May 18, 1996
Agent Name, Revenue Agent
Internal Revenue Service
Name of Your District
Department of the Treasury, Puerto Rico
1515 E. Fulton
Garden City 67846/tdc
KANSAS STATE
Re: Your letters of May 13, 1996
Enclosure: IRS & IRC Memorandum by Dan Meador, Ponca City,
Oklahoma state
Revenue Agent Puckett:
We are going to combine response to your letters of May 13,
1996 as it seems a fruitless exercise to duplicate response on
basically the same matter: In your letter, you failed to disclose
authorities and particulars which we have previously requested,
and have otherwise failed to cite either statutory or regulatory
authorities requiring us to provide you information from any of
our private records.
With all due respect, we will at this juncture decline
appointments scheduled for May 30 as you have failed to provide
sufficient information for us to be responsive to, and you have
failed to otherwise establish Internal Revenue Service authority
to issue summons, conduct audits, engage in canvassing or any
other tax assessment or collection activity in the several
States, Kansas included.
We would surmise that you allege authority under 26 U.S.C.
§§ 7602 & 6020. However, it will be found that the only
regulatory authority for either is under Title 27 of the Code of
Federal Regulations, said title being under Bureau of Alcohol,
Tobacco & Firearms administration. There is no corresponding
authority under 26 CFR, Part 1 or 31.
If your demand is premised on 26 U.S.C. § 6020, it appears
that you have misrepresented the statute: § 6020(a) requires
consent on the part of whomever wishes to file a return
authorized by the title, and § 6020(b) authorizes the Secretary
to make returns required by the title. The "person made liable"
is the person required to file the return ... see §§ 6001 & 6011
as antecedent to § 6020.
Based on our research, and that of Mr. Dan Meador (see
enclosed memorandum), we do not believe we are persons liable for
taxes prescribed in the Internal Revenue Code, particularly with
respect to Subtitles A & C, and we certainly aren't liable for
taxes prescribed by Subtitled D & E or tax treaties -- we don't
engage in any off-shore or foreign enterprises which might be
construed as falling under such treaties.
Therefore, there are two antecedent requirements prior to
submitting to an audit: First, we have not received notice from
the Secretary that we are liable for any particular tax and are
required to keep books and records pertaining to any given
financial activity; and second, you have failed to provide a
taxing statute which specifically sets out what tax is being
imposed and the basis of liability -- see requirements set out in
United States v. Community TV, Inc., 327 F.2d 797, at p. 800
(1964) for particulars: "Without question, a taxing statute must
describe with some certainty the transaction, service, or object
to be taxed...", citing Hassett v. Welch, 303 U.S. 303, 58 S.Ct.
559, 82 L.Ed. 858.
Certainly you don't want books and records on diaper
training and banjo picking; we have yet to find Internal Revenue
Code tax liability on those enterprises, and to the best of our
knowledge, we are not liable for filing returns under provisions
of 26 CFR § 301.7512-1(a)(1)(iii) -- at least we have received no
notice to that effect.
Therefore, we respectfully demand that you: (1) comply with
the requirement that the Secretary serve notice that we are
required to keep books and records, and (2) provide a specific
taxing statute which discloses what transaction, service or
object is to be taxed. To that point, any audit would be an
exercise in futility as we wouldn't know what books and records
IRS is entitled to examine and what obligations we might
legitimately have.
To the point these antecedent requirements are met, we
respectfully decline the invitation to disclose our records to
you or any other officer or agent of the Internal Revenue
Service. When you comply with provisions set out in applicable
statutory and regulatory provisions, we will compile such
information as is responsive to obligations imposed by the
Internal Revenue Code, and if necessary, submit the records for
audit providing you establish regulatory authority to conduct
such an audit. It is our belief, based on information enclosed,
that IRS does not have legal standing in the several States,
being an agency of the Department of the Treasury, Puerto Rico,
and that Internal Revenue Code taxing authority does not extend
to the population at large within the several States.
To the best of our knowledge and understanding, all matters
of law and fact presented herein are accurate and true.
Regards,
Jack and Jill Patriot
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