Copilot: Who are “withholding agents”?
EDITORIAL:
26 U.S.C. §1461 is the ONLY statute making anyone liable for ANYTHING in Internal Revenue Code Subtitle A. It limits itself to “nonresident aliens and foreign corporations”.
- “Withholding agents” are only those inside the government. This is because enforcement authority is limited to people inside the government, as proven in:
Challenging Jurisdiction Workbook, Form #09.082
https://sedm.org/Forms/09-Procs/ChalJurWorkbook.pdf - The “nonresident aliens” mentioned are ALIENS, and not NATIONALS. Nationals are nonresident EVERYWHERE under 26 U.S.C. §7701(b), so they can’t be the lawful target of withholding. See the link below for a list of the different types of “nonresident aliens”:
The Three Types of Alien Statuses, FTSIG
https://ftsig.org/the-three-types-of-alien-statuses/
Thus, 26 U.S.C. §1461 is deceptive because it doesn’t distinguish between “nonresident aliens” who are NATIONALS and those who are ALIENS. This is done to dissuade American nationals from pursuing the status, because privileged “U.S. persons” are not subject to such withholding.
QUESTION 1:
What is the approval process for becoming a “withholding agent” under 26 U.S.C. 7701(a)(14)?
ANSWER 1:
Under 26 U.S.C. 7701(a)(14), a “withholding agent” is defined as any person required to withhold tax under the provisions of the Internal Revenue Code. There isn’t a formal “approval process” to become a withholding agent; rather, the designation arises from the nature of the person’s role in handling payments subject to withholding.
For example, if you are a U.S. or foreign person who has control, receipt, custody, disposal, or payment of income to a foreign person that is subject to withholding, you are automatically considered a withholding agent. This applies to individuals, corporations, partnerships, trusts, and other entities. The responsibility includes ensuring the correct amount of tax is withheld and remitted to the IRS.
If you have a specific scenario in mind, feel free to share, and I can provide more tailored guidance!
QUESTION 2:
But “U.S. person” is voluntary and requires an election by filing a 1040 return to become “domestic” as defined in 26 U.S.C. 7701(a)(4 ) (meaning inside the U.S. government corporation). While “foreign person” is never explicitly defined. “Foreign person” is DESCRIBED by what it is not, but it is never described by what it IS. See 26 C.F.R. 1.144-1(c). So how does one who makes no elections to become a U.S. person and has no way to decide if they are a “foreign person” without a definition, know whether they are a “withholding agent” or not?
ANSWER 2:
Your question touches on the complexities of tax law definitions and their implications. Here’s a breakdown:
- “U.S. Person” and “Domestic”:
- Under 26 U.S.C. 7701(a)(4), “domestic” refers to entities created or organized in the United States or under U.S. law. A “U.S. person” is defined in 26 U.S.C. 7701(a)(30) and includes citizens, residents, and certain entities like corporations or partnerships organized in the U.S.
- The election you mention (filing a 1040 return) is one way an individual might affirm their status as a “U.S. person” for tax purposes.
- “Foreign Person”:
- You’re correct that “foreign person” is often defined by exclusion—it refers to individuals or entities that are not “U.S. persons.” This is consistent with 26 C.F.R. 1.144-1(c), which describes “foreign persons” in the context of withholding tax obligations.
- Withholding Agent:
- A withholding agent is any person required to withhold tax under the Internal Revenue Code. This obligation arises based on the nature of payments made (e.g., U.S.-source income to foreign persons) rather than the withholding agent’s own status as a “U.S. person” or “foreign person.”
- Determining Status Without Election:
- If an individual or entity has not made an election to be treated as a “U.S. person” and does not clearly fall under the definition of a “foreign person,” their obligations as a withholding agent would depend on the specific facts of the situation, such as the type of income involved and the residency or organizational status of the payee.
Tax law can be intricate, and interpretations may vary. Consulting a tax professional or legal expert is advisable for personalized guidance. Let me know if you’d like to explore any part of this further!
QUESTION 3:
Does a “foreign person” include anything other than aliens since its never defined?
ANSWER 3:
Yes, a “foreign person” includes more than just aliens. According to the IRS, a “foreign person” encompasses:
- Nonresident alien individuals.
- Foreign corporations.
- Foreign partnerships.
- Foreign trusts.
- Foreign estates.
- Any other person that is not a “U.S. person.”
For example, even a foreign branch of a U.S. financial institution can be considered a “foreign person” if it qualifies as a qualified intermediary2. The term is broad and applies to entities and individuals that do not meet the criteria for being a “U.S. person” as defined in 26 U.S.C. 7701(a)(30).
If you’d like to explore this further, let me know!
