USPI thru Changing the Status of Your PROPERTY to Domestic

1. Introduction

We have already covered how your election to a DOMESTIC/PUBLIC statutory “U.S. person” status creates obligations to pay income tax on your worldwide earnings no matter where you are. If you get smart and stop making that IGNORANT and EXTREMELY costly and UNNECESSARY election, there is still another hurdle Uncle Sam will try to trip you up with. That hurdle consists of seeking or receiving gross income from a “U.S. source” under 26 U.S.C. §871. This statute is divided into TWO classes of gross income:

1. Income Not Connected with United States business—30 percent tax under 26 U.S.C. §871(a).
   1.1. This goes on the Schedule NEC (Not Effectively Connected) form with the 1040NR filing.
   1.2. This is typically government payments ONLY. To tax payments between private people, the government would have to interfere with the right to contract of both parties and STEAL private property, which would be unconstitutional.
   1.3. We allege that the property subject to taxation in this provision is ONLY PUBLIC property and never PRIVATE property. 26 U.S.C. §864(c)(3) alludes to this.
   1.4. This includes everything under 26 U.S.C. §871(a)(1) only, because 26 U.S.C. §871(a)(2) and (3) are ECI as well, according to 26 U.S.C. §864(c)(3).
   1.5. This also includes everything under 26 U.S.C. §871(h), 26 U.S.C. §881(a), and 26 U.S.C. §881(c).
2. Income Connected with United States business—graduated rate of tax under 26 U.S.C. §871(b).
   2.1. This goes directly on the 1040-NR form.
   2.2. This is also called “Effectively Connected Income” (ECI).
   2.3. The THING it is connected to is the excise taxable “trade or business” franchise, which is an office in the national government. Since no one can FORCE you WORK in such an office, then it is voluntary. See:
   The “Trade or Business” Scam, Form #05.001
   https://sedm.org/Forms/05-MemLaw/TradeOrBusScam.pdf
   2.4. The “United States” in this context is the government as a legal person, which consists entirely and only of OFFICES and PROPERTY.
   2.5. Since OFFICES are also property, it consists essentially of ONLY PUBLIC/GOVERNMENT property.
   2.6. This status makes the earnings taxable anywhere in the world and is nongeographical.
   2.7. It is entirely voluntary in nearly all cases.
   2.8. Is documented in 26 U.S.C. §864(c).
   2.9. This also includes earnings from 26 U.S.C. §871(a)(2) and (3) as well, according to 26 U.S.C. §864(c)(3).

The only status of people permitted to use this website are those NOT connected to the “trade or business” excise taxable franchise as documented in 26 U.S.C. §864(c)(1)(A). In that scenario Effectively Connected Income (ECI) can still happen INVOLUNTARY under 26 U.S.C. §864(c) under the following circumstances:

1. 26 U.S.C. §864(c)(6): Treatment of certain deferred payments.
2. 26 U.S.C. §864(c)(7): Treatment of certain property transactions.
3. 26 U.S.C. §864(c)(8): Gain or loss of foreign persons from sale or exchange of certain partnership interests.
4. Federal Investment in Real Property Transfer Act (FIRPTA)
   4.1. 26 U.S.C. §871(d): Election to treat real property income as income connected with “trade or business”.
   4.2. 26 U.S.C. §882(d): Election to treat real property income as income connected with “trade or business”.
5. 26 U.S.C. §882(e): Interest on United States Obligations Received by Banks Organized in Possessions.

Item 1 above, Not Effectively Connected (NEC) under 26 U.S.C. §871(a), is the most nebulous for most people. This is mostly because of the equivocation surrounding the context of the term “United States” so that you are unable to distinguish whether the term means:

1. The GEOGRAPHICAL “United States” defined in 26 U.S.C. §7701(a)(9) and (a)(10) or
2. The LEGAL “United States” as a federal corporation and a “person”.

Both of the above are technically synonymous, because this site treats United States^G as a virtual layer that United States^SMJ attaches to by your CONSENT in some form. Your consent to convert either YOUR status or the status of your PROPERTY to the United States^G virtual layer makes you either the lawful target of government enforcement.

The above dichotomy is recognized in the Treasury Regulations at 26 C.F.R. §301.7701(b)-2(c) in the case of aliens.

For American nationals who are nonresident aliens residing and working within the exclusive jurisdiction of the Constitutional states of the Union, they are not receiving earnings from the statutory “United States” unless they are receiving government payments, benefits, or tax refunds, in which case the GEOGRAPHICAL “United States” really just means the LEGAL “United States” as a civil “person” and “corporation”. The United States federal corporation under 28 U.S.C. §3002(15)(A), by the way, is a FOREIGN corporation in respect to a Constitutional State. Thus, the term “Domestic” defined in the 26 U.S.C. §7701(a)(4) means WITHIN that corporation as a public officer, agent, or contractor, including but not limited to “taxpayer”, “person”, “citizen**+D of the United States**”, “resident of the United States*” under the Internal Revenue Code:

26 U.S. Code § 7701 – Definitions

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

(4)Domestic

The term “domestic” when applied to a corporation or partnership means created or organized in the United States or under the law of the United States or of any State unless, in the case of a partnership, the Secretary provides otherwise by regulations.

