THE SMOKING GUNS
IRC § 6201 is the statutory grant of authority for the IRS to perform income tax assessments (among others). The statute is quite clear about the scope and extent of that authority to make assessments. It says:
26 U.S.C. § 6201. Assessment authority
(a) Authority of Secretary.
The Secretary is authorized and required to make the inquiries, determinations, and assessments of all taxes (including interest, additional amounts, additions to the tax, and assessable penalties) imposed by this title, or accruing under any former internal revenue law, which have not been duly paid by stamp at the time and in the manner provided by law. Such authority shall extend to and include the following:
(1) Taxes shown on return.
The Secretary shall assess all taxes determined by the taxpayer or by the Secretary as to which returns or lists are made under this title.
(2) Unpaid taxes payable by stamp. ...”
This statute plainly states that the IRS authority to assess tax constitutes an authority to ONLY assess "Unpaid taxes payable by stamp" and "Taxes shown on return". Since everyone in America knows that income taxes are not paid by stamp, it should by now be painfully clear why the IRS wants (and desperately encourages) everyone in America to file a return reporting their earnings.
BECAUSE according to this statute without the signed tax return from you they can't legally assess any tax !
So. what happens if you do not file a tax return and voluntarily create on your own the assessment they are required to have in order to allow the subsequent enforced collection of the tax ? Well of course, the IRS invokes IRC § 6020(b). It says:
26 U.S.C. § 6020. Returns prepared for or executed by Secretary.
(a) Preparation of return by Secretary. If any person shall fail to make a return required by this title or by regulation prescribed thereunder, but shall consent to disclose all information necessary for the preparation thereof, then, and in that case, the Secretary may prepare such return, which being signed by such person, may be received by the Secretary as the return of such person.
(b) Execution of return by Secretary.
(1) Authority of Secretary to execute return. If any person fails to make any return required by any internal revenue law or regulation made thereunder at the time prescribed therefore, or makes, willfully or otherwise, a false or fraudulent return, the Secretary shall make such return from his own knowledge and from such information as he can obtain through testimony or otherwise.
(2) Status of returns. Any return so made and subscribed by the Secretary shall be prima facie good and sufficient for all legal purposes.”
Subsection (a) of this code section quite simply states that "If any person shall fail to make a return required by this title or by regulation prescribed thereunder, but shall consent to disclose all information necessary for the preparation thereof, then, and in that case, the Secretary may prepare such return, which being signed by such person, may be received by the Secretary as the return of such person."
This subsection of Section 6020 plainly states that if an individual taxpayer will cooperate with the IRS and disclose the information necessary, then the IRS employee(s) may prepare the return for the individual person and it will be good, and accepted, as long as the individual cooperatively signs it.
So, what happens if the individual does not want to cooperate with the IRS and supply information, thus giving up his or her 4th Amendment constitutional Rights to be secure in their papers, and to remain silent ?
Well of course, then subsection (b) is invoked by the IRS. It says in pertinent part: "If any person fails to make any return required by any internal revenue law or regulation ..., or makes, willfully or otherwise, a false or fraudulent return, the Secretary shall make such return from his own knowledge and from such information as he can obtain through testimony or otherwise."
However it also says "Any return so made and subscribed by the Secretary shall be prima facie good and sufficient for all legal purposes."
This code subsection absolutely requires that any tax return that is prepared by an IRS employee BE SIGNED in order to be "prima facie good and sufficient for all legal purposes."
That means that without the
employee's signature on an actual tax "return" that
is prepared by an IRS employee under authority of IRC § 6020(b)¸
the prepared substitute return cannot be used by the IRS, nor can it be
legally relied upon by the U.S. courts as evidence of tax owed, because it is NOT "prima
facie good and sufficient
for all legal purposes" without the preparer's signature !
Under this code section (IRC
§ 6020(b)) it must be a "return" that is "SIGNED" by the IRS employee who prepared it, in order for it to be "prima facie good and sufficient for all legal purposes", i.e.: to legally enable the enforced collection of the tax !
Ok, lets review.
IRC § 6201 allows the IRS to assess taxes that are payable by stamp or that are shown on a return. There is no other statutory assessment authority in Title 26 of the U.S.C. Since income taxes are not payable by stamp (and never have been), then, in order for the IRS to be legally authorized and legitimately empowered to make legitimate legal assessments for the payment of an income tax, there must be a tax return. (The only other statutory authority under Section 6201 to assess tax, besides those payable by stamp !) Thus, individuals are encouraged to voluntarily file tax returns, but when they will not do so voluntarily (or even under duress and or threats of harm), the IRS is then empowered under IRC § 6020(b) to make "such return from his own knowledge and from such information as he can obtain through testimony or otherwise", provided that return is signed by the IRS employee who prepared it !