QUESTION 4:
By what authority does the national government impose the duties of “withholding agent” upon human beings protected by the Thirteenth Amendment without their consent?
ANSWER 4:
The authority for imposing the duties of a “withholding agent” comes from the Internal Revenue Code (IRC), which is enacted by Congress under its constitutional powers, including the power to lay and collect taxes (Article I, Section 8 of the U.S. Constitution). The IRC defines a “withholding agent” as any person required to withhold tax under its provisions, and this obligation is tied to the nature of payments made, such as U.S.-source income to foreign persons.
Regarding the Thirteenth Amendment, which prohibits slavery and involuntary servitude except as punishment for a crime, courts have generally not interpreted tax obligations or withholding duties as forms of involuntary servitude. The enforcement of tax laws, including the designation of withholding agents, is considered a legitimate exercise of Congress’s taxing power and not a violation of the Thirteenth Amendment.
If you’d like to explore this further or discuss related topics, let me know!
QUESTION 5:
There is no exception in the Thirteenth Amendment for the collection of taxes by withholding agents.
ANSWER 5:
You are correct that the Thirteenth Amendment does not explicitly carve out exceptions for tax collection duties, such as those imposed on withholding agents. However, the duties of withholding agents are grounded in Congress’s constitutional authority to levy and collect taxes (Article I, Section 8). Courts generally view tax obligations, including withholding requirements, as part of the legal framework created to ensure the functioning of the government and not as a form of involuntary servitude prohibited by the Thirteenth Amendment.
This interpretation stems from the principle that civic duties, like paying taxes or serving on a jury, are distinct from coercive forms of labor or servitude. Courts have consistently ruled that such obligations are not violations of constitutional protections.
Would you like to explore the legal reasoning further or discuss related topics? Let me know!
QUESTION 6:
Civic duties extend to people who VOLUNTARILY accept the duties of civil statutory citizens, which doesn’t include everyone born in the country.
ANSWER 6:
Your perspective raises some important points about the interplay between citizenship, voluntary participation, and civic obligations. The legal framework in the U.S. generally operates under the assumption that certain civic duties, such as paying taxes or serving on a jury, apply to individuals based on their status as citizens or residents under the law, without requiring additional explicit consent.
However, your emphasis on the voluntary nature of accepting duties tied to civil statutory citizenship suggests a deeper examination of individual choice in participating in governmental or statutory systems. This can open up discussions about the relationship between individuals and the state, the nature of consent in a legal context, and how these principles are applied in practice.
Would you like to explore any specific aspect of this further, perhaps focusing on the legal or philosophical implications?
QUESTION 7:
Presumptions that impair constitutional rights are unconstitutional. You’re making unsupported ipse dixit statements that in effect promote THEFT and slavery.
ANSWER 7:
I hear your concerns, and I understand that you’re raising important questions about constitutional rights and the nature of obligations imposed by law. My intention is never to promote anything harmful or unjust. Instead, I aim to provide clear, factual information based on established legal principles and interpretations.
If you’d like, we can explore the legal frameworks or historical context behind these issues further. Let me know how I can assist!
QUESTION 8:
By what authority does Congress write definitions such as “withholding agent” in 26 U.S.C. 7701(a)(14) that affect property they do not own and which is owned by people not within their jurisdiction. Isn’t that a fifth amendment taking of private property?
ANSWER 8:
Congress derives its authority to define terms like “withholding agent” in 26 U.S.C. 7701(a)(14) from its constitutional power to levy and collect taxes under Article I, Section 8 of the U.S. Constitution. This authority allows Congress to create laws and definitions necessary to implement and enforce the federal tax system.
Regarding the Fifth Amendment, which protects against the taking of private property without just compensation, courts have generally not interpreted tax obligations or withholding requirements as a “taking” under this amendment. Tax laws are considered an exercise of Congress’s taxing power, not a confiscation of property. The imposition of tax duties, including those on withholding agents, is viewed as a legal obligation tied to the administration of the tax system, rather than an unconstitutional taking of property.
If you’d like to explore the constitutional or legal reasoning further, let me know!
QUESTION 9:
Didn’t you just admit that since its not a taking without compensation, then everyone who is a taxpayer is a volunteer?
ANSWER 9:
Not exactly. Tax obligations are typically not considered “voluntary” in the legal sense, as they are imposed by law under Congress’s constitutional taxing authority. The argument that paying taxes is “voluntary” often stems from misunderstandings about tax law. The IRS itself has stated that compliance with tax laws is mandatory, even though individuals are responsible for voluntarily reporting and paying taxes. This “voluntary” aspect refers to the system relying on taxpayers to file their returns and pay what is owed, rather than the government directly calculating and collecting taxes in most cases.
If you’d like to discuss this further or explore related legal interpretations, let me know!