PROOF OF FACTS: The I.R.C. Subtitle A Income tax is on FOREIGN/EXTERNAL Commerce under the Constitution, but DOMESTIC/Government Commerce for the purposes of INTERNAL taxation
PROOF:
1. The only place in STATUTES where “citizens” or “residents” are expressly identified as having a Subtitle A income tax obligation is in 26 U.S.C. §911, when they are abroad and not situated anywhere in the COUNTRY “United States*”.
1.1. 26 C.F.R. §1.1-1(a) and (b) describe ONLY 26 U.S.C. §911 as “worldwide income”. it does not ADD income from within the COUNTRY “United States*” as being taxable.
1.2. The Treasury regulations at 26 C.F.R. §1.1-1(a) and (b) skirt the limitations of 26 U.S.C. §911 and Article 1, Section 8, Clause 1 foreign commerce by adding an extra “of the United States****” to the end of the “citizen of the United States” in the Fourteenth Amendment and not defining WHICH “United States” they are talking about. THAT “United States” is the CORPORATION “United States” and not a geography. This corporation is synonymous with “domestic” in 26 U.S.C. §7701(a)(4) See:
Which “United States” are you “in”?, FTSIG
https://ftsig.org/#2._Which
1.3. Those asserting that income taxation under I.R.C. Subtitle A applies WITHIN the “United States” to citizens and residents not within the government have the burden of producing a statute expressly authorizing it. There is not such statute and the U.S. Supreme Court has indicated that the Secretary cannot EXPAND the scope of statutes to include things not expressly stated.
“Finally, the Government points to the fact that the Treasury Regulations relating to the statute purport to include the pick-up man among those subject to the § 3290 tax,[11] and argues (a) that this constitutes an administrative interpretation to which we should give weight in construing the statute, particularly because (b) section 3290 was carried over in haec verba into § 4411 of the Internal Revenue Code of 1954. We find neither argument persuasive. In light of the above discussion, 359*359 we cannot but regard this Treasury Regulation as no more than an attempted addition to the statute of something which is not there.[12] As such the regulation can furnish no sustenance to the statute. Koshland v. Helvering, 298 U.S. 441, 446-447. Nor is the Government helped by its argument as to the 1954 Code. The regulation had been in effect for only three years,[13] and there is nothing to indicate that it was ever called to the attention of Congress. The re-enactment of § 3290 in the 1954 Code was not accompanied by any congressional discussion which throws light on its intended scope. In such circumstances we consider the 1954 re-enactment to be without significance. Commissioner v. Glenshaw Glass Co., 348 U.S. 426,431.”
[United States v. Calamaro, 354 U.S. 351 (1957);
SOURCE: https://scholar.google.com/scholar_case?case=2040626426665191763]
“A regulation, however, may not serve to amend a statute, Koshland v. Helvering, 298 U.S. 441, 447, 56 S.Ct. 767, 770, 80 L.Ed. 1268 (1936), or to add to the statute “something which is not there.” United States v. Calamaro, 354 U.S. 351, 359, 77 S.Ct. 1138, 1143, 1 L.Ed.2d 1394 (1957). As stated in Manhattan General Equipment Co. v. Commissioner, 297 U.S. 129, 134, 56 S.Ct. 397, 399, 80 L.Ed. 528 (1936):
The power of an administrative officer or board to administer a federal statute and to prescribe rules and regulations to that end is not the power to make law — for no such power can be delegated by Congress — but the power to adopt regulations to carry into effect the will of Congress as expressed by the statute. A regulation which does not do this, but operates to create a rule out of harmony with the statute, is a mere nullity. ”
[Iglesias v. U.S., 848 F.2d 362, 366-67 (2d Cir. 1988)]
APPLICATION: If the statute in 26 U.S.C. §1 contains no EXPRESS liability, then the implementing regulations in 26 C.F.R. §1.1-1 may not either. If the regulation DOES impose an express liability that the statute DOES NOT, then the only people the liability can refer to are people within the Treasury Department in the case of regulations written by the Secretary of the Treasury per 5 U.S.C. §301. Do you work for the Treasury Department or the Secretary of the Treasury or are you handling Treasury property? NO? Then why did you consent to be treated AS IF you are a Treasury officer called a “citizen”, “resident”, or “nonresident alien” engaged in the “trade or business” excise taxable/public office franchise?
2. There is NO statute expressly making anyone liable for anything in Subtitle A OTHER than Withholding agents on ALIENS in 26 U.S.C. §1461.
2.1. Everyone OTHER than withholding agents on ALIENS in 26 U.S.C. §1461 is a volunteer. They volunteer simply by DECLARING a civil statutory status on a government form that has obligations attached to it.
