FORMS: 2.16 LETTER TO THE SECRETARY OF THE TREASURY
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The message below was written by one of our readers, and was intended to be sent to the United States Secretary of the Treasury.  It established legal proof of your status you can use in a court of law.  It also plants a fire under the tail of the Secretary to refute your findings.


<<ADDRESS>>

<<CITY>>, <<STATE>>  <<ZIP>>

<<DATE>>

 

 

PAUL O’NEIL

SECRETARY OF TREASURY

1500 PENNSYLVANIA AVENUE NORTH WEST

WASHINGTON,  D.C. (20220)

Dear Secretary O’Neil,

To the Internal Revenue Service (IRS) agents, officers, and computers keeping records on <<YOUR NAME>> (ref.no. <<SSN/TIN>>).   Your records are in error, the undersigned is a NONRESIDENT ALIEN with respect to the "United States" as those terms are defined in 26 U.S.C. §7701(a)(9) and (a)(10) and 26 C.F.R §31.3121(e) and has never had income “effectively connected to a trade or business” within the "United  States".

I COME NOW to file this Memorandum to inform you of my discoveries and demand the IRS correct the errant records contained within your systems. Below are the specific conclusions I have reached and what I would like for you to do:

MY CITIZENSHIP STATUS

1.   The issues as to whether there are different meanings for the term "United States", and whether there  are three different "United States" operating within the same geographical area, and  one "United States" operating outside the Constitution over its own territory  (in which it has citizens belonging to said "United  States"), were settled in 1901 by the Supreme Court in the cases of De Lima v. Bidwell,  182 U.S. 1 and Downes v. Bidwell, 182 U.S. 244 (1901). In Downes supra, Justice Harlan dissented as follows:

“The idea  prevails with some -- indeed, it found expression in arguments  at the bar --  that we have in  this country  substantially or practically two national governments;  one, to be maintained  under the  Constitution, with  all its restrictions;   the other  to be  maintained by  Congress outside and independently of that instrument, by exercising such powers  as other nations of the earth are accustomed to exercise.”
[Downes supra, page 380, emphasis added]

“It will be an evil day for American liberty if the theory of a government  outside of the supreme  law of the land finds lodgment in  our constitutional jurisprudence.   No higher duty rests  upon this court than to exert its full authority to  prevent   all  violation   of  the   principles  of the Constitution.”

[Downes supra, page 382, emphasis added]

2.   This theory of a government operating outside the Constitution over its own territory, with citizens of the "United States" belonging thereto under Article 4, Section 3, Clause 2 (4:3:2) of the Constitution, was further confirmed in 1922 by the Supreme Court in Balzac v. Porto  Rico, 258 U.S.  298, wherein that  Court affirmed, at page 305, that the Constitution does not  apply outside the limits of the 50 States of the Union, quoting Downes supra and   De Lima supra;  that, under, the "United States" was given exclusive power over the territories and the citizens of the "United States" residing therein.

3. The issue arose again in 1944, in the case of Hooven & Allison Co. v. Evatt, Tax Commissioner of Ohio, 324 U.S. 652, wherein the U.S. Supreme Court stated as follows at page 671-672:

 The term "United States"  may be used in any one of several senses.   [1]   It may be merely the name  of a sovereign occupying the position analogous to that of other sovereigns in the  family of nations.   [2]    It  may  designate the  territory over  which the sovereignty of the United States  extends,   [3]   or it may be  the collective name of  the states which are united by and under the Constitution.[1]

[brackets, numbers and emphasis added]

Quoting Fourteen  Diamond Rings v. United  States, 183 U.S. 176; cf. De Lima v. Bidwell, 182 U.S. 1;  Dooley v. United States, 182 U.S. 222;   Faber v. United States, 221 U.S. 649; cf. Huus v. New York &  P.R.S.S. Co.,  182 U.S. 392;   Gonzales v. Williams, 192 U.S. 1;  West India Oil Co. v. Domenech, 311 U.S. 20.

The Court, in Hooven supra, indicated that this was the last time it would address the issue; it would just be judicially noticed.

4.   The issue arose in Brushaber v. Union Pacific Railroad Company, 240 U.S. 1.  In that case, the high Court affirmed that the "United  States" could levy a tax on the income of a nonresident alien  when that income derived  from sources WITHIN the "United States" i.e. (its territorial jurisdiction).

5.   Based upon the decision in Brushaber supra, the Commissioner of  Internal Revenue, with the approval of the Secretary of  the Treasury, promulgated the Court's decision as Treasury Decision 2313 (see EXHIBIT #1).  T.D. 2313 declared that Frank R. Brushaber was a NONRESIDENT  ALIEN with respect to the "United States".   T.D. 2313 also declared that the Union Pacific Railroad Company was a DOMESTIC CORPORATION with respect to the "United States" (i.e. its territorial jurisdiction).

