FAQ: How does your approach compare with Taxfreedom.com/Thomas Freed?
QUESTION:
How does the approach documented on this website compare with that of Thomas Freed of TaxFreedom.com described at the following links?:
- Tax Freedom Website
http://www.tax-freedom.com - IRS Zoom Response Letters
https://irszoom.com - Truth Attack Youtube Channel
https://www.youtube.com/@Thomas-Freed - American Tax Bible
https://www.americantaxbible.com
ANSWER:
Thomas Freed’s entire approach in detail is described in the following:
American Tax Bible
https://www.americantaxbible.com
We have read the entire above work. Below is a summary of his approach:
1. The constitutional authority for the income tax derives from Article 1, Section 8, Clause 1 and NOT the Sixteenth Amendment. The Sixteenth Amendment is just a red herring for the authority to institute an income tax.
1.1. Look at the “Constitutional authority statement” of the following law for proof:
H.R. 1, 2017-2018
https://www.congress.gov/bill/115th-congress/house-bill/1/all-actions?s=2&r=12&q=%7B%22search%22%3A%22%5C%22H.R.+1%5C%22%22%7D
1.2. We agree with the above in the following article:
Journey to Sixteenth Amendment, Fed Reserve, FTSIG
https://ftsig.org/history/journey-to-16a-fed-reserve-nnot/
2. Political “citizens” [under 26 C.F.R. §1.1-1(c)] are exempted from tax by what is currently 26 U.S.C. §6654(e)(2)(C). This statute is the same one mentioned in TD2313.
3. The form mandated for filing by U.S. citizens under 26 U.S.C. §1 is the IRS Form 2555, not the 1040. This means that Americans abroad as documented below, involving a treaty exemption are the only ones with a requirement to file.
3.1. Cook v. Tait, 265 U.S. 47 (1924)-Cook was domiciled in Mexico and filed 1040, and thus made a U.S. person election as an American abroad.
https://ftsig.org/cook-v-tait-265-u-s-47-1924/
3.2. 26 C.F.R. §602.101, enacted under the Paperwork Reduction Act, assigns NO specific OMB control number is indicated for 26 C.F.R. §1.1-1, but 26 C.F.R. §1.1(h)-1(e) only is listed, which relates to Capital gains look-through rule for sales or exchanges of interests in a partnership, S corporation, or trust.
3.3. If you go back to 26 C.F.R. §602.101 of 4-1-94, 26 C.F.R. §1.1-1 was listed as relating to OMB Control number 1545-0067, which was Form 2555 and not the 1040.
3.4. The OMB control number for the 2555 is 1545-0067 while that for the 1040 is 1545-0074.
3.5. Therefore, the reason they don’t currently list an OMB control number for 26 C.F.R. §1.1-1 in 26 C.F.R. §602.101 is that they don’t want to admit that it only applies ABROAD.
4. 26 C.F.R. §1.1-1(a) imposes the income tax on the “worldwide” income of a citizen or resident of the United States. However, based on the above, the word “worldwide” limits itself to countries where the citizen is abroad and there is a tax treaty in place under 26 U.S.C. §911.
5. The 1939 I.R.C., 53 Stat Volume 1, Section 4(g), pp. 4-5 establishes that the citizens subject to tax are those deriving income from possessions and not states of the Union. See:
Historical Income Tax Acts
https://famguardian.org/PublishedAuthors/Govt/HistoricalActs/HistFedIncTaxActs.htm
I.R.C. 1939 Code
https://famguardian.org/PublishedAuthors/Govt/HistoricalActs/IRC1939final.pdf
6. After the Sixteenth Amendment was ratified in 1913, the Revenue Act of 1913, also called the Underwood-Simmons Tariff Act of Oct. 3, 1913, 38 Stat. 114, Section 3166, paragraph H defined “State” and United States” as including any Territory, Alaska (at the time a territory), the District of Columbia, Porto Rico, and the Philippine Islands.
