A wise person recently pointed out that if the government takes a portion of what you are paid for your labor, then the government owns [part of] your labor.  This makes you a slave.  The Consitution wanted nothing of the sort for the people of America.  If you obediently yield a portion of your earnings every year to the government's collection agency -- the IRS -- you are merely following an artful protocol set up in 1943 by the U.S. Treasury, which wanted to "borrow" a portion of every American's earnings each year to create revenue for the government's war effort.  The point of your "Individual Income Tax Return" which you file in April each year is to ask for the RETURN of your borrowed money.  (See Senate Subcommittee Hearings, August 21-22, 1942.)

Believe it or not, the perps themselves put out the incorrect notion each year that "income tax is unlawful" and "just don't pay."  It's not that simple, thanks to a very crafty major bamboozle pulled on Americans by the introduction of "reporting" methods made available to people who hired and worked for each other.  (Read our "Show Me the Law" section.)  Activists like to beat a drum once they hear a rhythm they like.  "Income tax is unlawful" is a drumbeat that will get you into trouble ... for income tax is lawful -- it just doesn't apply to most people in this country, given the kind of work they are doing.  Find out why and how by reading the rest of this section!

Wouldn't you love to get a notice from the IRS that someday says, "We Changed Your Account - This Is Not a Bill," with the admission that you were right and they are wrong.  With the admission that what they have tried to take from you by a very misleading and devious nationwide protocol is now being returned to you or dropped altogether.

WOULDN'T YOU LOVE TO EDUCATE AN IRS AGENT AS TO THE LAW??

Do you realize that the people who are putting the screws to this country are NOT THE IRS AGENTS, but those behind what is essentially a collection agency for the private Federal Reserve ... and the "Fed," as they call it, is NOT PART OF THE U.S. GOVERNMENT at all.  Its knucklebuster agency, the IRS, is a "revenue" service that attempts to suck a [large] percentage of individual Americans' earnings every year, to feed the ever-growing interest on the national debt (read: enslavement) to a massively powerful foreign and private cartel of banks.

Here's the beginning of an inspiring story from Pete Hendrickson: "In September of 2006, Bruce G. [of Arizona] was being dunned by the IRS for more than $6 million."  It ends like this: "In October 2008, Bruce won his first victories for the rule of law -- concrete IRS acknowledgements that Bruce had no tax liaility ... simply because his unprivileged, non-federally-connected gains don't qualify as 'income.'"

And that's how elemental it is, folks!  Daytrader Bruce G. of Arizona turned out not liable for "income" tax on the sums of $$ passing through his account and successfully presented a defense that even his receipts from these trades were not taxable.  (See Bruce's exchange with the IRS here.)  "What's 'income'?" is the question we have forgotten all about asking.

Read on!

The 1040 is a return you file about yourself.  W-2s and 1099s are "information returns" filed about you by others.

The whole game of tax (not unlike the game of tag) is about these returns.  Each year, the clock ticks until April 15th as the IRS waits for you to answer the legal "charges" made about you by way of the information returns people have sent to them about you (if any at all have been filed).  Tick-tock, tick-tock.


On April 15th, the bell goes DING!

If, by April 15th of each year, you have not "answered" the "charges" filed about you by others, the IRS will find you at fault.  It's that simple, according to an amazing book written by Pete Hendrickson, titled "Cracking the Code: The Fascinating Truth About Taxation in America."  You have several choices.  You can, by way of your 1040 personal return, agree with the information filed about you, or you can disagree.  The nature of this information is that you were the recipient of "income" obtained as an exercise of federal privilege.  In plain English, did your $$ come from investing in or conducting federal activities, or as direct federal benefits??

 The 1040 Income Tax Return as a Legal Claim for Refund

In a 1942 Senate subcommittee hearing on the proposed Revenue Act, Senator John Danaher asked for clarification of the concept of withholding pay from both "taxpayers" and "non-taxpayers."  (It was known that "non-taxpayers" were those who did not receive "income" from a federal nexus.)  Danaher wanted to know how individuals who were not classified as "taxpayers" would be able to get an annual refund of earnings being withheld by the government under the new plan.  Milton Friedman of the Treasury Department replied:  "An individual will file an income tax return, and that income tax return will constitute an automatic claim for refund."

What does this mean?  Well, for starters, with World War II going on, the government wanted good Americans to support its expenditures.  The idea of taking a portion of everyone's income -- imposing a "broad income tax" -- would create a much bigger flow of revenue.  While citizens could ask for the return of these withholdings at the end of each year, it was hoped that most would not, and that if enough time passed, Americans would come to assume that paying a tax to the government based on one's yearly earnings was just a reality of life.

For those who were savvy enough to recognize that the government was not entitled to keep their withholdings, the 1040 U.S. Individual Income Tax Return was provided as a legal way to request a refund, however big or small this refund might be.  Very few people today are aware of the true purpose of the 1040 return.

To see a bonafide transcript of the Senate exchange, click here.

This book will gently but effectively usher you into a whole new universe.

Most people in the "tax defying" community (as it is now officially called) are incompletely informed.  They believe the income tax is unconstitutional, but they can't legally prove why.  We have author Pete Hendrickson to thank for doing a bit of research (reading millions of words of Internal Revenue Code and statutory law!) for us.  It appears that Congress itself, although not opposed to writing a horrendously convoluted and misleading tax code, has provided ways for law-abiding citizens to disengage themselves yearly from the very uncomfortable noose of "income" tax, but it requires a little knowledge and a LOT of unconditioning to do so.

You will no longer need accountants or "certified tax preparers" to take care of this ugly little annual task for you.  You will breathe freely and happily once you have gotten the picture and taken your first hesitant steps into freedom.  The concept of "Cracking the Code" is not based on "a little loophole."  It is not "just another trick" you can try on the IRS to get out of paying taxes.  It is an explanation of the true nature of "income" tax and the true purpose of filing a 1040 return.

Below is a story for you to read, followed by ten facts to absorb and share with others.