6.   The Complaint filed by Mr. Brushaber shows that he was a nonresident of the "United States" (D.C.), residing instead in the State of New York, in the borough of Brooklyn, and a Citizen thereof, with his principal place of business in the borough of Manhattan.  He owned stocks and bonds issued by the Union Pacific Railroad Company, upon which a cash dividend was declared to  him by said company, a domestic corporation of the "United States".    Union  Pacific was chartered by an Act of Congress for the territory of the federal state of Utah, in order to build a railroad and telegraph line and other purposes.   It is a matter of public record that the Union Pacific Railroad Company was a domestic "United States" corporation, of the federal state of Utah, residing in the District of Columbia, with its principal place of business in  Manhattan, New York.   It was created by an Act of the "United  States" Senate and House of Representatives (under their exclusive authority, granted by the Constitution for the United  States at 1:8:17) on  July 1,  1862 by  the 37th Congress, 2nd Session, as  recorded in the Statutes  At Large, December 5, 1859 to  March 3, 1863 at Chapter  CXX, page  489.   Considering the foregoing evidence of the  diversity of citizenship  of the two parties, it is clear that  Mr. Brushaber was a  "nonresident  alien with respect to the United States", who had income from sources within  said "United States".   His income  derived from the Union Pacific Railroad Company, a corporate citizen created by Congress and residing WITHIN the "United States" (i.e. the District of Columbia). (see EXIBIT #2)

[A]  domestic corporation is an artificial person whose residence or domicile is fixed by law within the territorial jurisdiction of the state which created it. That residence cannot be   changed temporarily   or permanently  by the  migrations of its officers or agents to other jurisdictions. So long as it  is an existing corporation its  residence, citizenship, domicile, or place of abode is within the state which created  it.   It cannot  reside or have its domicile elsewhere;   neither can it in legal contemplation be absent from the state of its creation.

[Fowler v. Chillingworth, 113 So. 667, 669 (1927)] [emphasis added]

7.   Related cases are Hylton  v. United States, 3 U.S. (3 Dall.) 171 (1796):   Hylton was a Congressman;   his salary was income from sources WITHIN the "United States".  See also Springer v. U.S., 102  U.S. 586 (1881):   Springer, a  Virginia Citizen, operated a carriage business in the District of Columbia.

8.   The first paragraph of the Secretary's Treasury Decision (EXHIBIT #1) is quoted here as follows:

(T.D. 2313)

Income Tax

Taxability of  interest from bonds and dividends on stock of domestic[2]   corporations owned by nonresident aliens, and the liabilities of nonresident aliens under Section 2 of the  act of October 3, 1913.

To collectors of internal revenue:

Under the  decision of the Supreme Court of the United States in the case of Brushaber  v. Union Pacific Railway [sic] Co., decided January 24, 1916, it is hereby held that income  accruing to  nonresident aliens  in the  form of  interest from the bonds  and dividends  on the  stock of domestic corporations is subject to the income tax imposed by the act of October 3, 1913.

[footnote and emphasis added]

9.   The above decision by the Secretary of the Treasury determined that a tax on income derived from rents, sales of property, wages,  professions, or a trade or business WITHIN the "United States",  was applicable to such "income" when payable to a nonresident alien, i.e. a Union State Citizen.

10. All income tax provisions  under 26 U.S.C., subtitle A (an excise  tax on "income"), are divided between sources WITHIN and WITHOUT  the "United  States".   They are imposed  upon the worldwide income of citizens  of the "United States" and aliens residing therein, and upon nonresident aliens  (of all  kinds) receiving income from sources WITHIN said "United States" and WITHIN the other parts of the American Empire which fall WITHIN the exclusive legislative jurisdiction of the Congress of  the "United States", pursuant to 1:8:17 and 4:3:2.

CONSTITUTIONAL AUTHORITY GRANTED TO CONGRESS

11. The Constitution gives to Congress the power to act for the 50  Union States as an international representative and to do so without  (outside) the boundaries of each of those 50 States. These powers  are expressed in Article  1, Section 8, Clauses 1 thru 16 (1:8:1-16).

12. The Constitution gave to Congress a seat of government, known as the District of  Columbia. In time, Congress created a government for the "District", and this "District" became a federal state by definition.  However, this  "state" (D.C.) is not "united" by or under the Constitution for the United States of America.  D.C. has never joined the Union.

13. Furthermore, the Constitution granted to Congress the authority to govern the "District", just as the Legislatures of each of the several  States of the Union govern their States within the geographical limits of those States.   As Congress began to legislate for the "District", under authority of 1:8:17 and 1:8:18, the difference between the citizens of the "District" and the Citizens[3] of the Union became apparent, in that the citizens of the "District" did not possess the right of suffrage or other rights  (see Balzac supra,  De Lima supra, and  Downes supra) and  therefore were not recognized as a part of the Sovereignty of  "We the People".    The Constitution for the United States of  America provided no means of taxing these "District" citizens of  the "United States".  A method of forming municipal governments and of exercising taxing power over these citizens within the territories of the "United States" was decided by The Insular Cases  (see the Bidwell cases, supra).   "The Constitution was made for States,  not territories," wrote  Daniel Webster. "... [T]he Constitution of  the United States as such does not extend beyond the limits of the States which are united by and under it ....", wrote author Langdell in "The Status of Our New Territories", 12 Harvard Law Review 365, 371.

