satcomm911.com. p.d.f.'s/ex02-affmatfacts-081… · web viewsatcomm911.com

AFFIDAVIT OF MATERIAL FACTSLast revised: 11/1/2008

TABLE OF CONTENTS

1 Narrative Summary of Key Events................................................................................................41.1 Due Process Status.......................................................................................................................................................41.2 Events...........................................................................................................................................................................5

2 Withholding Forms in Effect During Period of Collection..........................................................63 Information Return Corrections Sent to IRS During Collection Period....................................74 Tax Returns......................................................................................................................................7

4.1 Returns Submitted........................................................................................................................................................74.2 Criteria for a Valid Return...........................................................................................................................................7

5 Correspondence To/From IRS.......................................................................................................86 Summary of Central Issues relating to this enforcement action.................................................9

6.1 You have already agreed to EVERYTHING in this affidavit by previous failure to rebut or deny............................96.2 IRS Is Not processing my tax return submissions or corrected information returns...................................................96.3 Not engaged in a “trade or business”.........................................................................................................................106.4 Not domiciled or “resident” in the “United States”...................................................................................................126.5 Information Returns are FALSE and fraudulent and IRS refuses to correct them....................................................136.6 No earnings from sources within the “United States”...............................................................................................156.7 Earnings as a federal worker not taxable in this case................................................................................................16

7 Constraints upon rebuttals to this Affidavit................................................................................178 Affirmation.....................................................................................................................................18ENCLOSURE (1): Affidavit of Citizenship, Domicile, and Tax Status..........................................20ENCLOSURE (2): Case History DVD...............................................................................................21

TABLE OF AUTHORITIES

Constitutional ProvisionsFourteenth Amendment............................................................................................................................................................12

Statutes18 U.S.C. §1001...................................................................................................................................................................7, 1718 U.S.C. §1621...................................................................................................................................................................7, 1718 U.S.C. §208.........................................................................................................................................................................1918 U.S.C. §654...........................................................................................................................................................................718 U.S.C. §912.......................................................................................................................................................................5, 726 U.S.C. §162.........................................................................................................................................................................1126 U.S.C. §3401.......................................................................................................................................................................1726 U.S.C. §3401(c )..............................................................................................................................................................6, 1426 U.S.C. §6013(g) and (h)........................................................................................................................................................426 U.S.C. §6014.........................................................................................................................................................................426 U.S.C. §6041(a).................................................................................................................................................10, 13, 16, 1726 U.S.C. §6065...................................................................................................................................................................8, 1026 U.S.C. §6212(a).....................................................................................................................................................................426 U.S.C. §654...................................................................................................................................................................11, 1526 U.S.C. §7206...................................................................................................................................................................7, 1626 U.S.C. §7206(1).............................................................................................................................................................11, 15

Affidavit of Material Facts 1 of 21Christopher M. Hansen

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26 U.S.C. §7207.......................................................................................................................................................7, 11, 15, 1726 U.S.C. §7701(a)(26)............................................................................................................................................................1626 U.S.C. §7701(a)(9) and (a)(10).........................................................................................................................11, 13, 15, 1726 U.S.C. §7701(c )..................................................................................................................................................................1826 U.S.C. §861(a)(8)................................................................................................................................................................1226 U.S.C. §864.........................................................................................................................................................................1626 U.S.C. §864(c )(2)...............................................................................................................................................................1226 U.S.C. §864(c )(3)...................................................................................................................................................11, 12, 1626 U.S.C. §871.........................................................................................................................................................................1726 U.S.C. §871(a).....................................................................................................................................................................1726 U.S.C. §871(a)(1)................................................................................................................................................................1226 U.S.C. §871(b)...............................................................................................................................................................16, 1726 U.S.C. §871(h).....................................................................................................................................................................1226 U.S.C. §881(a).....................................................................................................................................................................1226 U.S.C. §911.........................................................................................................................................................................1326 U.S.C. §912...................................................................................................................................................................11, 1528 U.S.C. §2201(a).....................................................................................................................................................................44 U.S.C. §72.............................................................................................................................................................................145 U.S.C. §2105.....................................................................................................................................................................6, 14Federal Lien Registration Act....................................................................................................................................................4Section 6020(b)(1)......................................................................................................................................................................7U.C.C. 1-308............................................................................................................................................................................19

Regulations26 CFR §1.1441-1(c )(3)....................................................................................................................................................11, 1326 CFR §31.3401(a)-3(a).........................................................................................................................................................1626 CFR §31.3401(c )-1.........................................................................................................................................................6, 1426 CFR §31.3402(p)-1.............................................................................................................................................................1626 CFR §601.105.......................................................................................................................................................................426 CFR §601.105(c )(2).............................................................................................................................................................426 CFR §601.106(b)(4)..............................................................................................................................................................4

RulesFed.Rul.Civ.P. 8(b)(6)..............................................................................................................................................................18Tax Court Rule 13(a)..................................................................................................................................................................5

Other Authorities2003 IRS Published Products Catalog, p. F-15........................................................................................................................112A N. Singer, Sutherland on Statutes and Statutory Construction § 47.07, p. 152, and n. 10 (5th ed. 1992). 10, 14, 16, 17, 1890-day Notice of Deficiency......................................................................................................................................................4A Treatise on the Law of Public Offices and Officers, Floyd Russell Mechem, 1890, pp. 3-4, §2.........................................15Black’s Law Dictionary, Sixth Edition, p. 1230......................................................................................................................14Black’s Law Dictionary, Sixth Edition, p. 581......................................................................................................10, 13, 16, 17Black's Law Dictionary, Sixth Edition, p. 485.........................................................................................................................12Correcting Erroneous Information Returns, Form #04.012.....................................................................................................10Enclosure (1)............................................................................................................................................................................13Enclosure (2)........................................................................................................................................................................9, 17IRM 35.2.2.11............................................................................................................................................................................8IRM 35.2.2.11 (08-11-2004)......................................................................................................................................................7IRM 5.1.11.6.8...........................................................................................................................................................................4IRS CP-059 Notices...................................................................................................................................................................4IRS CP-504 Notices...................................................................................................................................................................4IRS Document 7130.................................................................................................................................................................11


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IRS Form 1040.........................................................................................................................................................................11IRS Form 12153.........................................................................................................................................................................4IRS Form W-8BEN....................................................................................................................................................................6IRS Forms W-2, 1042-S, 1098, and 1099................................................................................................................................16IRS LTR1862.............................................................................................................................................................................4Meaning of the Words “includes” and “including”, Form #05.014.........................................................................................18Notice of Deficiency (NOD)......................................................................................................................................................4Reasonable Belief About Income Tax Liability, Form #05.007..............................................................................................10Requirement for Equal Protection and Equal Treatment, Form #05.033...................................................................................9Rutter Group Practice Guide-Federal Civil Trials and Evidence, paragraph 8:4993, page 8K-34..........................................18The “Trade or Business” Scam, Form #05.001........................................................................................................................10Why Domicile and Becoming a “Taxpayer” Require Your Consent, Form #05.002..............................................................13


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1 Narrative Summary of Key Events

1.1 Due Process Status

Before IRS you can make or enforce an assessment:

1. 26 CFR §601.105 requires that you must:1.1. Conduct an examination.1.2. Involve me in the examination. See 26 CFR §601.106(b)(4).1.3. Procure my consent to an assessment as required by 26 U.S.C. §6014 and 26 U.S.C. §6020(b).1.4. Discontinue the enforcement if you do not procure my consent to an assessment.

2. After the examination:2.1. If I consented to an assessment, you must issue the 30-day letter prior to issuing the Notice of Deficiency (NOD).