Revenue Act of 1913, Underwood-Simmons Tariff Act, 38 Stat. 177, Section II, Paragraph H
https://famguardian.org/PublishedAuthors/Govt/HistoricalActs/RevAct1913-38Stat114-203.pdf
7. The Parallel Table of Authorities lists all the regulations under the I.R.C. that implement provisions of the enforcement provisions of the I.R.C. NONE of the enforcement regulations pertain to Title 26 or apply to the average American within a constitutional state:
Parallel Table of Authorities, Govinfo
https://www.govinfo.gov/media/parallel_table_2016.pdf
7.1. 26 U.S.C. §5601: Criminal penalties
7.2. 26 U.S.C. §6020: SFR authority (substitute for returns)
7.3. 26 U.S.C. §6201: Assessments
7.4. 26 U.S.C. §6301: Collection authority
7.5. 26 U.S.C. §6303
7.6. 26 U.S.C. §6321: Liens
7.7. 26 U.S.C. §6331: Levies
7.8. 26 U.S.C. §6501-6502: Assessment and Collection limitations
7.9. 26 U.S.C. §6651: Failure to file or pay
7.9. 26 U.S.C. §6701: Return preparation penalties
7.10. 26 U.S.C. §7212: Interference penalties
7.11. 26 U.S.C. §7401: Civil suits to enforce lien
7.12. 26 U.S.C. §7403: Civil suits to enforce lien
7.13. 26 U.S.C. §7602: Investigation authorities
7.14. 26 U.S.C. §7603: Investigation authorities
7.15. 26 U.S.C. §7604: Investigation authorities
7.16. 26 U.S.C. §7605: Investigation authorities
7.17. 26 U.S.C. §7606: Investigation authorities
8. Because there are no implementing regulations authorizing enforcement of the I.R.C. within the exclusive jurisdiction of the constitutional states and the average American isn’t within the government against whom statutes can be directly enforced, then the IRS has no enforcement authority for Subtitles A and C of the I.R.C. We similarly prove this in:
8.1. Challenging Jurisdiction Workbook, Form #9.082
https://sedm.org/Forms/09-Procs/ChalJurWorkbook.pdf
8.2. PROOF OF FACTS: Exta-territorial jurisdiction of the national government, FTSIG
https://ftsig.org/proof-of-facts-exta-territorial-jurisdiction-of-the-national-government/
9. IRS Publication 515 dated Nov. 1992 Says on p. 3 the following:
“Evidence of residence: 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.”
The current version of Publication 515:
https://www.irs.gov/publications/p515
10. The IRS Criminal Investigation Division has authority only over International Affairs and not domestic affairs.
Internal Revenue Manual, Section 9.1.2: Criminal Investigation
https://www.irs.gov/irm/part9/irm_09-001-002
11. The IRM says Substitute for Returns are not permissible for Form 1040. See:
11.1. 26 U.S.C. §6020(b)
11.2. Truth in Taxation Hearings, Section 13: 26 U.S.C. 6020(b): Substitute for Returns
https://truthintaxationhearings.famguardian.org/IRSDeposition/Section%2013.htm
12. The original definition of “gross income” in Section 22(a) of the Title 26, 1939 code was limited to Canada and not the United States under Part 519 of the Treasury Regulations. See:
12.1. 26 U.S.C. Section 22(a), 1939 Code
https://famguardian.org/PublishedAuthors/Govt/HistoricalActs/IRC1939final.pdf
12.2. 26 U.S.C. §61(a) derives from the 1939 Code Section 22(a) and did not substantially change the 1939 definition, according to the Supreme Court in:
Commissioner v. Glenshaw Glass, 358 U.S. 426 (1955).
https://ftsig.org/commissioner-v-glenshaw-glass-358-u-s-426-1955/
12.3. 26 C.F.R. Part 519, 1939
CONCLUSION:
We have known Thomas Freed for decades and spoken with him on the phone more than once. He lives in the District of Columbia, of all places. We admire Thomas Freed’s commitment to the subject matter. He has been at it longer than us! We cut our teeth on his teachings in our early years 25 years ago. He has worked with John Kotmair (now deceased) and Save-A-Patriot (not defunct), while we haven’t. We knew John Kotmair, who was attacked at the same time as SEDM civilly for an injunction in 2005.
We agree with all the above and always have agreed with all the above. What Thomas Freed is essentially saying is that:
- The income tax is a tax on foreign commerce under constitution Article 1, Section 8, Clause 3.
- Foreign commerce includes:
2.1. citizens and residence abroad under 26 U.S.C. §911, filing the 1040 and 2555 forms, and subject to a tax treaty with the foreign country where they want to prevent double taxation.
2.2. Aliens who are nonresident and abroad but doing business in the country United States*. - The possessions are treated as foreign countries for the purposes of the above.
- The withholding in 26 U.S. Code Subtitle A Chapter 3 – WITHHOLDING OF TAX ON NONRESIDENT ALIENS AND FOREIGN CORPORATIONS is only upon people in the “foreign commerce” category who are all aliens and never citizens. See:
https://www.law.cornell.edu/uscode/text/26/subtitle-A/chapter-3 - Congress and the IRS have systematically tried to HIDE the above over the years to make the I.R.C. Subtitle A LOOK like a tax upon all Americans in states of the Union.
- There is no liability statute in the I.R.C. See:
Truth in Taxation Hearings, Section 1: Liability
https://truthintaxationhearings.famguardian.org/IRSDeposition/Section%2001.htm - Because there is no liability statute, there can be no duty to file a return. American nationals volunteer to be liable essentially by electing a foreign status under 26 U.S.C. §911 by simply filing a 1040 form to create the false impression that they are abroad.
