Dan Meador : misc

ADMINISTRATIVE APPEAL/JUDICIAL AUTHORITY

Dan Meador working notes

Introduction

This file contains notes I've compiled since about May 1996
in order to have "cut and paste" resources available for various
instruments relating to IRS initiatives. There isn't any
particular order. The file isn't exactly literature so won't
necessarily be interesting reading for people other than those
who work with affidavits, appeals, formal protests, and
litigation. I periodically update the hard copy I keep in a
notebook, or in the event I am working at the computer, use "cut
and paste" techniques to transport what I need from this file to
the instrument I'm constructing. Once you're familiar with what
is in the file, use "find" to go to the location you want when
constructing separate material. You might want to insert key
words or phrases to make it easier to get around in the file.

I've taken some material directly from efforts other people have
used successfully or are testing -- there are sections on a
"notice of lien" challenge by Dave Fuller of Pennsylvania and an
"Affidavit of Truth" used successfully by Anthony Lane Hargis of
California. Otherwise, there is an assortment of statutes from
the United States Code, regulations from the Code of Federal
Regulations, numerous court decisions, and a few personal
observations concerning the way things work together.

For those who aren't used to "legal shorthand," the following
might be helpful: U.S.C. or USC = United States Code; USCA =
United States Code Annotated; USCS = United States Code Service;
CFR = Code of Federal Regulations. If the letters are separated
by periods (".") the abbreviation means the same as when not
separated by periods. The "§" symbol means "section" when used in
conjunction with the United States Code, state Codes, etc., or
"part" when used in conjunction with Code of Federal Regulations
cites.

The United States Code uses more or less the same wording
regardless of edition. The U.S.C., or United States Code, is
pretty much the raw stuff, usually with minimum notes, case
cites, etc. The United States Code Annotated adds notes via court
cases, etc., and the United States Code Service is the lawyer's
edition, produced by West Law, Lawyers' Cooperative, and other
companies, that includes histories, study materials, etc. Most
state codes come in the Code and Annotated varieties.

Several titles of the 50-Title United States Code are important
to "patriot" research, particularly with respect to the federal
tax system. First, of course, is Title 26, known as the Internal
Revenue Code. However, Title 26 is merely prima facie -- evidence
of the law -- it is not the law itself. The Internal Revenue Code
of 1954, which is the basis of most income, Social Security and
related tax, is Volume 68A of the Statutes at Large.
Consequently, it is necessary to work back and forth among Title
26, 68A Stat., and titles 26 & 27 of the Code of Federal
Regulations. Additionally, statutes in Titles 4, 5, 18, 28, 31
and 48, with their respective regulations, have a bearing on the
federal tax system. Where the judicial system is concerned,
Titles 5, 18 & 28 are all important. However, it is important to
go to the foundation for United States judicial authority -- the
Judicial Act of 1911 is particularly important.

People across the country are contributing research at such a
phenomenal rate that it's almost impossible to keep up, so this
file shouldn't be viewed as "the last word" on anything. As has
been the case with By the IRS Book: Meador's Legal Warfare
Manual, which is now in the 9th major revision since April 1995,
materials in this file will be ever-expanding as new research
comes in and time permits. This compilation of material is simply
intended to be another usable tool for an enterprise which
requires lots of tools.

July 1996

*****

28 USCS § 1441

§ 1441. Actions removable generally

(a) Except as otherwise expressly provided by Act of Congress,
any civil action brought in a State court of which the district
courts of the United States have original jurisdiction, may be
removed by the defendant or the defendants, to the district court
of the United States for the district and division embracing the
place where such action is pending.

(b) Any civil action of which the district courts have original
jurisdiction founded on a claim or right arising under the
Constitution, treaties or laws of the United States shall be
removable without regard to the citizenship or residence of the
parties. Any other such action shall be removable only if none of
the parties in interest properly joined and served as defendants
is a citizen of the State in which such action is brought.

(c) Whenever a separate and independent claim or cause of action,
which would be removable if sued upon alone, is joined with one
or more otherwise nonremovable claims or causes of action, the
entire case may be removed and the district court may determine
all issues therein, or, in its discretion, may remand all matters
not otherwise within its original jurisdiction.

(d) Any civil action brought in a State court against a foreign
state as defined in section 1603(a) of this title [28 USCS §
1603(a)] may be removed by the foreign state to the district
court of the United States for the district and division
embracing the place where such action is pending. Upon removal
the action shall be tried by the court without jury. Where
removal is based upon this subsection, the time limitations of
section 1446(b) of this chapter [28 USCS § 1446(b)] may be
enlarged at any time for cause shown.

(June 25, 1948, c. 646, § 1, 62 Stat. 937; Oct. 21, 1976, P.L.
94-583, § 6, 90 Stat. 2898.)

28 USCS § 2410

§ 2410. Actions affecting property on which United States has
lien

(a) Under the conditions prescribed in this section and section
1444 of this title [28 USCS § 1444] for the protection of the
United States, the United States may be named a party in any
civil action or suit in any district court, or in any State court
having jurisdiction of the subject matter --

(1) to quiet title to,

(2) to foreclose a mortgage or other lien upon,

(3) to partition,

(4) to condemn, or

(5) of interpleader or in the nature of interpleader with
respect to, real or personal property on which the United States
has or claims a mortgage or other lien.

(b) The complaint or pleading shall set forth with particularity
the nature of the interest or lien of the United States. In
actions or suits involving liens arising under the internal
Revenue Laws, the complaint or pleading shall include the name
and address of the taxpayer whose liability created the lien and,
if a notice of the tax lien was filed, the identity of the
internal revenue office which filed the notice, and the date and
place such notice of lien was filed. In actions in the State
courts service upon the United States shall be made by serving
the process of the court with a copy of the complaint upon the
United States attorney for the district in which the action is
brought or upon an assistant United States attorney or clerical
employee designated by the United States attorney in writing
filed with the clerk of the court in which the action is brought
and by sending copies of the process and complaint, by registered
mail, or by certified mail, to the Attorney General of the United
States at Washington, District of Columbia. In such actions the
United States may appear and answer, plead or demur within sixty
days after such service or such further time as the court may
allow.

(c) A judgment or decree in such action or suit shall have the
same effect respecting the discharge of the property from the
mortgage or other lien held by the United States as may be
provided with respect to such matters by the local law of the
place where the court is situated. However, an action to
foreclose a mortgage or other lien, naming the United States as a
party under this section, must seek judicial sale. A sale to
satisfy a lien inferior to one of the United States shall be made
subject to and without disturbing the lien of the United States,
unless the United States consents that the property may be sold
free of its lien and the proceeds divided as the parties may be
entitled. Where a sale of real estate is made to satisfy a lien
prior to that of the United States, the United States shall have
one year from the date of sale within which to redeem, except
that with respect to a lien arising under the internal revenue
laws the period shall be 120 days or the period allowable for
redemption under State law, whichever is longer, and in any case
in which, under the provisions of section 505 of the Housing Act
of 1950, as amended (12 U.S.C. 1701k) [12 USCS § 1701k], and
subsection (d) of section 1820 of title 28 United States Code [38
USCS § 1820], the right to redeem does not arise, there shall be
no right of redemption. In any case where the debt owing the
United States is due, the United States may ask, by way of
affirmative relief, for the foreclosure of its own lien and where
property is sold to satisfy a fires lien held by the United
States, the United States may bid at the sale such sum, not
exceeding the amount of its claim with expenses of sale, as may
be directed by the head (or his delegate) of the department or
agency of the United States which has charge of the
administration of the laws in respect to which the claim of the
United States arises.

(d) In any case in which the United States redeems real property
under this section or section 7425 of the Internal Revenue Code
of 1954 [26 U.S.C. § 7525], the amount to be paid for such
property shall be the sum of --

(1) the actual amount paid by the purchaser at such sale (which,
in the case of a purchaser who is the holder of the lien being
foreclosed, shall include the amount of the obligation secured by
such lien to the extend satisfied by reason of such sale),

(2) interest on the amount paid (as determined under paragraph
(1)) at 6 percent per annum from the date of such sale, and

(3) the amount (if any) equal to the excess of (A) the expenses
necessarily incurred in connection with such property, over (B)
the income from such property plus (to the extend such property
is used by the purchaser) a reasonable rental value of such
property.

(e) Whenever any person has a lien upon any real or personal
property, duly recorded in the jurisdiction in which the property
is located, and a junior lien, other than a tax lien, in favor of
the United States attaches to such property, such person may make
a written request to the officer charged with the administration
of the laws in respect of which the lien of the United States
arises, to have the same extinguished. If after appropriate
investigation, it appears to such officer that the proceeds from
the ale of property would be insufficient to wholly or partly
satisfy the lien of the United States, or that the claim of the
United States has been satisfied or by lapse of time or otherwise
has become unenforceable, such officer shall so report to the
Comptroller General who may issue a certificate releasing the
property from such lien.

(June 25, 1948, c. 646, § 1, 62 Stat. 972; May 24, 1949, c. 139,
§ 119, 63 Stat. 105; July 7, 1958, P.L. 85-508, § 12(h), 72
Stat. 348; June 11, 1960, P.L. 85-507, § 1(20), 74 Stat. 201;
Nov. 2, 1966, P.L. 89-719, Title II, § 201, 80 Stat. 1147)

Sec. 6326. ADMINISTRATIVE APPEAL OF LIENS.

{Sec. 6326(a)]

(a) In General. -- In such form and at such time as the Secretary
shall prescribe by regulations, any person shall be allowed to
appeal to the Secretary after the filing of a notice of a lien
under this subchapter on the property or the rights to property
of such person for a release of such lien alleging an error in
the filing of the notice of such lien.

[Sec. 6326(b)]

(b) Certificate of Release. -- If the Secretary determines that
the filing of the notice of any lien was erroneous, the Secretary
shall expeditiously (and, to the extent practicable, within 14
days after such determination ) issue a certificate of release of
such lien and shall include in such certificate a statement that
such filing was erroneous.

26 CFR § 301.6326.1 Administrative appeal of the erroneous filing
of notice of federal tax lien.

(a) In general. Any person may appeal to the district director of
the district in which a notice of federal tax lien was filed on
the property or rights to property of such person for a release
of lien alleging an error in the filing of notice of lien. Such
appeal may be used only for the purpose of correcting the
erroneous filing of a notice of lien, not to challenge the
underlying deficiency that led to the imposition of a lien. If
the district director determines that the Internal Revenue
Service has erroneously filed the notice of any federal tax lien,
the district director shall especially, and, to the extend
practicable, within 14 days after such determination, issue a
certificate of release of lien. The certificate of release of
such lien shall include a statement that the filing of notice of
lien was erroneous.

(b) Appeal alleging an error in the filing of notice of lien. For
purposes of paragraph (a) of this section, an appeal of the
filing of notice of federal tax lien must be based on any one of
the following allegations.

(1) The tax liability that gave rise to the lien, plus any
interest and additions to tax associated with said liability, was
satisfied prior to the filing of notice of lien;

(2) The tax liability that gave rise to the lien was assessed in
violation of the deficiency procedures set forth in section 6312
of the Internal Revenue Code.

(3) The tax liability that gave rise to the lien was assessed in
violation of Title 11 of the United States Code (the Bankruptcy
Code); or

(4) The statutory period for collection of the tax liability that
gave rise to the lien expired prior to the filing of notice of
federal tax lien.

(d) Procedures for appeal -- (1) Manner. An appeal of the filing
of notice of federal tax lien shall be made in writing to the
district director (marked for the attention of the Chief, Special
Procedures Function) of the district in which the notice of
federal tax lien was filed.

(2) Form. The appeal shall include the following information and
documents:

(I) Name, current address, and taxpayer identification number of
the person appealing the filing of notice of federal tax lien;

(ii) A copy of the notice of federal tax lien affecting the
property, if available; and

(iii) The grounds upon which the filing of notice of federal tax
lien is being appealed.

(B) If the ground upon which the filing of notice is being
appealed is that the tax liability that gave rise to lien was
assessed in violation of the deficiency procedures set forth in
section 6213 of the Internal Revenue Code, the appealing party
must explain how the assessment was erroneous.

(f) Exclusive remedy. The appeal established by section 6326 of
the Internal Revenue Code and by this section shall be the
exclusive administrative remedy with respect to the erroneous
filing of a notice of federal tax lien.

[Sec. 6343]

SEC. 6343. AUTHORITY TO RELEASE LEVY AND RETURN PROPERTY.

[Sec. 6343(b)]

(b) RETURN OF PROPERTY. -- If the Secretary determines that
property has been wrongfully levied upon, it shall be lawful for
the Secretary to return --

(1) the specific property levied upon,

(2) an amount of money, equal to the amount of money levied upon,
or

(3) an amount of money equal to the amount of money received by
the United States from a sale of such property.

Property may be returned at any time. An amount equal to the
amount of money levied upon or received from such sale may be
returned at any time before the expiration of 9 months from the
date of such levy. For purposes of paragraph (3), if property is
declared purchased by the United States at a sale pursuant to
section 6335(e) (relating to manner and conditions of sale), the
United States shall be treated as having received an amount of
money equal to the minimum price determined pursuant to such
section or (if larger) the amount received by the United States
from the resale of such property.

26 CFR § 301.6343-1

§ 301.6343-1 Authority to release levy and return property.