This letter is the IRS LTR1862. At this point, the assessment is simply a proposal.2.2. You must give me 30 days to respond to and rebut the letter.2.3. If I rebut the accuracy of the assessment, you are supposed to make corrections and reissue the assessment or

explain why the corrections are false using evidence.3. Only if I don’t rebut the proposed assessment or if I do not withdraw my consent to an assessment, then and only then

may you issue the statutory notice of deficiency pursuant to 26 U.S.C. §6212(a).4. You must wait no sooner than 90 days to allow the “taxpayer” to petition tax court.

4.1. During the 90 day process, if I send a response with evidence that your assessment is simply wrong, you are supposed to rebut it with evidence.

4.2. Only if I do not send a rebuttal during 90 day period may you proceed with collection or distraint and the assessment is final.

5. IRS CP-504 Notices are then sent for the amount assessed.6. IRS CP-059 Notices are then sent. This letter is supposed to include IRS Form 12153 and give me 30 days to request a

Collection Due Process hearing.7. If I respond by requesting a CDP hearing, you are supposed to schedule an IN PERSON hearing with me.8. Only after the CDP hearing has been completed may collection enforcement, including levy, be attempted.

You have violated your due process procedures and the law in my case:

1. I never received an invitation to attend an examination or to question or verify the accuracy of the assessment as required by 26 CFR §601.105. I DO NOT consent to a correspondence audit and I insist that EVERYTHING be in person.

2. I never gave my consent to make an assessment, and therefore further enforcement must STOP. The assessment cannot be finalized until it is consented to by me as required by 26 U.S.C. §6014 and 26 U.S.C. §6020(b). IRM 5.1.11.6.8 forbids involuntary SFR procedures using IRS form 1040.

3. I never received the IRS LTR 1862 30-day letter following the examination required by 26 CFR §601.105(c )(2).4. The assessment was unlawful because:

4.1. It occurred on form 1040 and I am not a citizen or resident of the United States. That is a resident tax form. I have also never made an election pursuant to 26 U.S.C. §6013(g) and (h) to become a resident alien.

4.2. I already sent you tax returns for all the years in question several times. If I sent you a return, you MUST use that. You cannot do an SFR if you already have tax returns in your possession.

4.3. I have sent and resent those tax returns and corrected information returns to the IRS repeatedly and they have been habitually ignored without explanation.

4.4. You can only do assessments on “taxpayers”. I am NOT a “taxpayer” and only I can make myself into one. Even the courts can’t do it pursuant to 28 U.S.C. §2201(a), then neither can you.

5. The 90-day Notice of Deficiency assessment was unsigned and the assessment officer was never identified.6. Enforcement activity occurred outside of the place of my residence or domicile. All collection enforcement MUST

occur within the internal revenue district that encompasses the place of my domicile and residence. Pursuant to the Federal Lien Registration Act, all liens must be filed in the place of my domicile. San Diego is not the place of my domicile, nor is it my mailing address.

7. At no time until this point have I ever had an invitation or chance to have a due process hearing with anyone in the IRS. I DO NOT consider the opportunity to call them on the phone a “due process opportunity” because:7.1. I have no way to verify their identity.


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7.2. I can’t confront them in person.7.3. I have no opportunity to present or receive evidence on the phone.

8. At no time have I ever received a response from any of the voluminous correspondence I have sent you rebutting the accuracy or lawfulness of the illegal Substitute For Return. You were given 30 days to rebut the evidence presented and you never did. Therefore, you agree that:8.1. I am NOT a “taxpayer”.8.2. This is an unlawful enforcement action.8.3. You are personally liable and surrender official immunity.

9. It is a crime for me to petition Tax Court as a nontaxpayer. Tax Court Rule 13(a) requires that only “taxpayers” as stautorily defined may petition the tax court. They basically have to declare themselves guilty before they ever enter the courtroom. 18 U.S.C. §912 says that it is a crime to impersonate a public officer and I was not a public officer during any of the years subject to collection. You have not met your burden of proving that I am, especially after bering provided with court admissible evidence that the informatio returns for those years are false and receiving corrections to them. By failing to prove that I am a “taxpayer” and just ASSUMING that I am, you become an accessory to the crime of impersonating a public officer.

10. Therefore, the only remedy I have is appeals or filing a lawsuit in a state and not federal court against the offending agents under Bivens. This is the first time I have had to have any discussion with anyone at your organization on the record where SOMEONE there is held accountable for results. Everything up to this point has been simply ignored.

1.2 Events

The following narrative summary of key events documents the history of abuses connected with this unlawful enforcement action:

1. 2008/10/01: Sold house. Proceeds used to pay entire IRS liability due to date.2. 2008/09/18: Resent IRS Form 12153 Collection Due Process Request for original Notice of Deficiency for years 2000

through 2004.3. 2008/08/08: IRS Agent ______________ summoned _____________ at IRS offices, ________________________.4. 2008/08/08: Re-filed tax returns for years 2000 through 2004. Attached corrected information returns.5. 2008/07/24: IRS Summoned ________ in connection with _________ at IRS offices, _________________.6. 2008/07/14: Agent _____________ of IRS sent IRS Form 2270 via fax to ________________, IRS agent handling

sale of home at __________________________ owned by ______________.7. 2008/07/11: IRS sent Notice of Levy to _________________________.8. 2008/07/10: IRS sent Notice of Levy to Renter at _________________________.9. 2008/06/13: IRS sent Notice of Levy to Renters at _________________________.10. 2008/05/28: IRS filed Notice of Lien filed with County Recorder in ______________ in the amount of $133,864.44.

Filed by _________________, Employee # 27-06-3114, 619-615-9549.11. 2008/02/05: A notice of default was served upon _________________ and ______________ of the IRS, who were the

two people responsible for the original notice of deficiency dated 2007/08/30 listing all the things admitted by a failure to deny the facts alleged in the Notice of Deficiency response.

12. 2007/11/21: Criminal Complaint for identity theft, impersonating a public officer filed against assessment Officer George Lee and his supervisor in connection with the fraudulent assessment.

13. 2007/11/20: Sent response to Notice of Deficiency for years 2000 through 2004. Included an IRS form 12153 Collection Due Process request.

14. 2007/10/30: A petition to dismiss was sent to the U.S. Tax Court as a “Nontaxpayer”. They were asked to provide said remedy without filing a proper petition and instead only through correspondence. This was necessary because it is a criminal tort to impersonate a public officer called a “taxpayer” pursuant to 18 U.S.C. §912 and Tax Court Rule 13(a) prohibits anyone other than “taxpayers” From petitioning the franchise court. They did not rebut the petition and by failing to respond, admitted that they were engaging in a violation of 18 U.S.C. §912 by failing to take action to dismiss without a lawful petition.

15. 2007/09/29: Sent Legal Notice of Change in Domicile/Citizenship and Divorce from the United States to the Attorney General of the United States.

16. 2007/08/30: Notice of Deficiency Mailed for Years 2000 through 2004. Assessment Officer was George Lee.16.1. Deficiency: $73,23916.2. 6651(f) Additions to tax based on penalty for fraudulent Failure to File: $36,135.45.16.3. 6651(a)(2) Additions to tax for late payment: $11,108.71.16.4. 6654 Additions for failure to pay estimated income tax: $1,748.42


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16.5. Total additions to tax: $48,922.58.16.6. Year 2000 total: $19,113.19.16.7. Year 2001 total: $37,967.39.16.8. Year 2002 total: $27,051.83.16.9. Year 2003 total: $26,441.05.16.10. Year 2004 total: $11,657.62.

17. 2006/10/06: Sent Legal Notice of Change in Domicile/Citizenship and Divorce from the United States to the Attorney General of the United States.

