                           Chapter 8:
                        Is it Voluntary?
                                
                                
     One of  the great  deceptions in  federal income taxation is
the widespread  IRS propaganda  that the  system is  "voluntary".
Commissioners of  the IRS have repeatedly published statements to
this effect  in all  kinds of  places like  The Federal Register,
annual reports  to Congress,  various  instruction  booklets  and
other printed  materials.   Even the Supreme Court has joined the
cadre (cacophony?)  of federal  government officials  who  admit,
when cornered,  that it is voluntary.  So, this "voluntary" thing
has not  been a mistake or an occasional slip here and there;  it
has been  the consistent  policy of top officials of the Internal
Revenue Service,  the Justice  Department and  the Supreme Court,
believe it  or not.   A  thorough sampling of these admissions is
now in order.

     In 1953, Mr. Dwight E. Avis, head of the Alcohol and Tobacco
Tax  Division  of  the  Bureau  of  Internal  Revenue,  made  the
following remarkable statement to a subcommittee of the Committee
on Ways and Means in the House of Representatives:


     Let me  point this  out now:  Your income tax is 100 percent
     voluntary tax,  and your  liquor tax is 100 percent enforced
     tax.  Now, the situation is as different as day and night.

                                 [Internal Revenue Investigation]
                         [Hearings before a Subcommittee of the ]
                                    [Committee on Ways and Means]
                      [Feb. 3 thru Mar. 13, 1953, emphasis added]


     In  1971,   the  following   quote  was  found  in  the  IRS
instruction booklet for Form 1040:


     Each year  American taxpayers  voluntarily  file  their  tax
     returns and make a special effort to pay the taxes they owe.
                                                                 
                                                 [emphasis added]


     In 1974,  Donald  C.  Alexander,  Commissioner  of  Internal
Revenue, published  the following statement in the March 25 issue
of The Federal Register:


     The mission  of the  Service is to encourage and achieve the
     highest possible degree of voluntary compliance with the tax
     laws and regulations ....
                                                 [emphasis added]



                        Page 8 - 1 of 16

                                                The Federal Zone:


     One year  later, in  1975, his  successor,  Mortimer  Caplin
authored the  following statement  in the  Internal Revenue Audit
Manual:


     Our tax  system is  based on  individual self-assessment and
     voluntary compliance.
                                                 [emphasis added]


     In 1980,  yet another  IRS Commissioner, Jerome Kurtz (their
turnover is  high) issued  a similar  statement in their Internal
Revenue Annual Report:


     The IRS's primary task is to collect taxes under a voluntary
     compliance system.
                                                 [emphasis added]


     Even the  Supreme Court  of the  United States has held that
the system of federal income taxation is voluntary:


     Our tax  system  is  based  upon  voluntary  assessment  and
     payment, not upon distraint.

                           [Flora vs United States, 362 U.S. 145]
                                                 [emphasis added]

The dictionary  defines "distraint"  to mean the act or action of
distraining, that is, seizing by distress, levying a distress, or
taking property by force.


     IRS Publication  21 is  widely distributed  to high schools.
It acknowledges  that compliance  with a  law that  requires  the
filing of returns is voluntary.  (Get to those young minds early,
and it's  easier to  wash their  brains later on in life.) At the
same time,  it suggests that the filing of a return is mandatory,
as follows:


     Two aspects  of the  Federal income  tax system -- voluntary
     compliance with  the law  and self-assessment of tax -- make
     it  important   for  you   to  understand  your  rights  and
     responsibilities as  a  taxpayer.    "Voluntary  compliance"
     places on  the taxpayer  the responsibility  for  filing  an
     income tax return.  You must decide whether the law requires
     you to file a return.  If it does, you must file your return
     by the date it is due.
                                                 [emphasis added]




                        Page 8 - 2 of 16

                                                 Is It Voluntary?


