PROOF OF FACTS: “IncludIBLE” or “includABLE”?

The main word used for equivocation about whether an earning is statutory “income” is the word “includible” v. “includable”.  Here is the trickery involved: Legal Documents In legal documents, the use of “includable” or “includible” can have a significant impact on the interpretation of the document. For example, if a contract states that certain items…

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DEFINITIONS: “Wages”

The Wealth of Nations, Adam Smith, p. 675, 1776; SOURCE: https://www.ibiblio.org/ml/libri/s/SmithA_WealthNations_p.pdf EDITORIAL: Smith deplored capitations as inequitable, inflationary, counterproductive, and destructive of liberty. Smith 5 times calls a tax on wages a direct tax in three pages of Book V This would definitely have been in the mind of the framers when they wrote the…

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Relationship between Anti-Injunction Act and Our Position

When litigating tax issues, the following two important constraints always come into play: 1. Full Payment Rule The Full Payment Rule requires that those who seek refunds of taxes paid in federal district or circuit courts must pay the entire amount in controversy before they may file suit.  This rule was first established by the…

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Meta AI: Taxability of Military Retirement

EDITORIAL: For more information on the subject of this discovery, see: Policy Document: Retirement and Pensions, Form #08.028https://sedm.org/Forms/08-PolicyDocs/RetirementAndPensions.pdf QUESTION 1: If military retirement is based on years of service and therefore personal labor, and if there is no profit from personal labor under 26 U.S.C. 83, then can one earn “gross income” from military retirement?…

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DEFINITIONS: “Foreign Government”

EDITORIAL: This section is useful in determining when and how you became an instrumentality of any government, not just foreign governments. Throughout this site, we take the position that everyone who owes a civil obligation to any government is an AGENT and representative of that government and a “straw man”. “An office is a public…

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Using Form W-4 as a Nonresident Alien

TABLE OF CONTENTS: 1. Introduction This article addresses how to use and not use the W-4 as a nonresident alien. Generally, you should avoid filling out the W-4 and only use it under duress. The correct form to use for withholding instead is the IRS Form W-8BEN or W-8SUB: Another article closely related to this…

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PROOF OF FACTS: Capital v. Income

TABLE OF CONTENTS 1. Distinguishing Between Capital and Income What it the difference between capital and income, and what is the relationship between them? This should be Basic Economics 101, but this distinction has become an economic riddle that few seem inclined to solve. The distinction between capital and income is explained in the 1913 Congressional…

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