18. 2006/08/31: Filed tax returns for years 2004 and 2005. Attached corrected information returns.19. 2005/10/06: Sent letter with corrected information returns to SSA and IRS for years 2001 through 2004.20. 2004/05/21: Filed tax returns for years 2000 through 2003. Attached corrected information returns.21. 2004/05/05: Filed tax return for year 2003. Attached corrected information returns.22. 2003/06/09: Filed tax return for years ______ and ______. Attached corrected information returns.23. 2002/12/18: Filed W-8BEN withholding forms with _____________ stopping withholding and reporting.24. 2001/06/25: Filed W-8BEN withholding forms with _____________ stopping withholding and reporting.25. 2001/06/11: Filed W-8BEN withholding forms with _____________ stopping withholding and reporting.26. 2001/06/11: Filed W-8BEN withholding forms with _____________________ stopping withholding and reporting.27. 2001/03/31: Filed tax return for years _____ through _______. Attached corrected information returns.

2 Withholding Forms in Effect During Period of Collection

This section describes the withholding forms on file with the various payees during the period when they filed the FALSE information returns, along with the period during which I was working form the payers:

Table 1: Withholding Forms in Effect

# Date Submitted

Recipient Form Submitted Narrative description

1 2002/12/18 Employer 1 W-8BEN with attachment

See letter dated 20020823 on Case History DVD for copy.


Letter requested stop to withholding. Contains writing of the yeoman rejecting the submission.


Letter requested stop to withholding.


Employer ___________ unlawfully expired this form as of February each year. The form is supposed to last three years according to the instructions.

Below is a summary of dealings with the various entities who submitted the false information returns:

1. Employer 1 1.1. At least three attempts were made to submit IRS Form W-8BEN to stop withholding and reporting. Reserve

center refused to accept the Form W-8BEN and insisted that the only form they would accept was form W-4.1.2. Form W-4 was inappropriate because the regulations identify it as an agreement applicable only to “employees”,

and I was not the “employee” described in 26 U.S.C. §3401(c ) , 26 CFR §31.3401(c )-1, or 5 U.S.C. §2105 because not engaged in a public office or a “trade or business” in the U.S. government. Yes, I worked for the federal government, but not as a “public officer”.

1.3. Employment terminated permanently as of 17NOV2003.2. Employer 2

2.1. They accepted the IRS Form W-8BEN for years 2000 until employment terminated in 2005. 2.2. Ed Lilly was the payroll clerk at the time.2.3. While the IRS Form W-8BEN was in effect, ___________ continued to fraudulently and illegally file form W-2.

This form may only be filed if a W-4 is on file, which none was.2.4. Retired from Naval Reserve as of January 1, 2005.


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3 Information Return Corrections Sent to IRS During Collection Period

Corrected information returns were sent to the IRS and Social Security Administration on the following dates and apparently, were ignored. Some of these corrections also included a criminal complaint requesting that you contact the submitters and civilly and criminally prosecute them for violations of 26 U.S.C. §7206, 26 U.S.C. §7207, 18 U.S.C. §912, 18 U.S.C. §654, 18 U.S.C. §1001, and 18 U.S.C. §1621 and the complaint was ignored to my detriment.

Table 2: Corrected Information Returns Submitted

# Date Affected tax years Narrative description1 2008/08/08 2000 through 2004 Resubmission of tax returns for 2000 through 2004 with corrected

information returns attached.2 2008/06/10 2000 through 2004 CP022 and CP504 response for affected years. Again included corrected

information returns for years indicated.3 2007/11/20 2000 through 2004 Response to notice of deficiency for years 2000 through 2004. Corrected

information returns included for all affected years.4 2006/08/31 2004 and 2005 Tax return for years indicated with corrected information returns attached.5 2005/10/06 2001, 2002,

2003, 2004Separate letter just to correct false information returns.1. Corrected false W-2 reports from all payers. No W-4 on file during years in question.2. Corrected 1099-MISC forms. Not engaged in a “trade or business”.

6 2004/05/21 2000 through 2003 Resending of tax return for years indicated with corrected information returns.

7 2004/05/05 2003 Tax return with corrected information returns for years indicated.8 2003/06/09 2001 through 2002 Tax return with corrected information returns for years indicated.9 2001/03/31 1998 through 2000 Tax return with corrected information returns attached for same years.

4 Tax Returns

4.1 Returns Submitted

The following list describes tax returns to the IRS during the period of collection.

Table 3: Tax Returns Filed

# Date Affected tax years Narrative description1 2008/08/08 2000 through 2004 Resubmission of tax returns for 2000 through 2004 with corrected

information returns attached.2 2006/08/31 2004 and 2005 Tax return for years indicated with corrected information returns attached.3 2004/05/21 2000 through 2003 Resending of tax return for years indicated with corrected information

returns.4 2004/05/05 2003 Tax return with corrected information returns for years indicated.5 2003/06/09 2001 through 2002 Tax return with corrected information returns for years indicated.6 2001/03/31 1998 through 2000 Tax return with corrected information returns attached for same years.

All of the above submissions satisfy the criteria for being valid “returns” as defined by the government in the next section.

4.2 Criteria for a Valid Return

The following criteria have been established for what constitutes

IRM 35.2.2.11 (08-11-2004)

[. . .]

2. Section 6020(b)(1) authorizes the Secretary to make a return upon either a taxpayer’s failure to file a return or upon a taxpayer’s filing of a fraudulent return. In two cases decided in 2003, the Tax Court clarified what


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constitutes a return under section 6020(b) for purposes of the addition to tax under section 6651(a)(2). See Cabirac v. Commissioner, 120 T.C. 163 (2003), and Spurlock v. Commissioner, T.C. Memo. 2003–124. In Spurlock, the Tax Court held that a return for section 6020(b) purposes must be "subscribed, it must contain sufficient information from which to compute the taxpayer’s tax liability, and the return form and any attachments must purport to be a ‘return’. " Spurlock , slip. op. at 27. In Cabirac, the documents the Service proffered as constituting a section 6020(b) return were (a) dummy Forms 1040 that identified the taxpayer, but which were not signed and did not show any tax due, (b) a subsequently prepared 30-day letter, and (c) a revenue agent’s report attached to the 30-day letter explaining how the Service computed the taxpayer’s liability. Applying the analysis later explained in Spurlock, the Tax Court held that these documents did not constitute a section 6020(b) return. Critical to the Tax Court’s analysis was that the Service never treated the documents, which the Service created at various times, as one group purporting to be a return. See Millsap v. Commissioner, 91 T.C. 926 (1988), acq. in result in part, 1991–2 C.B. 1, describing a valid section 6020(b) return at issue therein.

There are three rules required to be met prior to there being a valid 26 U.S.C. §6020(b) return based on IRM 35.2.2.11 above:

1. It must be “subscribed”, meaning signed under penalty of perjury by the “taxpayer” pursuant to 26 U.S.C. §6065.2. It must contain sufficient information from which to compute the “taxpayer’s” liability. In the Wesley Snipes failure to

file tax case completed in January 2008, the IRS frivolous returns expert testified that this meant that the purported return form contained numeric values.

3. The return form and any attachments must purport to be a “return”.

5 Correspondence To/From IRS

Below is a summary of the major correspondence connected with this case. It is not all inclusive.

1. 2008/09/18: Resent IRS Form 12153 Collection Due Process Request for original Notice of Deficiency for years 2000 through 2004.

