The Federal Zone:

handr.gif (5832 bytes)Cracking the Code of Internal Revenue


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IRS ~ Tax Info

IRS reveals smoking gun
July 29, 2002

The mystery surrounding Internal Revenue Service tax audits against critics of
President Bill Clinton during his administration has been cracked. A smoking
gun has just been released by the IRS. The unmistakable evidence is that the
supposedly nonpolitical tax agency responds to complaints by prominent

The IRS, perhaps unknowingly, incriminated itself July 8 with a 1,500-page
document dump answering to four years of freedom of information requests by
the watchdog organization Judicial Watch. The material shows that the IRS
audit of Judicial Watch was preceded by written complaints from the White
House and prominent Democratic members of Congress. Furthermore,
existence of supposedly secret audits was unsealed thanks to a Justice
Department tax litigator who is, implausibly, active in local Democratic politics.

Judicial Watch's lawsuits have made the organization as obnoxious to the Bush
administration as to its predecessor. Nevertheless, the White House is
concerned about one abuse close to the political bone: IRS disclosure of
confidential tax information about the Republican candidate for governor of

Until the July 8 document dump, Judicial Watch got little satisfaction from the
IRS in fighting the costly, time-consuming audits. Among the 1,500 pages was
found this Aug. 14, 1998, e-mail to President Clinton (with the sender's name
blackened). ''I have received solicitation for funds and a questionnaire from Larry
Klayman, of Judicial Watch. They have targeted you and the Vice President.
My question is how can this obviously partisan organization be classified as tax
exempt.... I think you and your wife have done a great job in spite of the
partisan attacks against both of you.''

According to the IRS documents, the Clinton fan's complaint was received by
the IRS from the White House on Sept. 14, 1998, and dispatched to
Commissioner Charles Rossotti's office. That same day, the file indicates, a
telephone call in connection with this matter was made to a person whose
name was blacked out. Just two weeks later, Judicial Watch received its first
notice of an audit.

While Judicial Watch received continued audit notices, the IRS was pressured
by prominent Democrats. Rep. Charles Rangel of New York, top Democrat on
the tax-writing House Ways and Means Committee, on Feb. 2, 1999, wrote
questioning whether the watchdog group was entitled to a tax exemption.
Rangel's letter noted complaints from Rep. Martin Frost of Texas, a member of
the Democratic leadership who received a constituent complaint about Judicial
Watch solicitations.

Marcus Owens, head of the IRS' Exempt Organizations Division, responded to
both Rangel and Frost. ''We have forwarded the information you provided to the
key district with examination jurisdiction over these organizations,'' Owens said.
Translated from bureaucratese: An IRS probe was under way. As audit notices
went out, complaints came in from other Democrats--including Senators
Richard Bryan of Nevada and Tom Harkin of Iowa and Rep. Jim Moran of

Judicial Watch's fight against a political audit was unsealed by the federal
District Court in Baltimore, with proceedings sent to the Tax Notes Today
publication. A filing in the court last Jan. 7 indicates the documents were
released by lawyers from the Justice Department's Tax Division. The
government's chief litigator against Judicial Watch has been a remarkable
Washington bureaucrat named Stuart Gibson.

While serving as a civil service tax lawyer, Gibson also is a liberal activist in
suburban Fairfax County, Va., where he was elected to the school board with
Democratic backing. He was the lead litigator in the public disclosure of tax
shelters by individual taxpayers--including Bill Simon, the Republican nominee
for governor of California.

The Bush White House has a great deal more concern for Simon than Klayman,
particularly because Judicial Watch filed suit against Vice President Dick
Cheney. The broader question is political motivation behind the IRS audits.
There is now evidence that the audit of at least one Clinton ''enemy'' was
triggered by the White House. The background of other such audits might yield
other smoking guns, if Congress or the Bush administration were interested
enough to investigate.


