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.

(c) Definitions. -- For purposes of this section --

(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.

(c)  Revocation  of  a  determination  that  an  organization  is
described in section 501(c)(3) ... (section omitted)

(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...

(C) Cost of any study, analysis, etc. ..., and

(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.

(c) Firearms.

§ 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.

(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...

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

(C) an instrumentality of the United States.

(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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