2. 2008/08/08: Re-filed tax returns for years 2000 through 2004. Attached corrected information returns.3. 2008/07/14: _____________ of IRS sent IRS Form 2270 via fax to ____________, IRS agent handling sale of home

at _____________________________ owned by __________.4. 2008/07/11: IRS sent Notice of Levy to Wachovia Bank, 3954 W. Point Loma Blvd; San Diego, CA 92110.5. 2008/07/10: IRS sent Notice of Levy to Renter at _____________________.6. 2008/07/07: IRS sent CP-59 for years 2000 through 2004.7. 2007/06/21: IRS Sent Ltr 2040 for years 1998, 1999, 2000, 2001, and 2002.8. 2008/06/13: IRS sent Notice of Levy to Renters at 7940 Rufus Court; San Diego, CA 92129.9. 2008/06/10: Sent response to IRS CP022 and CP504 notice for years ______ through ______. Included an IRS form

12153 Collection Due Process request.10. 2008/05/28: IRS filed Notice of Lien filed with County Recorder in San Diego, California in the amount of

$133,864.44. Filed by _______________, Employee # _____________, Phone:_____________.11. 2007/11/20: Sent response to Notice of Deficiency for years 2000 through 2004. Included an IRS form 12153

Collection Due Process request.12. 2007/08/30: Notice of Deficiency Mailed for Years 2000 through 2004. Assessment Officer was _____________.

12.1. Deficiency: $73,23912.2. 6651(f) Additions to tax based on penalty for fraudulent Failure to File: $36,135.45.12.3. 6651(a)(2) Additions to tax for late payment: $11,108.7112.4. 6654 Additions for failure to pay estimated income tax: $1,748.4212.5. Total additions to tax: $48,922.58.12.6. Year 2000 total: $19,113.1912.7. Year 2001 total: $37,967.3912.8. Year 2002 total: $27,051.8312.9. Year 2003 total: $26,441.0512.10. Year 2004 total: $11,657.62.

13. 2006/11/21: IRS sent LTR2645C for year 2004.14. 2006/11/04: IRS sent LTR2050 for years 1998, 1999, 2000, 2001, 2002.15. 2006/11/01: IRS sent LTR2645C for year 1998.16. 2006/09/19: IRS sent LTR3210 for years 1998, 1999, 2000, 2001, 2002.17. 2006/08/31: Filed tax returns for years 2004 and 2005. Attached corrected information returns.18. 2006/08/28: Sent response to CP-515/518 for years 2006.


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19. 2006/07/10: IRS sent CP518 for year 2006.20. 2006/05/15: IRS sent letter CP515 for year 2006.21. 2005/10/06: Sent letter with corrected information returns to SSA and IRS for years __________ through ________.22. 2005/09/19: IRS Sent Form 8519 to ____________ for penalty levy in amount of $2,934.21.23. 2005/05/09: IRS Sent Cp518 for years 2005.24. 2005/01/01: Retired from _______________25. 2004/05/21: Filed tax returns for years 2000 through 2003. Attached corrected information returns.26. 2004/05/05: Filed tax return for year 2003. Attached corrected information returns.27. 2004/03/18: ___________ of IRS sent Summons to following indicating a criminal investigation. Jason Powell

mailed the letter.27.1. GMAC27.2. Equifax27.3. Fidelity Investments27.4. National Financial Services27.5. Wells Fargo Home Mortgage27.6. Pay Pal27.7. Bank of America

28. 2003/06/09: Filed tax return for years ______ and _______. Attached corrected information returns.29. 2002/12/18: Filed W-8BEN withholding forms with ______________ stopping withholding and reporting.30. 2001/06/25: Filed W-8BEN withholding forms with ______________ stopping withholding and reporting.31. 2001/06/11: Filed W-8BEN withholding forms with ______________ stopping withholding and reporting.32. 2001/06/11: Filed W-8BEN withholding forms with ______________ stopping withholding and reporting.33. 2001/03/31: Filed tax return for years 1998 through 2000. Attached corrected information returns.

6 Summary of Central Issues relating to this enforcement action

6.1 You have already agreed to EVERYTHING in this affidavit by previous failure to rebut or deny

1. The correspondence documented in section 1 and included within Enclosure (2) included everything in the affidavit, and you were given 30 days to deny it or be found in default.

2. You never responded to any of my correspondence.3. A default was served upon you 2008/02/05 listing everything you agreed to, thus placing you in equitable estoppel and

default.4. The TXMODA IMF report indicates that you used the same default process in your Notice of Deficiency against me,

ignored my response, and thereby used the fraudulent pretense that I did not respond as a basis to place me in fraudulent default.

5. If you can use a default process against me and the Constitution requires equal protection of the law, then you must be subject to the same default for your omissions. See:

Requirement for Equal Protection and Equal Treatment, Form #05.033http://sedm.org/Forms/FormIndex.htm

6.2 IRS Is Not processing my tax return submissions or corrected information returns

I was in full compliance with all requirements applicable to me during the reporting collection period:

1. I repeatedly filed and re-filed corrected information returns as indicated in section 3 earlier and the IRS repeatedly refuses to process these corrected information returns.

2. I repeatedly filed and re-filed tax returns as indicated in section 4 earlier and the IRS refuses to process these tax returns.

3. IRS refuses to tell me how to correct the submissions to make them acceptable. Simply penalizing me doesn’t provide information that I need in order to comply or correct any perceived deficiencies.

4. IRS refuses to tell me how to correct the tax returns to make them acceptable and simply tries to illegally penalize me, a foreigner outside their jurisdiction, for even trying to submit them. I need assistance in order to comply or correct any perceived deficiencies.

5. I cannot comply with your expectations until you tell me what I did wrong, not just penalize me. I am not a mind reader.


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6. The process of telling me what is wrong must be done by written communication signed under penalty of perjury with your full legal birthname as required by 26 U.S.C. §6065 or else the courts have said it is unreliable. See:

Reasonable Belief About Income Tax Liability, Form #05.007http://sedm.org/Forms/FormIndex.htm

6.3 Not engaged in a “trade or business”

A “trade or business” is statutorily defined in 26 U.S.C. §7701(a)(26) as “the functions of a public office” in the U.S. government.

26 U.S.C. §7701(a)(26)

“The term 'trade or business' includes [is limited to] the performance of the functions of a public office.”

The rules of statutory construction forbid adding anything to the definition of “trade or business” other than that expressly specific in the statutes themselves. I can find nothing in the statutes that would add anything OTHER than a public office to the definition:

“Expressio unius est exclusio alterius. A maxim of statutory interpretation meaning that the expression of one thing is the exclusion of another. Burgin v. Forbes, 293 Ky. 456, 169 S.W.2d 321, 325; Newblock v. Bowles, 170 Okl. 487, 40 P.2d 1097, 1100. Mention of one thing implies exclusion of another. When certain persons or things are specified in a law, contract, or will, an intention to exclude all others from its operation may be inferred. Under this maxim, if statute specifies one exception to a general rule or assumes to specify the effects of a certain provision, other exceptions or effects are excluded.” [Black’s Law Dictionary, Sixth Edition, p. 581]

“When a statute includes an explicit definition, we must follow that definition, even if it varies from that term's ordinary meaning. Meese v. Keene, 481 U.S. 465, 484-485 (1987) (“It is axiomatic that the statutory definition of the term excludes unstated meanings of that term”); Colautti v. Franklin, 439 U.S. at 392-393, n. 10 (“As a rule, `a definition which declares what a term “means” . . . excludes any meaning that is not stated'“); Western Union Telegraph Co. v. Lenroot, 323 U.S. 490, 502 (1945); Fox v. Standard Oil Co. of N.J., 294 U.S. 87, 95-96 (1935) (Cardozo, J.); see also 2A N. Singer, Sutherland on Statutes and Statutory Construction § 47.07, p. 152, and n. 10 (5th ed. 1992) (collecting cases). That is to say, the statute, read “as a whole,” post at 998 [530 U.S. 943] (THOMAS, J., dissenting), leads the reader to a definition. That definition does not include the Attorney General's restriction -- “the child up to the head.” Its words, “substantial portion,” indicate the contrary.” [Stenberg v. Carhart, 530 U.S. 914 (2000)