In terms of business entities, whether the entity is “domestic” or “foreign” is determined under the following rules:

1. 26 C.F.R. §301.7701-1 Classification of organizations for federal tax purposes.
2. 26 C.F.R. §301.7701-2 Business entities; definitions.
3. 26 C.F.R. §301.7701-3 Classification of certain business entities.
4. 26 C.F.R. §301.7701-4 Trusts.
5. 26 C.F.R. §301.7701-5 Domestic and foreign business entities.
6. 26 C.F.R. §301.7701-6 Definitions; person, fiduciary.
7. 26 C.F.R. §301.7701-7 Trusts—domestic and foreign.

Regardless of whether we are talking about a HUMAN BEING or a BUSINESS ENTITY, in ALL CASES we have seen, those not actually physically working and doing business within the statutory GEOGRAPHICAL “United States”, if they file a DOMESTIC “U.S. person” return, are making a VOLUNTARY election to be treated AS IF they are officers and agents of the national government whose activities are “organized and directed” by the laws of the United States and therefore are acting as AGENTS of the United States. Thus, they are within the LEGAL “United States” (corporation and fictional “person”) rather than the GEOGRAPHICAL “United States”.

“The State is a political corporate body, can act only through agents, and can command only by laws. It is necessary, therefore, for such a defendant, in order to complete his defence, to produce a law of the State which constitutes his commission as its agent, and a warrant for his act. “

[Poindexter v. Greenhow, 114 U.S. 270, 288 (1885);
SOURCE: https://scholar.google.com/scholar_case?case=3335705609810307048]

The inference from the above then is that:

1. Those acting under the authority of any civil law are, by definition, agents and representatives of the government which ENACTED the law.
2. The income tax is a tax upon:
   2.1. The OFFICE, and not the OFFICER. This includes all property voluntarily connected to the OFFICE by the SSN or TIN franchise mark. or
   2.2. All property DONATED to the government by “effectively connecting” or which remained government property AFTER it was paid to you in temporary possession of it.
3. The income tax extends wherever the GOVERNMENT extends, and not where the GEOGRAPHY extends.

That last item is confirmed by no less than the U.S. Supreme Court! Notice they used the term “government extends” rather than “geography extends” and the phrase “without limitation as to place”.

“Loughborough v. Blake, 18 U.S. 317, 5 Wheat. 317, 5 L.Ed. 98, was an action of trespass (or, as appears by the original record, replevin) brought in the Circuit Court for the District of Columbia to try the right of Congress to impose a direct tax for general purposes on that District. 3 Stat. 216, c. 60, Fed. 17, 1815. It was insisted that Congress could act in a double capacity: in [****32] one as legislating  [*260]   for the States; in the other as a local legislature for the District of Columbia. In the latter character, it was admitted that the power of levying direct taxes might be exercised, but for District purposes only, as a state legislature might tax for state purposes; but that it could not legislate for the District under Art. I, sec. 8, giving to Congress the power “to lay and collect taxes, imposts and excises,” which “shall be uniform throughout the United States,” inasmuch as the District was no part of the United States.  It was held that the grant of this power was a general one without limitation as to place, and consequently extended to all places over which the government extends; and that it extended to the District of Columbia as a constituent part of the United States.  The fact that Art. I, sec. 20 , declares that “representatives and direct taxes shall be apportioned among the several States . . . according to their respective numbers,” furnished a standard by which taxes were apportioned; but not to exempt any part of the country from their operation. “The words used do not mean, that direct taxes shall be imposed on States only which are [****33] represented, or shall be apportioned to representatives; but that direct taxation, in its application to States, shall be apportioned to numbers.” That Art. I, sec. 9, P4, declaring that direct taxes shall be laid in proportion to the census, was applicable to the District of Columbia, “and will enable Congress to apportion on it its just and equal share of the burden, with the same accuracy as on the respective States. If the tax be laid in this proportion, it is within the very words of the restriction. It is a tax in proportion to the census or enumeration referred to.” It was further held that the words of the ninth section did not “in terms require that the system of direct taxation, when resorted to, shall be extended to the territories, as the words of the second section require that it shall be extended to all the [**777] States. They therefore may, without violence, be understood to give a rule when the territories shall be taxed without imposing the necessity of taxing them.”
[Downes v. Bidwell, 182 U.S. 244 (1901);
SOURCE: https://scholar.google.com/scholar_case?case=9926302819023946834]

2. The PROPERTY Angle of the Franchise

ALWAYS remember that as long as you have GOVERNMENT/PUBLIC property in your hands, the government has the power to regulate and tax the use of the property under the authority of Article 4, Section 3, Clause 2 of the Constitution and NOT even under the taxing powers of Congress if they choose not to even call it a tax! That is why a “franchise” is legally defined as “a privilege [PUBLIC PROPERTY] IN THE HANDS of a subject”. To wit:

FRANCHISE. A special privilege conferred by government on individual or corporation, and which does not belong to citizens of country generally of common right. Elliott v. City of Eugene, 135 Or. 108, 294 P. 358, 360.  In England it is defined to be a royal privilege in the hands of a subject.

A “franchise,” as used by Blackstone in defining quo warranto, (3 Com. 262 [4th Am. Ed.] 322), had reference to a royal privilege or branch of the king’s prerogative subsisting in the hands of the subject, and must arise from the king’s grant, or be held by prescription, but today we understand a franchise to be some special privilege conferred by government on an individual, natural or artificial, which is not enjoyed by its citizens in general.   State v. Fernandez, 106 Fla. 779, 143 So. 638, 639, 86 A.L.R. 240.