     Perhaps one  of the most famous quotes on this question came
from Roger  M. Olsen,  Assistant Attorney  General, Tax Division,
Department of  Justice, Washington,  D.C.   On Saturday,  May  9,
1987, author,  colleague  and  constitutional  authority  Godfrey
Lehman was  in the  audience when Olsen told an assemblage of tax
lawyers:

     We encourage voluntary compliance by scaring the heck out of
     you!
                                                 [emphasis added]

This was  a remarkable admission by an Assistant Attorney General
in the  Justice Department, or  the "Just Us" department, as they
have come to be known in certain circles of the well informed.

     What gives?   Are there any bases in law for concluding that
federal income  taxes are truly voluntary, in the everyday garden
variety of  the term?   Yes,  there are  several.   Some of these
reasons may be "old hat" to those of you who are in these certain
circles.   Other reasons  may come as a total shock, particularly
because the  federal government  has been  guilty  of  systematic
fraud against the American people.  Let us begin with this fraud.

     Reach in  your wallet  and pull out a dollar bill.  Already,
you have  a big  problem in your hands.  Read what it says on the
front of  your dollar  bill.   It says  "Federal  Reserve  Note".
First of  all, the  Federal Reserve  is not  "federal".  It is no
more federal than Federal Express or Federated Department Stores.
For detailed  proof, see  Lewis vs  United States,  680 F.2d 1239
(9th Circuit,  1982).    There  is  no  government  copyright  or
trademark on using the word "federal".

     Secondly, there  is no "reserve".  Federal Reserve banks are
privileged to  loan money  they  don't  have.    This  is  called
"fractional reserve" banking.  Thirdly, Federal Reserve Notes are
not real  promissory notes,  because they  do not  promise to pay
anything, like  gold, or  silver, or  something  else  with  real
substance.

     The Federal  Reserve system was conceived by a conspiracy of
bankers and politicians who met secretly off the coast of Georgia
to create  the Federal  Reserve Act.   This  Act of  Congress was
designed to  remove the  Constitution  as  a  constraint  on  the
financial operations  of the  U.S.  government.    It  created  a
private credit  monopoly which Congressman Louis T. McFadden once
called "one  of the  most corrupt institutions the world has ever
known".   Congressman McFadden  was Chairman of the House Banking
and Currency Committee from 1920 to 1933.

     The operations  of the  Federal Reserve  are complicated and
secretive.  For example, this huge syndicate of private banks has
never been  publicly audited.   I will do my best to simplify its
operations for  you.   The Federal  Reserve System  was set up to
encourage Congress  to spend money it doesn't have -- lots of it.


                        Page 8 - 3 of 16

                                                The Federal Zone:


Rather than  honestly taxing Americans for all the money it wants
to spend,  Congress runs  up a  huge deficit  which it  covers by
printing ink on paper and calling them bonds, or Treasury Bills.

     Some  of   these  T-bills   are  purchased  by  hard-working
Americans like  you and me, with money that we obtained from real
labor, something  that has  real value.   But  the deficits  have
become so  huge, the  wage earners  do not  have enough  money to
purchase all  these bonds  every year.  So, Congress walks across
the street  and offers  these bonds  to the Federal Reserve.  The
FED says,  "Sure, we'll  buy those  bonds.  Your interest rate is
8.25, or  9 and  a half.   Take it or leave it."  Congress always
takes it,  because there's  nobody else  with that kind of money.
Remember, the Federal Reserve is a private credit monopoly.

     Now, what  does the  FED use  to purchase those bonds?  They
create money  out of  thin  air,  using  bookkeeping  entries  to
manufacture credit  out of  nothing.  They used to do it with pen
and ink,  then typewriters,  and now  computers do the job.  This
artificial money  would normally  create  very  rapid  inflation.
This happened  in Germany  just prior to World War II, when Louis
McFadden was  a Congressman.   It  eventually took a wheel barrow
full of  Deutsche marks  just to  buy one  loaf of bread. Imagine
that, if you can!

     The bankers realized that a mechanism was needed to withdraw
this artificial money out of circulation as quickly as it was put
into circulation.   Enter  the Internal Revenue Service.  The IRS
is really  a collection  agency for the Federal Reserve.  The FED
pumps money  into the  economy, and  the IRS  sucks it out of the
economy, like  two pumps  working in tandem.  This has the effect
of artificially  maintaining the  purchasing power  of this "fiat
money", as it is called by monetary experts.