(b) Return of property -- (1) General rule. If the district
director determines that property has been wrongfully levied
upon, the district director may return --

(I) The specific property levied upon.

(ii) An amount of money equal to the amount of money levied upon
(without interest), or

(iii) An amount of money equal to the amount of money received by
the United States from a sale of the property (without interest).

If the United States is in possession of specific property, the
property may be returned at any time. An amount equal to the
amount of money levied upon or received from a sale of the
property may be returned at any time before the expiration of 9
months from the date of the levy. When a request described in
subparagraph (2) of this paragraph is filed for the return of
property before the expiration of 9 months from the date of levy,
an amount of money may be returned after a reasonable period of
time subsequent to the expiration of the 9-month period if
necessary for the investigation and processing of such request.
In cases where money is specifically identifiable, as in the case
of a coin collection which may be worth substantially more than
its face value, the money will be treated as specific property
and, whenever possible, this specific property will be returned.
For purposes of subparagraph (1)(iii) of this paragraph (b), if
property is declared purchased by the United States at a sale
pursuant to section 6335(e), the United States is treated as
having received an amount of money equal to the minimum price
determined by the district director before the sale or, if
larger, the amount received by the United States from the resale
of the property.

(2) Request for return of property. A written request for the
return of property wrongfully levied upon shall be addressed to
the district director (marked for the attention of the chief,
special procedures staff) for the internal revenue district in
which the levy was made. The written request shall contain the
following information:

(I) The name and address of the person submitting the request.

(ii) A detailed description of the property levied upon,

(iii) A description of the claimant's basis for claiming an
interest in the property levied upon, and

(iv) The name and address of the taxpayer, the originating
internal revenue district, and the date of lien or levy as shown
on the Notice of Tax Lien (Form 668), Notice of Levy (Form 668-
A), or Levy (Form 668-B), or, in lieu thereof, a statement of the
reasons why such information cannot be furnished.

(3) Inadequate request. Any request made prior to June 1, 1972,
which apprises the Internal Revenue Service of the claimant's
demand for the return of property wrongfully levied upon shall be
considered adequate. A request made after May 31, 1972, shall not
be considered adequate unless it is a written request containing
the information required by subparagraph (2) of this paragraph
(b). However, unless a notification is mailed by the district
director to the claimant within 30 days of receipt of the request
to inform the claimant of the inadequacies, any written request
shall be considered adequate. If the district director timely
notifies the claimant of the inadequacies of this request, the
claimant shall have 30 days from the receipt of the notification
of inadequacy to supply in writing any omitted information. Where
the omitted information is so supplied within the 30 day period,
the request shall be considered to be adequate from the time the
original request was made for purposes of determining the
applicable period of limitation upon suit under section 6532(c).

[Sec. 7214]

SEC. 7214 OFFENSES BY OFFICERS AND EMPLOYEES OF THE UNITED
STATES.

[Sec. 7214(a)]

(a) UNLAWFUL ACTS OF REVENUE OFFICERS AND EMPLOYEES OF THE UNITED
STATES.

[Sec. 7214(a)]

(a) UNLAWFUL ACTS OF REVENUE OFFICERS OR AGENTS. -- Any officer
or employee of the United States acting in connection with any
revenue law of the United States --

(1) who is guilty of any extortion or willful oppression under
color of law, or

(2) who knowingly demands other or greater sums than are
authorized by law or receives any fee, compensation, or reward,
except as by law prescribed, for the performance of any duty, or

(3) who with intent to defeat the application of any provision of
this title fails to perform any of the duties of his office or
employment; or

(4) who conspires or colludes with any other person to defraud
the United States, or

(5) who knowingly makes opportunity for any person to defraud the
United States; or

(6) who does or omits to do any act with intent to enable any
other person to defraud the United States; or

(7) who makes or signs any fraudulent entry in any book, or makes
or signs any fraudulent certificate, return, or statement; or

( who, having knowledge of information of the violation of any
revenue law by any person, or of fraud committed by any person
against the United States under any revenue law, fails to report,
in writing, such knowledge or information to the Secretary; or

(9) who demands, or accepts, or attempts to collect, directly or
indirectly as payment or gift, or otherwise, any sum of money or
other thing of value for the compromise, adjustment, or
settlement of any charge or complaint for any violation or
alleged violation of law, except as expressly authorized by law
so to do,

shall be dismissed from office or discharged from employment and,
upon conviction thereof, shall be fined not more than $10,000, or
imprisoned not more than 5 years, or both. The court may in its
discretion award out of the fine so imposed an amount, not to in
excess of one-half thereof, for the use of the informant, if any,
who shall be ascertained by the judgment of the court. The court
also shall render judgment against the said officer or employee
for the amount of damages sustained in favor of the party
injured, to be collected by execution.

26 CFR § 301.7214-1

§ 301.7214-1 Offenses by officers and employees of the United
States

Any officer or employee of the United States acting in connection
with any revenue law of the United States required to make a
written report under provisions of section 7214(a)(3) shall
submit such report to the Commissioner, or to a regional
commissioner or district director.

SEC. 7421 (26 U.S.C. 7421). PROHIBITION OF SUITS TO RESTRAIN
ASSESSMENT OR COLLECTION.

[Sec. 7421(a)]

(a) Tax. -- Except as provided in sections 6212(a) and (c),
6113(a), 6672(b), 6694(c), 7426(a) and (b)(1), and 7429(b), no
suit for the purpose of restraining the assessment or collection
of any tax shall be maintained in any court by any person,
whether or not such person is the person against whom such tax
was assessed.
[Sec. 7421(b)]

(b) Liability of Transferee or Fiduciary.-- No suit shall be
maintained in any court for the purpose of restraining the
assessment or collection (pursuant to the provisions of chapter
71) of --

(1) the amount of the liability, at law or in equity, of a
transferee of property as a taxpayer in respect of any internal
revenue law, or

(2) the amount of the liability of a fiduciary under section
3713(b) of title 31, United States Code in respect of any such
tax.

SEC. 7430. AWARDING OF COSTS AND CERTAIN FEES.

[Sec. 7430(a)]

(a) In General. -- In any administrative or court proceeding
which is brought by or against the United States in connection
with the determination, collection, or refund of any tax,
interest, or penalty under this title, the prevailing party may
be awarded a judgment or a settlement for --

(1) reasonable administrative costs incurred in connection with
such administrative proceeding within the Internal Revenue
Service, and

(2) reasonable litigation costs incurred in connection with such
court proceeding.

[Sec. 7430(b)]

(b) Limitations. --

(1) Requirement that Administrative Remedies be Exhausted. -- A
judgment for reasonable litigation costs shall not be awarded
under subsection (a) in any court proceeding unless the court
determines that the prevailing party has exhausted the
administrative remedies available to such party within the
Internal Revenue Service.

(2) Only Costs Allocable to the United States. -- An award under
subsection (a) shall be made only for reasonable litigation and
administrative costs which are allocable to the United States and
not to any other party.

(3) Exclusion of Declaratory Judgment Proceedings. --

(A) In General. -- No award for reasonable litigation costs may
be made under subsection (a) with respect to any declaratory
judgment proceeding.

(B) Exception for Section 501(c)(3) Determination Revocation
Proceedings. -- Subparagraph (A) shall not apply in any
proceeding which involves the revocation of a determination that
the organization is described in section 501(c)(3).

(4) Costs Defined Where Party Prevailing Protracts Proceedings. -
- No award for reasonable litigation and administrative costs may
be made under subsection (a) with respect to any portion of the
administrative or court proceeding during which the prevailing
party has unreasonably protracted such proceeding.

(1) Reasonable Litigation Costs. -- The term "reasonable
litigation costs" includes --

(A) reasonable court costs, and

(B) based upon prevailing market rates for the kind or quality of
services furnished --

(I) the reasonable expenses of expert witnesses in connection
with a court proceeding, except that no expert witness shall be
compensated at a rate in excess of the highest rate of
compensation for expert witnesses paid by the United States,

(ii) the reasonable cost of any study, analysis, engineering
report, test, or project which is found by the court to be
necessary for the preparation of the party's case, and

(iii) reasonable fees paid or incurred for the services of
attorneys in connection with the court proceeding, except that
such fees shall not be in excess of $75 per hour unless the court
determines that an increase in the cost of living or a special
factor, such as the limited availability of qualified attorneys
for such proceeding, justifies a higher rate.

(2) Reasonable Administrative Costs. -- The term "reasonable
administrative costs" means --

(A) any administrative fees or similar charges imposed by the
Internal Revenue Service, and

(B) expenses, costs, and fees described in paragraph (1)(B),
except that any determination made by the court under clause (ii)
or (iii) thereof shall be made by the Internal Revenue Service in
cases where the determination under paragraph (4)(B) of the
awarding of reasonable administrative costs is made by the
Internal Revenue Service.

Such term shall only include costs incurred on or after the
earlier of (I) the date of the receipt by the taxpayer of the
notice of the decision of the Internal Revenue Service Office of
Appeals, or (ii) the date of the notice of deficiency.

(32) Attorney's Fees. -- For purposes of paragraphs (1) and (2),
fees for the services of n individual (whether or not an
attorney) who is authorized to practice before the Tax Court or
before the Internal Revenue Service shall be treated as fees for
the services of an attorney.
(4) Prevailing Party. --

(A) In General. -- The term "prevailing party" means any party in
any proceeding to which subsection (a) applies (other than the
United States or any creditor of the taxpayer involved) --

(I) which establishes that the position of the United States in
the proceeding was not substantially justified, or

(II) has substantially prevailed with respect to the most
significant issue or set of issues presented, and

(iii) which meets the requirements of the 1st sentence of section
2412(d)(I)(B) of title 28, United States Code (as in effect on
October 22, 1986) except to the extent differing procedures are
established by rule of court and meets the requirements of
section 2412(d)(2)(B) of such title 28 (as so in effect).

(B) Determination As to Prevailing Party. -- Any determination
under subparagraph (A) as to whether a party is a prevailing
party shall be made by agreement of the parties or --

(I) in the case where the final determination with respect to the
tax, interest, or penalty is made at the administrative level, by
the Internal Revenue Service, or

(ii) in the case where such final determination is made by a
court, the court.

(5) Administrative Proceedings. -- The term "administrative
proceeding" means any procedure or other action before the
Internal Revenue Service.

(6) Court Proceedings. -- The term "court proceedings" means any
civil action brought in a court of the United States (including
the Tax Court and the United States Claims Court).

(7) Position of United States. -- The term "position of the
United States" means --

(A) the position taken by the United States in a judicial
proceeding to which subsection (a) applies, and

(B) the position taken in an administrative proceeding to which
subsection (a) applies as of the earlier of --

(I) the date of the receipt by the taxpayer of the notice of the
decision of the Internal Revenue Service Office of Appeals, or

(ii) the date of the notice of deficiency.

[Sec. 7430(d)]

(d) Special Rules for Payment of Costs. --

(1) Reasonable Administrative Costs. -- An award for reasonable
administrative costs shall be payable out of funds appropriated
under 1304 of title 31, United States Code.

(2) Reasonable Litigation Costs. -- An award for reasonable
litigation costs shall be payable in the case of the Tax Court in
the same manner as such an award by a district court.

[Sec. 7430(e)]

(e) Multiple Actions. -- For purposes of this section, in the
case of --

(1) multiple actions which could have been joined or
consolidated, or

(2) a case or cases involving a return or returns of the same
taxpayer (including joint returns of married individuals) which
could have been joined in a single court proceeding in the same
court, such actions or cases shall be treated as 1 court
proceeding regardless of whether such joinder or consolidation
actually occurs, unless the court in which such action is
brought determines, in its discretion, that it would be
inappropriate to treat such actions or cases as joined or
consolidated.

[7430(f)]

(f) Right of Appeal. --

(1) Court Proceedings. -- An order granting or denying (in whole
or in part) an award for reasonable litigation or administrative
costs under subsection (a) in a court proceeding, may be
incorporated as a part of the decision or judgment in the court
proceeding and shall be subject to appeal in the same manner as
the decision or judgment.

(2) Administrative Proceedings. -- A decision granting or denying
(in whole or in part) an award for reasonable administrative
costs under subsection (a) by the Internal Revenue Service shall
be subject to appeal to the Tax Court under rules similar to the
rules under section 7463 (without regard to the amount in
dispute).

26 CFR § 301.7430-1

§ 301.7430-1 Exhaustion of administrative remedies

(a) In General. Section 7430(b)(2) provides that a court shall
not award reasonable litigation costs in any civil tax proceeding
under 7430(a) unless the court determines that the prevailing
party has exhausted the administrative remedies available to the
party within the Internal Revenue Service. This section sets
forth the circumstances in which the Internal Revenue Service
normally will consider such administrative remedies exhausted.