In this country a franchise is a privilege or immunity of a public nature, which cannot be legally exercised without legislative grant. To be a corporation is a franchise. The various powers conferred on corporations are franchises. The execution of a policy of insurance by an insurance company [e.g. Social Insurance/Socialist Security], and the issuing a bank note by an incorporated bank [such as a Federal Reserve NOTE], are franchises. People v. Utica Ins. Co.. 15 Johns., N.Y., 387, 8 Am.Dec. 243. But it does not embrace the property acquired by the exercise of the franchise.  Bridgeport v.  New York & N. H. R. Co., 36 Conn. 255, 4 Arn.Rep. 63. Nor involve interest in land acquired by grantee. Whitbeck v. Funk, 140 Or. 70, 12 P.2d 1019, 1020.   In a popular sense, the political rights of subjects and citizens are franchises, such as the right of suffrage. etc. Pierce v. Emery, 32 N.H. 484 ; State v. Black Diamond Co., 97 Ohio St. 24, 119 N.E. 195, 199, L.R.A.l918E, 352.

[Black’s Law Dictionary, 4th Edition, pp. 786-787]

You BECOME “the subject” by literally having GOVERNMENT/PUBLIC property IN YOUR HANDS, meaning within your temporary control or possession or benefit. “Privilege” is a synonym for PUBLIC PROPERTY, by the way. Once you possess, receive, or benefit from PUBLIC property without absolutely owning it, you volunteered to become a SUBJECT and a “taxpayer”. You are in effect “renting” public property from Uncle Sam and the income tax is the “rent” to use or benefit from the property. In that sense, being a “beneficial owner” mentioned in the Internal Revenue Code is REALLY the person who owns the BENEFIT or ENTITLMENT to the PUBLIC property, but not the actual PUBLIC PROPERTY ITSELF! Uncle owns that! See:

1. Authorities on “beneficial owner”, Family Guardian Fellowship
   https://famguardian.org/TaxFreedom/CitesByTopic/BeneficialOwner.htm
2. Website Definitions: 34. Beneficial Owner, FTSIG
   https://ftsig.org/advanced/definitions/#34._Beneficial

This was further affirmed by the U.S. Supreme Court:

“When Sir Matthew Hale, and the sages of the law in his day, spoke of property as affected by a public interest, and ceasing from that cause to be juris privati solely, that is, ceasing to be held merely in private right, they referred to

[1] property dedicated [DONATED] by the owner to public uses [by EFFECTIVELY CONNECTING” it], or

[2] to property the use of which was granted by the government [e.g. Social Security Card or passport], or

[3] in connection with which special privileges were conferred [licenses, such as the SSN or TIN].

Unless the property was thus dedicated [by one of the above three mechanisms], or some right bestowed by the government was held with the property, either by specific grant or by prescription of so long a time as to imply a grant originally, the property was not affected by any public interest so as to be taken out of the category of property held in private right.”
[Munn v. Illinois, 94 U.S. 113, 139-140 (1876);
SOURCE: https://scholar.google.com/scholar_case?case=6419197193322400931]

The key thing to avoid “effective connection” of earnings is found in the following regulation:

26 C.F.R. §1.872-2 – Exclusions from gross income of nonresident alien individuals.

(f) Other exclusions. 

Income which is from sources without the United States, as determined under the provisions of sections 861 through 863, and the regulations thereunder, is not included in the gross income of a nonresident alien individual unless such income is effectively connected for the taxable year with the conduct of a trade or business in the United States by that individual. To determine specific exclusions in the case of other items which are from sources within the United States, see the applicable sections of the Code. For special rules under a tax convention for determining the sources of income and for excluding, from gross income, income from sources without the United States which is effectively connected with the conduct of a trade or business in the United States, see the applicable tax convention. For determining which income from sources without the United States is effectively connected with the conduct of a trade or business in the United States, see section 864(c)(4) and § 1.864-5.

3. Diagrams

The following diagram from Property View of Income Taxation, Form #12.046 (OFFSITE LINK) shows how the exercise of your right to contract or associate can result in:

1. The status of your PRIVATE earnings from labor to PUBLIC property that can be regulated and taxed.
2. Your receipt of PUBLIC property that can give rise to an obligation on your part.

4. 26 U.S.C. 871(a): Not Effectively Connected (NEC)

Income that is “Not Effectively Connected (N.E.C.)” under 26 U.S.C. §871(a) goes on Schedule NEC when one files a 1040-NR tax return. This has to be a government payment that the government reserves a PROPERTY interest in AFTER it is received, such as Social Security (26 U.S.C. §861(a)(8)) but which is NOT “effectively connected” by an ELECTION on your part. Social Security, for instance, goes on Schedule NEC instead of the “effectively connected” section of the 1040NR form.

Below is how the data entered on the Schedule NEC is characterized in a 1040-NR filing described SEDM Form #09.077, Section 8:

1. This section contains earnings described in 26 U.S.C. §871(a) that are Not Effectively Connected to the “trade or business” franchise.
2. This includes everything under 26 U.S.C. §871(a)(1) only, because 26 U.S.C. §871(a)(2) and (3) are ECI as well, according to 26 U.S.C. §864(c)(3).
3. This also includes everything under 26 U.S.C. §871(h), 26 U.S.C. §881(a), and 26 U.S.C. §881(c).
4. Earnings in this section come ONLY from the statutory geographical “United States” as defined in 26 U.S.C. §7701(a)(9) and (a)(10) and 4 U.S.C. §110(d) or the U.S. government as a federal corporation. It is not within my authority as a private human to ELECT to EXPAND the statutory geographical “United States” to add states of the Union because that would usurp the legislative powers of Congress and the states and violate the separation of powers. Further, 26 C.F.R. §301.7701(b)-2 and 26 C.F.R. §301.7701-7 both recognize that even the “States” listed in 26 U.S.C. 7701(a)(10) and 4 U.S.C. §110(d) are “foreign” with respect to the jurisdiction of the Internal Revenue Code and therefore not within the geographical “United States”.
5. Earnings from any place OTHER than the statutory geographical “United States” or the U.S. government as a federal corporation are purposefully excluded under 26 U.S.C. §872, 26 C.F.R. §1.872-2(f).  They don’t need to be exempt, because they are excluded from being listed in the schedule NEC.  This means all earnings received from geographical sources outside the STATUTORY, but not CONSTITUTIONAL “United States” and not from the U.S. government as a federal corporation are purposefully not listed in this section.  This includes all of my earnings, because I do not do business with the U.S. government as a federal corporation or in the statutory geographical “United States”.
6. These types of earnings would normally be reported on IRS Form 1042s, which connects the earning to “gross income” per the form instructions.
7. All nonzero amounts contained in this section shall constitute a donation for the purpose of reimbursing the Recipient for the cost of processing this return.  I want to avoid ever being a “public charge” upon any government.  As a trustee, God commands me to be responsible for all the services and work that I create or demand from others, because if I don’t, I’ll injure them.
8. Because a donation is involved here and because I owe you nothing that I didn’t donate for this time period, then I am the only one who can define the terms of our relationship as the Merchant/Seller under U.C.C. §2-104(1).  On this subject, the U.S. Supreme Court held: “It is hardly lack of due process for the Government to regulate that which it subsidizes.” Wickard v. Filburn, 317 U.S. 111 (1942).  This requirement goes BOTH ways under the concept of equal protection and equal treatment, so I am doing the subsidizing and regulating in this case.  These considerations create the obligations described in Injury Defense Franchise and Agreement; https://sedm.org/Forms/06-AvoidingFranch/InjuryDefenseFranchise.pdf.  These obligations merely ensure that you do not use any of my personal information for a commercial purpose that benefits anyone but me and that you leave me alone (justice) and stop trying to steal God’s property that I am in stewardship of through deception and words of art.

5. 26 U.S.C. 871(b) Effectively Connected (1040-NR main form)

5.1. Definition

“Effectively connected” is only used in the context of “nonresident aliens”. The only position this site takes is the Nonresident Alien Position. The definition of “effectively connected” is as follows:

26 U.S. Code § 864 – Definitions and special rules

(c)Effectively connected income, etc.

(1)General rule

For purposes of this title—

(A) In the case of a nonresident alien individual or a foreign corporation engaged in trade or business within the United States during the taxable year, the rules set forth in paragraphs (2), (3), (4), (6), (7), and (8) shall apply in determining the income, gain, or loss which shall be treated as effectively connected with the conduct of a trade or business within the United States.

(B) Except as provided in paragraph (6) [1] (7), or (8) or in section 871(d) or sections 882(d) and (e), in the case of a nonresident alien individual or a foreign corporation not engaged in trade or business within the United States during the taxable year, no income, gain, or loss shall be treated as effectively connected with the conduct of a trade or business within the United States.

The above is not really a definition, because it doesn’t explain the PURPOSE of “effectively connecting” and WHO actually DOES IT, which is YOU and not THEM if you are an American national. That purpose of “effectively connecting” is to donate PRIVATE property to a PUBLIC use, a PUBLIC office, and a PUBLIC purpose through an election. If they told you that was the purpose, you wouldn’t “effectively connect” ANYTHING called “income”! This remarkable fact is exhaustively analyzed in the following memorandum of law:

The Truth About “Effectively Connecting, Form #05.056
https://sedm.org/Forms/05-MemLaw/EffectivelyConnected.pdf

The reason you are the ONLY one who can “effectively connect” is that the OWNER of the property has to give consent to do so. If anyone else does so without your consent and knowledge, they are STEALING and violating the Fifth Amendment Takings Clause. This is also why YOU are the ONLY one who can decide:

1. Whether to enter “income” (which by default is PRIVATE PROPERTY) on the 1040-NR form and
2. Whether you want to take “trade or business” deductions against it under 26 U.S.C. §162. You only need deductions if you were DUMB enough to convert your PRIVATE earnings from PRIVATE to PUBLIC by entering them on the 1040-NR “effectively connected” section to begin with.

The following regulation deals with what is connected to a “trade or business” in the case of a nonresident alien:

26 C.F.R. §1.871-8 – Taxation of nonresident alien individuals engaged in U.S. business or treated as having effectively connected income.
https://www.law.cornell.edu/cfr/text/26/1.871-8

5.2. Why Involuntary Effectively Connected Income is a SCAM for American Nationals

We began this article in section 1 by discussing methods by which your earnings become INVOLUNTARILY Effectively Connected Income, and thus, are converted from PRIVATE to PUBLIC WITHOUT your express consent merely by some external circumstance you don’t control directly. We listed those provisions as follows:

1. 26 U.S.C. §864(c)(6): Treatment of certain deferred payments.
2. 26 U.S.C. §864(c)(7): Treatment of certain real property transactions. Requires you to ECI sale of property up to ten years after you stopped ECI’ing earnings from it.
3. 26 U.S.C. §864(c)(8): Gain or loss of foreign persons from sale or exchange of certain partnership interests. Determines profit or loss from sale of partnership based on fair market value at time of sale as if it were Effectively Connected.
4. Federal Investment in Real Property Transfer Act (FIRPTA)
   4.1. 26 U.S.C. §871(d): Election to treat real property income as income connected with “trade or business”.
   4.2. 26 U.S.C. §882(d): Election to treat real property income as income connected with “trade or business”.
5. 26 U.S.C. §882(e): Interest on United States Obligations Received by Banks Organized in Possessions.