     This is  one of  the primary purposes of the income tax.  We
know this  to  be  true,  because  a  man  named  Beardsley  Ruml
explained it  clearly in  an essay  he published  in the magazine
American Affairs in January of 1946.  Beardsley Ruml was Chairman
of the  Federal Reserve Bank of New York, so he was in a position
to know.   The  shocking fact is that Federal income taxes do not
pay for  any government services;  they are used to make interest
payments on  the federal  debt.   These interest payments are now
approaching 40 percent of the annual federal budget.

     The  Federal   Reserve  Act  is  unconstitutional  for  many
reasons, foremost  among which  is that  Congress delegated  to a
private corporation a power which Congress never had, that is, to
counterfeit money.   It  is unlawful  for Congress  to exercise a
power which  is not  authorized to  it by  the Constitution.  The
people, you  and I,  and the  50 States  reserve all  powers  not
expressly delegated to the federal government.

     Congress got  hooked on  this sweetheart  deal  and  started
spending  money  so  fast,  it  quickly  bankrupted  the  federal


                        Page 8 - 4 of 16

                                                 Is It Voluntary?


government.   This may  also come as a shock to many of you.  And
you might  feel that what I am about to say is paranoid or crazy.
We felt  this way  too when  we first discovered it.  We couldn't
believe it.   So  we investigated.   Our research discovered that
the bankers  foreclosed the  United States Treasury no later than
the year  1933.   They called  the loans  and confiscated all the
gold then being held by the U.S. Treasury.

     An Act of Congress caused all that gold to be transferred to
the Federal  Reserve banks.   Remember,  those are private banks,
and the  Treasury Department is not the U.S. Treasury Department.
If you  need proof,  try enclosing  a check  payable to the "U.S.
Treasury Department" with your next tax return.  Notice also that
IRS stationery  says "Department  of the  Treasury" and  not  the
"U.S. Department of the Treasury".

     To secure  the rest  of their debt, Congress then liened, in
effect, on  the future  property and earnings of all the American
people, through Social Security taxes, payroll withholding taxes,
inheritance taxes, and the like.  Congress mortgaged the American
people, using our labor and our property as collateral.

     What Congress  did was  analogous to  this:   I walk  into a
large department  store and see a new toaster I want.  I tell the
sales person to ship it to my home tomorrow, and to send the bill
to Willie  Brown.   Now, when Willie Brown gets the bill for this
toaster, he's  going to be pretty mad, and rightly so.  He didn't
order the  toaster;   he doesn't  own the  toaster;   he wasn't a
party to  the toaster  transaction.  In fact, he didn't even know
about it.   And  yet, I am holding him responsible to pay for the
toaster.   In this  example, I am Congress;  the department store
is the Federal Reserve;  and Willie Brown represents the American
People (some of the time).

     This is  fraud, because  Congress did  not openly and freely
disclose the  real  reasons  for  its  actions.    Lack  of  full
disclosure is  grounds for  fraud in  any contract.   The Uniform
Commercial Code  says so.   And  yet,  all  Americans  are  being
unlawfully enslaved  by this  fraud, to  help discharge  the debt
which Congress has tried to impose upon all of us.  (Rumor has it
that the  New York  banking establishment  refers to our money as
Federal Reserve Accounting Unit Devices, F-R-A-U-D.  Film at 11.)

     Your "income"  is private  property.   Absent an apportioned
direct tax,  or some  commercial agreement  to the  contrary, the
federal government  is not  empowered  to  obtain  a  controlling
interest in,  or otherwise  lien on  private property  so  as  to
compel a  private Citizen's  specific performance  to any  third-
party debt  or obligation.   Moreover,  it is  a well established
principle in  law that  government cannot  tax a  Sovereign State
Citizen for  freely exercising  a right  guaranteed by  the  U.S.
Constitution.   The acquisition  and exchange of private property
is such  a right.   The  pursuit  of  common-law  occupations  is
another such right.