I am not now and never have been lawfully engaged in a public office in the U.S. government during any portion of the period that is the subject of your collection activity. Details on this scam are described in the following documents:

1. The “Trade or Business” Scam , Form #05.001http://sedm.org/Forms/FormIndex.htm

2. Correcting Erroneous Information Returns , Form #04.012http://sedm.org/Forms/FormIndex.htm

Those not engaged in a “trade or business” such as myself:

1. Cannot lawfully have information returns filed against them, such as IRS forms W-2, 1042-S, 1098, and 1099 . 26 U.S.C. §6041(a) indicates that these information returns may only be filed for those lawfully engaged in a “trade or business”:

TITLE 26 > Subtitle F > CHAPTER 61 > Subchapter A > PART III > Subpart B > § 6041§ 6041. Information at source

(a) Payments of $600 or more

All persons engaged in a trade or business and making payment in the course of such trade or business to another person, of rent, salaries, wages, premiums, annuities, compensations, remunerations, emoluments, or other fixed or determinable gains, profits, and income (other than payments to which section 6042 (a)(1), 6044 (a)(1), 6047 (e), 6049 (a), or 6050N (a) applies, and other than payments with respect to which a statement is required under the authority of section 6042 (a)(2), 6044 (a)(2), or 6045), of $600 or more in any taxable year, or, in the case of such payments made by the United States, the officers or employees of the United States


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http://www4.law.cornell.edu/uscode/html/uscode26/usc_sup_01_26_10_F_20_61_30_A_40_III.html

http://www4.law.cornell.edu/uscode/html/uscode26/usc_sup_01_26_10_F_20_61_30_A.html

http://www4.law.cornell.edu/uscode/html/uscode26/usc_sup_01_26_10_F_20_61.html

http://www4.law.cornell.edu/uscode/html/uscode26/usc_sup_01_26_10_F.html

http://www4.law.cornell.edu/uscode/html/uscode26/usc_sup_01_26.html



http://caselaw.lp.findlaw.com/scripts/getcase.pl?navby=case&court=us&vol=530&page=914

http://famguardian.org/TaxFreedom/CitesByTopic/PublicOffice.htm

http://famguardian.org/TaxFreedom/CitesByTopic/includes.htm

http://www4.law.cornell.edu/uscode/26/7701.html


having information as to such payments and required to make returns in regard thereto by the regulations hereinafter provided for, shall render a true and accurate return to the Secretary, under such regulations and in such form and manner and to such extent as may be prescribed by the Secretary, setting forth the amount of such gains, profits, and income, and the name and address of the recipient of such payment.

2. If they do have information returns filed against them, the following crimes have occurred: 2.1. 26 U.S.C. §7206(1): Fraud and false statement on an information return. Forms 1096 and W-3 are signed under

penalty of perjury.2.2. 26 U.S.C. §7207: Fraudulent returns, statements, or other documents. Information returns are “returns” under

this section.2.3. 26 U.S.C. §912: Impersonating a “public officer” of the government. 26 U.S.C. §6041(a) says information

returns may only be filed against those engaged in a “trade or business”, meaning a “public office” as shown in 26 U.S.C. §7701(a)(26). Those filing false information returns are causing the subject of the information return to impersonate a public officer.

2.4. 26 U.S.C. §654: Conversion. Connecting private property to a public office constitutes unlawful conversion by the person filing the false information return.

3. Cannot file IRS form 1040 because IRS Form 1040 is only for use by “individuals”. 3.1. The upper left corner says “U.S. Individual Income Tax Return”.3.2. The term “individual” is defined in 26 CFR §1.1441-1(c )(3) as an “alien individual” or a “nonresident alien

individual”. I am neither of these. This definition is not restricted to a particular portion of the I.R.C., but applies throughout.

4. Cannot lawfully file IRS Form 1040 , because everything that goes on that form is “trade or business” earnings. This is confirmed by:4.1. The fact that everything on the form is subject to “trade or business” deductions pursuant to 26 U.S.C. §162.4.2. IRS Document 7130 says the 1040 form is for use by “U.S. citizens and residents”.

1040A 11327A EachU.S. Individual Income Tax Return

Annual income tax return filed by citizens and residents of the United States. There are separate instructions available for this item. The catalog number for the instructions is 12088U.

W:CAR:MP:FP:F:I Tax Form or Instructions[2003 IRS Published Products Catalog, p. F-15; SOURCE: http://famguardian.org/TaxFreedom/Forms/IRS/IRSDoc7130.pdf]

4.3. The “citizens and residents of the United States” who file IRS Form 1040 have a domicile in the “United States” defined in 26 U.S.C. §7701(a)(9) and (a)(10), which definition includes no part of any state of the Union.

TITLE 26 > Subtitle F > CHAPTER 79 > Sec. 7701. [Internal Revenue Code] Sec. 7701. - Definitions

(a) When used in this title, where not otherwise distinctly expressed or manifestly incompatible with the intent thereof—

(9) United States

The term ''United States'' when used in a geographical sense includes only the States and the District of Columbia.

(10) State

The term ''State'' shall be construed to include the District of Columbia, where such construction is necessary to carry out provisions of this title.

4.4. 26 U.S.C. §864(c )(3) says that all earnings from “sources within the United States” are connected with a “trade or business”, which implies that the only “United States” they could be referring to is the GOVERNMENT, and not the geographical United States.

TITLE 26 > Subtitle A > CHAPTER 1 > Subchapter N > PART I > § 864§ 864. Definitions and special rules


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http://famguardian.org/TaxFreedom/CitesByTopic/State.htm


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http://www4.law.cornell.edu/uscode/26/stF.html

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http://famguardian.org/TaxFreedom/Forms/IRS/IRSDoc7130.pdf

http://famguardian.org/TaxFreedom/Forms/IRS/IRSDoc7130.pdf

(c) Effectively connected income, etc.

(3) Other income from sources within United States

All income, gain, or loss from sources within the United States (other than income, gain, or loss to which paragraph (2) applies) shall be treated as effectively connected with the conduct of a trade or business within the United States.

5. Can only have “taxable income” if they have earnings from “sources within the United States” that are not connected with a “trade or business” and “public office” as described in 26 U.S.C. §864(c )(2) as indicated in 26 U.S.C. §864(c ) (3) above.


(2) Periodical, etc., income from sources within United States—factors

In determining whether income from sources within the United States of the types described in section 871 (a)(1), section 871(h), section 881 (a), or section 881 (c), or whether gain or loss from sources within the United States from the sale or exchange of capital assets, is effectively connected with the conduct of a trade or business within the United States, the factors taken into account shall include whether—

(A) the income, gain, or loss is derived from assets used in or held for use in the conduct of such trade or business, or

(B) the activities of such trade or business were a material factor in the realization of the income, gain, or loss.

In determining whether an asset is used in or held for use in the conduct of such trade or business or whether the activities of such trade or business were a material factor in realizing an item of income, gain, or loss, due regard shall be given to whether or not such asset or such income, gain, or loss was accounted for through such trade or business.

6. After they correct the false information returns, can have taxable earnings from ONLY the following “sources within the United States” indicated in 26 U.S.C. §864(c )(2) and as referenced in 26 U.S.C. §864(c )(3) above: 6.1. 26 U.S.C. §861(a)(8): Social Security.6.2. 26 U.S.C. §871 (a)(1): Income of nonresident aliens other than capital gains derived from patents, copyrights, sale

of original issue discounts, gains described in I.R.C. 631(b) or (c), interest, dividends, rents, salaries, premiums, annuities from sources within the District of Columbia.