So, why does any of this matter. It matters because in a letter dated February 17th, 2000, from the General Accounting Offices (GAO) to Senator Daniel Moynihan, the GAO Associate Director at the time wrote in the last paragraph of page 2 "We requested comments on a draft of this letter fro the Commissioner of Internal Revenue or his designee ... Customer Service Division official commented on the phrase 'Substitute for Return'. They asked us to emphasize that even though the program is commonly referred to as the SFR program, no actual tax return is prepared."
"No actual tax return is prepared."
The Associate Director's letter continues: "Instead, these official noted that IRS prepares a document that substitutes for the return and that proposes an assessment which is posted to the taxpayer's account and is subject to the collection process." On page 1 the letter plainly states in the last paragraph that: "IRS believes that potential nonfilers who receive a substitute for return will be encouraged to respond by either filing a more accurate return or showing that they have no filing requirement. IRS is to give the potential nonfilers up to two chances to respond to information showing the proposed amount of the substitute for return. If these individuals do not respond, IRS is to assess the shown on the substitute for return and seek payment of the balance through its regular collection process"
But this process constitutes a blatant violation of the written law. These coercive tactics are not authorized under the controlling IRC § 6201 ! The IRS employee are just making arbitrary and capricious demands that they know are wrong, in complete violation of the law, in order to coercively pressure the individual to perform, and then, if they won't, enforcing the extortive coercive demands as thought they were an actual, legal, assessment, even thought the statute does not describe or allow this conduct in conjunction with performance of, or in order to voluntarily obtain, a legal assessment for tax under IRC § 6201.
This GAO letter is the smoking gun that proves the IRS substitute for return program and assessment process is nothing but unlawful extortion, and is not a legal tax assessment under the controlling written law that actually exists to govern such activity where undertaken by the IRS employees because no real tax return is ever created as required by law under IRC § 6201, supra, to enable the making of a lawful, enforceable assessment !
First, that fact that no tax return is ever created is an admission that they are blatantly violating the written law under IRC 6201, supra, and are exceeding its granted authority to lawfully assess tax under legitimate authority of that code section. It means that there is never a legal assessment done by the IRS under any statutory authority to assess tax that actually exists in the written law, because without an actual return, the "proposed assessment" is done without statutory authority to make any such proposal under IRC § 6201, and in fact constitutes nothing more that an unauthorized replacement of the law, with nothing other than a process of coercive extortion rather than voluntary cooperation!
Second, they openly admit that they know that the proposed numbers are not accurate when presented by them as a proposed assessment, because they plainly state that as result of the proposed numbers, the individual "will be encouraged to respond by ... filing a more accurate return" . The IRS admits that it knows the information proposed in not accurate. So it is clear, they use intentionally inflated numbers to file a substitute for return that illegally threatens to enforce the numbers that are known to be inaccurate (and therefore false), even though there is no authority in the written law under 6201 to make any such proposal !
Finally, we must address and scrutinize
the issue of which forms are actually identified in the
law as being allowed for use by IRS employees under authority of IRC
§ 6020(b), in conjunction with the application of this authority to make returns (and substitute for returns) under authority of that code section. The Internal Revenue Manual (IRM) shows in Chapter 5200, Section 5291 (Exhibited), the specific list of tax return documents that are authorized for use under IRC § 6020(b).
According to the Internal Revenue Manual
Chapter 5200, Section 5291 (Exhibited), the tax returns that are authorized for use by IRS
employees under authority of IRC
§ 6020(b) are:
IRM CHAPTER 5200
Refusal to file IRC 6020(b)
The procedure applies to employment excise and partnership tax returns. Generally, the following returns will be involved.
(a) Form 940, Employer's Annual Federal Unemployment Tax Return;
(b) Form 941, Employer's Quarterly Federal Tax Return;
(c) Form 942, Employer's Quarterly Tax Return for Household Employees;
(d) Form 943, Employer's Annual Tax Return for Agricultural Employees;
(e) Form 11-B, Special Tax Return - Gaming Devices; (The Revenue Act of 1978, P.L. 95600 repealed the coin operated gaming device tax effective June 30, 1980. Therefore, Form 11-B is not required for gaming devices after June 30, 1980. These procedures are provided to cover delinquent situations prior to June 30, 1980.)