                        Page 8 - 5 of 16

                                                The Federal Zone:


     Now, if  you want to "volunteer" to help reduce the national
debt, you  may, and  Congress will  of course  accept your "gift"
without question.   You have the right to volunteer yourself as a
third-party to  the outstanding principal debt which Congress has
amassed.   As a "principal" in your own right, you have the right
to obligate yourself as a "performance unit" on the national debt
(unlike so many Americans whose birth certificates have ended up,
without their  knowledge,  in  the  hands  of  the  International
Monetary Fund in Brussels, Belgium.  See Appendix T if you decide
to revoke your birth certificate.)  Thus obligated, you will have
turned yourself  into someone who is subject to all the rules and
regulations which  have been  established by the Secretary of the
Treasury to  discharge the massive federal debt.  But, as long as
you remain  a Sovereign  State Citizen, who is neither a resident
nor a  citizen of  the United States**, and as long as you do not
derive income  from sources  inside the United States** or from a
U.S.**  trade   or  business,  you  are  completely  outside  the
jurisdiction of  the federal  zone.  The federal debt is not your
burden to carry.

     You cannot be compelled, at law, to perform under any third-
party debt  or obligation.   If  you are ever so compelled, it is
extortion, or  "tax-tortion" as Godfrey Lehman calls it.  You are
not only  the victim  of extortion.  You are also the victim of a
massive fiscal  fraud which  Congress and  other officials of the
federal government have perpetrated upon Sovereign State Citizens
at least  since 1913, the year the Federal Reserve Act was passed
into law,  and also  the year  the so-called  16th Amendment  was
simply "declared"  into law:   two  pumps, working in tandem, one
pumping money  and credit  into the economy, the other sucking it
out of  the economy.   The  Rothschild-Hamilton money and banking
system, as it is called, is older than everyone alive.

     The constitutional  experts and  experienced  staff  at  the
National Commodity  and Barter  Association in  Denver,  Colorado
have done a fine job of summarizing "voluntary compliance" in one
of their aging flyers that is still circulating:


     The term "voluntary compliance" appears to be contradictory,
     but careful  analysis shows  the words  to be  accurate  and
     appropriate.   An act  is voluntary  when one does it of his
     own free will, not because he is forced by law to do it.  If
     a law  applies to an individual, his compliance with the law
     is mandatory,  not voluntary.   However, individuals engaged
     in occupations of common right are not subject to the income
     (excise)  tax.    For  them,  compliance  with  the  law  is
     voluntary, not  mandatory, because the law does not apply to
     them.
                     [brochure entitled Must You Pay Income Tax?]
                                                                 
     So, now  you know  at least  some of  the many  reasons  why
federal officials  admit that income taxes are voluntary.  It's a
deception, because  they will admit that it's voluntary, but they


                        Page 8 - 6 of 16

                                                 Is It Voluntary?


won't tell  you why.   Quite  possibly, they  don't even know why
because they,  too, have been deceived.  When the U.S. Treasury's
gold was  transferred into  the vaults  of  the  Federal  Reserve
banks, lots of people were deceived into believing that Uncle Sam
was simply  moving that  gold out  of his right hand and into his
left hand.   Many  of those  deceived were Uncle Sam's employees.
Only an  elite few  really knew  that  the  Federal  Reserve  was
established as  a private  corporation, a  Class A  common  stock
corporation, to be exact.

     Are there  any other  reasons, like this, why federal income
taxes are voluntary?  Yes.  In previous chapters, the concepts of
"U.S.** resident",  "nonresident", "U.S.**  citizen", and "alien"
were explored in some detail.  Nonresident aliens with respect to
the federal zone are required to pay taxes only on income derived
from sources  within that  zone.  Those sources may be a "U.S.**"
trade or  business, "U.S.**"  corporations which  sell stocks and
bonds  and   pay  dividends,   or  employment  with  the  federal
government.