14. The distinction between "citizens of the United States" and  "Union State Citizens"  has been fully  recognized by  the Congress and the Courts as follows:

We have in our political system a government of the United  States and a government of each of the several  States. Each  one of these governments is distinct from the others, and ach has citizens of its own who owe it allegiance, and whose rights, within its jurisdiction,  it must protect. [United States v. Cruikshank, 92 U.S. 588, 590 (1875)]

The Federal Government is a "state". [Enright v. U.S., D.C.N.Y., 437 F.Supp. 580, 581]

Foreign State.   A foreign country or nation. The several  United States are considered "foreign" to each other except as regards their relations as common members of the Union. [Black's Law Dictionary, Sixth Edition, page 1407]

15. Congress identifies these citizens of the "District" as "individuals" or citizens who reside in the "United States" and who are subject to the direct control of Congress in its local taxing and other municipal laws.

16. In De Lima supra, the U.S. Attorney defined federal taxes with the following words, at page 99-108:

Federal taxation is either  general or local.  Local taxes are levied  under Article  1, Section 8, Paragraph 1.  Local taxes are  for the  support of  territorial or  non-state governments.

Congress imposed a federal excise tax on the "income" of these citizens or "individuals" at 26 U.S.C., Section 1,  as a local tax:

Such taxes are not for the common welfare of the United  States, but are to defray the expense of the government of  the locality, and  in the  dual position  which Congress occupies in our system, as Federal  Government and as local government for  the territory of the United States not ceded  into States of the Union,  it has the power to tax for local purposes.

[e Lima supra, page 99]

Hence the term "from sources WITHIN the United States".

General taxes are of two kinds,  direct;   and  what, for brevity may  be called indirect,  meaning thereby  duties, imposts, and excises.  Direct taxes must be laid on all the States alike

[De Lima supra, page 100]

17. A Citizen of one of the 50 States, residing therein, is a nonresident alien with respect to this local taxing power of Congress (see Brushaber supra).  Outside the geographical area of the "United  States" [as that term is defined at  26 C.F.R. 1.911-2(g)], Congress lacks power to support the local government by imposing a tax on the incomes of nonresident aliens (ones outside the locality, i.e. Citizens of the 50 States) UNLESS they reside within that jurisdiction by residence, or UNLESS the source of their income is situated WITHIN  that geographical territory. Any income arising from sources therein must be withheld at the source by the "withholding agent" (see T.D. 2313, 26 C.F.R.  871, and  26 U.S.C. 1461), unless the recipient is engaged in a trade or business therein.   For a full discussion of this local  taxation, see pages 55 and 99-108 of  De Lima supra.   For confirmation of the domestic municipal jurisdiction of the "United States", see Downes supra at pages 383-388.

18. Congress has control of these "individuals", whether they "reside" WITHIN the "United States"  (i.e. territorial states) or WITHOUT  the  "United States".  These "individuals" (i.e. born within the jurisdiction of Congress, such as a citizen born in the District of Columbia or in one of the territories), whether they reside within "United States" territories, without the "United States" in the "foreign countries" [as  defined at 26 C.F.R. 1.911-2(h)],  or abroad, are still liable for the federal income tax, unless they abrogate that citizenship by naturalization or otherwise.  (See 26 C.F.R. 871-5, -6 and -12 and 1.932-1).   However, at 26 U.S.C. 911 (a)(1), Congress has exempted from taxation all "foreign earned income" of  these citizen individuals,  except for Puerto Ricans (see 26 C.F.R. 1.932-1(b), IRS Form 2555).

19. Another type of nonresident aliens are those citizens of contiguous countries such as Mexico, Canada and other foreign countries.   These foreigners, residents or nonresidents (as the case may be), are subject to the tax on incomes received from any place in the American Empire, i.e. in these united States and in the "United  States".   A Union State Citizen, previously nonresident, may lose his nonresident status by residing within the territorial sovereignty of  the "United States" for 183 days (26 C.F.R.  1.871-7(d)(2)) and thereby becomes subject to the local tax on incomes received from sources within and without the "United States" (i.e. worldwide income).

THE INCOME TAX IS A LOCAL TAX IMPOSED WITHIN THE "UNITED STATES".
THE UNDERSIGNED IS A STRANGER TO THIS LOCALITY.
THE DEFINITIONS IN 26 THE INTERNAL REVENUE CODE.

20. The definitions used in 26 U.S.C. are very clear in defining "State" and "United  States".   In every definition that uses the word "include", only the words that follow are defining the term.   For example:

21. 26 U.S.C. 3121(e)(1) State.  --The term "State" includes the District of Columbia, the  Commonwealth of Puerto Rico, the Virgin Islands, Guam, and American Samoa.

22. 26 U.S.C. 7701(a)(9)   United States.   --  The term "United States" when used  in a geographical sense includes only the States and the District of Columbia.