Peter M. Yore
Re: "IRS reveals smoking gun..." PLEASE PROSECUTE ME.
Wed Aug 14 01:49:51 2002

Re: "IRS reveals smoking gun..."
Date: Tue, 13 Aug 2002 22:37:21 -0500
From: "Peter M. Yore"
Reply-To: "Peter M. Yore" -
Organization: The Yore Company

Well, Since you brought it up...
Here's a guy, Larkin Rose, who is stepping up to bat for us all. Go to
THEFT.jpg (19408 bytes)

and see what he says. He's got a great video
tape for sale as well, for those of you you don't like to read tax code.


Peter M. Yore
11116 N. Siedschlag Rd.
Spring Grove, Illinois 60081-8690

Got a few minutes to learn about a new way to make some money? Go to now!
Dear Federal Government,


I, Larken Rose, have not filed a federal income tax return for 1997 or any
subsequent year. This is not because I am protesting any law, or because I
do not want to pay my "fair share"; it is because I refuse to be a victim of
the biggest financial fraud in history. I also refuse to remain silent
while government lawyers illegally defraud my fellow Americans.

People by the thousands are learning that the "conventional wisdom" about
the federal income tax is just plain wrong. As more and more Americans are
discovering that the law itself shows that the income of most Americans is
not taxable, DOJ and IRS officials are desperately trying to distract from
the issue by dishonestly portraying it as a frivolous "tax protestor"
argument, and by trying to silence (via court injunctions) those who
publicize the issue. This summary shows why the IRS and the DOJ refuse to
have an open, honest discussion about what the government's own regulations

Point 1: The federal income tax applies only to one's "taxable income," not
to all income, and the income tax regulations (e.g. 26 CFR 1.861-1(a)(1),
1.861-8(a)(1), 1.863-1(c)) clearly show that one's taxable domestic income
is to be determined under the rules of 26 USC 861(b) and the related
regulations beginning at 26 CFR 1.861-8. (Other sections explain when
income from outside of the U.S. is taxable.)

Point 2: So why does it matter whether we use those sections to determine
our taxable domestic income? Because more than 80 years of statutory and
regulatory history prove beyond any doubt that 26 USC 861(b) and 26 CFR
1.861-8 show income to be taxable only when it comes from certain types of
international or foreign commerce. In other words, contrary to what
"everyone knows," most Americans do not receive taxable income, and do not
owe federal income taxes.

IRS employees across the country refuse to honestly address the issue, and
instead resort to threats, evasions, and accusations, because their own law
books expose the biggest financial fraud in history: the misrepresentation
and misapplication of the federal income tax. (See
for more information.) The nationwide pattern of Gestapo-like tactics by
the IRS and DOJ against those who speak the truth is shown in detail at

I will not stand by and allow myself, my family and my neighbors to be
extorted simply because some power-happy bureaucrats huff and puff about all
the nasty things they will do to anyone who does not "comply" with the IRS'
misapplication of the law. To the DOJ and the IRS I say this: You know I am
among the most vocal about this issue. Stop terrorizing the American
public, and come get me. Make an "example" of me. Surely if my position is
"frivolous" and completely devoid of merit, then the DOJ attorneys can
easily refute my position in front of a jury, and have me convicted and
imprisoned. (I'm not exactly hiding, am I?) You already have what would be
"Exhibit A" in my defense: my Theft By Deception video. So take your best

Larken Rose
It's time for the fraud to end.


Aftermath News
The IRS is a Money-Laundering Extortion Racket
Tue Aug 13 16:29:54 2002

The IRS is a Money-Laundering Extortion Racket
Author’s Note: Special thanks are extended to Colorado Libertarian
Senatorial Candidate Rick Stanley, Ken S. of American Revolution II, Amanda
Moore, Deb Hamm & Fred Smart of We the People Congress, and Paul Walker for
their generous assistance in researching this article. They are living proof
that men and women of integrity, passion, courage, and honor still exist in
this country. Thank you, one and all.