6.3. 26 U.S.C. §871 (h): Earnings of nonresident aliens from portfolio debt instruments6.4. 26 U.S.C. §881 (a): Earnings of foreign corporations from patents, copyrights, gains, and interest not connected

with a trade or business.7. The only tax return that a person can file who is not engaged in a “trade or business” can therefore file is IRS Form

1040NR, because that is the only form that has a place to put earnings not connected with a “trade or business”.7.1. The form is only for use by “nonresident alien individuals”.7.2. I am not a “nonresident alien individual” but rather a “nonresident alien” who is NOT an “individual”.

6.4 Not domiciled or “resident” in the “United States”

Income tax liability has domicile as a prerequisite:

"domicile. A person's legal home. That place where a man has his true, fixed, and permanent home and principal establishment, and to which whenever he is absent he has the intention of returning. Smith v. Smith, 206 Pa.Super. 310m 213 A.2d 94. Generally, physical presence within a state and the intention to make it one's home are the requisites of establishing a "domicile" therein. The permanent residence of a person or the place to which he intends to return even though he may actually reside elsewhere. A person may have more than one residence but only one domicile. The legal domicile of a person is important since it, rather than the actual residence, often controls the jurisdiction of the taxing authorities and determines where a person may exercise the privilege of voting and other legal rights and privileges." [Black's Law Dictionary, Sixth Edition, p. 485]

"Thus, the Court has frequently held that domicile or residence, more substantial than mere presence in transit or sojourn, is an adequate basis for taxation, including income, property, and death taxes . Since the Fourteenth Amendment makes one a citizen of the state wherein he resides, the fact of residence creates universally reciprocal duties of protection by the state and of allegiance and support by the citizen. The latter


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http://www.law.cornell.edu/uscode/html/uscode26/usc_sec_26_00000871----000-.html#a_1

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http://www.law.cornell.edu/uscode/html/uscode26/usc_sup_01_26_10_A_20_1_30_N_40_I.html

http://www.law.cornell.edu/uscode/html/uscode26/usc_sup_01_26_10_A_20_1_30_N.html

http://www.law.cornell.edu/uscode/html/uscode26/usc_sup_01_26_10_A_20_1.html

http://www.law.cornell.edu/uscode/html/uscode26/usc_sup_01_26_10_A.html

http://www.law.cornell.edu/uscode/html/uscode26/usc_sup_01_26.html

obviously includes a duty to pay taxes, and their nature and measure is largely a political matter. Of course, the situs of property may tax it regardless of the citizenship, domicile, or residence of the owner, the most obvious illustration being a tax on realty laid by the state in which the realty is located." [Miller Brothers Co. v. Maryland, 347 U.S. 340 (1954)]

The above is confirmed by:

Why Domicile and Becoming a “Taxpayer” Require Your Consent, Form #05.002http://sedm.org/Forms/FormIndex.htm

The only section within the I.R.C that is connected with domicile is 26 U.S.C. §911, which pertains to statutory “U.S. citizens and residents” while abroad and NOT situated domestically.

1. The statutory “U.S. citizens and residents” mentioned in 26 U.S.C. §911 have in common that they maintain a domicile in the “United States” as defined in 26 U.S.C. §7701(a)(9) and (a)(10).

2. There is no corresponding I.R.C. section that applies income taxes to citizens and residents who are NOT “abroad” or are located either in a state of the Union or on federal territory domestically.

3. IRS form 1040 is only for use by “Individuals”, as the upper left corner indicates.4. “Individuals” are then defined as “aliens” or “nonresident aliens” within 26 CFR §1.1441-1(c )(3). 5. Nowhere within the I.R.C. is the term “Individual” defined as a statutory “U.S. citizen”. Therefore, the only time that a

statutory “U.S. citizen” can have a tax liability is when they interface to the I.R.C. as an “alien individual”. The only condition when this can happen is when he or she or it is abroad and interfaces to the I.R.C. through a tax treaty with a foreign country. In relation to the foreign country, they are an “alien”.

Instead, my domicile is that described in Enclosure (1) attached.

6.5 Information Returns are FALSE and fraudulent and IRS refuses to correct them

26 U.S.C. §6041(a) requires that information returns may only be submitted for those engaged in a “trade or business”.

TITLE 26 > Subtitle F > CHAPTER 61 > Subchapter A > PART III > Subpart B > § 6041§ 6041. Information at source

(a) Payments of $600 or more

All persons engaged in a trade or business and making payment in the course of such trade or business to another person, of rent, salaries, wages, premiums, annuities, compensations, remunerations, emoluments, or other fixed or determinable gains, profits, and income (other than payments to which section 6042 (a)(1), 6044 (a)(1), 6047 (e), 6049 (a), or 6050N (a) applies, and other than payments with respect to which a statement is required under the authority of section 6042 (a)(2), 6044 (a)(2), or 6045), of $600 or more in any taxable year, or, in the case of such payments made by the United States, the officers or employees of the United States having information as to such payments and required to make returns in regard thereto by the regulations hereinafter provided for, shall render a true and accurate return to the Secretary, under such regulations and in such form and manner and to such extent as may be prescribed by the Secretary, setting forth the amount of such gains, profits, and income, and the name and address of the recipient of such payment.

I am not lawfully engaged in a “trade or business” or a “public office” because:

1. The rules of statutory construction forbid adding anything to the statutory definition not expressly described SOMEWHERE in the I.R.C. as indicated in section 6.1.


“When a statute includes an explicit definition, we must follow that definition, even if it varies from that term's ordinary meaning. Meese v. Keene, 481 U.S. 465, 484-485 (1987) (“It is axiomatic that the statutory definition of the term excludes unstated meanings of that term”); Colautti v. Franklin, 439 U.S. at 392-393, n.


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http://www4.law.cornell.edu/uscode/html/uscode26/usc_sup_01_26_10_F_20_61_30_A_40_III.html

http://www4.law.cornell.edu/uscode/html/uscode26/usc_sup_01_26_10_F_20_61_30_A.html

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http://www4.law.cornell.edu/uscode/html/uscode26/usc_sup_01_26_10_F.html




10 (“As a rule, `a definition which declares what a term “means” . . . excludes any meaning that is not stated'“); Western Union Telegraph Co. v. Lenroot, 323 U.S. 490, 502 (1945); Fox v. Standard Oil Co. of N.J., 294 U.S. 87, 95-96 (1935) (Cardozo, J.); see also 2A N. Singer, Sutherland on Statutes and Statutory Construction § 47.07, p. 152, and n. 10 (5th ed. 1992) (collecting cases). That is to say, the statute, read “as a whole,” post at 998 [530 U.S. 943] (THOMAS, J., dissenting), leads the reader to a definition. That definition does not include the Attorney General's restriction -- “the child up to the head.” Its words, “substantial portion,” indicate the contrary.” [Stenberg v. Carhart, 530 U.S. 914 (2000)

2. 4 U.S.C. §72 forbids public offices to be exercised outside the District of Columbia unless expressly authorized by Congress.

3. Congress never expressly authorized the public offices that are the subject of the I.R.C. Subtitle A tax upon a “trade or business” anywhere within states of the Union, which is where I was present at the time of the alleged liability.

4. I do not satisfy any of the criteria for occupying a public office:4.1. I have never taken the oath required to serve in a “public office”4.2. I have never received a commission or accepted an appointment by the President of the United States.4.3. I have never functioned as a public employee without supervision, which is a prerequisite to holding a public

office.

Public office.

“Essential characteristics of a ‘public office’ are:(1) Authority conferred by law,(2) Fixed tenure of office, and(3) Power to exercise some of the sovereign functions of government.

