TAX DEPOSITION QUESTIONS: 10.  PRA, APA, and REGULATIONS

10.  PRA - APA - REGULATIONS

Introduction

Although explicitly mandated by the PRA, the IRS will not, or can not, cite its legal authority for Form 1040 and implicitly, the authority for the income tax itself.

Form 1040 has never been approved by the OMB (Office of Management and Budget) as the proper form to file an "Individual Income Tax Return."

Findings and Conclusions

With the assistance of the following series of questions, we will show that the laws of the U.S. government relating to administrative procedures, privacy, and paperwork reduction clearly point to the fact that the income tax is voluntary, and that there is no requirement to file tax returns.  We will also show that:

  • Per the PRA, all government Forms requiring information from the general public must have an OMB number, be referenced in the regulations and be approved by OMB.
  • Form 1040 has never been approved as the proper form to file an individual "income tax return." In 1994, the reference to From 1040 was DELETED from the table in the C.F.R. that linked it to the income tax.
  • Form 2555, "Foreign Earned Income" is the form specified in the regulations as the form to collect the information described in 26 C.F.R. 1.1-1 (the income tax section).
Bottom Line: Even when required to comply with the laws of the U.S., the IRS refuses, or can not, cite its legal authority for Form 1040 and implicitly, the authority for the income tax itself.

Section Summary

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10.1. Admit that the Paperwork Reduction Act, 44 U.S.C. 3501, et seq., mandates that forms and regulations of federal agencies that require the provision of information must bear and display OMB control numbers.   (WTP #192)

10.2. Admit that 1 C.F.R. 21.35 requires that OMB control numbers shall be placed parenthetically at the end of a regulation or displayed in a table or codified section.   (WTP #193)

10.3. Admit that the following tax regulations contain OMB control numbers at the end of these regulations:   (WTP #194)

26 C.F.R. 1.860-2  (WTP Exhibit 115)
26 C.F.R. 1.860-4 (WTP Exhibit 116)
26 C.F.R. 1.897-1 (WTP Exhibit 117)
26 C.F.R. 1.901-2 (WTP Exhibit 118)
26 C.F.R. 1.1445-7 (WTP Exhibit 119)
26 C.F.R. 1.6046-1 (WTP Exhibit 122)
26 C.F.R. 1.6151-1 (WTP Exhibit 124)
26 C.F.R. 1.6152-1 (WTP Exhibit 125)

26 C.F.R. 1.9200-2 (WTP Exhibit 126)
26 C.F.R. 31.3401(a)(8)(A)-1 (WTP Exhibit 127)
26 C.F.R. 31.3501(a)-1T (WTP Exhibit 128)
26 C.F.R. 301.6324A-1 (WTP Exhibit 129)
26 C.F.R. 301.7477-1 (WTP Exhibit 130)

10.4. Admit that 26 U.S.C. 6012 does not specify where tax returns are to be filed.   (WTP #195)

10.5. Admit that 26 U.S.C. 6091 governs the matter of where tax returns are to be filed.   (WTP #196)

10.6. Admit that by the plain language of 6091, regulations must be promulgated to implement this statute.   (WTP #197)

10.7. Admit that in 5 U.S.C. 551, a "rule" is defined as:   (WTP #198)

"(4) 'rule' means the whole or a part of an agency statement of general or particular applicability and future effect designed to implement, interpret, or prescribe law or policy or describing the organization, procedure, or practice requirements of an agency . . . ."

10.8. Admit that 5 U.S.C. 552 describes in particular detail various items which must be published by federal agencies in the Federal Register, as follows:   (WTP #199)

"(1) Each agency shall separately state and currently publish in the Federal Register for the guidance of the public--

(A) descriptions of its central and field organization and the established places at which, the employees (and in the case of a uniformed service, the members) from whom, and the methods whereby, the public may obtain information, make submittals or requests, or obtain decisions;

(B) statements of the general course and method by which its functions are channeled and determined, including the nature and requirements of all formal and informal procedures available;

(C) rules of procedure, descriptions of forms available or the places at which forms may be obtained, and instructions as to the scope and content of all papers, reports, or examinations;

(D) substantive rules of general applicability adopted as authorized by law, and statements of general policy or interpretations of general applicability formulated and adopted by the agency; and

(E) each amendment, revision or repeal of the foregoing."

10.9. Admit that the Department of the Treasury as well as the IRS acknowledge the publication requirements of the Administrative Procedure Act in 31 C.F.R. 1.3 and 26 C.F.R. 601.702.    (WTP #200)

10.10. Admit that the Commissioner of Internal Revenue promulgated the Treasury Regulation set out at 26 C.F.R. 602.101 to collect and display the control numbers assigned to collections of information in Internal Revenue Service regulations by the Office of Management and Budget (OMB) under the Paperwork Reduction Act of 1980.   (WTP #201)

10.11. Admit that the Internal Revenue Service intended that 26 C.F.R. 602.101 comply with the requirements of OMB regulations implementing the Paperwork Reduction Act of 1980, for the display of control numbers assigned by OMB to collections of information in Internal Revenue Service regulations. (See 26 C.F.R. 602.101.)    (WTP #202)

10.12. Admit that 26 C.F.R. 602.101(c) displays a table (the "Table") which on the left side lists the C.F.R. part or section where the information to be collected by the Internal Revenue Service is identified and described, and on the right side, lists the OMB control number assigned to the OMB-approved form to be used to collect the information so identified and described.    (WTP #203)

10.13. Admit that the Table displayed at 26 C.F.R. 602.101 in the 1994 version of the Code of Federal Regulations lists 1.1-1 as a C.F.R. part or section that identifies and describes information to be collected by the Internal Revenue Service.    (WTP #204)

10.14. Admit that 26 C.F.R. 1.1-1 relates to the income tax imposed on individuals by 26 U.S.C. 1.   (WTP #205)

10.15. Admit that the OMB control number assigned to the form to be used to collect the information identified and described at 26 C.F.R. 1.1-1 is 1545-0067.   (WTP #206)

10.16. Admit that the OMB control number 1545-0067 is assigned to the IRS Form 2555.   (WTP #207)

10.17. Admit that the IRS Form 2555 is titled "Foreign Earned Income".    (WTP #208)

10.18. Admit that the IRS Form 2555 is used to collect information regarding foreign earned income.   (WTP #209)

10.19. Admit that the OMB control number assigned to the IRS Form 1040 Individual Income Tax Return is 1545-0074.    (WTP #210)

10.20. Admit that the Table set out at 26 C.F.R. 602.101 has never displayed the OMB control number 1545-0074 as being assigned to the collection of individual income tax information identified and described by 26 C.F.R. 1.1-1.   (WTP #211)

10.21. Admit that the OMB has not approved the IRS Form 1040 U.S. Individual Income Tax Return as the proper form on which to make the return of individual income tax information identified and described at 26 C.F.R. 1.1-1.    (WTP #212)

10.22. Admit that the Table displayed at 26 C.F.R. 602.101 in the 1995 version of the Code of Federal Regulations does not list 1.1-1 as a C.F.R. part or section that identifies and describes information to be collected by the Internal Revenue Service.    (WTP #213)

10.23. Further admit that the Internal Revenue Service caused the entry for 1.1-1 to be deleted from 26 C.F.R. 602.101, by publishing the deletion at 59 FR 27235, on May 26, 1994.    (WTP #214)

10.24. Further admit that the published deletion was accomplished under the supervision of Internal Revenue Service employee Cynthia E. Grigsby, Chief, Regulations Unit, Assistant Chief Counsel (Corporate).    (WTP #215)