.]
(c ) Definitions
(3) Individual.
(ii) Nonresident alien individual.
The term nonresident alien individual means persons described in section 7701(b)(1)(B), alien individuals who are treated as nonresident aliens pursuant to § 301.7701(b)-7 of this chapter for purposes of computing their U.S. tax liability, or an alien individual who is a resident of Puerto Rico, Guam, the Commonwealth of Northern Mariana Islands, the U.S. Virgin Islands, or American Samoa as determined under § 301.7701(b)-1(d) of this chapter. An alien individual who has made an election under section 6013(g) or (h) to be treated as a resident of the United States is nevertheless treated as a nonresident alien individual for purposes of withholding under chapter 3 of the Code and the regulations thereunder.
At common law, a "corporation"
was an "artificial perso[n] endowed with the legal capacity of perpetual
succession" consisting either of a single individual (termed a "corporation
sole") or of a collection of several individuals (a "corporation aggregate").
3 H. Stephen, Commentaries on the Laws of England 166, 168 (1st Am.
ed. 1845). The sovereign was considered a corporation. See id., at 170;
see also 1 W. Blackstone, Commentaries *467. Under the definitions supplied
by contemporary law dictionaries, Territories would have been classified
as "corporations" (and hence as "persons") at the time that 1983 was
enacted and the Dictionary Act recodified. See W. Anderson, A Dictionary
of Law 261 (1893) ("All corporations were originally modeled upon a
state or nation"); 1 J. Bouvier, A Law Dictionary Adapted to the Constitution
and Laws of the United States of America 318-319 (11th ed. 1866) ("In
this extensive sense the United States may be termed a corporation");
Van Brocklin v. Tennessee, 117 U.S. 151, 154 (1886) ("`The United States
is a . . . great corporation . . . ordained and established by the American
people'") (quoting United [495 U.S. 182, 202]
States v. Maurice, 26 F. Cas. 1211, 1216 (No. 15,747) (CC Va.
1823) (Marshall, C. J.)); Cotton v. United States, 11 How. 229, 231
(1851) (United States is "a corporation"). See generally Trustees of
Dartmouth College v. Woodward, 4 Wheat. 518, 561-562 (1819) (explaining
history of term "corporation").
[Ngiraingas v. Sanchez, 495 U.S. 182 (1990)]
“All the
powers of the government [including
ALL of its civil enforcement powers against the public] must be
carried into operation by individual agency, either through the
medium of public officers, or contracts made with [private] individuals.”
[Osborn v. Bank of U.S.,
22 U.S. 738 (1824)]
This term individual is used
in sections
26 U.S.C. §1 and
26 U.S.C. §6012(a).
It is never defined anywhere in the I.R.C.
The reason it is not defined is that it would give away the
IRS' ruse. Therefore,
we have to look in the legal dictionary for the definition:
Individual.
As a noun, this term denotes a single person as distinguished
from a group or class, and also, very commonly, a private or
natural person as distinguished from a partnership, corporation,
or association; but it is said that this restrictive signification
is not necessarily inherent in the word, and that it may, in
proper cases, include [be limited to] artificial persons.
[Black’s Law Dictionary,
Sixth Edition, on page 773]
Note that this definition above
does not necessarily imply a natural (biological) person.
Therefore, the Internal Revenue Code cannot be said to necessarily
apply to natural persons.
Here is the proper definition of "individual" in the context
of the IRS form 1040 and within the meaning of the code, as we understand
it:
Individual
An artificial federally-chartered entity, meaning a federal (but
not state) chartered corporation or partnership or trust.
Such an entity
is a citizen of the “United States” because it must have
a physical presence in the District of Columbia to be subject to
the exclusive legislative or territorial jurisdiction of the United
States under Article 1, Section 8, Clause 17 of the U.S. Constitution.
This “individual” is NOT a natural person
with income from outside the district (federal) United States
who is living and working for a private employer in the 50 united
States of America because of the restrictions on direct taxes imposed
by Article 1, Section 9, Clause 4, and Article 1, Section 2, Clause
3 of the U.S. Constitution..>[1]
We will now examine the definition
of “individual” found in
26 C.F.R. §1.1441-1(c )(3):
26 C.F.R. §1.1441-1 Requirement for the deduction and withholding
of tax on payments to foreign persons.
(c ) Definitions
(3) Individual.
(i) Alien individual.
The term alien individual means an individual who is not
a citizen or a national of the United States. See Sec. 1.1-1(c).