Key element of such test is that “officer is carrying out a sovereign function. Spring v. Constantino, 168 Conn. 563, 362 A.2d 871, 875. Essential elements to establish public position as ‘public office’ are: Position must be created by Constitution, legislature, or through authority conferred by legislature. Portion of sovereign power of government must be delegated to position, Duties and powers must be defined, directly or implied, by legislature or through legislative authority. Duties must be performed independently without control of superior power other than law, and Position must have some permanency.” [Black’s Law Dictionary, Sixth Edition, p. 1230]

5. Even if I worked for the federal government, I did not serve as the “employee” described in 26 U.S.C. §3401(c ), 26 CFR §31.3401(c )-1, and 5 U.S.C. §2105, all of whom are “public officers” in the U.S. government:

26 CFR §31.3401(c )-1 Employee

"...the term [employee] includes officers and employees, whether elected or appointed , of the United States, a [federal] State, Territory, Puerto Rico or any political subdivision, thereof, or the District of Columbia, or any agency or instrumentality of any one or more of the foregoing. The term 'employee' also includes an officer of a [federal] corporation."

________________________________________________________________________________________

Treatise on the Law of Public Offices and OfficersBook 1: Of the Office and the Officer: How Officer Chosen and QualifiedChapter I: Definitions and Divisions§2 How Office Differs from Employment.-

A public office differs in material particulars from a public employment, for, as was said by Chief Justice MARSHALL, “although an office is an employment, it does not follow that every employment is an office. A man may certainly be employed under a contract, express or implied, to perform a service without becoming an officer.” 1

“We apprehend that the term 'office,'“ said the judges of the supreme court of Maine, “implies a delegation of a portion of the sovereign power to, and the possession of it by, the person filling the office; and the exercise of such power within legal limits constitutes the correct discharge of the duties of such office. The power thus delegated and possessed may be a portion belonging sometimes to one of the three great departments and sometimes to another; still it is a legal power which may be rightfully exercised, and in its effects it will bind the rights of others and be subject to revision and correction only according to the standing laws of the state. An employment merely has none of these distinguishing features. A public agent acts only on behalf of his principal, the public, whoso sanction is generally considered as necessary to give the acts performed the

1 United States v. Maurice, 2 Brock. (U.S.C.C.) 96.


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authority and power of a public act or law. And if the act be such as not to require subsequent sanction, still it is only a species of service performed under the public authority and for the public good, but not in the exercise of any standing laws which are considered as roles of action and guardians of rights.” 2

“The officer is distinguished from the employee,” says Judge COOLEY, “in the greater importance, dignity and independence of his position; in being required to take an official oath, and perhaps to give an official bond; in the liability to be called to account as a public offender for misfeasance or non-feasance in office, and usually, though not necessarily, in the tenure of his position. In particular cases, other distinctions will appear which are not general.”3 [A Treatise on the Law of Public Offices and Officers, Floyd Russell Mechem, 1890, pp. 3-4, §2;SOURCE: http://books.google.com/books?id=g-I9AAAAIAAJ&printsec=titlepage]

Consequently:

1. All information returns filed against me for the related tax years are FALSE.2. A criminal violation of the following results if these returns are NOT corrected:

2.1. 26 U.S.C. §7206(1): Fraud and false statement on an information return. Forms 1096 and W-3 are signed under penalty of perjury.

2.2. 26 U.S.C. §7207: Fraudulent returns, statements, or other documents. Information returns are “returns” under this section.

2.3. 26 U.S.C. §912: Impersonating a “public officer” of the government. 26 U.S.C. §6041(a) says information returns may only be filed against those engaged in a “trade or business”, meaning a “public office” as shown in 26 U.S.C. §7701(a)(26). Those filing false information returns are causing the subject of the information return to impersonate a public officer.

2.4. 26 U.S.C. §654: Conversion. Connecting private property to a public office constitutes unlawful conversion by the person filing the false information return.

6.6 No earnings from sources within the “United States”

The term “United States” is statutorily defined in 26 U.S.C. §7701(a)(9) and (a)(10).

TITLE 26 > Subtitle F > CHAPTER 79 > Sec. 7701. [Internal Revenue Code] Sec. 7701. - Definitions


(9) United States

The term ''United States'' when used in a geographical sense includes only the States and the District of Columbia.

(10) State

The term ''State'' shall be construed to include the District of Columbia, where such construction is necessary to carry out provisions of this title.

The rules of statutory construction forbid adding anything to the above definition or presuming anything that is not expressly specified:


2 Opinion of Judges, 8 Greenl. (Me.) 481.3 Throop v. Langdon, 40 Mich. 678, 682; “An office is a public position created by the constitution or law, continuing during the pleasure of the appointing power or for a fixed term with a successor elected or appointed. An employment is an agency for a temporary purpose which ceases when that purpose is accomplished. “ Cons. Ill., 1870, Art. 5, §24.


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26 U.S.C. §864(c )(3) further clarifies which “United States” is meant in the context of “sources within the United States”, and the context is that it can only mean the U.S. government and not any geographical place. The only place where all earnings are connected with a “trade or business” and a “public office” by default is within the U.S. government.


(c) Effectively connected income, etc.

(3) Other income from sources within United States

All income, gain, or loss from sources within the United States (other than income, gain, or loss to which paragraph (2) applies) shall be treated as effectively connected with the conduct of a trade or business [public office pursuant to 26 U.S.C. §7701(a)(26)] within the United States.

Consequently, only payments to or from the U.S. government can realistically constitute “sources within the United States”. This is consistent with the fact that:

1. You can’t earn reportable income unless you are the subject of an information return such as IRS Forms W-2, 1042-S, 1098, and 1099.

2. All information returns connect the subject to a “trade or business” and a public office pursuant to 26 U.S.C. §6041(a).3. An estate that has no earnings connected with a “trade or business”/”public office” and which does not originate from

“sources within the “United States” (meaning the government) is called a “foreign estate” and is excludible from “gross income”:

TITLE 26 > Subtitle F > CHAPTER 79 > Sec. 7701. Sec. 7701. - Definitions


(31) Foreign estate or trust

(A) Foreign estate

The term ''foreign estate'' means an estate the income of which, from sources without the United States which is not effectively connected with the conduct of a trade or business within the United States [under 26 U.S.C. §871(b) and 26 U.S.C. §864 ], is not includible in gross income under subtitle A.

6.7 Earnings as a federal worker not taxable in this case

During the period which is the subject of this collection action:

1. The company I work for, being the Space and Naval Warfare Systems Command, filed fraudulent IRS form W-2s in connection with all my earnings.

2. The W-2 information returns filed were false in violation of 26 U.S.C. §7206 because:2.1. I was not lawfully engaging in a “trade or business” and a public office in the government during that time.2.2. I had no form W-4 agreement in place, and therefore the submitter of these forms could not truthfully report

“wages” as legally defined. Pursuant to 26 CFR §31.3401(a)-3(a) and 26 CFR §31.3402(p)-1, I did not therefore earn “wages” as legally defined in 26 U.S.C. §3401 during the periods in question. The only way to earn


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http://www4.law.cornell.edu/uscode/html/uscode26/usc_sup_01_26_10_A_20_1_30_N_40_I.html

http://www4.law.cornell.edu/uscode/html/uscode26/usc_sup_01_26_10_A_20_1_30_N.html

http://www4.law.cornell.edu/uscode/html/uscode26/usc_sup_01_26_10_A_20_1.html

http://www4.law.cornell.edu/uscode/html/uscode26/usc_sup_01_26_10_A.html



reportable “wages” as legally defined and not commonly understood is to have such an agreement in place. Therefore, “wages” reported on IRS form W-2 MUST be zero.