(b) Tax, penalty and addition to tax -- (1) In general. A party
has not exhausted its administrative remedies available within
the Internal Revenue Service with respect to any tax matter for
which an Appeals office conference is available under §§ 601.105
and 601.106 of the Statement of Procedural Rules (26 CFR Part
601) (other than a tax matter described in paragraph (c)) unless
--

(I) The party, prior to filing a petition in the Tax Court or a
civil action for refund in a court of the United States --

(A) Participates, either in person or through a qualified
representative described in § 601.502 of the Statement of
Procedural Rules, in an Appeals office conference; and

(B) Agrees under section 6501(c)(4) to extend the time for an
assessment of tax if necessary to provide the Appeals office with
a reasonable time period to consider the tax matter; or

(ii) If no Appeals office conference is granted, the party, prior
to the issuance of a statutory notice of deficiency in the case
of a petition in the Tax Court or the issuance of a statutory
notice of disallowance in the case of a civil action for refund
in a court of the United States --

(A) Requests an Appeals office conference in accordance with §§
601.105 and 601.106 of the Statement of Procedural Rules;

(B) Files a written protest if a written protest is required to
obtain an Appeals office conference; and

(C) Agrees under section 6501(c)(4) to extend the time for an
assessment of tax if necessary to provide the Appeals office with
a reasonable time period to consider the tax matter.

(2) Participates. For purposes of this paragraph a party or
qualified representative of the party described in § 601.502 of
the Statement of Procedural Rules participates in an Appeals
office conference if the party or qualified representative
discloses to the Appeals office all relevant information
regarding the party's tax matter to the extent such information
and its relevance were known or should have been known to the
party or qualified representative at the time of such conference.

(d) Actions involving summonses, levies, liens, jeopardy and
termination assessments, etc. (1) A party has not exhausted its
administrative remedies available within the Internal Revenue
Service with respect to a matter other than one to which
paragraph (b) or (c) applies (including summonses, levies, liens
and jeopardy and termination assessments) unless, prior to filing
an action in a court of the United States --

(i) The party submits to the district director of the district
having jurisdiction over the dispute a written claim for relief
reciting facts and circumstances sufficient to show the nature of
the relief requested and that the party is entitled to such
relief; and

(ii) The district director has denied the claim for relief in
writing or failed to act on the claim within a reasonable period
after such claim is received by the district director.

(2) For purposes of this paragraph, a reasonable period is --

(I) The 5-day period preceding the filing of a petition to quash
an administrative summons issued under section 7609;

(ii) The 5-day period preceding the filing of a wrongful levy
action in which a demand for the return of property is made;

(iii) The period expressly provided for administrative review of
the party's claim by an applicable provision of the Internal
Revenue Code that expressly provides for the pursuit of
administrative remedies (such as the 16-day period provided under
7429(b)(1)(B) relating to review of jeopardy assessment
procedures); or

(iv) The 60-day period following receipt of the claim for relief
in all other cases.

(e) Tax matter. For purposes of this section "tax matter" means a
matter in connection with the determination, collection or refund
of any tax, interest or penalty under the Internal Revenue Code.

(f) Exception to requirement that party pursue administrative
remedies. A party's administrative remedies within the Internal
Revenue Service are considered exhausted for purposes of section
7430 if --

(1) The Internal Revenue Service notifies the party in writing
that the pursuit of administrative remedies in accordance with
paragraphs (b), (c), and (d) is unnecessary.

(2) In the case of a petition in the Tax Court --

(i) The party did not receive a preliminary notice of proposed
deficiency (30-day letter) prior to the issuance of the statutory
notice of deficiency and the failure to receive such notice was
not due to actions of the party (such as a refusal to sign an
extension of time for assessment or failure to supply requested
information or a current mailing address to the district director
or service center having jurisdiction over the tax matter); and

(ii) The party does not refuse to participate in an Appeals
office conference while the case is in docketed status.

(3) In the case of a civil action for refund involving a tax
matter other than a tax matter described in paragraph (4), the
party --

(I) Exhausted the administrative remedies available within the
Internal Revenue Service with respect to the tax matter prior to
issuance of a statutory notice of deficiency with respect to such
tax matter;

(ii) Did not receive a preliminary notice of proposed
disallowance prior to issuance of a statutory notice of
disallowance and the failure to receive such notice was not due
to actions of the party (such as the failure to supply requested
information or a current mailing address to the district director
or service center having jurisdiction over the tax matter); or

(iii) Did not receive either written or oral notification that an
Appeals office conference had been granted within six months from
the date of the filing of the claim for refund and the failure to
receive such notice was not due to actions of the party (such as
the failure to supply requested information or a current mailing
address to the district director or service center having
jurisdiction over the tax matter).

(4) In the case of a civil action for refund involving a tax
matter under sections 6703 and 6694 --

(I) The party did not receive a preliminary notice of proposed
disallowance prior to issuance of a statutory notice of
disallowance and the failure to resolve such notice was not due
to actions of the party (such as the failure to supply requested
information or a current mailing address to the district director
or service center having jurisdiction over the tax matter); or

(ii) During the six-month period following the day on which the
party's claim for refund is filed, the party's claim for refund
is not denied and there is no Appeals office conference with
respect to the claim in which the party could participate (within
the meaning of paragraph (b)).

[Examples omitted]

(h) Effective date. Section 7430 and the regulations thereunder
apply to civil proceedings described in section 7430 filed in a
court of the United States (including the Tax Court) after
February 28, 1983, and before January 1, 1986.

26 U.S.C. § 7431

Sec. 7431. CIVIL DAMAGES FOR UNAUTHORIZED DISCLOSURE OF RETURNS
AND RETURN INFORMATION.

[Sec. 7431(a)]

(a) IN GENERAL. --

(1) DISCLOSURE BY EMPLOYEE OF UNITED STATES. -- If any officer or
employee of the United States knowingly, or by reason of
negligence, discloses any return or return information with
respect to a taxpayer in violation of any provision of section
6103, such taxpayer may bring a civil action for damages against
the United States in a district court of the United States.

(2) DISCLOSURE BY A PERSON WHO IS NOT AN EMPLOYEE OF UNITED
STATES. -- If any person who is not an officer or employee of the
United States knowingly, or by reason of negligence, discloses
any return or return information with respect to a taxpayer in
violation of any provision of section 6103, such taxpayer may
bring a civil action for damages against such person in a
district court of the United States.

[Sec. 7431(b)]

(b) NO LIABILITY FOR GOOD FAITH BUT ERRONEOUS INTERPRETATION. --
No liability shall arise under this section with respect to any
disclosure which results from a good faith, but erroneous,
interpretation of section 6103.

[Sec. 7431(c)]

(c) DAMAGES. -- In any action brought under subsection (a), upon
a finding of liability on the part of the defendant, the
defendant shall be liable to the plaintiff in an amount equal to
the sum of --

(1) the greater of --

(A) $1,000 for each act of unauthorized disclosure of a return or
return information with respect to which such defendant is found
liable, or

(B) the sum of --

(I) the actual damages sustained by the plaintiff as a result of
such unauthorized disclosure, plus

(ii) in the case of a willful disclosure or a disclosure which is
the result of gross negligence, punitive damages, plus

(2) the costs of the action.

[Sec. 7431(d)]

(d) PERIOD FOR BEGINNING ACTION. -- Notwithstanding any other
provision of law, an action to enforce any liability created
under this section may be brought, without regard to the amount
in controversy, at any time within 2 years after the date of
discovery by the plaintiff of the unauthorized disclosure.

[Sec. 7431(e)]

(e) NOTICE OF FAILURE TO RELEASE LIEN. -- The Secretary shall by
regulation prescribe reasonable procedures for a taxpayer to
notify the Secretary of the failure to release a lien under
section 6325 on property of the taxpayer.

[Sec. 7433]

SEC. 7433. CIVIL DAMAGES FOR CERTAIN UNAUTHORIZED COLLECTION
ACTIONS.

[Sec. 7433(a)]

(a) IN GENERAL. -- If, in connection with any collection of
Federal tax with respect to a taxpayer, any officer or employee
of the Internal Revenue Service recklessly or intentionally
disregards any provision of this title, or any regulation
promulgated under this title, such taxpayer may bring a civil
action for damages against the United States in a district court
of the United States. Except as provided in section 7432, such
civil action shall be the exclusive remedy for recovering damages
resulting from such actions.

[Sec. 7433(b)]

(b) DAMAGES. -- In any action brought under subsection (a), upon
a finding of liability on the part of the defendant, the
defendant shall be liable to the plaintiff in an amount equal to
the lessor of $100,000 or the sum of --

(1) actual, direct economic damages sustained by the plaintiff as
a proximate result of the reckless or intentional actions of the
officer or employee, and

(2) the costs of the action.

[Sec. 7433(c)]

(c) PAYMENT AUTHORITY. -- Claims pursuant to this section shall
be payable out of funds appropriated under section 1304 of title
31, United States Code.

[Sec. 7433(d)]

(d) LIMITATIONS. --

(1) REQUIREMENT THAT ADMINISTRATIVE REMEDIES BE EXHAUSTED. -- A
judgment for damages shall not be awarded under subsection (b)
unless the court determines that the plaintiff has exhausted the
administrative remedies available to such plaintiff within the
Internal Revenue Service.

(2) MITIGATION OF DAMAGES. -- The amount of damages awarded under
subsection (b)(1) shall be reduced by the amount of such damages
which could have reasonably been mitigated by the plaintiff.

(3) PERIOD FOR BRINGING ACTION.-- Notwithstanding any other
provision of law, an action to enforce liability created under
this section may be brought without regard to the amount in
controversy and may be brought only within 2 years after the date
the right of action accrues.

26 CFR § 301.7433-1

§ 301.7433-1 Civil cause of action for certain unauthorized
collection actions.

(a) In general. If, in connection with the collection of a
federal tax with respect to a taxpayer, an officer or an employee
of the Internal Revenue Service recklessly or intentionally
disregards any provision of the Internal Revenue Code or any
regulation promulgated under the Internal Revenue Code, such
taxpayer may bring a civil action for damages against the United
States in federal district court. The taxpayer has a duty to
mitigate damages. The total amount of damages recoverable is the
lessor of $100,000, or the sum of:

(1) The actual, direct economic damages sustained as a proximate
result of the reckless or intentional actions of the officer or
employee; and

(2) Costs of the action.

An action for damages filed in federal district court may not be
maintained unless the taxpayer has filed an administrative claim
pursuant to paragraph (e) of this section, and has waited for the
period required under paragraph (d) of this section.

(b) Actual, direct economic damages --

(1) Definition. Actual, direct economic damages are actual
pecuniary damages sustained by the taxpayer as the proximate
result of the reckless or intentional actions of an officer or an
employee of the Internal Revenue Service. Injuries such as
inconvenience, emotional distress and loss of reputation are
compensable only to the extent that they result in actual
pecuniary damages.

(2) Litigation costs and administrative costs not recoverable.
Litigation costs and administrative costs are not recoverable as
actual, direct economic damages. Litigation costs may be
recoverable under section 7430 (see paragraph (h) of this
section) or, solely to the extent described in paragraph (c) of
this section, as costs of the action.

(I) Litigation costs. For purposes of this paragraph, litigation
costs are any costs incurred pursuing litigation for relief from
the action taken by the officer or employee of the Internal
Revenue Service, including costs incurred pursuing a civil action
in federal district court under paragraph (a) of this section.
The term litigation costs include the following:

(A) Court costs;

(B) Expenses of expert witnesses...

(D) Fee paid or incurred for the services of attorneys, or other
individuals authorized to practice before the court, in
connection with a court proceeding.

(ii) Administrative costs. For purposes of this section,
administrative costs are any costs incurred pursuing
administrative relief from the action taken by an officer or
employee of the Internal Revenue Service, including costs
incurred pursuing an administrative claim for damages under
paragraph (e) of this section. The term administrative costs
includes:

(A) Any administrative fees or similar charges imposed by the
Internal Revenue Service; and

(B) Expenses, costs, and fees described in paragraph (b)(2)(i) of
this section incurred pursuing administrative relief.

(c) Costs of the action. Costs of the action recoverable as
damages under this section are limited to the following costs:

(1) Fees of the clerk and marshal;

(2) Fees of the court reporter for all or any part of the
stenographic transcript necessarily obtained for use in the case;

(3) Fees and disbursements for printing and witnesses;

(4) Fees for exemplification and copies of paper necessarily
obtained for use in the case;

(5) Docket fees; and

(6) Compensation of court appointed experts and interpreters.

(d) No civil action in federal district court prior to filing an
administrative claim -- (1) Except as provided in paragraph
(d)(2) of this section, no action under paragraph (a) of this
section shall be maintained in any federal district court before
the earlier of the following dates:

(i) The date the decision is rendered on a claim filed in
accordance with paragraph (e) of this section; or

(ii) The date six months after the date an administrative claim
if filed in accordance with paragraph (e) of this section.

(2) If an administrative claim is filed in accordance with
paragraph (e) of this section during the last six months of the
period of limitations described in paragraph (g) of this section,
the taxpayer may file an action in federal district court any
time after the administrative claim is filed and before the
expiration of the period of limitations.

(e) Procedures for an administrative claim -- (1) Manner. An
administrative claim for the lessor of $100,000 or actual, direct
economic damages as defined in paragraph (b) of this section
shall be sent in writing to the district director (marked for the
attention of the Chief, Special Procedures Function) of the
district in which the taxpayer currently resides.

(2) Form. The administrative claim shall include:

(i) The name, current address, current home and work telephone
numbers and any convenient times to be contacted, and taxpayer
identification number of the taxpayer making the claim;

(ii) The grounds, in reasonable detail, for the claim (including
copies of any available substantiating documentation or
correspondence with the Internal Revenue Service);

(iii) A description of the injuries incurred by the taxpayer
filing the claim (including copies of any available
substantiating documentation or evidence);

(iv) The dollar amount of the claim, including any damages that
have not yet been incurred but which are reasonably foreseeable
(include copies of any available substantiating documentation or
evidence); and

(v) The signature of the taxpayer or duly authorized
representative.