     Doing business  with the  federal zone  is your option; it's
voluntary.  Nobody is compelling you to buy stock from a domestic
"U.S.**" corporation.   Nobody is compelling you to derive income
from a  "U.S.**" trade  or business.  Nobody is compelling you to
work for  the federal  government.   But, if you choose to do so,
then you will be held liable for federal taxes on the "privilege"
of deriving  income from these sources, because these sources are
situated inside  a zone  over which  the Congress  has  exclusive
legislative jurisdiction.   That  is, Congress can do pretty much
whatever it  wants inside  that zone.   If you don't like the tax
rates, then  don't choose  a U.S.**  trade or  business.   If you
don't want to reside inside their zone, then move somewhere else.
If you don't want to be one of their "citizens", then expatriate.
Remember, involuntary  servitude is  forbidden everywhere in this
land, even within the federal zone.  It's relatively simple, when
the boundaries and authorities of the federal zone are taken into
full account, the Account for Better Citizenship.

     When I  say that  Congress can  do pretty  much whatever  it
wants inside  the federal  zone, I  mean to  say that Congress is
free to  create a system of democratic socialism within that zone
(see Appendix W).  Outside the federal zone, Congress is bound by
the chains  of the Constitution to guarantee a Republic to the 50
States.  Social Security is perhaps the most glaring example of a
"voluntary" system  offered  by  the  democratic  socialists  who
actually write  the laws.   These  socialists then  pay the  "law
makers" to  vote for  the laws, even though the real "makers" are
not the ones who do the actual voting.  (If you want to have some
fun, ask  your representatives  in the House or Senate if they've
ever read  Title 26, and if so, how much of it they have read and
understood.)   The actual  scope of Social Security is limited to
the federal  zone, except  for those outside the zone who wish to
partake  of   its  "benefits"   knowingly,   intentionally,   and
voluntarily.  Ralph F. Whittington nails it down as follows:


                        Page 8 - 7 of 16

                                                The Federal Zone:


     Do you  now understand  that the  Social  Security  Act  was
     written under  the authority of Article 1, Section 8, Clause
     17, and Article 4, Section 3, Clause 2, of the Constitution,
     exclusive authority given to the Congress by "WE THE PEOPLE"
     ???

     The "USE" of a Social Security Account Number is evidence of
     the following:

     1.   You are  a  card  carrying  and  practicing  member  of
          National Socialism.
                                                                 
     2.   You have  voluntarily derogated your "Sovereignty", and
          make public  and notorious  declaration that you prefer
          to have  the protection of Congress, and prefer to be a
          "Subject" under  the "Exclusive Powers" of Congress and
          the Bureaucrats  that have been assigned certain duties
          by Congress.

     3.   You make  a public  and notorious  declaration that you
          are a  "Taxpayer", and  will follow  the rules  as laid
          down in the United States Code Title 26 (Tax Code), and
          the  various   other  Laws   which  are   written   for
          enforcement upon the "Subjects of Congress".

     4.   The use  of your  Social  Security  Account  Number  is
          evidence of your FRANCHISE with the Federal Government,
          a Franchise  that  provides  you  with  Privileges  and
          Advantages, protected by the Federal Government.

     5.   Makes you, voluntarily, a "United States** Person" (per
          definition).  See 26 U.S.C., Sec. 7701(a)(30).

     6.   You have  rejected the  protections of the Constitution
          for a  dole, and  prefer to  be judged  in the  "King's
          Court" if you violate any of his rules.

                                       [The Omnibus, pages 73-74]
                                           [emphasis in original]
                                                                 
     Thus, if  you are  participating knowingly, voluntarily, and
intentionally in  the "Franchise"  called "Social Security", then
your participation  is evidence  that  you  have  volunteered  to
classify yourself as a "taxpayer", as that term is defined in the
Internal Revenue  Code.  Under the "Law of Presumption", your use
of a social security number can be seen by the federal government
as prima  facie evidence  that you  have opted to obtain benefits
from the  federal zone.   If you are not participating knowingly,
voluntarily and  intentionally, then the government's presumption
can be  rebutted.   Aside  from  creating  money  via  fractional
counterfeits, how  else do  you think  the Feds  obtain the money
which they  pay to  "benefit" recipients?   Contrary  to  federal
propaganda, there still is no free lunch.



                        Page 8 - 8 of 16

                                                 Is It Voluntary?