(f) Form 720, Quarterly Federal Excise Tax Return
(g) Form 2290, Federal Use Tax Return on Highway Motor Vehicles:
(h) Form CT-1, Employer's Annual Railroad Retirement Tax Return.
(i) Form 1065, U.S. Partnership Return of Income. "
Additionally, the DELEGATION ORDERS on file for the District offices (Exhibited) establishing the actual, limited delegated legal authority of the IRS personnel to both prepare and execute specific returns under I.R.C. § 6020(b), DO NOT SHOW OR REFLECT ANY LAWFUL AUTHORITY FOR IRS EMPLOYES TO EXECUTE OR PREPARE A FORM 1040 WITHOUT first obtaining CONSENT from the person under 6020(a). Such consent has never been obtained.
The DELEGATION ORDERS show exactly the same list of authorized forms as that provided in the IRM, i.e. They plainly and clearly also state:
"Authority is redelegated to Revenue Officers, GS-9 and above to prepare and execute the following returns on behalf of the District Director under Section 6020(b) of the Internal Revenue Code:
Form 940 - Employer's Annual Federal Unemployment Tax Return
Form 941 - Employer's Quarterly Federal Tax Return
Form 942 - Employer's Quarterly Tax Return for Household Employees
Form 943 - Employer's Annual Tax Return for Agricultural Employees
Form 11-B - Special Tax Return - Gaming Devices
Form 720 - Quarterly Federal Excise Tax Return
Form 2290 - Federal Use Tax Return on Highway Motor Vehicles
Form CT-1 - Employer's Annual Railroad Retirement Tax Return
Form 1065 - U.S. Partnership Return of Income"
Form 1040 is noticeably, and startlingly, absent from BOTH of these lists of forms that are authorized for use by IRS employees under authority of IRC § 6020(b) !
Form 1040 is plainly and clearly, by multiple controlling legal sources of authority, NOT a tax return form that is authorized in law for use under IRC § 6020(b). This published list of authorized tax return forms in the I.R.M. also agrees completely, to the letter, with the published Delegation Orders (Exhibited) associated with the legitimate use of the legal authority that is granted to IRS employees to make assessments under authority of IRC § 6020(b).
The underlying SFR documents in all IRS SFR cases is
clearly the unlawful and wrongful
result of an improper and fraudulent application of the authority to make assessments under
Section 6201, and substitute for return documents under authority of IRC
§ 6020(b). No legitimate Substitute for Return (SFR) Form 1040 document can possibly exist in this matter, as falsely and fraudulently claimed by the I.R.S., as tax return Form 1040 is plainly and clearly not authorized in law for use by IRS employees within the assessment procedures that are legitimately authorized for use under authority of IRC
The IRS' claim that a Substitute for Return (SFR) document has been prepared in accordance with the law, is a COMPLETE and TOTAL LIE.
Therefore, there can be no
lawful tax return as required by law under Section 6201
(except where the taxes are paid by stamp !) and therefore, NO
LAWFUL assessment is ever performed by the IRS because no signed
tax return is ever actually
created, as specifically required under
the only controlling and enabling statute (IRC
The entire assessment process is reduced to nothing but unlawful coercion by the IRS who is plainly and clearly blatantly violating the law and using powers that far exceed the actual grant of authority made by the statute to perform assessments.
The SFR claims of the IRS are
intentionally inflated, they are intentionally arbitrary and capricious, being
often based on things like bank deposits and earnings (which of course
are not taxed by law), instead of profits and income, and the proposed claims are not based
in any tax return or authorized substitute for return that is signed as required by law under IRC
§ 6020(b) !
The entire Substitute for Return process of the IRS is a blatant violation of the limited assessment authority that is actually granted under IRC § 6201, that is intended only to coercively enforce a progressive socialist philosophy most easily identified by the 2nd Plank of the Communist Manifesto, in place of enforcing the collection of a legitimate constitutional indirect tax. The 2nd Plank of the Communist Manifesto, of course, as I have said many times before, is : "A heavy or progressive graduated income tax" ! So, I am sorry, but if you are voluntarily filing and paying income tax, you are practicing communism and are not supporting the country or the nation, but rather, are only contributing to its complete destruction as a Republic, and its total transformation to a progressive socialist (read communist) State. That means that you are part of the problem, not the solution !