For purposes of this paragraph, a duly authorized representative
is any attorney, certified public accountant, enrolled actuary,
or any other person permitted to represent the taxpayer before
the Internal Revenue Service who is not disbarred or suspended
from practice before the Internal Revenue Service and who has a
written power of attorney executed by the taxpayer.

(f) No action in federal district court for any sum in excess of
the dollar amount sought in the administrative claim. No action
for actual, direct economic damages under paragraph (a) of this
section shall be instituted in federal district court for any sum
in excess of the amount (already incurred and estimated) of the
administrative claim filed under paragraph (e) of this section,
except where the increased amount is based upon newly discovered
evidence not reasonably discoverable at the time the
administrative claim was filed, or upon allegation and proof of
intervening facts relating to the amount of the claim.

(g) Period of limitations -- (1) Time for filing. A civil action
under paragraph (a) of this section must be brought in federal
district court within 2 years after the date the cause of action
accrues.

(2) Right of action accrues. A cause of action under paragraph
(a) of this section accrues when the taxpayer has had a
reasonable opportunity to discover all essential elements of a
possible cause of action.

(h) Recovery of costs under section 7430. Reasonable litigation
costs, including attorney's fees, not recoverable under this
section may be recoverable under section 7430. If following the
Internal Revenue Service's denial of an administrative claim on
the grounds that the Internal Revenue Service did not violate
section 7433(a), a taxpayer brings a civil action for damages in
a district court of the United States, and establishes
entitlement to damages under this section, substantially prevails
with respect to the amount of damages in controversy and meets
the requirements of section 7430(c)(4)(A)(iii) (relating to
notice and net worth requirements), the taxpayer will be
considered a "prevailing party" for purposes of section 7430.
Such taxpayer, therefore, will generally be entitled to
attorney's fees and other reasonable litigation costs not
recoverable under this section. For purposes of this paragraph,
if the Internal Revenue Service does not respond on the merits of
an administrative claim for damages within six moths after the
claim is filed, the Internal Revenue Service's failure to respond
shall be considered a denial of the claim on the grounds that the
Internal Revenue Service did not violate section 7432(a).
Administrative costs, including attorney's fees incurred pursuing
an administrative claim under paragraph (e) of this section, are
not recoverable under section 7430.

(I) Effective date. This section applies with respect to civil
actions under section 7433 filed after January 30, 1992.

_____________________________________

Levy on Principal Residence

[Sec. 6334(e)]

(e) LEVY ALLOWED ON PRINCIPAL RESIDENCE IN CASE OF JEOPARDY OR
CERTAIN APPROVAL. -- Property described in (a)(13) shall not be
exempt from levy if --

(1) a district director or assistant district director of the
Internal Revenue Service personally approves (in writing) the
levy of such property, or

(2) the Secretary finds that the collection of tax is in
jeopardy.

FORFEITURES

PROPERTY SUBJECT TO FORFEITURE

26 CFR § 301.7304-1 Penalty for fraudulently claiming drawback.

Whenever any person fraudulently claims or seeks to obtain an
allowance of drawback on goods, wares, or merchandise on which no
internal tax shall have been paid, or fraudulently claims any
greater allowance of drawback than the tax actually paid, he
shall forfeit triple the amount wrongfully or fraudulently
claimed or sought to be obtained, or the sum of $500, at the
election of the district director.

PROVISIONS COMMON TO FORFEITURES

§ 301.7321-1 Seizure of property.

Any property subject to forfeiture to the United States under any
provision of the Code may be seized by the district director or
assistant regional commissioner (alcohol, tobacco, and firearms)
for the region wherein the district is located who will take
charge of the property and arrange for its disposal or retention
under the provisions of law and regulations applicable thereto.

§ 301.7322-1 Delivery of seized property to U.S. marshal.

Any forfeitable property which may be seized under the provisions
of the Code may, at the option of the assistant regional
commissioner (alcohol, tobacco, and firearms) be delivered to the
U.S. marshal of the judicial district wherein the property was
seized, and remain in the care and custody and under the control
of such marshal, pending the disposal thereof as provided by law.

§ 301.7324-1 Special disposition of perishable goods.

For regulations relating to the disposal of perishable goods, see
§ 172.30 of this chapter (Disposition of Seized Personal
Property).

§ 301.7326-1 Disposal of forfeited or abandoned property in
special cases

(a) Coin-operated gaming devices.

(b) Narcotics.

§ 301.7327-1 Customs laws applicable.

For regulations relating to the remission or mitigation of
forfeitures, see Part 172 of this chapter (Disposition of Seized
Personal Property)

§ 301.7328-1 Confiscation of matches exported.

Any white phosphorus matches exported or attempted to be exported
shall be seized by the district director and destroyed by the
assistant regional commissioner (alcohol, tobacco, and firearms)
in such manner as he may deem appropriate.

Judicial Proceedings

CIVIL ACTIONS BY THE UNITED STATES

§ 301.7401-1 Authorization.

(a) In general. No civil action for the collection or recovery of
taxes, or of any fine, penalty, or forfeiture, shall be commenced
unless the Commissioner (or the Director, Alcohol, Tobacco and
Firearms Division, with respect to the provisions of subtitle E
of the Code), or the Chief Counsel for the Internal Revenue
Service or his delegate authorizes or sanctions the proceedings
and the Attorney General or his delegate directs that the action
be commenced.

(b) Property held by banks. The Commissioner shall not authorize
or sanction any civil action for the collection or recovery of
taxes, or of any fine, penalty, or forfeiture, from any deposits
held in a foreign office of a bank engaged in the banking
business in the United States or a possession of the United
States unless the Commissioner believes --

(1) That the taxpayer is within the jurisdiction of a U.S. court
at the time the civil action is authorized or sanctioned and that
the bank is in possession of (or obligated with respect to)
deposits of the taxpayer in an office of the bank outside the
United States or a possession of the United States; or

(2) That the taxpayer is not within the jurisdiction of a U.S.
court at the time the civil action is authorized or sanctioned,
that the bank is in possession of (or obligated with respect to)
deposits of the taxpayer in an office outside the United States
or a possession of the United States, and that such deposits
consist, in whole or in part, of funds transferred from the
United States or a possession of the United States in order to
hinder or delay the collection of a tax imposed by the Code.

For purposes of this paragraph, the term "possession of the
United States" includes Guam, the Midway Islands, the Panama
Canal Zone, the Commonwealth of Puerto Rico, American Samoa, the
Virgin Islands, and Wake Island.

________________________________________

Federal Civil/Criminal Liability

(Much of the research by David Miller; tapes & lecture notes
available from Right Way L.A.W.; some taken from Higher Truth;
and some from my research)

18 USCA § 4 -- misprision of felony

18 USCA § 242 -- definition and penalty for depravation of
Citizen's rights under color of law...

18 USCA § 1621 -- criminal penalties for perjury of oath...

18 USCA § 871 -- criminal penalties for extortion via actual or
threatened force...

18 USCS § 1341 -- mail fraud (frauds & swindles)

18 USCS § 2382 -- misprision of treason (failure to disclose
foreign principal & foreign capacity)

18 USCS Appx. § 3C1.1, obstructing or impeding the administration
of justice

26 U.S.C. § 7206 -- fraud and false statements ... fine of not
more than $100,000 or imprisonment of not more than 3 years...

26 U.S.C. § 7207 -- fraudulent returns, statements, or other
documents ... any person who willfully delivers or discloses to
the Secretary any list, return, account, statement, or other
document, known by him to be fraudulent or to be false as to any
material matter, shall be fined not more than $10,000, or
imprisoned not more than 1 years...

26 U.S.C. § 7214(a) -- extortion, oppression, etc., by revenue
officers...

26 U.S.C. § 7431 -- subject to the greater of $1,000 or actual
punitive damages for each unauthorized disclosure action...

28 USCA 1745 -- whoever willfully subscribes as true any material
matter which party does not believe to be true is guilty of
perjury and shall except as otherwise expressly provided by law,
be fined under this title or imprisoned not more than five years,
or both. This section is applicable whether the statement or
subscription is made within or without the U.S. (28 U.S.C. §
1746(1) & (2)).

42 USCA § 1983 -- injury to Citizen's due process rights, failure
to uphold equal protection provisions (see notes 319, 337,
concerning policy & custom; also, notes 333, 349, 350, 351, 352
& 355...)

42 USCA § 1985 -- where two or more conspire to act under color
of law to deprive American Citizen of constitutional rights, all
parties are subject to prosecution for conspiracy (extortion).

42 USCA § 1986 -- anyone with knowledge of constitutional
infractions has a liability, where it is within their power, to
correct such wrong. Failure or neglect to correct results in a
year in jail and a $1,000 fine.

________________________________________

Misc. Notes

See particulars of litigation 26 U.S.C. § 6532(c) & 26 CFR §
301.6532.

Requirement for notice that person must file tax return reports
at 26 CFR § 301.7512-1. See criminal penalties: at subpart (f):

(f) Penalties. For criminal penalty for failure to comply with
any provision of section 7512, see section 7515. For criminal
penalties for failure to file return, supply information, or pay
tax, for failure to collect or pay over tax, and for attempt to
evade or defeat tax, see sections 7203, 7202, and 7201,
respectively. [Regulations for cited statutes (Parallel Table of
Authorities & Rules): § 7512, no regulation published that is
applicable to the several States and the population at large; §
7515, no regs.; §§ 7201, 7202 & 7203, no regs.

LEGAL STATUS OF FEDERAL REGISTER & CODE OF FEDERAL REGULATIONS

The contents of the Federal Register are required to be
judicially notices (44 U.S.C. 1507). The Code of Federal
Regulations is prima facie evidence of the text of the original
documents (44 U.S.C. 1510).

Who is subject to "levy" for Subtitle A & C taxes under 26 U.S.C.
§ 6331(a)?

26 CFR § 301.6331-1(a) Levy and distraint

(4) Certain types of compensation -- (i) Federal employees. Levy
may be made upon the salary or wages of any officer or employee
(including members of the Armed Forces), or elected or appointed
official, of the United States, the District of Columbia, or any
agency or instrumentality of either, by serving a notice of levy
on the employer of the delinquent taxpayer. As used in this
subdivision, the term "employer" means (a) the officer or
employee of the United States, the District of Columbia, or of
the agency or instrumentality of the United States or the
District of Columbia, who has control of the payment of the
wages, or (b) any other officer or employee designated by the
head of the branch, department, agency, or instrumentality of the
United States or of the District of Columbia as the party upon
whom service of the notice of levy may be made. If the head of
such branch, department, agency or instrumentality designates an
officer or employee other than one who has control of the payment
of the wages, as the party upon whom service of the notice of
levy may be made, such head shall promptly notify the
Commissioner of the name and address of each officer or employee
so designated and the scope or extent of his authority as such
designee.

(ii) State and municipal employees. Salaries, wages, or other
compensation of any officer, employee, or elected or appointed
official of a State or Territory, or of any agency,
instrumentality, or political subdivision thereof, are also
subject to levy to enforce collection of any Federal Tax.

(iii) Seamen. Notwithstanding the provisions of section 12 of the
Seamen's Act of 1915 (46 U.S.C. 601), wages of seamen, apprentice
seamen, or fishermen employed on fishing vessels are subject to
levy. See section 6334(c).

Levy extends only to property in possession at time of levy.
However, salary and wages are under continuing levy (§ 6331(e))
to the point the levy is released under § 6343 --

26 U.S.C. § 6331(b)

(b) Seizure and Sale of Property. -- The term "levy" as used in
this title includes the power of distraint and seizure by any
means. Except as otherwise provided in subsection (e), a levy
shall extend only to property possessed and obligations existing
at the time thereof...

Particulars of assessment from 26 CFR, Part 301

§ 301.6201-1 Assessment authority.

(a) In general. The district director is authorized and required
to make all inquires necessary to the determination and
assessment of all taxes imposed by the Internal Revenue Code of
1954 or any prior internal revenue law...

(1) Taxes shown on return. The district director or the director
of the regional service center shall assess all taxes determined
by the taxpayer or by the district director or the director of
the regional service center and disclosed on a return or list.

§ 301.6203-1 Method of assessment

The district director and the director of the regional service
center shall appoint one or more assessment officers. The
district director shall also appoint assessment officers in a
Service Center servicing the district. The assessment shall be
made by an assessment officer signing the summary record of
assessment. The summary record, through supporting records, shall
provide identification of the taxpayer, the character of the
liability assessed, the taxable period, if applicable, and the
amount of the assessment. The amount of the assessment shall, in
the case of tax shown on a return by the taxpayer, be the amount
so shown, and in all other cases the amount of the assessment
shall be the amount shown on the supporting list or record. The
date of the assessment is the date the summary record is signed
by an assessment officer. If the taxpayer requests a copy of the
record of assessment, he shall be furnished a copy of the
pertinent parts of the assessment which set forth the name of the
taxpayer, the date of assessment, the character of the liability
assessed, the taxable period, if applicable, and the amounts
assessed.

Requirements for IRS officer & agent signatures ... provisions
below are uniform both for people subject to tax and IRS officers
and agents when signing the various instruments required by the
Internal Revenue Code and attending regulations. The penalties of
perjury statute is 28 U.S.C. § 1746, with subsection (1) applying
to the several States "without" the United States, and subsection
(2) applying "within" the United States (District of Columbia,
Puerto Rico, etc.).