23. The federal government has used these definitions correctly, but IRS agents seem to assume that they mean the 50 States of the Union (America) when they look at the word "States" in 26 U.S.C. 7701(a)(9). You cannot use the common, everyday meaning of the terms "United States" or "State" when talking about the federal tax laws and many other laws that are enacted under the local, municipal authority of the "United States" government.

24. Another example is the Omnibus Acts at 86th Congress, 1st Session,  Volume 73, 1959, and 2nd Session, Volume 74, 1960, Public Laws  86-70 and 86-624.   These Acts reveal the crafty way in which the federal government uses correct English and how Congress changes the meanings of words by using its own definitions.  For example, all the United States Code definitions had to be changed to allow Alaska and Hawaii to join the Union of States united under the Constitution.   When Alaska joined the Union, Congress added a new definition of  "States of the United States".  This definition had never appeared before, to wit:

Sec. 48.  Whenever the phrase "continental United States" is used in  any law of the United States enacted after the date of enactment of this Act, it shall mean the 49 States on the North American  Continent and  the District  of Columbia, unless otherwise expressly provided.     [cf. 1 USCS 1, "Other provisions:"]          [emphasis added]

Where is it otherwise expressly provided?  Answer:

 Sec. 22.   (a)  Section 2202 of the Internal Revenue Code of 1954 (relating  to missionaries  in foreign  service), and  sections 3121(e)(1), 3306(j), 4221(d)(4), and  4233(b) of such code (each relating to a special definition of "State")  are amended by striking out "Alaska,".

(b)  Section 4262(c)(1) of the Internal Revenue Code of 1954 (definition of  "continental United  States") is amended to read as follows:   "(1) Continental United States.  -- The term 'continental United States'  means the District of Columbia and the States other than Alaska."

When Hawaii was admitted to the Union, Congress again changed the above definition, to wit:

Sec. 18. (a)   Section 4262(c)(1) of the Internal Revenue  Code of 1954 (relating  to the definition of "continental United States" for purposes of the tax on transportation of persons) is  amended to read as  follows: "(1) Continental United States. -- The term 'continental United States' means the District of Columbia  and the States other than Alaska and Hawaii."

WHAT ARE THE STATES OTHER THAN ALASKA AND HAWAII?

25. They certainly cannot be the other 48 States united by and under the Constitution, because Alaska and Hawaii just joined them, RIGHT?    The same definitions apply to the Social Security Acts.   So, what is left?   Answer:   the District of Columbia, Puerto Rico, Guam, Virgin Islands, etc.  These are the States OF (i.e. belonging to) the "United States" and which are under its sovereignty.  Do not confuse this term with states of the Union, because the word "of" means "belonging to" in this context.

26. Congress can also change the definition of "United States" for two sentences and then revert back to the definition it used before these two sentences. This is proven in Public Law 86-624, page  414, under School Operation Assistance in Federally Affected Areas, section (d)(2):

The fourth sentence of such subsection is amended by striking out  "in the continental United  States (including Alaska)" and  inserting in lieu thereof "(other than Puerto Rico, Wake Island, Guam, or the Virgin Islands)" and by striking out  "continental United States" in clause (ii) of such sentence and inserting  in lieu thereof "United States (which for purposes of this sentence and the next sentence means the fifty States and the District of Columbia)".   The fifth sentence of such subsection is amended by striking out "continental" before "United States" each time it appears therein and by striking out "(including Alaska)".

27. This one section, all by itself, contains all the evidence you need, by words of construction, to prove that the term "United  States" on either side of these sentences did not mean the 50 States united by and under the Constitution.   If that is not conclusive to you, then see the following:

26 C.F.R. 31.3121(e)-1 State, United States, and citizen.

(a)  When used in the regulations in this subpart, the term "State" includes [in its restrictive form] the District of Columbia,  the Commonwealth of Puerto Rico, the  Virgin Islands, the Territories of Alaska and Hawaii before their admission as States, and (when used with respect to services performed after 1960) Guam and American Samoa.

(b)  When used in the regulations in this subpart, the term "United States", when used in a geographical sense, means the several states, (including the Territories of Alaska and  Hawaii before their admission as States),  the District of Columbia, the Commonwealth of  Puerto Rico, and the Virgin Islands.   When used in the regulations in this subpart with respect to services performed after 1960, the term "United States" also includes [in its  expansive form]  Guam and American Samoa when the term is used in a geographical sense. The term "citizen of the United States" includes [in  its restrictive form] a citizen of the Commonwealth of Puerto Rico or the Virgin Islands, and, effective January 1, 1961, a citizen of Guam or American Samoa.