The IRS is a Money-Laundering Extortion Racket
by Lisa Guliani

Author’s Note: Special thanks are extended to Colorado Libertarian
Senatorial Candidate Rick Stanley, Ken S. of American Revolution II, Amanda
Moore, Deb Hamm & Fred Smart of We the People Congress, and Paul Walker for
their generous assistance in researching this article. They are living proof
that men and women of integrity, passion, courage, and honor still exist in
this country. Thank you, one and all.

“…I could not say less in view of questions of such gravity that go down to
the very foundations of the government. If the provisions of the
Constitution can be set aside by an Act of Congress, where is the course of
usurpation to end? The present assault upon capital is but the beginning. It
will be but the stepping-stone to others, larger and more sweeping, till our
political contests will become a war of the poor against the rich; a war
growing in intensity and bitterness.”

~ Mr. Justice Field, writing the opinion of the Supreme Court, in
a case brought by an attorney, Mr. Joseph H. Choate, in which he
successfully challenged the Income Tax Act of 1894.

“…no tax liability … if … the individual was a citizen or resident of the
United States throughout the preceding taxable year.”

~ (from the Horse’s mouth) Internal Revenue Code Section 6654 (e) (2)

Libertarian Senatorial candidate Rick Stanley, of Colorado, has now joined
with Robert Schulz of “We the People Congress” in refusing to pay income
taxes for this year and all future years. Why? Well, for starters, because
both he and Schulz don’t have to. You don’t either, according to the law.

That’s right, folks. In case you didn’t happen to know this, there is NO
federal law or Act of Congress that requires any American citizen to pay the
income tax. In fact, it is referred to as a “voluntary” tax. How can this
be? Well, simple. When you fill out a W-4 form, you are essentially signing
yourself into servitude and “volunteering” yourself to pay the tax. Did you
know this? Well, it’s true. The IRS pressures employers to obtain your
signature on the W-4 form so they can reel you into paying this illegal
“tax”. Want to know what your heard-earned money isn’t paying for? Well, it
isn’t going to pay for ANY governmental service; that is most certain. In
fact, what it DOES pay ON, not for, is the INTEREST on the National Debt.
Remember that? The National Debt? So, in essence, you are “volunteering” a
goodly portion of your paycheck to pay ON an enormous debt which you did not
incur. How do you like them apples?

Actually, the Congress incurred this “national debt”. So, why don’t THEY pay
it off? Isn’t it interesting, too, how certain individuals seem to NOT
“have” to pay income taxes, like the rest of us “average” folk? Take, for
instance, Mark Rich, who received a last-minute pardon from Ex-Buffoon Bill
Clinton – and he “owed” a HUGE amount of unpaid income tax. Or, for a really
good example of how select individuals and families don’t have to pay and
make no bones about admitting it, take the Rockefellers. Now, here is one of
the richest families in America. And guess what? According to Sherman
Skolnick, Nelson Rockefeller testified UNDER OATH during his Senate
confirmation hearings that he and “the Rockefeller principal members, have
NOT PAID ANY INCOME TAXES in the previous eleven years.” Imagine that. Well,
I would think that what is good enough for the likes of Nelson and his gang
is good enough for me, too. How about you?

According to Rick Stanley, in 2000, there were an estimated “290 million
people in America. The IRS received 123 million tax returns, of which an
estimated 23 million were corporate filings and 100 million were from

“Conservatively, an estimated 100 million people are not filing taxes and
just being quiet about it,” asserts Stanley.

Moreover, Stanley stresses that “there is an IRS form any person can fill
out and give to their employer, which says that you are not liable for ANY
taxes to be taken out of your wages. None. It is form number IRS code3402
(n), and since no American citizen is liable for income taxes on their
wages, interest, etc…, (by constitutional law and the IRS Code book itself),
EVERY AMERICAN CAN OPT OUT of the withholding of THEIR money, from THEIR
check. Your employer must honor this request. The amount of your money
retained in your pocket is huge.”

And … did you know that the IRS is NOT a bureau or agency of the Department
of the Treasury? Nope, it isn’t. Holy smokes, but they often send outgoing
mail with “Department of the Treasury” right on the return address. Guess
what? This is mail fraud. Mail fraud is a serious federal offense. Oops!
Guess they are just making a booboo when they do that, huh?