     Remember, there is no "reserve", not in the Federal Reserve,
and certainly  not in Social Security.  As the famous "baby boom"
advances in  age, this  generational cohort is acting like a "pig
in a  python" to  devastate the  fiscal integrity  of the  entire
Social Security system.  Perhaps you thought that Social Security
was really  an insurance  fund, like  an annuity.  That's another
grand deception (and fraud), the details of which are also beyond
the scope  of this  chapter.  Funds have not been "set aside" for
you.   Social Security is a TAX, and it says so in the law.  It's
a tax  with a  bear trap  hidden in  the bushes.   That bear trap
converts you from a Sovereign into a subject.  Now that you know,
you may  want to  consider changing  your status, while you still
can.  At the very least, continue to educate yourself about this.

     There is  yet another  reason why  federal income  taxes are
voluntary.   The Internal  Revenue  Code  says  that  nonresident
aliens may  "elect" to  be treated as "residents".  Think back to
The Matrix.   If  you are  a nonresident alien, you are in row 2,
column 2.  Now think of it as a game of checkers, on a board with
only four  squares.   It's your  move.   If you volunteer to move
from the  square at  row 2/column 2 to any other square, you will
thereby incur  a tax liability.  According to Publication 519, an
alien may be both a resident alien and a nonresident alien during
the same tax year:


     This usually  occurs for  the year  you arrive  in or depart
     from the United States**.

             [Publication 519, U.S. Tax Guide for Aliens, page 3]


Such an alien is called a "dual status" alien.

     A nonresident  alien can  also "elect"  or volunteer  to  be
treated as  a resident  alien.   My reading  of the  law and  the
related publications leads me to conclude that this "election" is
available only  to a  nonresident alien  who is married, but I am
open to persuasion on this point.  Specifically, the IRC has this
to say about "elections":


     Election to  Treat Nonresident  Alien Individual as Resident
     of the United States**. --

     (1)  In General.  -- A  nonresident  alien  individual  with
          respect to  whom this  subsection is  in effect for the
          taxable year  shall be  treated as  a resident  of  the
          United States** --

          (A)  for purposes  of chapters  1 and 5 for all of such
               taxable year, and
                                                                 
                                                  [continued ...]


                        Page 8 - 9 of 16

                                                The Federal Zone:


          (B)  for purposes  of  chapter  24  (relating  to  wage
               withholding) for  payments of  wages  made  during
               such taxable year.

     (2)  Individuals with  Respect to Whom This Subsection is in
          Effect. --   This  subsection shall  be in  effect with
          respect to  any individual  who, at  the close  of  the
          taxable  year   for  which   an  election   under  this
          subsection was made, was a nonresident alien individual
          married  to   a  citizen  or  resident  of  the  United
          States**, if  both of  them made  such election to have
          the benefits of this subsection apply to them.

                                                 [26 USC 6013(g)]
                                                 [emphasis added]

     The Instructions for IRS Form 1040NR, U.S. Nonresident Alien
Income Tax Return, shed more light on these "election returns":


     Election to be Taxed as a Resident Alien

     Under some  circumstances you  can elect  to be  taxed as  a
     U.S.** resident  for the  whole year.   You  can  make  this
     election if either of the following applies to you:
                                                                 
                                                                 
     -    You were a nonresident alien on the last day of the tax
          year, and  your spouse was a U.S.** citizen or resident
          alien on the last day of the tax year.
                                                                 
                                                                 
     -    You were  a nonresident  alien at  the beginning of the
          tax year, but you were a resident alien on the last day
          of the tax year and your spouse was a U.S.** citizen or
          resident alien  on the last day of the tax year.  (This
          also  applies   if  both   you  and  your  spouse  were
          nonresident aliens at the beginning of the tax year and
          both were resident aliens at the end of the tax year.)


     If you  elect in  1990 to be taxed as a U.S.** resident, you
     and your  spouse must  file a  joint return  on Form 1040 or
     1040A for  1990.   Your worldwide  income for the whole year
     will be taxed under U.S.** tax laws.  You must agree to keep
     the records,  books, and  other information needed to figure
     the tax.   If  you made the election in an earlier year, you
     may file  a joint  return or separate return on Form 1040 or
     1040A for  1990.   Your worldwide  income for the whole year
     must be  included whether  you  file  a  joint  or  separate
     return.
                           [Instructions for Form 1040NR, page 2]
                                                 [emphasis added]



                        Page 8 - 10 of 16

                                                 Is It Voluntary?