26 U.S.C. § 6065

Except as otherwise provided by the Secretary, any return,
declaration, statement, or other document required to be made
under any provision of the internal revenue laws or regulations
shall contain or be verified by a written declaration that it is
made under the penalties of perjury.

26 CFR § 1.6065-1 Verification of returns

(a) Persons signing returns. If a return, declaration, statement,
or other document made under the provisions of subtitle A or F of
the Code, or the regulations thereunder, with respect to any tax
imposed by subtitle A of the Code is required by the regulations
contained in this chapter, or the form and instructions, issued
with respect to such return, declaration, statement, or other
document, to contain or be verified by a written declaration that
it is made under the penalties of perjury, and such return,
declaration, statement, or other document shall be so verified by
the person signing it.

________________________________________

Notes & cites from The Higher Truth, Vol. I, Number 3; additions
& comments

Geographical United States subject to Congress' unrestricted
Article IV legislative jurisdiction under Article I, Sec. 2,
Clause 17, and Article IV, Sec. 3, Clause 2 of the United States
Constitution.

The Commercial Clearinghouse Internal Revenue Manual, Vol. I:
"Each regional and district office and service center should
maintain at least one complete and annotated file of all
Delegations of Authority(s) [DOA] made to such office and by such
office."

Reorganization Act of June 20, 1949, 63 Stat. 203, Ch. 226,
authorized the President to reorganize executive agencies (which
were created pursuant to Art. I, Sec. 899, Cl. 17 and Article IV,
Sec. 3, Cl. 2 of the Constitution).

Reorganization Plan, No. 26 of 1950 (Fed. Reg. 4935, 64 Stat.
1280, at 5 U.S.C., Sec. 903, divested the Commissioner of
Internal Revenue of all prior authority, which was delegated to
the Department of the Treasury (alleges, "which was not and is
not the Department of the Treasury of the United States but is
tied to the Internal Monetary Fund or IMF). Treasury Department
Order No. `150-42, dated July 27, 1956, 21 Fed. Reg. 5852 then
delegated the following authority to the Commissioner:

"The Commissioner shall, to the extent of the authority vested in
him, provide for the administration of United States internal
revenue laws in the Panama Canal Zone, Puerto Rico and the Virgin
Islands."

Feb. 27, 1986, 51 Fed. Reg. 9571, Treasury Department Order No.
150-01 provides the following:

"The Commissioner shall, to the extent of authority otherwise
vested in him, provide for the administration of the United
States internal revenue laws in the U.S. Territories and insular
possessions and other authorized areas of the world."

U.S. Territories and other countries do not enjoy the same
Constitutional protections and restrictions as the Citizens of
the 50 Republic states. (Downes v. Bidwell, 182 U.S. 244; Hooven
and Allison Co. v. Evatt, 324 U.S. 674)

Allegation -- "There are no implementing 26 CFR, Part I income
tax regulations, applicable to the individual income taxes in the
Federal Regulations (CFR) for 26 U.S.C. 6321 or 6331 or any other
Code section, relevant to, or authorizing any collection
activities for Part I, Income taxes. Therefore, there is no force
of law and no civil or criminal penalties can be lawfully
imposed. Part 301 is relevant to administrative procedures for
Alcohol, Tobacco and Firearms and is only applicable to Title 26
if the 301 regulation provides a specific cross reference to
another regulation relevant to a Title 26 particular type of tax.
Otherwise, Part 301 has no "force of law."

"For federal tax purposes, regulations govern." Lyeth v. Hoey,
305 U.S. 188, 59 S.Ct.; also, California Bankers Association v.
Shultz ....

A mere Notice of Lien-Levy is insufficient without a valid Notice
of Distraint. This Notice of Distraint must be issued by a state
court and signed by a de jure judge of such court. In law, no
authority for issuing a Notice of Distraint exists for the non-
filing of a 1040 Form which is voluntary. See United States v.
O'Dell, No. 10188, Circuit Court of Appeals, Sixth Circuit, March
10, 1947.

"The method for accomplishing a levy on a bank account is the
issuing of warrants of distraint, the making of the bank a party
and the serving with (1) notice of levy, (2) copy of warrants of
distraint, and (3) notice of lien."

In G.M. Leasing Corp. v. United States, 429 U.S. 338 (1977), the
Supreme Court held that a judicial warrant for tax levies is
necessary to protect against unjustified intrusions into privacy.
Further, the Court held that forcible entry by IRS officials onto
private premises without prior judicial authorization was also an
invasion of privacy.

"Pursuant to 26 U.S.C. 6331(a), 26 CFR 301.6331-1(4), I am not a
Federal State or Municipal Employee or an employee of the
District of Columbia, or any agency, instrumentality thereof, or
any of the persons defined in the Public Salary Act of 1939 (53
Stat., Chap. 59, Title I, Sec. 1) who earn 'gross income.' ..."

NOTE: See 26 U.S.C. § 6331(b) above ... there appears to be an
error in the HT interpretation of limited term of levy as the
subsection provides that levy on salary and wages is subject to
provisions of § 6331(e), which is continuous, to the point of
release, per § 6343.

RE: 26 U.S.C. § 6201 (a) Authority of Secretary ... authorized &
required to make inquiries, determinations, and assessments of
all taxes ... provides for authority. Note in Parallel Table of
Authorities & Rules ... regulatory authority under 27 CFR, Part
70 only.

Particulars of assessment from 26 CFR, Part 301

§ 301.6201-1 Assessment authority.

The Internal Revenue Code of 1954, established by 19 R.R. 6224,
contained only Parts 1-79 of the Code of Federal Regulations.
Parts 301 and above were contained in Title 27, previously the
Intoxicating Liquors and currently, Alcohol, Tobacco and
Firearms. Part 301 and other parts of 26 CFR were in Title 27
CFR, and were not brought into the Internal Revenue Code until
1966, and according to a "Publishers Notice" added to the
microfiche of 1954 Code of Federal Regulations: "No Federal
Register citation covering this change was discoverable."

Requirements of Notice & Demand ... 26 U.S.C. § 6303/26 CFR §
301.6303.

26 CFR § 301.6303-1 Notice and demand for tax.

(a) General rule. When it is not otherwise provided by the Code,
the district director or the director of the regional service
center shall, after the making of an assessment of a tax pursuant
to section 6203, give notice to each person liable for the unpaid
tax, stating the amount and demanding payment thereof. Such
notice shall be given as soon as possible and within 60 days.
However, the failure to give notice within 60 days does not
invalidate the notice. Such notice shall be left at the dwelling
or usual place of business of such person, or shall be sent by
mail to such person's last known address.

Internal Revenue Key 4957:

Taxpayers would be entitled to income tax refund if collection
was effected by illegal use of liens and levies in absence of
notice and demand from IRS.

Internal Revenue Key 4623

"Ability of Internal Revenue Service to present a computer
generated printout reflecting that notice of demand has been sent
to taxpayers on certain date does not establish irrebutable
presumption that notice was in fact sent, for purpose of statute
providing the IRS must give notice to each person liable for
unpaid tax within 60 days after making of assessment." 26 USCA
6303(a) United States v. Berman, 825 F.2d 1053, 1056-1057 (6th
Cir. 1987)

*** The notice and demand must be verified by actual copy, with
some verification of delivery, plus it must comply with
requirements of being signed under penalties of perjury (see
notes above).

"If alleged deficiency is based upon calculations made on a
Substitute of Return, pursuant to 26 CFR § 301.6020-1(2)(B)(2),
please provide me with an accurate copy and said "dummy" return
with, pursuant to United States tax laws, the following
statement, typed or printed at the bottom of the return: ...
This return was prepared and signed under the authority of
Section 6020(b) of the Internal Revenue Code,' and signed under
penalties of perjury by the district director and a revenue
officer or manager at GS-9 or above in the Service Center
Collection branch. This is constructive notice that making a
false or fraudulent return is a criminal offense, pursuant to
7206 and 7207.

Delegation Order 182 (see 26 CFR §§ 301.6020-1(b) & 301.7701) --
Commissioner has authority to assess and collection Form 941
(Employer's Quarterly Federal Tax Return), Form 720 (Quarterly
Federal Excise Tax Return), Form 2290 (Federal Use Tax Return on
Highway Motor Vehicle), Form CT-1 (Employer's Annual Railroad
Retirement Tax Return); Form 1065 (U.S. Partnership Return of
Income); Form 11-B (Special Tax Return - Gaming Services); Form
942 (Employer's Quarterly Federal Tax Return on Household
Employers); and Form 943 (Employer's Annual Tax Return for
Agricultural Employees).

There is no provision in Delegation Order 182 for assessment
& collection of Form 1040 return. See 26 CFR § 601.401 to verify
that a voluntary return for citizens or residents of the United
States living abroad who work for 2 or more employers may file a
return for refund of over-payment of employment tax.

Handbook for Revenue Agents, paragraph 332: (1) -- "During the
course of administratively collecting a tax, an occasion may
arise where service of a levy or a notice of levy is not adequate
to seize the property of a taxpayer. It cannot be emphasized too
strongly that constitutional guarantees and individual rights
must not be violated. Property should not be forcibly removed
from the person of the taxpayer. Such conduct may expose a
revenue officer to an action in trespass, assault and battery,
conversion, etc." Reference Larson v. Domestic and Foreign
Commerce Corp., 337 US 682 (1949)

Bothke v. Flour Engineers, 713, F.2d 1405 (1983), U.S. Court of
Appeals ruled that if a "taxpayer" has informed an IRS agent that
he believes there is an error in assessment and the agent
continues levy action, without first determining if the
taxpayer's argument has merit, such agent loses his immunity from
suit.

Hollingshead v. United States, 85-2 USTC 9772 (5th Cir. 1985) 26
U.S.C. 7421 is a waiver of immunity by the Government for a
Citizen who claims that his or her property has been subject to
wrongful levy. "The government consents to be sued when the IRS
violates a congressionally-mandated procedure during the
administrative assessment [and] collection process."

Smith v. Malone (1988) -- "A taxpayer may challenge the IRS'
compliance with assessment procedures in district court [See e.g.
Aqua Bar & Lounge, Inc. v. United States Dept. of Treasury, 539
F. 2nd. 935, 939-940 (3rd Cir. 1976); United States v. Casan,
286 F.2d 453 (9th Cir. 1961). To the extent his complaint alleges
procedural violations committed by the IRS in assessing his tax
deficiencies, Smith may bring this action against the government
in this court."

28 U.S.C. § 2410 is also a Wavier of Sovereign Immunity by the
government -- it is the authority used to challenge procedural
validity of tax liens.

In the event IRS acquiesces to matters in the appeals, after 5
days in the case of a wrongful levy action or a petition to
quash; administrative summons, or 60 days in all other actions,
you may file a suit for Procedural errors and damages in the U.S.
district court under 26 U.S.C. § 7422 & 26 CFR § 301.7432, 28
U.S.C. § 2410, 26 U.S.C. 7414 & 26 U.S.C. 7430/26 CFR 301.7430,
or 26 U.S.C. 7432/26 CFR 301.7432, 26 U.S.C. 7433/26 CFR
301.7433.

Various court rules & other elements affecting litigation

Rules of Federal Procedure, Rule 44.1

Rule 44.1. Determination of Foreign Law

A party who intends to raise an issue concerning the law of a
foreign country shall give notice in his pleadings or other
reasonable written notice. The court, in determining foreign law,
may consider any relevant material or source, including
testimony, whether or not submitted by a party or admissible
under Rule 43. The court's determination shall be treated as a
ruling on a question of law.

Notes of Advisory Committee on 1966 Amendments to Rules

Rule 44.1 is added by amendment to furnish Federal courts with a
uniform and effective procedure for raising and determining an
issue concerning the law of a foreign country.

To avoid unfair surprise, the first sentence of the new rule
requires that a party who intends to raise an issue of foreign
law shall give notice thereof. The uncertainty of Rule 8(a) about
whether foreign law must be pleaded -- compare Siegelman v.
Cunard White Star, Ltd. 221 F.2d 189 (2nd Cir. 1955), and
Pederson v United States, 191 F.Supp. 95 (D Guam 1961), with
Harrison v United Fruit Co. 143 F.Supp. 598 (SD NY 1956) -- is
eliminated by the provision that the notice shall be "written"
and "reasonable." It may, but need not be, incorporated in the
pleadings. In some situations the pertinence of foreign law is
apparent from the onset; accordingly the necessary investigation
of that law will have been accomplished by the party at the
pleading state, and the notice can be given conveniently in the
pleadings. In other situations the pertinence of foreign law may
remain doubtful until the case is further developed. A
requirement that notice of foreign law be given only through the
medium of the pleadings would tend in the latter instances to
force the party to engage in a peculiarly burdensome type of
investigation which might turn out to be unnecessary; and
correspondingly the adversary would be forced into a possibly
wasteful investigation. The liberal provisions for amendment of
the pleadings afford help if the pleadings are used as the medium
of giving notice of the foreign law; but it seems best to permit
a written notice to be given outside of and later than the
pleadings, provided the notice is reasonable.