The purpose of the above provisions are to take OUT OF YOUR HANDS the decision of whether you want to treat specific earnings as Effectively Connected Income and put it under the control of Uncle Sam as PUBLIC property. The underlying presumption in listing all the above is that everything listed constitutes a privilege and consideration that has commercial value, which happened in the past, and that you have a DUTY to “Effectively Connect” FUTURE earnings to pay for delivering the privilege. In other words, pursuing those privileges created a FUTURE debt that allegedly applies LONG AFTER you abandon “U.S. person” status. That obligation does not attach to the “nonresident alien” status, but to the “nonresident alien INDIVIDUAL” status under 26 U.S.C. §864(a), which you have a right not to adopt if you are not PRESENTLY pursuing privileges.

In reality, however, there is no NET or REAL CONSIDERATION or privilege involved that you should feel a duty to pay for because:

1. There is no liability statute for anything but withholding agents on ALIENS in 26 U.S.C. §1461, which you are not, at least within a constitutional state.
2. The entire Internal Revenue Code in actuality:
   2.1. Delivers no “PRIVILEGES” but only OBLIGATIONS. Deductions reduce taxable income, but there is not such thing as income for an American national not receiving government payments.
   2.2. Doesn’t apply within the exclusive jurisdiction of constitutional states to American nationals who make no “elections”.
   2.3. Is implemented as a taxable franchise using the SSN as a de facto license, which the U.S. Supreme Court said cannot even lawfully be offered in a constitutional state per the License Tax Cases.
3. Even if you thought you had “taxable income”, nearly all of it was excluded and actually nontaxable anyway.
4. Because you had no real taxable income, you didn’t need privileged “trade or business” deductions or Effectively Connected Income (ECI) anyway.

So the idea that you are receiving REAL, MEASURABLE consideration or commercial benefit from the government through the Internal Revenue Code that you must reimburse them for is all a ruse, at least in the case of American nationals who are nonresident aliens not receiving government payments. It might be useful for a resident alien who has a duty to pay regardless, but not for an American national. In fact:

1. If you put the government on the spot and MANDATED that they had the burden of proving that they IN ACTUALITY delivered REAL QANTIFIABLE consideration of an EQUAL value to what you paid them, they would fail miserably if all things on this website were taken into account.
   1.1. They avoid this burden of proof by shifting it to YOU to prove you DIDN’T receive consideration. They do this by calling the income tax a “quasi-contract”.
   1.2. That puts YOU in the position of proving a NEGATIVE, which is that you DIDN’T receive consideration in order to prove that you are NOT a party to that “quasi-contract”. This is called “failure of consideration”.
2. The GOVERNMENT are therefore the only ones who in actuality are PRIVILEGED, because they deceived you out of donating your private property without providing EQUAL consideration as mandated by the Fifth Amendment. See:
   Why Government is the Only Real Beneficiary of All Government Franchises, Form #05.051
   https://sedm.org/product/why-the-government-is-the-only-real-beneficiary-of-all-government-franchises-form-05-051/
3. Government is the only real beneficiary of everything they do. They pay money ONLY to their offices, and not to the private people occupying them. Paying private people would be an abuse of their taxing power in fact.
4. Income from “U.S. source” includes only the government, and most people don’t earn this anyway. See:
   PROOF OF FACTS: “U.S source” does NOT include anything but payments DIRECTLY from the government and excludes even payments from “taxpayers”, FTSIG
   https://ftsig.org/proof-of-facts-u-s-source-does-not-include-anything-but-payments-directly-from-the-government-and-excludes-even-payments-from-taxpayers/

The way OUT of this Ponzi Scheme scam is simply to reject any and all privileges, and use your property to make them privileged like they do to you. If you don’t, they’ll just keep pretending they are helping you and charge as much as they want in the process and thereby eventually STEAL everything you have and give you nothing you really want in return. Below is an example of how to do that in a tax return filing:

How to Reject All Privileges in a Tax Return Filing, FTSIG
https://ftsig.org/how-to-reject-all-privileges-in-a-tax-return-filing/

5.3. Traps/Springes on the 1040-NR Effectively Connected Section

People filing the 1040NR naively think that by entering “income” in the “effectively connected” portion of the 1040NR, they are obtaining the ability to REDUCE their tax liability by taking “trade or business” deductions under 26 U.S.C. §162. However, something much more sinister is happening here.

The “effectively connected” section of the 1040NR is also used to list “income” such as “wages” from the W-2 in Block 1a of the 1040NR.

1. The 1040NR Instructions say to ONLY enter as “wages” that which is “Effectively Connected” AND that you are the only one who can decide to do so.
2. 26 U.S.C. §871(a), which is the Not Effectively Connected list of taxable items, does NOT include earnings from human labor, but only PROFIT or GAIN from sales transactions. This is consistent with the fact that “income” in the Sixteenth Amendment means PROFIT and not GROSS receipts.

