SOURCE:  The Great IRS Hoax book, Section 6.4.17.

---

A key piece of the puzzle that unraveled the IRS' Great Deception was formerly found in 26 CFR § 1.1441 and in IRS Publication 515.  Recall that we have been saying all along that foreign earned income is the only thing to be counted as "gross income" for the purposes of 26 U.S.C. §861?

Call 1-800-TAX-FORM and request a copy of IRS Publication 515, titled "Withholding of Tax on Nonresident Aliens and Foreign Corporations".  Now, you might look this up and ask yourself, "what on Earth does that have to do with me?" 

Here's what.  Inside  Publication 515, there appears a statement the IRS hopes you never see.  Under the main heading "Withholding Exemptions and Reductions" and within the paragraph titled "Evidence of Residence", the IRS states in speaking to the payer of income: 

"If an individual gives you a written statement stating that he or she is a citizen or resident of the United States, and you do not know otherwise, you do not have to withhold tax."

The 1994 version of Publication 515 varied somewhat.  Instead of ending with "...you do not have to withhold tax", it continues:

"...you do not have to withhold tax under the rules discussed in this publication.  Instead, get Publication 15, Circular E, Employer's Tax Guide."

Of course our friends at the IRS fail to clarify that Circular E, Employer's Tax Guide has to do with employment taxes under subtitle C, and has nothing whatsoever to do with the withholding of income tax under subtitle A, the subject of Publication 515.  Isn't that interesting? 

Remember, the "S" in IRS stands for "Service"!

And what is the statement of citizenship?  It's simply an affidavit, notarized and signed under penalties of perjury stating that "I, John Doe, am a Citizen of the United States."  It's that simple.  So, the bottom line is that, according to the IRS, if you agree a "Citizen or resident of the United States", the payer of your income does not have to withhold tax.  Imagine that!

Now ask yourself this question:  If a United States citizen every really were liable for tax withholding, why would the IRS ever have printed this statement anywhere?  Why would it even exist in writing?

It exists because the Law behind the Statement of Citizenship is 26 CFR § 1.1441-5 "Claiming to be a person not subject to withholding", paragraph (a) of which states:

"For purposes of Chapter 3 of the Code, an individual's written statement that he or she is a citizen or resident of the United States may be relied upon by the payer of the income as proof that such individual is a citizen or resident of the United States."

And where is Chapter 3 of the Code?  In Subtitle A, income tax.  1.1441-5, paragraph (c) states:

"The duplicate copy of each statement and form filed pursuant to this section shall be forwarded with a letter of transmittal to Internal Revenue Service Center, Philadelphia PA 19255.  The original statement shall be retained by the withholding agent."

And why must the Statement of Citizenship be sent to Philadelphia, and not the local IRS office or regional service center?  Because Philadelphia is the IRS' international service center--the foreign service center, which makes perfect sense since the income tax is a tax on foreign activity only!

The IRS Philadelphia office has never been known to reject a Statement of Citizenship from a withholding agent.  It also does not acknowledge receipt of the Statement of Citizenship, which confuses some people.  The reason for this is simple.  If the statement were inaccurate or off-point, there would be a rebuttal from Philadelphia.  Silence, in this case, is acceptance.