[emphasis added]

In paragraph (a),  Alaska and Hawaii only fit the definition of "State" before joining the Union.   That means the definition of "State" was never meant to be the 48 now 50 States of the Union unless distinctly expressed.   If paragraph (b) confuses you, the following is submitted:

28. The word "geographical" was never used in tax law until Alaska and Hawaii joined the Union, and it is not defined in the Internal Revenue Code.   So, we must use the definition found in the Standard Random House Dictionary:

ge.o.graph.i.cal   1.  of or pertaining to geography 2. of or  pertaining   to  the   natural   features,   population, industries, etc., of a region or regions

29. Were you born in the "United States"?     The preposition "in" shows that the "United States" in this question is a place, a geographical place named "United States".   It is singular, even though it ends in "s".   It also can be plural when referring to the Union  States which are places which exist by agreement.

Every human in a nation is a natural Citizen of a place called a nation, if he was born in that nation.   Those same people must be naturalized (born again) if  they want to become a citizen of another nation.   Original citizenship exists because of places, not agreements.   This is jus soli, the law of the place of one's birth (see Black's Law Dictionary, Sixth Edition).

30. Here are two questions, your own answers to which will solve the dilemma.   In a geographical sense, where is the State of Texas located on the continent?   In a geographical sense, here is the "United States" (Congress) located on the continent?

31. Now, since typewriters were purchased from the areas that just  joined the Union, namely Alaska and Hawaii, according to Title 1, Congress had to use a term that is NOT used in the Internal Revenue Code, in order to buy the same typewriters from the same geographical area:

 Sec. 45.   Title  I of the Independent Offices Appropriation Act, 1960, is amended by striking out the words "for the purchase within the continental limits of the United States of any typewriting machines" and inserting in lieu thereof "for the purchase within the STATES OF THE UNION AND THE DISTRICT OF COLUMBIA OF ANY TYPEWRITING MACHINES".

[emphasis added]

And, for declarations made under the penalties of perjury, the statute at 28 U.S.C. 1746 separately defines declarations made WITHIN and WITHOUT the "United States" as follows:

If executed  WITHOUT the United States: I declare ... under the laws of the United States of America that the foregoing is true and correct.

If executed  WITHIN the  United States,  its territories, possessions, or commonwealths:   I declare  ... that  the foregoing is true and correct.                 [emphasis added]

The latter clause above is the penalty clause that is found on IRS Form 1040 and similar IRS forms.  And, 28 U.S.C. 1603(a)(3) states as follows:

(3)  which is neither a citizen of a State of the United States as defined in section 1332(c) and (d) of this title….

Section 1332(d). The word "States", as used in this section,  includes the Territories, the District of Columbia, and the Commonwealth of Puerto Rico.

EXAMPLES OF THE TWO DEFINITIONS OF THE TERM "United States" IN 26 U.S.C.

32.   26 U.S.C. Subtitle F, 7701(a)(9):

(9)  United States. -- The term "United States" when used in a geographical sense  includes only  the States  and the District of Columbia.

33.   26 U.S.C. Subtitle D, section 4612(a)(4)(A):

(A)  In general. -- The  term "United States" means the 50 States, the District of Columbia, the Commonwealth of Puerto  Rico, any possession of the United States, the Commonwealth of the  Northern Mariana Islands, and the Trust Territory of  the Pacific Islands.                                        [emphasis added]

34.   The Supreme Court stated in Hepburn & Dundas v. Ellsey, 6 U.S.  445, 2 Cranch 445,  2 L.Ed 332, that the District of Columbia is not a "State" within the meaning of the Constitution.   Therefore, it is apparent that the meaning of the term "States" in the first definition above can only mean the territories and possessions belonging to the "United States", because of the specific mention of the District of  Columbia and the specific absence of  the 50 States (inclusio unius est exclusio alterius).   The District of Columbia is not a "State" within the meaning of the Constitution  (see Hepburn  supra). Therefore, the 50 States are specifically excluded from this first definition of the term "United States".

35.   Congress has no problem naming the "50 States" when it is legislating for them, so, in the second definition of the term "United States" above, Congress expressly mentions them, and there is no misunderstanding.   If a statute in 26 U.S.C. does not have a special "word  of art" definition for the term  "United States", then the First Definition of the term "United States" is always used  (see above) because of  the general nature of that term as defined by Congress.

36.   When citizens or residents of the first "United States" are without the geographical area of this first "United States", their "compensation for personal services actually rendered" is defined as "foreign earned income" in 26 U.S.C., Section 911(b) and 911(d)(2), as follows:

911(b)  Foreign Earned Income. -- ...

(d)(2)  Earned Income. --

(A)  In general. -- The term "earned income" means wages, salaries, or  professional fees, and other amounts received as compensation for personal services actually rendered, but does not include that part of  the compensation derived by the taxpayer for personal services rendered by him to a  corporation which represents a distribution of earnings or profits rather than a reasonable allowance as compensation for the personal services actually rendered.

37.   A citizen or resident of the first "United States" does not pay a tax on his "compensation for personal services actually rendered" while residing outside of the first "United States", because Congress has exempted all such compensation from taxation under 26 U.S.C., Section 911(a)(1), which reads as follows:

911(a)  Exclusion from Gross Income. -- ... [T]here shall be  excluded from the gross  income of  such individual, and exempt from taxation ... (1) the foreign earned income of such individual.