Therefore, if you enter earnings from the W-2 on the 1040NR form in the “effectively connected” section, you are converting your PRIVATE labor to a PUBLIC use, and thus VOLUNTEERING to be an uncompensated civil statutory “employee” working for Uncle Sam for free! Putting your PRIVATE earnings from labor on the form makes the ENTIRE amount “income” even though it wouldn’t otherwise be, and thus, makes the income tax a “gross receipts” tax on PROPERTY, rather than merely on PROFIT.

Why the HELL would anyone in their right mind ever want to enter ANYTHING having to do with their human labor on the 1040NR form block 1a under “wages” and thus VOLUNTARILY become a SLAVE? The only reason we can think of is that they are operating out of legal ignorance and the fear it produces. You as a user of this website are FORBIDDEN from doing this and violate our Member Agreement if you do it. It’s pure stupidity and no different than a lemming jumping off the cliff. And doing this is the ONLY reason most people would even believe they needed privileged “trade or business” deductions to begin with.

The regulations governing the submission of withholding agreements agree with these conclusions.

26 C.F.R. § 31.3402(p)-1 – Voluntary withholding agreements.

§ 31.3402(p)-1 Voluntary withholding agreements.

(a) Employer-employee agreement. 

An employee and his employer may enter into an agreement under section 3402(p)(3)(A) to provide for the withholding of income tax upon payments of amounts described in paragraph (b)(1) of § 31.3401(a)-3, made after December 31, 1970. An agreement may be entered into under this section only with respect to amounts which are includible in the gross income of the employee under section 61, and must be applicable to all such amounts paid by the employer to the employee. The amount to be withheld pursuant to an agreement under section 3402(p)(3)(A) shall be determined under the rules contained in section 3402 and the regulations thereunder. See § 31.3405(c)-1, Q&A-3 concerning agreements to have more than 20-percent Federal income tax withheld from eligible rollover distributions within the meaning of section 402.

We must remember, however, that the above regulation is satisfied by merely submitting the W-4, even though it doesn’t identify itself as an “agreement”.

26 C.F.R. § 31.3402(p)-1 – Voluntary withholding agreements.

§ 31.3402(p)-1 Voluntary withholding agreements.

(b) Form and duration of employer-employee agreement. 

(1)(i) Except as provided in subdivision (ii) of this subparagraph, an employee who desires to enter into an agreement under section 3402(p)(3)(A) shall furnish his employer with Form W-4 (withholding exemption certificate) executed in accordance with the provisions of section 3402(f) and the regulations thereunder. The furnishing of such Form W-4 shall constitute a request for withholding.

So you aren’t really getting the Constitutionally required “reasonable notice” that you in fact are VOLUNTEERING UNLESS you actually read the statutes and regulations that implement the W-4. If they notified you in the instructions that you were volunteering to make your entire earnings taxable and that you had the right to UNVOLUNTEER somewhere on the W-4, almost no one would do it!

Worst yet, if you decide NOT to “effectively connect” your earnings from labor by transferring W-2 amounts onto the 1040NR “effectively connected” section block 1a, you might ask whether IRS can then add that amount on the Schedule NEC (Not Effectively Connected) without your consent. An examination of that form reveals NO BLOCK for writing in earnings from your labor, because they are NOT subject to income tax if they are NOT “effectively connected”, meaning VOLUNTARILY DONATED by you to a PUBLIC use, PUBLIC office, and PUBLIC purpose by writing them into block 1a of the 1040NR return!

Note that amounts withheld under Subtitle C for “employment” withholding are merely CREDITS to income taxes owed in Subtitle A AFTER one files a tax return. They are not “taxes” or “treated AS IF” they are “taxes” under Subtitle A and we have found any evidence to support this. In fact, the IRS classifies “wages” and W-2 withholdings as Tax Class 5 GIFTS, not Subtitle A Income Taxes.

If you are compelled to submit a W-4 instead of the more proper W-8 for withholding purposes, upon later filing the 1040NR return, you can still get all the W-2 withholding back, including Social Security deductions. This is because the W-2 withholding is a credit against taxes owed under Subtitle A, and if you owe no taxes, you can get the credit back. You MUST, however, indicate in the refund claim that you were under duress in submitting the W-4 form to the company you work for. If you don’t do this, the amounts reported on the W-2 information return will be treated as government/PUBLIC property and a “federal payment” instead of PRIVATE property. The following form you can file with the 1040-NR allows you to do that:

W-2CC, Form #04.304
https://sedm.org/Forms/04-Tax/3-Reporting/FormW-2CC-Cust/FormW-2CC.pdf

5.4. Defense from the Traps

 Note that YOU are the only one who can “effectively connect” your earnings to the privileged “trade or business” excise taxable franchise as indicated by the phrase “by that individual” in 26 C.F.R. §1.871-2(f). NO ONE ELSE can do that. The reason is that you are the owner of yourself and your property and therefore the ONLY one who can lawfully CONSENT to CONVERT or DONATE or DEROGATE that PRIVATE property to a PUBLIC USE, a PUBLIC OFFICE, and a PUBLIC PURPOSE by “effectively connecting” it. This was acknowledged by the U.S. Supreme Court when they held:

“Men are endowed by their Creator with certain unalienable rights,-‘life, liberty, and the pursuit of happiness;’ and to ‘secure,’ not grant or create, these rights, governments are instituted. That property [or income] which a man has honestly acquired he retains full control of, subject to these limitations:

    [1] First, that he shall not use it to his neighbor’s injury, and   that does not mean that he must use it for his neighbor’s benefit [e.g. SOCIAL SECURITY, Medicare, and every other public “benefit”];

    [2] second, that if he devotes it to a public use, he gives to the public a right to control that use; and

    [3] third, that whenever the public needs require, the public may take it upon payment of due compensation.”

