View Full Version : IRS concedes my earnings do NOT constitute "gross income".

03-28-08, 12:54 PM
IRS concedes my earnings do NOT constitute "gross income

Subject line: IRS concedes my earnings do NOT constitute "gross income". And yours probably don't either...

Most of us, when seeing an injustice being committed, will feel compelled to do something about it. And when that injustice itself fuels and lubricates a monstrous engine which routinely generates yet more injustice, the motivation to act can become overwhelming, as it has for me.

If this were an ordinary e-mail advertising or promoting some self-serving interest on my part, I would begin with an apology for the unsolicited intrusion upon your time and privacy. But it really isn't -- at least in my view, and I consider myself reasonably sensitive to such matters. However, if you should find yourself disagreeing with me at the end of this letter, then you have my deepest regrets for this disturbance. Those of you who know me well are likely to realize that I wouldn't undertake an e-mail campaign such as this without the sincere conviction that the information I'm attempting to impart is both intrinsically important and also something that most of you will conclude is really in your own best interests to have received.

For about four years now I've been engaged in a part-time study of the history and application of the Federal "Income Tax", originally a Civil War emergency budgetary measure which has come and gone twice before receiving lasting reincarnation via the Taft-Underwood Tariff Act of 1913, the year which not coincidentally also gave us the Federal Reserve Act. During these past four years of research I have come across and attempted to evaluate many interpretations of the current tax code, along with the many explanatory hypotheses underlying these interpretations. Only a minority of these ideas have since demonstrated any real traction, while many others remain outright daffy, to put it kindly. But the Internal Revenue Code (aka Title 26 of the U.S. Code) which they all attempt to explicate is so complex, unwieldy and tortuously obfuscatory that it has quite naturally produced a plethora of often conflicting viewpoints regarding the actual semantic contents and legal meaning of its now 3.6 million word bulk.

Fortunately for me, and before I could come to any dangerously erroneous conclusions about my true tax obligations under these confusing laws, I stumbled across a website (www.losthorizons.com) and a book ("Cracking the Code: the Fascinating Truth about Taxation in America" -- or CtC for short), both authored by a remarkable legal researcher and rule-of-law advocate living in Michigan named Peter Hendrickson. This book and the essays on his website made sense of the income tax scheme in a way that even the most cogent-seeming of competing interpretations could not. But beyond the intrinsic virtues of making logical and semantic sense, being self-consistent, and aligning itself neatly with the unraveled, cross-referenced, unpacked and painstakingly parsed tangle of legal-speak that is the tax code itself, Hendrickson's analysis enjoyed the singular concrete advantage of having in 2003 netted Pete and his wife Doreen the first-ever complete refund of its kind in the history of the IRS. That refund included payroll taxes, FICA 'contributions' to Social Security, Medicare amounts and FUTA taxes: in short, everything withheld from their paychecks came back to them on that historic refund check. Several thousand subsequent examples of these kinds of refunds have since been enthusiastically received by conscientious readers of CtC.

Of course, it's not enough to find an explanation or procedure personally compelling, or to be convinced of its truth value based solely on theoretical considerations, or even to rely on evidentiary claims that might ultimately amount to no more than hearsay. The proverbial proof should always be found in the pudding itself. With that axiom in mind, I am very happy to report on the personal consequences of three years' worth of filing my own taxes by following the examples in CtC and applying the principles of law expounded in the book. My official IRS Record of Account transcripts for those tax years (2004 - 2006), which I only recently obtained from the IRS Memphis office, show in unambiguous terms that although I paid NO federal income taxes of any kind on my earnings for those years I am also regarded by that same IRS database as owing NO taxes for those years, with NO penalties assessed and NO interest accrued. So for the benefit of anyone who might vicariously enjoy some really tasty pudding, I've attached a zipfile that includes not only scans of these transcripts (with some personal info redacted), but also scans of third-party "information returns" (e.g. 1099-MISC forms) that were filed with the IRS for those years by business clients whom I was unable to persuade into foregoing this pointless waste of their time and money. These latter forms implicitly alleged that the companies issuing them were entities of a class which is statutorily charged with a requirement to file such forms with the Internal Revenue Service. These forms further implicitly alleged that I had received taxable compensation from such an entity. Once these errors were appropriately pointed out to the IRS and properly rebutted in my 1040 filings, it was the particulars of my sworn testimony and not these ill-informed allegations which determined how the record would read in the end.

Let me say it again, in boldface this time: these IRS transcripts concede that I received no "gross income" (and thus no "taxable income") for the relevant period, and that as a consequence I do not owe any income taxes for that period, despite my not having paid any taxes for those years and despite some of the companies paying me for contract work in those years having submitted official IRS forms alleging my receipt of "income" from them. But the most important point to be taken here is that there is absolutely nothing special about my personal or professional status nor about the filing actions that I've taken and am reporting. You too are almost certainly a candidate for obtaining and enforcing the same kind of results regarding the fruits of your own labors.

If you've been paying attention, the inevitable implications of this information and its perhaps surprising validation probably haven't escaped you, and they are both profound and disturbing. Beneficiaries of the income tax scheme (including not only those in the bloated federal government itself, but those in various symbiotic industries that have grown up around the administration of payroll and human resource services, the ritualized preparation of tax forms, the maximization of tax breaks and deductions through investment management, etc, etc, etc) have been wittingly and unwittingly misrepresenting and misapplying the Title 26 tax laws of this country for decades. And although there is indeed a sizable segment of national economic activity for which the federal income tax laws most certainly do create a tax obligation, typical Americans working in the private-sector are seldom involved with such activity. Instead, we have been intentionally and systematically duped into paying taxes for which we are almost never actually liable. This deliberately engineered over-bilking has precipitated a rising flood of illegitimate revenue for the federal government that has swept the influence (and effluence) of D.C. politicians and bureaucrats far beyond the Constitutional levees erected by this nation's founders to contain them, and at the same time all but erased any incentives for fiscal responsibility or regulatory restraint. Every wasteful, counter-productive, hurtful or destructive program in both domestic and foreign policy areas perpetrated and perpetuated by 'our' runaway government is directly facilitated by this deceptive, coercive, immoral and ultimately unlawful expropriation of labor, capital and property from the producing sector of our economy.

Skeptics interested in how such a situation could possibly now be true or could ever have arisen in the first place are invited to read the other attachment, a synopsis of some of what I've learned over the course of my own journey through the morass that is this topic. Better yet, go to the LostHorizons site and order Pete's book, which will almost certainly prove to be the best $25.00 investment of your terrestrial life. And lest any of you should wonder, I get no commissions, kickbacks, brownie points, airline miles or referral fees of any kind from directing you there. I do so only out of conscience and a desire to help my fellow Americans keep all their hard-won earnings for themselves and for their families, where these monies will without a doubt more intelligently benefit the overall economic and political health of this nation. I also want to see an end to the countless injustices spawned by what has become an unrecognizable corruption of the federal system devised by our Constitution's framers, injustices blatant both in the government's acquisition of the financial means to its multifarious ends and in far too many of the ends themselves.

Please feel free to forward this to whomever you please, and also to e-mail me with questions, comments or, if this letter has offended you in any way, criticism of my decision to dispatch it to virtually everyone in my Internet address books. Regardless of the intended content of your e-mail though, I do ask that you first read the attachments and visit the LostHorizons site. Your questions or objections are likely to find at least some partial answers there.

Thank you for your time and attention,
Don Drolet
Richardson, Texas
November, 2007

03-28-08, 06:42 PM
So, are you paying income tax?