38.   When residing without (outside) this "United States", the citizen or resident of this "United States" pays no tax on "foreign earned income", but is required to file a return, claiming the exemption (see IRS Form 2555).

39.   26 C.F.R., Section 871-13(c) allows this citizen to abandon his citizenship or residence in the "United States" by residing elsewhere.

40.   26 C.F.R., Section 1.911-2(g) defines the term "United States" as follows:

(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[4], [Puerto Rico, Guam, Mariana Islands, etc.] 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...

None of the 50 united States comes under the sovereignty of the "United States",  and subsection (h) defines the 50 States united by the Constitution as "foreign countries":

(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. [26 C.F.R. 1.911-2(h)]

All of the 50 States are foreign with respect to each other and are under the sovereignty of their respective Legislatures, except where a power has been expressly delegated to Congress.   The Citizens of each Union State are foreigners and aliens with respect to another Union State, unless they establish a residence therein under the laws of that Union State.  Otherwise, they are nonresident aliens with respect to all the other Union States.

41. The regulations at 26  C.F.R., Section 1.1-1(a) state, in pertinent part:

(a)  General Rule.   (1)  Section 1 of the Code imposes an income tax on the income of every individual who is a citizen or resident of the United States and, to the extent provided by Section 871(b) or 877(b),  on the income of a nonresident alien individual.

26 U.S.C., Section 1 imposes a tax on "taxable income"  as follows, in pertinent part:

 There is hereby imposed on the taxable income of ... every  married individual ... who makes a  single return jointly with his spouse under section 6013 ....

42. The regulations promulgated to explain 26 U.S.C., Section 1 are found in 26 C.F.R. Section  1.1-1, and state in pertinent part:

(a) General  Rule.   (1)  Section 1 of the Code imposes an income tax on the income of every  individual who is a citizen or resident of the United States and, to the extent provided by  Section 871(b) or  877(b), on the income of a nonresident alien individual.

Please note that the term "taxable income" is not used as such in the above statute because the "income" of those classes of individuals mentioned is taxable as "taxable income".

 Section 1.871   Classification and manner of taxing alien Individuals:

(a)  Classes of aliens.   For purposes of the income tax, alien individuals are divided generally into two classes, namely, resident aliens and nonresident aliens. ...

(b)  Classes of nonresident aliens. --

(1)  In general,    For purposes of  the income tax, nonresident alien individuals are divided into the following three classes:

  (i) Nonresident alien individuals who at no time during the taxable year are engaged in a trade or business in the United States,

  (ii) Nonresident alien individuals who at any time during  the taxable year are, or are deemed under Section 1.871-9 to  be, engaged in a trade or business in the  United States, and

  (iii) NOT APPLICABLE (concerns residents of Puerto Rico)

43. 26 C.F.R., Section 871-13 states as follows:

(a) In general.   (1)   An individual who is a citizen or resident of  the United States at the beginning of the taxable year but a nonresident alien at the end of  the taxable year, or a nonresident alien at the beginning of the taxable year but a citizen or resident of the United States at the end of the taxable year, is taxable for such year as though his taxable year were comprised of  two separate periods, one consisting of  the time during which he is a citizen or resident of  the United States and the other consisting of  the time during which he is not a citizen or resident of the United States.

NONRESIDENT ALIEN

44. The federal income tax is a local tax for the "United  States" to support local government and, in order to become liable to this tax, a State Citizen must be a resident therein (i.e. a  resident alien), or receive income from sources therein, or be engaged in a trade or business therein.

45. In 26  U.S.C., Section  7701(b)(1)(A) & (B),  Congress defined the statutory difference between "resident  alien" and "nonresident alien" as follows:

(b)  Definitions of Resident Alien and Nonresident Alien. --

 (1)  In general. -- For purposes of this title ...

 (A)  Resident Alien. -- An alien individual shall be treated   as a resident of the United States with respect to any calendar year if (and only if) such individual meets the requirements of clause (i), (ii), or (iii):

(i)  Lawfully admitted for permanent residence. – Such individual is  a lawful permanent resident of the United States at any time during such calendar year.

 (ii) Substantial presence. -- Such individual meets the substantial presence test of paragraph (3).

(iii) First year election. -- Such individual makes the election provided in subparagraph (4).

(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)].

46. The undersigned is not a "resident"  (as that term is defined in the above statutes)  nor citizen of this "United States".    The undersigned is a nonresident alien as that term is defined in subsection (B), and has the same status as the Plaintiff in Brushaber supra.

INDIVIDUALS REQUIRED TO MAKE RETURNS OF INCOME

47. The following individuals are required to make returns of income:

26 C.F.R.,  Section 1.6012-1.   Individuals required to make returns of income.

(a)  Individual citizen or resident. --

(1)  In general. ... an  income tax return must be filed by every individual ... if such individual is ...

  (i) A citizen  of the United States, whether residing at home or abroad,

  (ii) A resident of the United States even though not a citizen thereof, or

  (iii) An alien bona fide resident of Puerto Rico during  the entire taxable year.