[Budd v. People of State of New York, 143 U.S. 517 (1892)]

More on the “trade or business” indirect excise taxable franchise that is the VEHICLE for making the donation at:

The “Trade or Business” Scam, Form #05.001 (OFFSITE LINK)
https://sedm.org/Forms/05-MemLaw/TradeOrBusScam.pdf

Donating your property to the government and thereby CONVERTING it from PRIVATE to PUBLIC is only one of many ways you are deceived into VOLUNTEERING to pay income tax. Other ways are documented in:

How American Nationals Volunteer to Pay Income Tax, Form #08.024 (OFFSITE LINK)
https://sedm.org/Forms/08-PolicyDocs/HowYouVolForIncomeTax.pdf 

5.5. Sample Statement to Attach to 1040-NR return relating to “Effectively Connected” Blocks

The following narrative comes form the 1040-NR Attachment, Form #09.077, Section 5 relating to the “effectively connected” section of the 1040-NR form:

1. See definition of “effectively connected” later in section 11.

2. This section contains earnings described in 26 U.S.C. §871(b) from “sources within the United States” and is limited to earnings voluntarily associated with the “trade or business” excise taxable franchise defined as “the functions of a public office” in 26 U.S.C. §7701(a)(26).  Everything listed in this section is subject to “trade or business” deductions under 26 U.S.C. §162.  “United States” in this context means the government as a corporation, and not a geography.  26 C.F.R. §1.871-2(f) indicates that I am the only one who can “effectively connect” earnings in this section (“by that individual”).  Thus, you have no authority to add ANYTHING to this section that I myself did not add, and certainly no type of “income”.

3. Values listed in this section are all zero, because:

3.1.  The 1040NR Instructions relating to Block 1a (wages) state: “Don’t include any income on line 1a Form 1040-NR that isn’t treated as effectively connected”.  Thus, I can’t include any earnings from labor that I don’t consent to donate to a public use in order to procure the “benefit” of deductions”.

3.2. There is no place on the Schedule NEC to enter earnings from my personal labor, thus recognizing that I can only put it on a tax return if I donate it to a public use by “effectively connecting” it.

3.3. Submitter does not consent and has no delegated authority or lawful authority to consent to “effectively connect” his/her earnings or him/her self to a statutory “trade or business” or public office either by entering it on the 1040NR form or associating it with a statutory SSN/TIN franchise mark.  He/she as the absolute owner of both is the only one authorized by law to do so as required by 26 C.F.R. §1.872-2(f) and as required by the Bill of Rights protecting all his/her private property.

3.4. Earnings are therefore expressly excluded from “gross income” under 26 C.F.R. §1.871-7(a)(4) in this section.  It would constitute fraud and possibly a violation of 18 U.S.C. §912 for me to claim otherwise, as proven by:  The Trade or Business Scam, https://sedm.org/Forms/05-MemLaw/TradeOrBusScam.pdf.

3.5. I rely on the fact that as a non-privileged American National, no one but me can “effectively connect” my earnings to a “trade or business” and I DO NOT consent to do so per the following incorporated by reference:  The Truth About “Effectively Connecting”, Form #05.056; https://sedm.org/Forms/05-MemLaw/EffectivelyConnected.pdf

4.  Any amounts in this section connected with my personal labor are not listed, such as W-2 earnings, because:

4.1. Earnings from labor are expressly excluded from “wages” under 26 C.F.R. §31.3401(a)(6)-1(b) in the case of income tax and 26 C.F.R. §31.3121(b)-3(c)(1) in the case of Social Security because services were performed outside the statutory geographical “United States” under 26 U.S.C. §7701(a)(9) and (a)(10) and 4 U.S.C. §110(d) and outside the U.S. government (fictional “U.S. Inc. federal corporation”).

4.2 Human labor is property under the protections of the Fifth Amendment Takings Clause.  I am filing as a HUMAN BEING protected by the Fifth and Thirteenth Amendment who has not surrendered constitutional protections in exchange for public privileges under the Constitutional Avoidance Doctrine or the Public Rights Doctrine.  As the absolute owner of myself, I have the right to exclude any and all others from using or benefitting from the use of my body as private property.  Thus, my labor is “EXCLUDED by law” from “gross income” under 26 C.F.R. §1.61-2(a)(1).

4.3. There is not now and never has been a statutory definition of “gross income” under 26 U.S.C. §61 or elsewhere that I have been able to locate which EXPRESSLY includes my private, constitutionally protected human labor that I have not converted to public ownership through some kind of voluntary express election, such as calling my earnings “wages” in 26 U.S.C. §3402(p) or electing any public status such as “U.S. person” under 26 U.S.C. §7701(a)(30), “taxpayer” under 26 U.S.C. §7701(a)(14), “employee” under 26 U.S.C. §3401(c), or “citizen or resident of the United States” in 26 C.F.R. §1.1-1(a).  I consent to NOTHING and reject all privileges and benefits connected with these civil statuses and thus retain constitutional protections.  Forcing these public civil statuses and the obligations associated with them upon me is an act of criminal identity theft (18 U.S.C. §912), involuntary servitude (Thirteenth Amendment), human trafficking, and a violation of the Fifth Amendment Takings Clause. 