The new rule does not attempt to set any definite limit on the
party's time for giving the notice of an issue of foreign law;
in some cases the issue may not become apparent until the trial,
and notice then given may still be reasonable. The stage which
the case has reached at the time of the notice, the reason
proffered by the party for his failure to give earlier notice,
and the importance to the case as a whole of the issue of foreign
law sought to be raised, are among the factors which the court
should consider in deciding a question of the reasonableness of a
notice. If notice is given by one party it need not be repeated
by any other and serves as a basis for presentation of material
on the foreign law by all parties.

The second sentence of the new rule prescribes the materials to
which the court may resort in determining an issue of foreign
law. Heretofore the district courts, applying Rule 43(a), have
looked in certain cases to State law to find the rules of
evidence by which the content of foreign-country law is to be
established. The State laws vary; some embody procedures which
are inefficient, time consuming, and expensive. See, generally,
Nussbaum, Proving the Law of Foreign Countries, 3 Am J Comp L 60
(1954). In all events the ordinary rules of evidence are often
inapposite to the problem of determining foreign law and have in
the past prevented examination of material which could have
provided a proper basis for the determination. The new rule
permits consideration by the court of any relevant material,
including testimony, without regard to its admissibility under
Rule 43. Cf. NY Civ Prac Law & Rules, R 4511 (effective Sept. 1,
1963); 2 Va Code Ann tit 8, § 8-273; 2 W Va Code Ann § 5711.

In further recognition of the peculiar nature of the issue of
foreign law, the new rule provides that in determining this law
the court is not limited by material presented by the parties;
it may engage in its own research and consider any relevant
material thus found. The court may have at its disposal better
foreign law materials than counsel have presented, or may wish to
reexamine and amplify material that has been presented by counsel
in partisan fashion or in insufficient detail. On the other hand,
the court is free to insist on a complete presentation by
counsel.

There is no requirement that the court give formal notice to the
parties of its intention to engage in its own research on an
issue of foreign law which has been raised by them, or of its
intention to raise and determine independently an issue not
raised by them. Ordinarily the court should inform the parties of
material it has found diverging substantially from the material
which they have presented; and in general the court should give
the parties an opportunity to analyze and counter new points upon
which it proposes to rely. See Schlesinger, Comparative Law 142
(2nd edition 1959); Wyzanski, A Trial Judge's Freedom and
Responsibility, 65 Harv L Rev 1281, 1296 (1952); cf. Siegelman v
Cunard White Star, Ltd., supra, 221 F.2d at 197. To require,
however, that the court give formal notice from time to time as
it proceeds with its study of the foreign law would add an
element of undesirable rigidity to the procedure for determining
issues of foreign law.

The new rule refrains from imposing an obligation on the court to
take "judicial notice" of foreign law because this would put an
extreme burden on the court in many cases; and it avoids use of
the concept of "judicial notice" in any form because of the
uncertain meaning of that concept as applied to foreign law. See,
e.g., Stern, Foreign Law in the Courts: Judicial Notice and
Proof, 45 Calif L Rev 23, 43 (1957). Rather the rule provides
flexible procedures for presenting and utilizing material on
issues of foreign law by which a sound result can be achieved
with fairness to the parties.

*****

Revenue Rule 71-466 demonstrates clearly that no acknowledgment
by the District Director is required on a Notice of Federal Tax
Lien dealing with the establishment of priority as against the
first mortgagor, however the Tax Lien Act of 1966 places the
requirement upon the Department of Treasury and Internal Revenue
Service to comply with state law regarding placement and
endorsement of lien. State law is superior. California law
requires Federal Tax Liens to be certified with official seal,
and then no other affidavits, etc., are required. (from Anthony
Lane Hargis affidavit, successful at securing return of property
& money)

Personal Identity

Most Americans are Citizens of their respective States, they are
not Fourteenth Amendment citizens of the United States. The
Citizen is a principal, meaning that he or she is the Preamble
sovereign vested with inherent rights vested by God himself ("all
men are created equal" and are endowed with certain unalienable
rights) where the Fourteenth Amendment citizen of the United
States is a member of a subject class on a par with corporations
and other humanly created entities.

The Citizen principal is a Propria Persona, and as such is
entitled to proceed Sui Juris, meaning he is competent and has
independent standing in law. The Propria Persona retains the
right to counsel of choice where the citizen-subject is deemed to
be incompetent and therefore is a ward of the court, with the
court having authority to appoint or approve counsel, nearly
always a bar-licensed attorney who is an "officer of the court."
In other words, both State and United States courts presumes that
the subject class citizen is an incompetent and therefore
dependent ward of the court.

Another identity for the Citizen of the several States is a
"national" of the United States. Technically, the term doesn't
apply as found in the Immigration and Nationality Act (Title 8,
United States Code), but this identity seems to attach to
"nonresident alien" in the framework of the Internal Revenue Code
definition. See 8 U.S.C. § 1101(a)(221) & (22) definitions for
distinction between the "citizen of the United States" and the
"national of the United States". Another place where this
distinction appears is on United States passports, which
recognizes the "citizen/national of the United States".

See Chisholm v. Georgia, 2 Dall. 472 concerning rights of the
Citizen.

Internal Revenue Manual 5400 at 546(19): IRS is denied use of
non-compliance penalty statutes absent a court determination on
the underlying issue ... (must secure court order determining
liability before issuing non-compliance penalties) See 26 U.S.C.
§ 6651(a)(1) concerning non-compliance when it comes to not
filing return on distilled spirits, etc... see penalties. See
also, T.O. 120-01. See 26 U.S.C. § 6654; classification under
Tax Court at 26 CFR § 601.102.

26 USCS § 6211 -- jeopardy assessment can be used only where
there is a flight risk or criminal intent to defraud the
government by hiding assets ... see 26 CFR § 1.6851)

Internal Revenue Manual 30(55)4.2 ... transaction code 150
signifies the filing of a Virgin Islands Return.

Delegation Order 182 provided the authority to prepare Forms 941,
942, 943, 940 and 1065 under 26 U.S.C. § 6020(b). No authority in
the Internal Revenue Manual to file 1040 or 1040A returns.
According to Manual MT 5400-33 page 463 section 5452.(10)2,
paragraph (1)(c), the manager of the IRC 6020(b) unit will sign
returns, then forward all signed returns for processing. IRS'
Substitute for Return Program Handbook MT 5480-6 (25) shows the
Dept. of Treasury and IRS' position on the Substitute For Return.
Substitute for Return Program Handbook MT 5480-6, page -3 § 120
informs delegates, et al., that pursuant to Delegation Order No.
77 and Internal Revenue Code § 6020(b) the SCCB prepares Forms
1040 and issues Statutory Notices of Deficiency as authorized by
Internal Revenue Code § 6212.

Delegation Order No. 77 (Rev. 23) under /s/ Michael J. Murphy,
Senior Deputy Commissioner, in paragraph 1 states as follows:

The authority granted to the Commissioner of Internal Revenue and
District Directors, by 26 CFR § 301.7701-9, 26 USCS 6212, 26 CFR
§ 301.6212-1, Treasury Order 150-10, and 26 CFR 301.6861-1 to
sign and send to the taxpayer by registered or certified mail any
notice of deficiency is hereby delegated to the officials listed
below. These same officials are authorized by Treasury Order 150-
10, 26 USCS 6212(d) and section 1562 of the Tax Reform Act of
1986 to sign a written form or document rescinding any notice of
deficiency... [notes follow]

26 CFR 301.7701-9 represents a blanket authorization to perform
the functions of the Secretary as delegated by order.

Representatives authorization to prepare a deficiency notice on
Subtitles A or B, or Chapter 41, 42, 43, or 44.

Represents the implementing regulation for 26 USCS § 6212
authorizing deficiency notices for Subtitles A or B, Chapter 41,
42, 43 or 44.

The original TDO 150-10 was never published in the Federal
Register because it did not apply to the general public at large;
any subsequent TDO's or delegations of authority which ultimately
rely upon this TDO for its authorization are totally outside the
law, not because the original was not published but because the
original did not apply to the public at large and subsequent
orders applying to the public at large may not get their
authority from one that did not pertain to such. The original as
exhibited herein shows that the only delegation of authority to
enforce internal revenue laws was made to the Commissioner for
use in United States territories and insular possessions. The
states of the Union are not territories as depicted by law, since
the States Constitutions never authorized the surrender of
sovereignty to the federal government.

Miscellaneous definitions

Nihil Dicit --

Inter Alia --

Sui Juris --

Juris et de jure --

Four Corners Doctrine

Form --

Four corners rule -- Under "four corners rule", intention of
parties, especially that of grantor, is to be gathered from
instrument as a whole and not from isolated parts thereof. Davis
v. Andrews, Tex.Civ.App. 361 S.W.2d 419, 423 (Black's Law, 6th)

28 U.S.C. § 3002. Definitions

Parenthetical History Line

History; Ancillary Laws and Directives

Research Guide

Interpretive Notes and Decisions

Print or view this section only

As used in this chapter [28 USCS §§3001 et seq.]:

(1) "Counsel for the United States" means:

(A) a United States attorney, an assistant United States attorney
designated to act on behalf of the United States attorney or an
attorney with the United States Department of Justice or with a
Federal agency who has litigation authority; and

(B) any private attorney authorized by contract made in
accordance with section 3718 of title 31 to conduct litigation
for collection of debts on behalf of the United States.

(2) "Court" means any court created by the Congress of the United
States, excluding the United States Tax Court.

(3) "Debt" means:

(A) an amount that is owing to the United States on account of a
direct loan, or loan insured or guaranteed, by the United States;
or

(B) an amount that is owing to the United States on account of a
fee, duty, lease, rent, service, sale of real or personal
property, overpayment, fine, assessment, penalty, restitution,
damages, interest, tax, bail bond forfeiture, reimbursement,
recovery of a cost incurred by the United States, or other source
of indebtedness to the United States, but that is not owing under
the terms of a contract originally entered into by only persons
other than the United States; and includes any amount owing to
the United States for the benefit of an Indian tribe or
individual Indian, but excludes any amount to which the United
States is entitled under section 3011(a).

(4) "Debtor" means a person who is liable for a debt or against
whom there is a claim for a debt.

(5) "Disposable earnings" means that part of earnings remaining
after all deductions required by law have been withheld.

(6) "Earnings" means compensation paid or payable for personal
services, whether denominated as wages, salary, commission,
bonus, or otherwise, and includes periodic payments pursuant to a
pension or retirement program.

(7) "Garnishee" means a person (other than the debtor) who has,
or is reasonably thought to have, possession, custody, or control
of any property in which the debtor has a substantial nonexempt
interest, including any obligation due the debtor or to become
due the debtor, and against whom a garnishment under section 3104
or 3205 is issued by a court.

(8) "Judgment" means a judgment, order, or decree entered in
favor of the United States in a court and arising from a civil or
criminal proceeding regarding a debt.

(9) "Nonexempt disposable earnings" means 25 percent of
disposable earnings, subject to section 303 of the Consumer
Credit Protection Act [15 USCS §1673].

(10) "Person" includes a natural person (including an individual
Indian), a corporation, a partnership, an unincorporated
association, a trust, or an estate, or any other public or
private entity, including a State or local government or an
Indian tribe.

(11) "Prejudgment remedy" means the remedy of attachment,
receivership, garnishment, or sequestration authorized by this
chapter [28 USCS §§3001 et seq.] to be granted before judgment on
the merits of a claim for a debt.

(12) "Property" includes any present or future interest, whether
legal or equitable, in real, personal (including choses in
action), or mixed property, tangible or intangible, vested or
contingent, wherever located and however held (including
community property and property held in trust (including
spendthrift and pension trusts)), but excludes:

(A) property held in trust by the United States for the benefit
of an Indian tribe or individual Indian; and

(B) Indian lands subject to restrictions against alienation
imposed by the United States.

(13) "Security agreement" means an agreement that creates or
provides for a lien.

(14) "State" means any of the several States, the District of
Columbia, the Commonwealth of Puerto Rico, the Commonwealth of
the Northern Marianas, or any territory or possession of the
United States.

(15) "United States" means:

(A) a Federal corporation;

(B) an agency, department, commission, board, or other entity of
the United States; or

(16) "United States marshal" means a United States marshal, a
deputy marshal, or an official of the United States Marshals
Service designated under section 564.

(Added Act Nov. 29, 1990, P. L. 101-647, Title XXXVI, Subtitle A,

§3611, 104 Stat. 4933.)

HISTORY; ANCILLARY LAWS AND DIRECTIVES

Effective date of section

Other provisions
Effective date of section:

This section is effective 180 days after enactment as provided by
Act Nov. 29, 1990, P. L. 101-647, Title XXXVI, Subtitle C,
§3631(a),

104 Stat. 4966, which appears as 28 USCS §3001 note.

Other provisions:

Application of section. For provisions relating to the
application of this section, see Act Nov. 29, 1990, P. L. 101-
647, Title XXXVI, Subtitle C, §3631(b), 104 Stat. 4966, which
appears as 28 USCS §3001 note.

RESEARCH GUIDE

Am Jur:

30 Am Jur 2d, Executions and Enforcement of Judgments (1994) §933

INTERPRETIVE NOTES AND DECISIONS

NLRB can use Federal Debt Collection Procedures Act (28 USCS
§§ 3001 et seq.) to recover back pay awards resulting from unfair
labor practices, because back pay award is debt owing to United
States within meaning of 28 USCS §3002(3), despite fact that
money obtained will go to individual employees. NLRB v E.D.P.
Medical Computer Sys. (1993, CA2 NY) 6 F3d 951, 144 BNA LRRM
2457.