Another thing you should know is that the IRS is a “trust” that is domiciled
in (get this) Puerto Rico. Puerto Rico? You bet. And, their records are
private and well-protected. Woohoo!! So, they are unaccountable to the poor
suckers who they extort money from each and every year.

The IRS is nothing more than an organized crime syndicate of strong-arms who
extort our money through illicit means like bribery, kickbacks, grand jury
tampering, threats, harassment, imprisonment, property seizure, and other
means. Sound like a gang of hoodlums to you? It does to me and many others.

There is no law that says we MUST pay the income tax. In fact, our so-called
government is NOT supposed to directly tax its citizens. The income tax is
considered to be akin to an excise tax. Direct taxes are supposed to be
apportioned. That is according to our Constitution. Remember that document?
Ya know, the one we’re not supposed to regard as important anymore? The one
no one in our government seems to be guided by these days? Yeah, that one.

In fact, Rick Stanley was in court recently, in a non-tax-related matter,
and this is what the judge had to say to his attorney about the

“You are not to mention the Constitution during this proceeding. Do you
understand? You are not to reference the Constitution in these proceedings.
You will not address it in your dire, you will not address it in your
opening remarks, you will not ask any questions about the Constitution when
you summon your witnesses, and you will not talk about the Constitution when
you give your closing arguments. Do you understand my instructions?”

~ Spoken by Judge Patterson of Colorado in addressing Paul Grant,
former attorney for Libertarian Senatorial candidate, Rick

So now we are not allowed to speak about the Constitution in a court of law?
What kind of insanity is this? Where did we get this judge? From which
diseased dumpster did he spring forth to preside over a court of law? What
absolutely sick, incredulous remarks. Since when has the Constitution become
a four-letter word? Answer: since the corporation of the UNITED STATES has
realized that Americans are waking up to the TRUTH. Well, Amen to the last
part anyway.

It is very sad that ‘We the People’ do not question our so-called government
and judiciary more closely. It is imperative that we examine our
Constitution and learn what it has to teach us about our rights and about
our protections. For instance, when the IRS hassles a citizen as it has in
the past, for “illegal tax protests,” you should know there is no such thing
as an illegal tax protest. Period. Not only do American citizens have the
RIGHT to protest any damn thing we choose, but we most certainly have the
right to protest an ILLEGAL tax, such as the income tax. Our fundamental
right to protest is protected under the First Amendment. We may protest the
illegal income tax. We also have the right to protest a government that
allows us to be abused and ripped off in this way. Another thing, if you use
an attorney in an admiralty court, you are deemed “incompetent” and unable
to handle your own affairs. You don’t say ... awfully presumptuous of them,
isn’t it?

I think we should all stand up and support Rick Stanley, Robert Schulz, and
all the good Americans who are resisting the illegal income tax extortion
being perpetrated by the collection agency known as the Internal Revenue
Service. We the People did not incur the National Debt – Congress did that
when they sold us down the river. We the People are under no obligation to
pay this extortion, as there is NO federal law or Act of Congress that
requires us to do so. We have been threatened enough by the racketeers over
the years that most people THINK they must pay. However, if you learn your
Constitution, which is still the guiding document of this nation, and LEARN
your rights, you will come to the realization that you have more power than
you may have previously thought. You can loosen your own ropes and free
yourself. Claim your sovereignty and declare your independence in an
appellate court.

Please support Patriots like Rick Stanley and Robert Schulz, who are
fighting for the freedom of all Americans. America is ours to keep or to

Let freedom ring…

The Bankruptcy of the United States  



The Federal Reserve Is A PRIVATELY OWNED Corporation

The 545 People Responsible For All of America's Woes

Government has its eye on your money !

NY TIMES: Saying Income Tax Is Illegal


The Law, by Frederic Bastiat

Without Justice there is Just_Us!
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