4.4.  The Recipient therefore has the burden of proving consent to a public civil status that comes with the civil obligations you want to enforce.  That burden of proof BEGINS by producing evidence of a EXPRESS voluntary change in the tax status of myself or my property and by reading and rebutting, line by line, the following document under PENALTY OF PERJURY with your full legal birthname as required by 26 U.S.C. §6065:  Proof that Involuntary Income Taxes on Your Labor are Slavery, Form #05.055; https://sedm.org/Forms/05-MemLaw/ProofIncomeTaxLaborSlavery.pdf.   

4.5. By filing this non-statutory tax return, I am shifting the burden of proof to you and away from me pursuant to 26 U.S.C. §6201(d) and 26 U.S.C. §7491.  Any attempt to PRESUME my earnings from my own labor are “gross income” or “income” in a constitutional sense (profit) rather than supplying court admissible evidence to disprove is a violation of due process and THEFT by presumption on your part.

5. Any information returns in your possession which might create the appearance that earnings in this section are non-zero are FALSE because:

5.1.  The information returns relate ONLY to whether the FILER of the information return is engaged in a “trade or business” (public office) but DO NOT purport to say ANYTHING about whether the TARGET of the information return (me) is ALSO so engaged.

5.2. Third parties cannot unilaterally “elect” the Submitter into public office involuntarily by filing false information returns either, since that would be illegal peonage, human trafficking, and slavery in violation of the Thirteenth Amendment and 18 U.S.C. §912.

5.3.  Submitter certifies that neither they nor the non-governmental filer of information return were consensually or lawfully engaged in the voluntary statutory “trade or business”/public office excise taxable franchise as required by 26 U.S.C. §6041(a) and cannot unilaterally “elect” themselves into office by filling out any tax form as someone who doesn’t consent and has no delegated authority to consent to do so.

5.4.  The withholding agent, business, or human being who filed the information return was provided with the following W-8 proving no reporting was permitted by law and willfully disregarded and possibly even threatened me for submitting it (duress):  https://sedm.org/Forms/04-Tax/2-Withholding/W-8SUB.pdf.

5.5. The information returns were submitted out of error by third parties because the person filing them pursuant to 26 U.S.C. §6041 is NOT within the “United States” as a legal fiction nor within the “United States” as geographically defined so the earnings are not a “U.S. source” either.

5.6.  All information returns constitute “lay legal conclusions” that are inadmissible as evidence of the existence of “trade or business” activity or constitutional “income” from a “source within the United States”.  Christiansen v. National Savings and Trust Co., 683 F.2d. 520, 529 (D.C. Cir. 1982).

6. Blocks 12-13:  Deductions

6.1. Privileged deductions found in this section may only be taken in connection with a statutory “trade or business” pursuant to 26 U.S.C. §162.

6.2. Submitter is NOT engaged in the statutory “trade or business”/public office franchise in 26 U.S.C. §7701(a)(26) and therefore is ineligible for any deductions in this section.  Therefore, values in this section are all zero and it would constitute fraud for me to claim otherwise.

6.3. As a practical matter, I don’t need deductions anyway if my earnings are from labor that is not within the definition of “gross income” and the rest of my earnings are expressly excluded by law.

7. Public positions, offices, or statutory statuses are government property, and there is no doubt that their government Creator and Owner has jurisdiction over them wherever they are LAWFULLY (per 4 U.S.C. §72) exercised under Constitution Article 4, Section 3, Clause 2.  It is my understanding, however that:

7.1. It is a criminal offense in violation of 18 U.S.C. §912 to unilaterally “elect” oneself into public offices or a “trade or business” in pursuit government privileges from a legislatively foreign jurisdiction without a lawful oath or appointment in conformance with Title 5 of the U.S. Code.

7.2. One must be lawfully elected or appointed by someone ELSE under Title 5 BEFORE they can pursue benefits or privileges as a public officer subject to federal regulation.

7.3. It is a crime to BRIBE the government with taxes or withholdings (as a nontaxpayer and private party) so as to be treated AS IF they are a public officer engaged in the “trade or business” franchise who is therefore eligible for said benefits or privileges.  18 U.S.C. §210. 

7.4. I also deny you the ability to treat me AS IF I am the government “employee” or office (20 C.F.R. is “employees benefits” and is the authority for issuing SSNs).  Any identifying numbers provided are not a statutory Social Security number 20 C.F.R. §422.103 and instead are replaced with a PRIVATELY created and issued and owned number under my own substitute franchise and license agreement constraining your authority in this instance.  See Injury Defense Franchise and Agreement, Form #06.027; https://sedm.org/Forms/06-AvoidingFranch/InjuryDefenseFranchise.pdf. 8.  Lastly, it would be outside of my biblical delegation of authority order to engage in a statutory “trade or business” franchise as a public officer working for a corporation (28 U.S.C. §3002(15)(A)) that has superior or supernatural powers in relation to me (the natural “person”) like God does.  Government is not my God, and the First Amendment doesn’t allow it to become god.  “No one can serve two masters; for either he will hate the one and love the other, or else he will be loyal to the one and despise the other. You cannot serve God and mammon [government]”.  Matt. 6:24, NKJV.

8.  Lastly, it would be outside of my biblical delegation of authority order to engage in a statutory “trade or business” franchise as a public officer working for a corporation that has superior or supernatural powers in relation to me (the natural “person”) like God does.  Government is not my God, and the First Amendment doesn’t allow it to become god.  “No one can serve two masters; for either he will hate the one and love the other, or else he will be loyal to the one and despise the other. You cannot serve God and mammon [government]”.  Matt. 6:24, NKJV.