Standing disgorgment order entered on behalf of Securities
and Exchange Commission following settlement of prosecution for
securities fraud is not "debt" subject to Debt Collection Act.
SEC v AMX, Int'l (1993, CA5 Tex.) 7 F3d 71, CCH Fed Secur L Rep
97817.

Order of disgorgement fashioned at behest of SEC is not
"debt" as contemplated by Debt Collection Procedures Act;
repayment is therefore not subject to state property law
exemptions incorporated into Act. SEC v Huffman (1993, CA5 Tex.)
996 F2d 800, CCH Fed Secur L Rep 97680, reh, en banc, den (CA5
Tex.) 4 F3d 992.

*****

Brief description: Dave Fuller of Hermitage, Pennsylvania filed
a suit against the Prothonotary (county clerk) for Mercer County,
Pennsylvania to remove a notice of federal tax lien for
inadequacy under Pennsylvania law. Fuller did not rely on United
States, but exclusively on Pennsylvania law. The "United States
of America" (Dept. of Justice) joined the suit as an "interested
party", removing to U.S. district court, then moved for the
magistrate to dismiss the case. Fuller moved to remand premised
on (1) the United States is not an interested party as it was not
named a defendant, and (2) the U.S. district court cannot dismiss
a case that has been removed from State court -- the case must be
remanded, if the U.S. district court doesn't have jurisdiction,
or tried if it does. Cases and issues are as follows:

Shamrock Oil and Gas. Corp. v. Sheets, 313 U.S. 100, 61 S.Ct. 868
(1941): The U.S. Supreme Court held that "defendant" in the
removal statute referred only to a party against whom a suit is
brought by serving process upon him. Fuller argues that the
United States is not a defendant -- was not named, and there is
no federal question as the suit was brought exclusively under
State law.

When removal is premised on a federal question, there must be a
substantial federal question. (Great Northern Ry. Co. v.
Alexander 246 U.S. 276 (1918); Burgess v. Charlottsville Sav.
and Loan Association, 477 F.2d 40 (1973)).

For form and content of the notice of federal tax lien, see U.S.
v. Union Central Life Insurance Company, 82 S.Ct., 349 at 350,
Keys 3 and 4 (1961).

Execution of a document, filed in a state office, affecting
property within the state is governed by state law [See Fed. R.
Civ. P. 64, 26 U.S.C. 6338(d) and 26 CFR 301.6338-1(b)].

Fuller argues that for the United States to intercede under the
presumption that the petitioner's only remedy is with the United
States under 26 U.S.C. 7433 would presume that the Pennsylvania
Prothonotary is an employee or officer of the Internal Revenue
Service. Fuller rebuts from New York v. U.S., et al., 112 S.Ct.
2408, at 2434, 2435 (1992):

States are not mere subdivisions of the United States State
governments are neither regional offices nor administrative
agencies of the Federal Government. The positions occupied by
state officials appear nowhere on the Federal Government's most
detailed organizational chart. The Constitution instead leaves to
the several States a residuary and inviolable sovereignty [The
Federalist No. 39, p. 245 (C. Rossiter ed. 1961)], reserved
explicitly to the states by the Tenth Amendment.

Whatever the outer limits of that sovereignty may be, one thing
is clear: The Federal Government may not compel the States to
enact or administer a federal regulatory program.

Fuller rests his case on the complaint against the Prothonotary
not complying with state law on the "well-pleaded complaint"
principle:

The presence or absence of federal-question jurisdiction is
governed by the "well pleaded complaint rule," which provides
that federal jurisdiction exists only when a federal question is
presented on the face of the plaintiff's properly pleaded
complaint. (see Gully v. First National Bank, 299 U.S. 109, 112-
113 (1936)). The rule makes the plaintiff the master of the
claim: he or she may avoid federal jurisdiction by exclusive
reliance on state law.

The court summarizes as follows:

But a defendant cannot, merely by injecting a federal question
into an action that asserts what is plainly a state-law claim,
transform the action into one arising under federal law, thereby
selecting the forum in which the claim shall be litigated. If a
defendant could do so, the plaintiff would be master of nothing.
Congress has long since decided that federal defenses do not
provide a basis for removal. (Caterpillar v. Williams, 482 U.S.
386, 392, 399: 107 S.Ct. 2425, 2429, 2433 (1987).

Fuller's state complaint was based on the Uniform Federal Lien
Registration Act (37 states have adopted it since the National
Conference of Commissioners on Uniform State Laws released it in
1978). There are some detail differences between states, but all
are uniform with respect to the section styled, "Execution of
Notices and Certificates." All require certification of notices
of lien by a properly authorized federal official to entitle them
to be filed. There are two unavoidable elements: (1) filing must
be in the office of the Prothonotary (county clerk or whatever),
and (2) the instrument must be certified by someone who is
authorized to make the filings. Fuller continues:

The requirement for certification of notices of tax lien does not
stand alone in Commonwealth statutes. The "Uniform Enforcement of
Foreign Judgments Act" at 42 P.S. 4306 clearly sets out the need
for an "affidavit that shall include a statement that the foreign
judgment is valid, enforceable and unsatisfied." "Federal
Judgments as Liens," at 42 P.S. 4305 requires, "The certified
transcript of the judgment of the United States court..."
Transfers of judgments from one county to another found at
Pa.R.C.P. 3002 requires "a certified copy of all docket entries
in the action and a certification of the amount of the judgment.

Information on the Uniform Federal Tax Lien Filing Act is located
in West's Uniform Laws Annotated, Volume 7A, 1985 ed., Sec. 3,
found on page 365 deals with execution of the notice of federal
tax lien. Execution requires certification by a properly
delegated official. Comment to this section states as follows:
"This section addresses only the validity of the filing and not
the validity of the lien." [Fuller is addressing only the
validity of the filing, not the validity of the lien].

This in support, premised on a 1992 U.S. Supreme Court decision:

We have stated time and again that courts must presume that a
legislature says in a statute what it means and means in a
statute what it says there. See, e.g. United States v. Ron Pair
Enterprises, Inc. 489 U.S. 235, 241-242, 109 S.Ct. 1026, 1030-
1031 (1989); United States v. Goldenberg, 168 U.S. 95, 102-103,
18 S.Ct. 3, 4 (1897); Oneal v. Thornton, 6 Cranch 63, 68 (1810).
When the words of a statute are unambiguous, then, this first
canon is also the last: "judicial inquiry is complete." Rubin v.
United States, 449 U.S. 424, 430, 101 S.Ct. 698, 701, (1981);
see also Ron Fair Enterprises, supra, 489 U.S., at 241, 109
St.Ct., at 1030. Connecticut National Bank v. Germain, 112 S.Ct.
1146, 1149 (1992).

1991 decision in the U.S. District Court for the Western District
of Pennsylvania, Judge Lee decision, pertaining to removal cases:

Moreover, removal cannot be based simply on the fact that federal
law may be referred to in some context in the case. If the claim
does not "arise under" federal law, it is not removable on
federal question grounds. Incidental federal issues are not
enough. Merrell Dow Pharmaceuticals, Inc., v. Thompson (1986),
478, U.S. 804, 106 S.Ct. 3229, 92 L.Ed.2d 650; (Wuerl v.
International Life Science Church, 758 F.Supp. 1084, at 1086,
Paragraph 6 (W.D. Pa. 1991))

As relates to removal under 18 U.S.C. 1441:

(1) Eleventh Amendment prohibited federal district court from
ordering state officials to conform their conduct to state law
with respect to conditions of confinement at institution, since
state was real, substantial party in interest; (2) Eleventh
Amendment barred state law claims brought in district court under
pendent jurisdiction; and (3) judgment could not be upheld
against county officials on basis of their state law obligations
where any relief granted against county officials alone on basis
of state statute would be partial and incomplete at best
Pennhurst State School and Hospital v. Halderman, 104 S.Ct. 900,
at 900, 465 U.S. 89 (1984)

Fourth Circuit ruling on 28 U.S.C. 1447(c):

Remand to state court following removal is governed by 28
U.S.C.A. 1447 (West 1994), and the statute is clear and
unambiguous. "If at any time before final judgment it appears
that the district court lacks subject matter jurisdiction, the
case shall be remanded." 28 U.S.C.A. 1447(c) The Plain language
of 1447(c) gives "no discretion to dismiss rather than remand an
action" removed from state court over which the court lacks
subject-matter jurisdiction. International Primate Protection
League Fund, 300 U.S. 72, 89, 111 S.Ct. 1700, 1710, 114 L.Ed.2d
134 (1991) (internal quotation marks omitted)." Roach v. West
Virginia Regional Jail and Correctional Facility Authority 74
F.3d 46, at 48, 49 (4th Cir. 1996).

*****

Notes from Anthony Lane Hargis "Affidavit of Truth" (California;
resulted in return of IRS seizures)

On the status of the Citizen of the State -- the American
Revolution resulted in transfer of sovereignty from the British
crown directly to the People. Thus, the freeborn American has
"Citizen-Principal" status, and the relationship of the Citizen
to government is that of principal and agent. Government has only
those powers delegated (Chisholm v. Georgia, 2 Dall. 472).

This means the Citizen of the State, as opposed to the Fourteenth
Amendment citizen-subject of the United States, is a "Propria
Persona", a "proper person", who has "Sui Juris" of full standing
in law, and is entitled to common law remedies.

Hargis premises much of his "territorial" argument on the fact
that "California" is not a federal area, as described in the Buck
Act, 4 U.S.C. §§ 105-110, particularly at 110(d) & (e). In other
words, California is one of the several States as opposed to one
of the federal States.

Hargis makes certain allegations as his basis of truth, page 4,
which denies premises for IRS assessment and collection, citing
28 U.S.C. § 3002 definitions (statute set out in previous
section):

I have no debt owing as described in 28 U.S.C.S., Section
3002(3)(A) and (B) to the UNITED STATES OF AMERICAN INTERNAL
REVENUE SERVICE for any year, or to the STATE OF CALIFORNIA for
any reason whatsoever. I have never received from the UNITED
STATES, UNITED STATES OF AMERICA INTERNAL REVENUE SERVICE of from
the STATE OF CALIFORNIA any verified statement or assessment,
declared under penalty of perjury, that I am a debtor under 28
U.S.C.S., Section 3002(4) owing some pretended "Debt" under 28
USCS § 3002(3) or a "person" under 28 U.S.C.S., Section 3002(10),
and do owe any amount to the "UNITED STATES" defined in 28
U.S.C.S., Section 3002(15), and setting forth the specific
grounds and calculations regarding same.

Matter concerning "notice of federal tax lien"

Revenue Rule 71-466 demonstrates clearly that no acknowledgment
by the District Director is required on a Notice of Federal Tax
Lien dealing with the establishment of priority as against the
first mortgagor, however the Tax Lien Act of 1966 places the
requirement upon the DEPARTMENT OF TREASURY and INTERNAL REVENUE
SERVICE to comply with state law regarding placement and
enforcement of lien. State law is a higher law, and all property
rights are held in the state, and the federal statutes placed
Title 26 USCS subject state common law in the freely associated
compact state. According to California state case law, allegiance
attaches at birth to the land whereon people are born, absent
adjuration or intention of domicile expressed to the contrary.

California law requires the signatures on Notices of Federal Tax
Liens to be certified with official seal, and then no other
affidavits etc. are required.

From the period of birth through the present, at no time have the
Defendants, UNITED STATES CORPORATION or INTERNAL REVENUE SERVICE
ever served upon me a Notice of Federal tax Lien with a certified
signature and a government seal.

Absent the certified signature on the bottom of any Notice of
Federal Tax Lien, the UNITED STATES, INCLUDE., DEPARTMENT OF
TREASURY and the INTERNAL REVENUE SERVICE have not properly given
Notice, nor have they perfected a lien, and have violated both
California state and federal law.

That in accordance with the Four Corners Doctrine, i.e. on the
face of the instrument, each Notice of Federal Tax Lien is
required to be sufficient unto itself for a court to determine
the existence or non-existence of a lien. On the face of each
Form Notice of Federal Tax Lien which UNITED STATES, INC.,
DEPARTMENT OF TREASURY and the INTERNAL REVENUE SERVICE attempted
to serve upon Me during the period of 1992 through the present,
there were and are FALSE CLAIMS, including but not limited to the
following four, a) 1040 kind of tax does not exist within any of
the Statutes or Regulations governing taxation; b) the Date of
Assessment column purports existence of an assessment, which
according to Defendants' Individual Master File DOES NOT exist;
c) the signature was not and is not certified and is provided
without a government seal and therefore each does not comply with
California state law, and/or the Federal Tax Lien Registration
Act, and d) that ANTHONY L. HARGIS is the legal fiction and
lawfully and legally incompetent person, whose name appears on
the Notice of Deficiency and Notice of Intent to Levy,
politically and geographically distinct from Anthony Lane Hargis,
Sui Juris, Juris et de jure.