2.3. The withholding form I did have in place was IRS form W-8BEN, and the “individual” described in Block 3 is NOT the “individual” described in 26 CFR §1.1441-1(c )(3) because I did not maintain a domicile or residence in the United States at that time.

2.4. The withholding forms on file at that time are included within Enclosure (2) attached.3. These reports were also fraudulent in violation of 26 U.S.C. §7207, because the IRS was notified that they were false

several times and did not either rebut the fact that they were false with evidence or contact the submitter to correct them.

In order that I may have “income” subject to tax during the period during this reporting period as a nonresident alien NON-individual pursuant to 26 U.S.C. §871, my earnings must either be connected with a “trade or business”/ “public office” pursuant to 26 U.S.C. §871(b) OR originate from the “United States” as defined in 26 U.S.C. §7701(a)(9) and (a)(10) and pursuant to 26 U.S.C. §871(a). The fact remains that:

1. I did not work in the District of Columbia during the period, which is what “United States” is defined as in 26 U.S.C. §7701(a)(9) and (a)(10).



2. My paycheck was not paid from the District of Columbia, but from DFAS Cleveland, which is not in the District of Columbia.

3. The government and employer asserting a liability already indicated that all compensation received as a federal worker was associated with a “trade or business” as indicated in 26 U.S.C. §871(b) because it filed information returns pursuant to 26 U.S.C. §6041(a).

4. I am a “nonresident alien” but not a “nonresident alien individual” mentioned in 26 U.S.C. §871(a).5. Simply filing an information return is proof that the earnings do not fall into the “sources within the United States”

category at 26 U.S.C. §871(a) but rather the 26 U.S.C. §871(b) category.6. There are no IRS forms for reporting any payment that is NOT associated with a “trade or business”. ALL information

returns published by the IRS are published under the authority of 26 U.S.C. §6041(a). Hence, there is no method for either reporting or crediting earnings under 26 U.S.C. §871(a) and therefore no way to tax them.

7. If the government wishes to assert that the earnings subject to tax in my case fall in the 26 U.S.C. §871(a) category, it will have to admit that the IRS form W-3 signed under penalty of perjury verifying the W-2 it failed against me was fraudulent and that the submitter is therefore guilty of perjury in violation of 18 U.S.C. §1001 and 18 U.S.C. §1621.

Therefore, the earnings that are the subject of this collection action do not fall under 26 U.S.C. §871(a) , and furthermore, are also not connected to a “trade or business” and a “public office” under 26 U.S.C. §871(b) either, and therefore, are not taxable in my case, even as a government worker.

7 Constraints upon rebuttals to this Affidavit

In your response:


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1. Everything you don’t expressly deny and disprove WITH evidence signed under penalty of perjury as required by 26 U.S.C. §6065 shall be deemed admitted and a laches and estoppel in pais shall then apply pursuant to Fed.Rul.Civ.P. 8(b)(6). Anything not signed under penalty of perjury in your response that is not authenticated with a perjury statement shall be regarded as:1.1. A political statement or belief.1.2. Inadmissible as evidence.1.3. No reliable as a basis for reasonable belief about my obligations under the law.

2. You may not engage in presumptions about what is “included” in a word. All presumptions that prejudice constitutional rights are a violation of due process of law and or rights and I am a secured party to the constitution who has rights.

(1) [8:4993] Conclusive presumptions affecting protected interests:

A conclusive presumption may be defeated where its application would impair a party's constitutionally-protected liberty or property interests. In such cases, conclusive presumptions have been held to violate a party's due process and equal protection rights. [Vlandis v. Kline (1973) 412 U.S. 441, 449, 93 S.Ct 2230, 2235; Cleveland Bed. of Ed. v. LaFleur (1974) 414 US 632, 639-640, 94 S.Ct. 1208, 1215-presumption under Illinois law that unmarried fathers are unfit violates process][Rutter Group Practice Guide-Federal Civil Trials and Evidence, paragraph 8:4993, page 8K-34 ]

An example of either an unconstitutional presumption or a statutory presumption that you may not engage in is that found in 26 U.S.C. §7701(c ), if that statute is abused to extend the definition of words to include things that are not expressly spelled out:

“In the interpretation of statutes levying taxes, it is the established rule not to extend their provisions by implication 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.” [Gould v. Gould, 245 U.S. 151 (1917)]


If you disagree, rebut the questions and evidence at the end of the following within 30 days or be found in default:Meaning of the Words “includes” and “including”, Form #05.014http://sedm.org/Forms/FormIndex.htm

3. If you disregard the prohibition against presumptions, your conduct shall constitute establishment of a state sponsored, which we define here as any system of belief that cannot be supported by evidence and where “presumption” acts as a substitute for religious faith. Note that “presumptions” are not evidence.

This court has never treated a presumption as any form of evidence. See, e.g., A.C. Aukerman Co. v. R.L. Chaides Constr. Co., 960 F.2d 1020, 1037 (Fed.Cir.1992) (“[A] presumption is not evidence.”); see also Del Vecchio v. Bowers, 296 U.S. 280, 286, 56 S.Ct. 190, 193, 80 L.Ed. 229 (1935) (“[A presumption] cannot acquire the attribute of evidence in the claimant's favor.”); New York Life Ins. Co. v. Gamer, 303 U.S. 161, 171, 58 S.Ct. 500, 503, 82 L.Ed. 726 (1938) (“[A] presumption is not evidence and may not be given weight as evidence.”). Although a decision of this court, Jensen v. Brown, 19 F.3d 1413, 1415 (Fed.Cir.1994) , dealing with presumptions in VA law is cited for the contrary proposition, the Jensen court did not so decide.[Routen v. West, 142 F.3d 1434 C.A.Fed.,1998]

8 Affirmation

I declare under penalty of perjury from without the “United States” and the “State of _______(state name)”, and from within the Republic of ________________(state name) under 28 U.S.C. §1746(1) that the foregoing facts and all Exhibits are true, correct, and complete to the best of my knowledge and ability, but only when litigated in a state (not federal) Court


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http://famguardian.org/TaxFreedom/CitesByTopic/Presumption-RPG-Federal.pdf



with a jury trial and with all of the law and facts and evidence mentioned or referred to in this letter admitted into evidence for the jury to read and consider. None of the jurists of the judges or witnesses may be “taxpayers”, “U.S. citizens”, “resident aliens”, or in receipt of federal or state benefits derived from income taxes, in order to ensure that the fact finders are completely impartial and do not violate 18 U.S.C. §208.

Constitutionally,

American National, Nonresident alienAll rights reserved without prejudice, U.C.C. 1-308

___________________________________________________________________________________________________NOTARY PUBLIC’S JURAT

BEFORE ME, the undersigned authority, a Notary Public, of the County of ____________________________, Republic

of _________________________(statename), this _______ day of ________________________, 20___,

___________________________________, the above signed did appear and was identified by (circle one): driver’s

license/passport/other and who, upon first being duly sworn and/or affirmed, deposes and says that the aforegoing

asseveration is true to the best of his/her knowledge and belief.

WITNESS my hand and official seal:

/s/_______________________________________________________SEAL Notary Public

My Commission Expires On:


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ENCLOSURE (1): Affidavit of Citizenship, Domicile, and Tax Status

This form documents my citizenship, domicile, and tax status during the entire period that is the subject of this enforcement action.


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ENCLOSURE (2): Case History DVD

This section contains the complete case history for the enforcement period in question and beyond. It is also available in electronic form online at:

Address: Username: Password:


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satcomm911.com. p.d.f.'s/ex02-affmatfacts-081… · web viewsatcomm911.com

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