48. The undersigned (clearly) is not defined in the above statutes,  but is defined in the following statute as one who is not required to make a return.

49. 26 C.F.R., Section 1.6013-1 states:

(b)  Nonresident Alien. A joint return shall not be made if either the husband or wife at any time during the taxable year is a nonresident alien.

The undersigned is nonresident alien with respect to the "United States", with no income derived from sources within the "United States".

50. 26 C.F.R., Section 871-7 states, in pertinent part, as follows:

Except as otherwise provided in Section  1.871-12, a  nonresident alien individual to whom this section applies is not subject to the tax imposed by section 1 or section  1201(b) [5] but, pursuant to the provision of section 871(a), is liable to a flat tax of 30 percent upon the aggregate of the amounts determined under paragraphs (b), (c), and (d) of this section which are received during the taxable year from  sources within the United States.                  [emphasis added]

51. Please note 26 C.F.R., Section 1.871-4(b), Proof of residence of aliens, which establishes a key legal presumption:

(b)  Nonresidence presumed.   An alien by reason of this alienage, is presumed to be a nonresident alien.

52. Further facts are illustrated by the definition of "withholding agent" at 26 U.S.C., Section 7701(a)(16):

Withholding agent. -- The term "withholding agent" means any person required to deduct and withhold any tax under the provisions of section  1441, 1442, 1443, or 1461.

53. 26 U.S.C., Section 1441 refers to nonresident aliens who receive income from sources within the "United States", as set forth in Section 871 (a)(1).   These sections do not apply to the undersigned. The undersigned, has not had taxable income to present, and I do not foresee any taxable income in my future.

54. Your attention is invited to 26 C.F.R.,  Section 31.3401(a)(6)-1(b), which states as follows:

Remuneration for services performed outside the United  States.   Remuneration paid to a nonresident alien individual ... for services performed outside the United States is excepted from wages and hence is NOT SUBJECT TO WITHHOLDING.

[emphasis added]

55. As a  rule, Military Retirement Pay of a nonresident alien individual is exempted from the income tax at 26 C.F.R., Section 31.3401(a)-1(b)(1)(ii), with the following exception:

Where such retirement pay or disability annuity ... is paid to a nonresident alien individual, withholding is required only in the case of such amounts paid to a nonresident alien individual who is a resident of Puerto Rico.

and at 26 C.F.R., Section 935-1(a)(3):

[F]or special rules for determining  the residence for tax purposes of individuals under military or naval orders, see section  514 of the Soldiers' and Sailors' Civil Relief  Act of 1940, 50 App. U.S.C.  574.    The residence of an individual, and, therefore, the jurisdiction with which he is required to file an income tax return under paragraph (b) of this section, may change from year to year.

Section 574 (1) of The Soldiers' and  Sailors' Relief Act states that:

For the purposes of taxation in respect of the personal property, income, or gross income of any such person by any State, Territory,  possession, or political subdivision of   any of the foregoing, or the District of Columbia, of which  such person is not a resident or in which he is not domiciled ...  personal property shall not be deemed to be  located or present in or to have a situs for taxation in  such State, Territory, possession or political subdivision,  or district. [emphasis added]

55.   When the undersigned received the initial correspondence, a copy of exhibit #4 was filed with the District Director in Kansas City, Missouri.  No rebuttal has been received.   The time for a rebuttal has elapsed.  (see exibit #4)

If there is anything confusing to the readers of this documentary evidence, please do not try to explain the content of the dissembled income tax rules and regulations to Me.  

CONCLUSION

The undersigned is in no way subjected to any derivative liability.   The procedures set forth in 26 C.F.R. do not authorize the Secretary or his delegate to manufacture income and tax it where a Person is without the taxable class.  26 C.F.R., Section 871 is unclouded in that, where there is no income from sources within the "United States" by a nonresident alien, the choice is delegated to that Person by Congress as to whether a return is to be filed or not (see 26 C.F.R. 1.871-8).  Where the Secretary determines the existence of taxable income when there has been no return, he should sign the substitute return and assume the responsibility for the determination as required by 26 U.S.C. 6020 (b)(1). Treasury Decision 2313 explains that the withholding agent is responsible for withholding the tax from sources within the "United States", for filing a Form 1040NR and for paying over the tax withheld from said nonresident alien.  (See Treasury  Decision 2313 and 26 C.F.R. 1.1461-3).  Therefore, no taxable income has existed,  therefore, no penalties or interest should accrue or apply to the undersigned.

The fact that the undersigned was not aware of the above information in the earlier years of life and reported the "earned income" from labor in the foreign States of the Union as a local tax of the "United  States",  does not change my status as a Citizen of the Republic of Union States.  Nor does it change the status from nonresident alien to an "individual" defined in  26C.F.R., Section 1.1-1. Nor does it justify the Secretary's actions taken when he has been repeatedly informed by the "PATRIOTS" of their true status.   The Secretary is required to know the law he is administering, and to do so with justice and equity within the parameters set forth by Congress.  Arbitrary actions are discouraged by the Executive,  the Congress and the Courts.   The undersigned can find no Act, Law or Statute that requires policing the domestic Citizens that file  incorrect forms with the Internal Revenue Service that implicate a taxable income. It is also not my job to educate the "IRS".