2.2. Withholding agents on ALIENS are the only parties who therefore have a duty to “make a return of INCOME” (meaning FOREIGN income) under 26 U.S.C. §6012.
3. EVERY type of “gross income” or “income” is “FOREIGN income” under:
26 U.S. Code Subtitle A Chapter 1 Subchapter N Part I – SOURCE RULES AND OTHER GENERAL RULES RELATING TO FOREIGN INCOME
https://www.law.cornell.edu/uscode/text/26/subtitle-A/chapter-1/subchapter-N/part-I
4. The term “foreign income” is never defined to include earnings from anywhere within the United States. See:
DEFINITIONS: “foreign income”, FTSIG
https://ftsig.org/definitions-foreign-income/
5. The only parties SUBJECT to withholding, other than VOLUNTARY W-4 withholding under 26 U.S.C. §3402(p), are ALIENS per:
26 U.S. Code Subtitle A Chapter 3 Subchapter A – Nonresident Aliens and Foreign Corporations
https://www.law.cornell.edu/uscode/text/26/subtitle-A/chapter-3/subchapter-A
6. 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.
6.1. 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/
6.2. 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.
6.3. 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.
6.4. The OMB control number for the 2555 is 1545-0067 while that for the 1040 is 1545-0074.
6.5. 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.
7. 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
8. 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
9. Under the presence test in 26 U.S.C. §7701(b)(1)(A), possessions are described as “foreign countries”:
26 CFR § 301.7701(b)-2 – Closer connection exception.
(b) Foreign country.
For purposes of section 7701(b) and the regulations thereunder, the term “foreign country” when used in a geographical sense includes any territory under the sovereignty of the United Nations or a government other than that of the United States. It includes the territorial waters of the foreign country (determined in accordance with the laws of the United States), and the seabed and subsoil of those submarine areas which are adjacent to the territorial waters of the foreign country and over which the foreign country has exclusive rights, in accordance with international law, with respect to the exploration and exploitation of natural resources. It also includes the possessions and territories of the United States.
10. The term “individual” for the purpose of withholding includes ONLY aliens:
(c) Definitions. The following definitions apply for purposes of sections 1441 through 1443, 1461, and regulations under those sections. For definitions of terms used in these regulations that are defined under sections 1471 through 1474, see subparagraphs (43) through (56) of this paragraph.
(3) Individual—
(i) Alien individual. The term alien individual means an individual who is not a citizen or a national of the United States. See § 1.1-1(c).
(ii) Nonresident alien individual. The term nonresident alien individual means persons described in section 7701(b)(1)(B), alien individuals who are treated as nonresident aliens pursuant to § 301.7701(b)-7 of this chapter for purposes of computing their U.S. tax liability, or an alien individual who is a resident of Puerto Rico, Guam, the Commonwealth of Northern Mariana Islands, the U.S. Virgin Islands, or American Samoa as determined under § 301.7701(b)-1(d) of this chapter. An alien individual who has made an election under section 6013(g) or (h) to be treated as a resident of the United States is nevertheless treated as a nonresident alien individual for purposes of withholding under chapter 3 of the Code and the regulations thereunder.
11. The SS-4 form indicates that only nonresident aliens are subject to W-4 withholding, suggesting that the “withholding agent” made liable in 26 U.S.C. §1461 is doing so upon nonresident aliens:
SOURCE: https://www.irs.gov/forms-pubs/about-form-ss-4
12. The secretary of the Treasury Confirms that Payroll Withholding only applies to Aliens. Listen to the video below starting at 29:30:
The Treasury Decisions are:
1928
1953
2013
2190
2313
2401
2402
2815
2988
6500
Pretty good insight from Dave Champion. Except, what he seems to not understand is that there are 5 classes of “nonresident alien.”
- NRAA: Foreign nationals;
- NRA50: Citizens of the 50 States;
- NRAt: Citizens of territories;
- NRAp: Non-citizen nationals; and
- Inanimate objects that are not domestic (i.e., trusts, estates, etc.). These are identified in the upper right corner of the 1040-NR form.
All classes assume no foreign waiver (domestic election) has been made.
And his video really only applies to 1.—NRAs who are foreign nationals.
You can find the Treasury Decisions he references at:
Tax Notes
https://www.taxnotes.com/
For a list of techniques employed by the government to hide these issues as third rail issues and shoe horn you into a U.S. person status in the process so they can milk you like a cow, see:
FAQ: Can you summarize the main third rail government issues that TRAP Americans into a U.S. person status?, FTSIG
https://ftsig.org/faq-can-you-summarize-the-main-third-rail-government-issues-that-trap-americans-into-a-u-s-person-status/