     If nonresident  aliens "elect"  to be  treated as "resident"
aliens, they  are thereby required to file IRS Form 1040 or 1040A
instead of  Form 1040NR.   Filing Form 1040 or 1040A can be taken
by the  government as  prima facie  evidence that  you want to be
treated as a "resident".  This, in turn, allows the government to
presume that  you have volunteered to be treated as a "taxpayer",
that is,  one who  is entitled  to the "benefits", and subject to
the liabilities,  of the  federal zone's  legislative  democracy.
The chain  of cause  and  effect  is  clarified  considerably  by
couching the  discussion in  terms  of  The  Matrix:  four-square
checkers (like  candidate Richard  M. Nixon's  famous  pet  dog).
Author and  scholar Lori  Jacques has summarized it succinctly as
follows:


     IR Code Sec. 6013(g) grants an election to treat nonresident
     alien spouse  as resident  of the  United States**.   If the
     nonresident alien individual makes this election by filing a
     1040 form,  then returns  must be filed for the current year
     and all subsequent years until the election is terminated.

        [United States Citizen vs. National of the United States]
                                        [page 40, emphasis added]
                                                                 
                                                                 
     Again, an  "election" can  be terminated  voluntarily.  This
termination is described in the IRC as follows:


     Termination  of   Election.  --   An  election   under  this
     subsection shall  terminate at the earliest of the following
     times:

     (A)  Revocation by  Taxpayers. -- If either taxpayer revokes
          the election,  as of  the first  taxable year for which
          the last day prescribed by law for filing the return of
          tax under chapter 1 has not yet occurred. ...
                                                                 
                                              [26 USC 6013(g)(4)]

     We have not taken the time to determine if there are similar
provisions  in   the  IRC   and  its  regulations  for  unmarried
nonresident aliens.   (Remember,  the statute has 2,000 pages and
the regulations have 6,000 pages.)  Author Lori Jacques has taken
note  of   the  CFR   provisions  for   terminating   "voluntary"
withholding, which  may be  effective in this case.  An affidavit
is attached  to an  individual's Form  W-4, specifying  the name,
address and  social security  number of  the employee  making the
request, the  name and  address of  the employer, and a statement
that the  employee desires  to terminate  withholding of  federal
income tax and desires that the agreement terminate on a specific
date.  The report by Lori Jacques goes on to explain:




                        Page 8 - 11 of 16

                                                The Federal Zone:


     This arrangement  can be found in 2 USC 60 for the Congress.
     Possibly the  same format  could be used, thereby revoking a
     presumed election  to be  treated as "resident of the United
     States**."

     For the  nonresident alien's  exemption from withholding and
     taxation to  apply, a  statement is  to be  made stating the
     kind of exclusion claim.

     (1)  No income from United States** source
     (2)  No income  from effectively  connected United  States**
          source
     (3)  No income from a trade or business conducted within the
          United States**
     (4)  Income excluded under "fundamental law"

        [United States Citizen vs. National of the United States]
                                        [page 40, emphasis added]


     A close  examination of  the CFR regulations for terminating
voluntary withholding  reveals a  trap, however.    A  number  of
natural born  Sovereign State  Citizens have  been misled by well
intended but  ignorant Patriots  who thought  they had  found  in
those regulations  a method to stop paycheck withholding, without
any adverse  consequences.   This method  is the infamous section
"1441" of the CFR:


     1.1441-5 Claiming to be a person not subject to withholding.