IRS alleged to impose a jeopardy assessment or assessments on
Hargis for willful failure to file or pay tax under 26 USCS §
6651(a)(1) and failure to pay estimated income tax under § 6654.
He rebuts the assessments by pointing out that Internal Revenue
Manual 5400 at 546(19) denies use of non-compliance penalty
statutes absent a court determination on the underlying issue,
i.e., whether "Anthony Lane Hargis" was ever required to file a
return for an alleged Alcohol, Tobacco and Firearms activity.
"According to Department of the Treasury Order 120-01 all of the
statutes utilized by UNITED STATES, INC., DEPARTMENT OF TREASURY
and IRS to-date for the additions to tax are only penalty
statutes for failing to file and fraud relating to an activity
under Alcohol, Tobacco and Firearms."

See 26 USCS § 6651(a)(1) for particulars:

To file a return required under authority of subchapter A of
Chapter 61 (other than part III thereof), Subchapter A of Chapter
51 (relating to distilled spirits, wines, and beer), or of
Subchapter A of Chapter 52 (relating to tobacco, cigars,
cigarettes, and cigarette papers and tubes) or of Subchapter A of
Chapter 53 (relating to machine guns and certain other firearms),
on the date prescribed therefor (determined with regard to any
extension of time for filing), unless it is shown that such
failure is due to reasonable cause and not due to willful
neglect, there shall be added to the amount required to be shown
as tax on such return 5 percent for each additional month or
fraction thereof during which such failure continues, not
exceeding 25 percent in the aggregate.

According to Treasury Decision Order 120-01 and 26 USCS §
6651(a)(1), jeopardy assessment authority relates only to taxable
activity under jurisdiction of BATF. Therefore, jeopardy
assessment under 26 USCS 6654 applies only to an estimated tax on
income derived from participation in revenue taxable activitiesunder jurisdiction of BATF.

According to 26 USCS § 6211 the UNITED STATES, INC., DEPARTMENT
OF THE TREASURY and IRS, can only issue deficiencies on Subtitles
A and B and Chapters 41, 42, 43 and 44, where it appears under no
circumstances the UNITED STATES, INC., DEPARTMENT OF THE TREASURY
and IRS, can allege to be the case. A jeopardy assessment
presumes a flight risk, or criminal intent to defraud the
government by hiding assets which is not now nor was it then a
possibility or probability (see 26 C.F.R. 1.6851).

The Hargis affidavit them moves to material relating to the
Individual Master File, addressing classification codes evidently
found on his. He points out that according to Internal Revenue
Manual 30(55)(4.2, a transaction code 150 signifies the filing of
a Virgin Islands return. (probably reference to the 6209 Manual).

According to the Service Center Collection Branch (SCCB)
Procedures Manual 5400-33 at page 5400-541 section 5474.5, the
combination of document code 10 and any blocking series between
000 and 299 means the assessment of a W-4 penalty is taking
place.

SCCB Manual 5400-33 at page 5400-669 Figure 549(11).3-2
establishes that a Substitute For Return (SFR) TC 150 will
reflect Tax Class/Document Code 210 and Blocking Series 000-299.

At all times through the present, the UNITED STATES, INC.,
DEPARTMENT OF TREASURY and IRS's records have established alleged
assessments of an Employment tax under Subtitle C being made
pursuant to 26 USCS § 3401 et seq., which have at no time been
applicable to Anthony Lane Hargis...

At all times through the present, the ... IRS have been
wrongfully assessing an Employment tax under Chapter 24, Subtitle
C, 26 USCS § 3401 et seq. against ... Hargis ... with absolutely
nothing to indicate he was and is subject to such an employment
tax and have never demonstrated an assessment was ever being made
for an Income Tax under Subtitle A (26 USCS § 1 & 26 CFR § 1.1-1,
nor an ATF tax under Subtitle E.

The SCCB Procedures Manual MT 5400-33 pages 5400-462 and 463
section 5452.(10)1 states ... that Delegation Order 182 provided
the authority to prepare Forms 941, 942, 943, 940, and 1065 under
26 USCS § 6020(b). There is no authorization in the manual for a
Form 1040 or 1040A. According to Manual MT 5400-33 page 463
section 5452.(10)2, paragraph (1)(c), the manager of the IRS
6020(b) unit will sign returns, then forward all signed returns
for processing. The UNITED STATES, INC., DEPARTMENT OF TREASURY
and IRS Substitute For Return Program Handbook MT 5480-6(25)
shows the ... position on the Substitute For Return. Substitute
for Return Program Handbook MT 5480-6, page -3 § 120 tells the
delegates et al. that pursuant to Delegation Order No. 77 and
Internal Revenue Code § 6020(b) the SCCB prepares Form 1040 and
issues Statutory Notices of Deficiency as authorized by Internal
Revenue Code 6212.

Delegation Order No. 77 (Rev. 23) under /s/ Michael J. Murphy,
Senior Deputy Commissioner, paragraph 1 states:

The authority granted to the Commissioner of Internal Revenue and
District Directors, by 26 CFR 301.7701-9, 26 USCS 6212, 26 CFR
301.6212-1, Treasury Order 150-10 and 26 CFR 301.6861-1 to sign
and sent to the taxpayer by registered or certified mail any
notice of deficiency is hereby delegated to the officials listed
below. These same officials are authorized by Treasury Order 150-
10, 26 USCS 6212(d) and section 1562 of the Tax Reform Act of
1986 to sign a written form or document rescinding any notice of
deficiency ... (see Hargis' footnotes elsewhere in this file)

Delegation Order No. 77 Authorizes only deficiencies on Subtitle
A, B or Chapter 41, 42, 43, or 44 taxes and not with any
deficiency under employment taxes found in Subtitle C.

The UNITED STATES, INC., DEPT. OF TREASURY and IRS's only record
is on the pursuit of Subtitle C, Chapter 24 Withholding from
source of the Income Tax, as established by the IMF maintained by
... IRS.

This court must take Judicial Notice of the fact that nothing in
Delegation Order No. 77 authorizes anyone to prepare Dummy
Returns or Substitutes for Return under 26 U.S.C. § 6020(b) or
any other section.

The ... IRS at all times rely on Delegation Order No. 182 for an
authority to prepare Substitute For Returns under 26 U.S.C. §
6020(b).

Delegation Order No. 182 cites 26 CFR 301.6020-1(b) and 26 CFR
301.7701-9.

26 CFR 301.6020 does not authorize preparation of Form 1040 or
1040A. Treasury Delegation Order 182 is made pursuant to 26 USCS
§ 6020(b) which is reproduced below within 26 USCS § 6020(a)
which states:

(a) Preparation of Return by Secretary. -- If any person shall
fail to make a return required by this title or by regulation
prescribed thereunder, but shall consent to disclose all
information necessary for the preparation thereof, then, and in
that case, the Secretary may prepare such return, which, being
signed by such person, may be received by the Secretary as the
return of such person.

(b) Execution of Return by Secretary. --

(1) Authority of Secretary to Execute return. -- If any person
fails to make any return required by any internal revenue law or
regulation made thereunder at the time prescribed therefor, or
makes, willfully or otherwise, a false or fraudulent return, the
Secretary shall make such return from his own knowledge and from
such information as he can obtain through testimony or otherwise.

(2) Status of Returns. -- Any return so made and subscribed by
the Secretary shall be prima facie good and sufficient for all
legal purposes.

The Secretary is authorized to prepare a return and execute it if
he follows the rules; He can prepare a return provided the
taxpayer consents to disclose the information and subsequently
signs the return as detailed in 26 USCS § 6020(a), or he can
prepare a return and sign it provided he has personal knowledge
of the facts and/or information which would be admissible in a
court of law and then and only then does the return become prima
facie good and sufficient for all legal purposes. The only
statutory authority for IRS or the Secretary to make returns is
26 U.S.C. §§ 6014 or 6020, and any actions taken outside those
mandates are outside the scope of authority, therefore, are
direct violations of the law.

Failure to comply with provisions of the Federal Debt Collection
Act (28 USCA§ 3001 et seq.; 104 Stat. 4922).

There are no regulations applicable to 1040 & 1040A returns.

The following definition from Ballentines Law Dictionary, Third
Edition:

Deficiency. A characteristic term under tax laws for an
additional amount owing by a taxpayer. The amount by which the
federal estate tax imposed exceeds the amount shown as the tax by
the executor upon his return. United States v. Kelly, (DC Cal) 24
F.2d 234); the amount by which the federal income tax owing by a
taxpayer exceeds the amount shown to be owing by the return filed
by him. Moore v. Cleveland Ry.Co., (CA6 Ohio) 108 F.2d 656.

26 USCS § 6211 authorizes the determination and notification of a
deficiency with the regulation in support thereof. 26 USCS § 6211
recites that "deficiency" means the amount by which the tax
imposed by Subtitle A or B, or chapter 41, 42, 43 or 44 exceeds
the excess of the sum of the amount shown as the tax by the
taxpayer upon his return...

There is no regulation found in 26 CFR § 301.6211-1(a) which
authorizes the manufacture of a return.

The Parallel Table of Authorities and Rules, in the Index volume
to the Code of Federal Regulations, does not list an authority
applicable under 26 U.S.C. §§ 6211 or 6212. Nor does 26 CFR §
602.101 itemize any forms authorized by OMB for 26 USCS § 6211 or
6212. Therefore, there are no forms, particularly with respect to
the 1040 & 1040A, authorized by the regulation appearing in 26
CFR § 301.6211-1(a) as applicable within the several States. In
short, there is and never was authority for IRS to prepare Form
1040/SFR, a/k/a Dummy Return, and therefore there is no
authorization for any alleged deficiency for any period through
the present.

*** See State constitutions. Hargis presents an excellent point:
The citizen or national of the United States is distinct from the
Citizen of the State who is a member of the political body, "We
the People" (Preambles to State and United States Constitutions).
See also, the Nationality Act of 1940 that distinguishes between
the terms, "national" and "national of the United States."

Particulars relating to the several States v. the federal States:
See notes immediately above § 81 of 28 USCS 81-131 -- territorial
composition of districts and divisions by counties as of January
1, 1945.

Need for notice to keep books & records reiterated at 26 CFR §
1.6001-1(d).

Delegation Order No. 24 -- Authority to require records to be
kept is the delegation to the Assistant Commissioner
(International) and District Directors of the authority to
require any person by notice served upon him to keep records.

IRS is not agency of the United States Dept. of Treasury; not
listed in Table of Contents as such 31 U.S.C., Chapter 3 ... is
agency of Trust Fund No. 62, Puerto Rico Trust (Internal Revenue)

Delegation Order 115 authorizes the Commissioner of Internal
Revenue by Treasury Directive 32-07 to re-delegate to the
Assistant Commissioner (International) and to Regional
Commissioners (Alcohol, Tobacco and Firearms [ATF or BATF]) the
authority to resolve irregularities in the accounts of their
employees for amounts less than $750.00 administratively.

Department of the Treasury Order No. 150-29 has determined and
published that an affidavit is required from the person being
audited permitting the audit, request records and search their
files for records including tax returns.

Department of the Treasury Order No. 150-29 pertains only to
appointees to the Treasury Department or Internal Finance by the
President.

Internal Revenue Manual 1100 Organization and Staffing at section
1132.74 Examination Division establishes that the examination
division administers an international examination program
involving returns filed with the Assistant Commissioner
(International), certain offers in compromise, informants'
claims, nonresident aliens and citizens living abroad...

Federal Rules of Criminal Procedure at Rule 54(c) defines Act of
Congress as including any act of Congress locally applicable to
and in force in the District of Columbia, in Puerto Rico, in a
territory or in an insular possession.

Fed. Register, Vol. 41, No. 180 for Wednesday, Sept. 15, 1976 ...
Internal Revenue Service substituted for "director" of BATF ...
agencies are one and the same.

Department of the Treasury Order Number 120-01 states that the
director of the Bureau of Alcohol, Tobacco and Firearms and the
Commissioner of Internal Revenue are one and the same person in
office.

26 CFR § 1.934-1 and 48 USCS § 1642 define tax liability as the
liability incurred to the Virgin Islands pursuant to subtitle A
of the Code as made applicable in the Virgin Islands by the Act
of July 12, 1921 (48 USCS § 1397), or pursuant to section 28(a)
of the Revised Organic Act of the Virgin Islands.

Posting to the Individual Master File of a transaction code 150
means a Virgin Islands return according to Internal Revenue
Manual 30(55)4.2.

Publications by the Governor of the Virgin Islands, page 3, state
the following: "All references to the District Director or to
the Commissioner of Internal Revenue should be interpreted to
mean the Director of the Virgin Islands Bureau of Internal
Revenue. All references to the Internal Revenue Service, the
Federal Depository and similar reference should be interpreted as
the BIR, and so forth..."

The Secretary of Treasury and the Commissioner of Internal
Revenue have determined and published at T.D. 2815, that the
requirement for filing a form 1040 is that it should be filed by
a nonresident alien or the agent of a nonresident alien.

26 CFR 1.6091 requires returns to be filed not with something
called the Internal Revenue Service, but with the Director of
International Operations.

The United States Supreme Court has ruled that, in the
interpretation of statutes levying taxes it is the established
rule not to extend their provisions by implications, beyond the
clear import of the language used, or to enlarge their operations
so as to embrace matters not specifically pointed out. In case of
doubt, they are construed most strongly against the government
and in favor of the citizen. United States v. Wigglesworth, 2
Story 369.

See Executive Order 9397, Nov. 1943 (Numbering System for Federal
Register Accounts Relating to Individual Persons, or the Buck Act
at 4 USCS § 105-110, specifically § 110(d) & (e).

# # #

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