The employees of the "IRS" should be informed of the tax laws as they actually exist, not misinformed to defraud  WE THE PEOPLE of the 50 States of the Union.   The bill for my time spent over  the last 18 years,  trying to decipher the IRS rules and   regulations is as follows;   At  $125 per hour.   About  43,159 hours are billable. The stress placed on myself and my parents   over this phony scheme, threatening letters, and propaganda spread throughout the media and directed to the undersigned and my parents is another $3,000,000  you can add to my remuneration.  The employees of the IRS did everything imaginable to conceal the truth that has been explained by this document, and the FAMILY GAURDIAN WEB SITE.

If you think the amount above is exorbitant, think about all the good people of OUR  great Nations that turn over hard earned non-taxable income to the IRS in error.      Please, have a letter of apology sent to my parents signed by the Secretary of the Treasury along with $2,000,000 for the undue stress caused by their son seeking the truth about the income tax fraud perpetuated continually throughout their lives.

If there is some reason I have had taxable income in the past that I am not aware of, Please,  inform Me immediately with the applicable regulations pertinent to a natural Sovereign Citizen of the Union States.  If there is an error in this document please inform me immediately.  If there is no error in this document, promptly release the Notice of Federal tax liens on the property at 92 Lemans Court,  Lake St. Louis, Missouri.  Return the $8,126 (with interest and penalties it should come to about $25,000)  that was stolen from my account in 1994/5.   Correct the errant records contained in your systems.

And  please: leave Me alone!

Please instead use as the target of your illegal acts of avaricious extortion some other ignorant product of the deficient American public education that you helped implement (Dept. of Education) who is too stupid to know that you don’t have jurisdiction over him either.

If the IRS does somehow negate any of this document, please remember, the income tax laws are void due to the VOID FOR VAGUENESS  DOCTORINE.

For more evidence please see http://famguardian.org/Subjects/Taxes/taxes.htm.   If you need help correcting your errant records, feel free to seek my opinion as to how I want records on this Sovereign Natural National Citizen to read. Who, after all, is better to ask? Should you wish to dispute any of the contents of this letter, please first provide a signed, notarized response to the questions at:

You have 15 days to find errors in this document that would negate the intent of this document and provide your written, signed, notarized rebuttal to the above questions.  Otherwise, your lack of response constitutes a legal admission of the facts and conclusions described herein.  Be sure to sign any rebuttal, per 28 U.S.C. 1746(1).

I declare under penalty of perjury, under the laws of the United States of America, that the foregoing is true and correct,  to the best of my knowledge and belief, per 28 U.S.C. 1746(1).

Executed on this _____day of _________________,________.

 

Constitutionally Submitted,

All Rights Reserved Without Prejudice U.C.C. 1-207

 

 

 

 ___________________________________

<<YOURNAME>> 

<<YOUR ADDRESS>>

<<CITY>> , <<STATE>> Republic

United States of America

Telephone <<TELEPHONE>>

NOTARY AND PROOF OF SERVICE

STATE OF _____________ )

COUNTY OF ___________ )

 

On __________________________ before me ___________________personally appeared ______________________ personally known to me (proved to me on the basis of satisfactory evidence) to be the person whose name is subscribed to the within instrument, and acknowledged to me that he executed same in his authorized capacity, and that by his signature on the instrument the person or the entity upon behalf of which the person acted, executed the instrument. 

I do hereby certify that I have served _______________________________________________(name of agency or person served) with a true copy of the within document (circle one) (personally)/(by Certified Mail with Return Receipt Requested), from/at _______________________________________________________________ (city and state mail was sent from).

 

 

 

 

 

 

 

Witness my hand and official seal.

Signature of Notary:_______________________________________

Certified Mail #:______________________________________



[1] See Langdell, "The  Status of  our  New Territories,"  12 arvard Law Review 365, 371;   see also Thayer, "Our New Possessions," 12 Harvard Law Review  464;    Thayer,  "The Insular Tariff Cases in the Supreme Court," 15 Harvard Law Review 164;   Littlefield,  "The Insular  Cases," 15 Harvard Law Review 169, 281.

[2] "Domestic" in the "United  States" statutes  means inside D.C., the possessions, territories,   and  enclaves of the "United States", i.e. federal states.

[3]  Please note that the U.S.  Constitution always denoted "Citizen" and "Person" in capital letters until the  14th Amendment, wherein citizen and person were not capitalized.

[4] This term "state" evidently does not embrace one of the 50 States (where  I am  a free  inhabitant), united by the Constitution, because they are separate governments or foreign states with respect to the "United States" (i.e. D.C., its territories, possessions and enclaves).

[5] Capital gains tax.