     (a)  Individuals.  For purposes of chapter 3 of the Code, an
          individual's written  statement that  he or  she  is  a
          citizen or  resident of  the  United  States**  may  be
          relied upon  by the  payer of  the income as proof that
          such individual  is a citizen or resident of the United
          States**.
                                                [26 CFR 1.1441-5]
                                                 [emphasis added]

In a now famous circular entitled "We Will Pay $10,000 If You Can
Prove the  Following  Statements  of  Fact  To  Be  False!",  the
Save-A-Patriot Fellowship included the following "fact":


     FACT #23: The  implementation  of  IRS  Treasury  Regulation
     1.1441-5 is  explained in  Publication 515 on page 2:  If an
     individual gives  you [the  domestic employer or withholding
     agent] a written statement, in duplicate, stating that he or
     she is  a citizen  or resident of the United States, and you
     do not know otherwise, you may accept this statement and are
     relieved from the duty of withholding the tax.




                        Page 8 - 12 of 16

                                                 Is It Voluntary?


IRS Publication 515 is entitled Withholding of Tax on Nonresident
Aliens and Foreign Corporations, and the Save-A-Patriot quotation
is accurate.  However, by referring to The Matrix in chapter 3 of
this book (and on the cover), it should now be obvious why such a
statement is precisely the wrong thing to do.  Nonresident aliens
thereby declare  themselves to  be either  citizens of the United
States**  or   residents  of  the  United  States**,  voluntarily
rendering  themselves  liable  for  federal  income  taxes.    To
underscore why  section 1441  is a  trap, a  Sovereign California
Citizen received  the following  in a  letter from the Employment
Development Department  of the State of California after filing a
1441 statement:


     Your statement  submitted in  compliance with Title 26, Code
     of  Federal   Regulations,  Section  1.1441-5,  specifically
     Section  1.1441-5(c)  is  also  noted.    Your  declaration,
     received without  a date, has been logged and filed into EDD
     records.
                              [Employment Development Department]
                                          [private communication]
                                                 [emphasis added]


     Author Lori  Jacques summarizes  the "1441"  statement  with
surgical accuracy:


     ... [I]t  seems rather  incomprehensible to file a statement
     claiming to  be a  U.S.** citizen  (if one  is  not)  making
     oneself obligated  for a  tax on income from whatever source
     --   within and  without the  United States**.  Although one
     may be exempt from the 30% withholding under this provision,
     employers do  not withhold a flat 30% rate anyway.  Some day
     that declaration of U.S.** citizenship will surely come back
     to haunt  its declarant  when the  IRS wants the returns and
     payment of  a graduated  tax  for  all  of  that  undeclared
     income.

            [A Ticket to Liberty, November 1990 edition, page 45]


     There is a much better method for nonresident aliens to stop
withholding.   It is  called a  "Certificate  of  Exemption  from
Withholding in  Lieu of  W-4".  This certificate is authorized by
section 3402(n)  of the  IRC  (see  Appendix  X).    Details  for
completing and serving this certificate can also be obtained from
Doc Scott's  great book  entitled Free  at Last  -- From the IRS,
listed in the Bibliography (see Appendix N).  Be careful to avoid
explicitly declaring  yourself as  an "employee",  however, since
this term has a specific meaning in the IRC.  Your certificate is
made so as to be "consistent with" section 3402(n).




                        Page 8 - 13 of 16

                                                The Federal Zone:


Summary

     It is  really exciting to discover that federal income taxes
are indeed  voluntary for nonresident aliens who derive no income
from sources  inside the federal zone.  It is equally exciting to
discover that  aliens who  have "elected" to be "resident aliens"
may also  terminate that  election.   (Terminating an election is
something that most of us would never even think of doing!  Let's
all work  and pray  to ensure  it never happens in this country.)
Lastly, is  it imperative  to understand that the filing of prior
1040 forms  can be taken as evidence that a nonresident alien has
elected to  be a resident alien, for purposes of federal tax law.
The federal  government is  thereby entitled  to presume that you
are either  required to  file, or  that you  have elected  to  be
treated as  one who  is required to file, if and when your signed
1040 or 1040A form arrives in a pouch of mail destined for an IRS
Service Center.  The Law of Presumption is so important, the next
chapter will  be dedicated to this one subject.  Even the perjury
oath under  which you sign your name on IRS tax forms is a subtle
indicator of  your status vis-a-vis the federal zone.  For proof,
see Appendix R for the relevant statute from Title 28.




                             #  #  #






























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                                                 Is It Voluntary?


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Reader's Notes:























































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