- Consistent with the above, no form to file a return is mandated under Section 1 of the I.R.C. under the Parallel Table of Authorities. Thus, there is no need to file a tax return and if that requirement is enforced anyway, there has been a violation of the Paperwork Reduction Act:
Policy Document: Paperwork Reduction Act Violations by the I.R.S., Form #08.014
https://sedm.org/Forms/08-PolicyDocs/PRA.pdf - Since volunteering requires the filing of a 1040 tax return, you shouldn’t file a 1040 but instead send in the equivalent of a Tax Statement under 26 U.S.C. §6011.
- The average American is not an alien who is nonresident. Aliens who are nonresidents are only a subset of all those who can file as nonresident aliens. However, it is a mistake to file a 1040-NR also, because you will make yourself look like an alien, even if you aren’t.
MAIN DIFFERENCES:
Thomas Freed’s approach is not wrong. It’s just incomplete. It lacks an exposition of the following concepts, which he may agree with but did not document in what we have read so far:
- What a “privilege” is and how the income tax is an excise or indirect tax on legislatively granted privileges as PUBLIC property. See:
Government Instituted Slavery Using Franchises, Form #05.030
https://sedm.org/Forms/05-MemLaw/Franchises.pdf - How only public officers can engage in privileges and how “taxpayers” are public officers or agents of the national government who have to volunteer for the office or position they occupy. Otherwise, the Thirteenth Amendment would be violated. See:
Proof that Involuntary Income Taxes on Your Labor are Slavery, Form #05.055
https://sedm.org/Forms/05-MemLaw/ProofIncomeTaxLaborSlavery.pdf - The laws of property and how they relate to taxation. Income tax functions as RENT to actually USE PUBLIC property (also called “privileges”) to derive revenue. That property includes the civil statutory STATUSES that Congress legislatively creates, such as “person”, “taxpayer”, “citizen”, “resident”, etc. See:
Property View of Income Taxation, Form #12.046
https://sedm.org/LibertyU/PropertyViewOfIncomeTax.pdf - The definition of “domestic”, which means inside the government. This means anything connected with “domestic”.
4.1. “Domestic” is defined in:
Writing Conventions on This Website, Section 5: “Domestic”, FTSIG
https://ftsig.org/introduction/writing-conventions-on-this-website/#5._Domestic
4.2. “Domestic” comes under the Public Rights Doctrine of the U.S. Supreme Court and is thus not protected by the Constitution. See:
Catalog of U.S. Supreme Court Doctrines, Litigation Tool #10.020
https://sedm.org/Litigation/10-PracticeGuides/SCDoctrines.pdf
4.3. Is PUBLIC property subject to Congressional regulation and taxation. - The nature of private property protected by the constitution as legislatively “foreign” and outside the jurisdiction of Congress.
- The difference between POLITICALLY foreign and CIVILLY foreign. See:
Writing Conventions on This Website, FTSIG
https://ftsig.org/introduction/writing-conventions-on-this-website/#6._Foreign - That there are TWO types of citizens, and not just those listed in the constitution:
7.1. Political Citizens*: Those who are within the exclusive jurisdiction of a constitutional state and who don’t elect taxable CIVIL “citizen*+D” status by filing the 1040
7.2. Civil Citizens**+D. These are the people he equates with citizens abroad under 26 U.S.C. §911
More on the above on this site at:
Disclaimer, Section 33: “Citizen” and “Citizen*+D” and “Citizenship”, FTSIG
https://ftsig.org/advanced/definitions/#33._Citizen - That Congress has accommodated those in item 6.1 above, the POLITICAL Citizens* to identify them as:
8.1. “nationals of the United States” in 26 U.S.C. §873.
8.2. Nonresident aliens. - How and why people actually volunteer to pay income tax. See:
How American Nationals Volunteer to Pay Income Tax, Form #08.024
https://sedm.org/Forms/08-PolicyDocs/HowYouVolForIncomeTax.pdf - That the Nonresident Alien Position is in fact a valid approach among American nationals who:
10.1. Are CIVILLY foreign but not POLITICALLY foreign.
10.2. Are not subject to withholding under 26 U.S. Code Subtitle A Chapter 3, because the “foreign persons” mentioned there are all aliens and not nationals.
https://www.law.cornell.edu/uscode/text/26/subtitle-A/chapter-3
10.3. Are exclusively private and retain the protections of the constitution by rejecting all privileges and public property.
The above refinements of Thomas’ approach are absolutely necessary because they:
- Simplify the treatment to remove the complexity of most of the code.
- Make your position easier to explain to juries.
- Clarify the relationship between constitutional PRIVATE rights and civil statutory PUBLIC rights and the separation between the two.
- Make it much clearer how you transition to civil statutory status to become a “taxpayer”.
- Make it much easier to challenge enforcement jurisdiction.
- Provide an actual method of filing a tax return the recognizes how to file and gives you a form in stead of a statement.
- Allow the prosecution of corruption in many other areas not related to taxation and thus increase the audience for the use of the information.