The above definition
ought to raise some BIG red flags!
First of all, if you live in the [federal] United States**
as a natural person, you aren’t an “individual” because the definition
of “individual” doesn’t include citizens or residents of the
United States**!
This is the ONLY definition of the term “individual” found
ANYWHERE in either the Internal Revenue Code or the 26 C.F.R. Regulations.
Therefore, the tax code can’t apply to you even if you claim
to be a U.S.** citizen or a U.S.** resident!
This is also consistent with our findings earlier.
It also explains why a U.S. citizen is defined as someone
who lives in the Virgin Islands, Guam, Puerto Rico, or American
Samoa, as follows:
26 C.F.R. 31.3121(e) State, United States, and citizen.
(b)…The term 'citizen of the United States' includes a citizen
of the Commonwealth of Puerto Rico or the Virgin Islands, and, effective
January 1, 1961, a citizen of Guam or American Samoa.
The definition for “individual”
that the government wants you to incorrectly assume,
however, is that found below:
5 U.S.C. §552a(a)(2):
(2) the term ''individual'' means a citizen of the United States
or an alien lawfully admitted for permanent residence;
But this definition of “individual”
is superseded by the only definition of “individual” found in the
Regulations for taxes in 26 C.F.R. 1.1441-1 above.
You therefore can’t be a “individual” who can be the “person”
against whom the income tax is imposed under 26 U.S.C. §1
unless you either reside OUTSIDE the “United States**” under
26 C.F.R. § 1.1441-1(c )(3) or you reside INSIDE the United States**
and are not a U.S.** citizen.
That’s why they created a definition of “U.S. citizen” that
means you are living outside the United States (in
the Virgin Islands) so they can “pretend” that you are taxable!
That way, even when you tell them you live in the “United
States” by giving them an address in the 50 states on your tax return,
they can still claim that you live in Puerto Rico or the Virgin
Islands because of your status as a “U.S. citizen”!
This whole scheme can be confirmed by ordering a copy of
your Individual Master File (IMF) from the IRS and looking at the
transaction codes on the IMF.
If you look at your IMF and you have been filing 1040 forms
for a while, chances are your record reflects that you reside in
the Virgin Islands, even if you really live in one of the 50 states
outside the federal zone!
That’s why the IRS made the Publication 6209, which is used
for decoding the IMF file, “For Official Use Only”, which is short
for “Don’t let Citizens get their hands on this at all costs!”.
They know they are committing fraud and they don’t want you,
the Citizen, to know the horrible truth and expose that fraud, because
then they lose their ability to claim “plausible deniability”.
I bet this all sounds pretty
crazy to you, right, but I swear to God it’s the truth!
These are the kinds
of sneaky tricks that IRS lawyers make their living dreaming up
in order to make the illegal fraud and extortion called the income
tax look more “civilized” and believable and well hidden from public
view. If they wanted
it in public view, they would have put the definitions of "U.S.
citizen" and “individual” in the Internal Revenue
Code right?
But they instead buried it deep inside regulations that few
Citizens ever view and only the agency itself usually looks at because
they wanted to hide it!
The above definitions of “Alien
individual” and “Nonresident alien individual” in 26 C.F.R. §1.1441(c
)(3) can also seem a little confusing initially.
You will find out that we suggest to people later in this
book (in section
5.6.9 to be exact) that they should renounce their “U.S.**
citizenship” and become “U.S.*** nationals”.
However, looking at 26 C.F.R. 1.1441-1(c )(3)(i) above leads
one to believe that they cannot be a nonresident alien
if they are a "U.S. national".
However, "nonresident aliens" are defined below:
TITLE 26 > Subtitle F > CHAPTER 79 > § 7701
§ 7701. Definitions
(b) Definition
of resident alien and nonresident alien
(1) In general
For purposes of this title (other than subtitle B)—
(B) Nonresident alien
An individual is a nonresident alien if such individual is
neither a citizen of the United States nor a resident of
the United States (within
the meaning of subparagraph (A)).
A person can therefore be a
“U.S. national” and not a “U.S. citizen” and live outside the federal
zone in a state and be a nonresident alien individual.
Our guidance is sound and based on the law.
Even if you believe you are
an “individual”, which you are not as a “natural person”, you
still don’t have any income that equates to a taxable
source or situs identified in 26 C.F.R. 1.861-8(f), and so you couldn’t
be liable for a tax due even if you wanted to.
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