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FREEDOM?

Welcome

Edward Mandell House had this to say in a meeting with Wodrow Wilson (President) [1913-1921]

“[Very] soon, every American will be required to register their biological property in a National system designed to keep track of the people and that will operate under the ancient system of pledging. By such methodology, we can compel people to submit to our agenda, which will effect our security as a chargeback for our fiat paper currency. Every American will be forced to register or suffer not being able to work and earn a living. They will be our chattel, and we will hold the security interest over them forever, by operation of the law merchant under the scheme of secured transactions. Americans, by unknowingly or unwittingly delivering the bills of lading to us will be rendered bankrupt and insolvent, forever to remain economic slaves through taxation, secured by their pledges. They will be stripped of their rights and given a commercial value designed to make us a profit and they will be non the wiser, for not one man in a million could ever figure our plans and, if by accident one or two would figure it out, we have in our arsenal plausible deniability. After all, this is the only logical way to fund government, by floating liens and debt to the registrants in the form of benefits and privileges. This will inevitably reap to us huge profits beyond our wildest expectations and leave every American a contributor or to this fraud which we will call “Social Insurance.” Without realizing it, every American will insure us for any loss we may incur and in this manner, every American will unknowingly be our servant, however begrudgingly. The people will become helpless and without any hope for their redemption and, we will employ the high office of the President of our dummy corporation to foment this plot against America.” ................................................

Fight the Finger Print
Larry Becraft
Devvy
WALLACE INSTITUTE
WALLACE INSTITUTE
Congressman McFadden 1934
defence = your Reliance on Government Information
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John J Schlabach, EA.

17511 North Greenbluff Road Colbert, Washington 99005 Telephone (509) 238-4697 Fax (509) 238-4697

John Q. Citizen c/o 123 Main St. Anywhere, U.S.A.

May 18, 1997

Dear Mr. Citizen:

At your request I have researched the Internal Revenue Code (Title 26 U.S.C.) relative to an individual income tax return. I cannot tell you not to file an income tax return unless you have no tax liability. Each person involved, on his/her own, must make this determination.

First let me tell you something about myself. I am an Enrolled Agent. Enrolled Agents are defined in the IRS Regulations Circular 230 as a person who has demonstrated technical competence in interpreting and administering the Internal Revenue Code and regulations thereunder. This person has passed a strenuous test in all areas of taxation administered by the Internal Revenue Service. Enrolled Agents are licensed by the Treasury Department and must continue to show proficiency in the tax laws and regulations with documented continuing professional education hours in order to maintain their licenses.

There are two important issues that you need to address. What is the subject of the tax? Where is the liability for that tax? These questions are addressed more in detail later in this research letter. Let us look at some statutes that might concern you. Lets start with the failure to file return, supply information, or pay tax, as stated in section 7203 as follows.

IRC SECTION 7203. Willful failure to file return, supply information, or pay tax

Any person required under this title to pay any estimated tax or tax, or required by this title or by regulations made under authority thereof to make a return, keep any records, or supply any information, who willfully fails to pay such estimated tax or tax, make such return, keep such records, or supply such information, at the time or times required by law or regulations, shall, in addition to other penalties provided by law, be guilty of a misdemeanor and, upon conviction thereof, shall be fined not more than $25,000 ($100,000 in the case of a corporation), or imprisoned not more than 1 year, or both, together with the costs of prosecution. In the case of any person with respect to whom there is a failure to pay any estimated tax, this section shall not apply to such person with respect to such failure if there is no addition to tax under section 6654 or 6655 with respect to such failure. In the case of a willful violation of any provision of section 6050I, the first sentence of this section shall be applied by substituting "5 years" for "1 year".

As you can see by the highlighted words there are two essential elements that must be present. First, you must be required to pay a tax, or be liable for paying a tax. This means it is a crime only if you are a person required by law or regulation to pay a tax, file a return or keep such records. It is, therefore, important to determine if you are a person "required" to perform these functions. This will be the first subject discussed in this letter.

The government has to prove these elements in order to subject you to punishment. They must first prove you had "taxable income", that you are "liable" for a tax, and that the "liability" made you a "required person." If any of these elements cannot be proven, you cannot be subject to punishment.

Let's first see whether or not you are a "person liable." To start with, I look at the two code sections that address this issue under: Title 5, Section 552a(e)(3) [The Privacy Act], and Title 44, Section 3504(c)(3)(C) [The Paperwork Reduction Act].

The Privacy Act states that the Agency requesting information to:

(3) inform each individual whom it asks to supply information, on the form which it uses to collect the information or on a separate form that can be retained by the individual

(A) the authority (Ether granted by statute, or by executive order of the President) which authorizes the solicitation of the information and whether disclosure of such information is mandatory or voluntary;

(B) the principal purpose or purposes for which the information is intended to be used; (C) the routine uses which may be made of the information, as published pursuant to paragraph (4)(D) of this subsection; and

(D) the effects on him, if any, of not providing all or any part of the requested information...

The Paperwork Reduction Act states that the Director of the Office of Management and Budget must include with his/her information request:

".... a statement to inform the person reviewing the request why the information is being collected, how it is to be used, and whether responses to the request are voluntary, required to obtain a benefit, or mandatory..."

Now, here we have two statutes directing the government to tell us whether giving the IRS an income tax return is voluntary or mandatory. The IRS responds to the directives of the Privacy Act and Paperwork Reduction Act Notice with the following statement:

"Our legal right to ask for information is Internal Revenue Code section 6001, 6011 and 6012(a) and their regulations. They say that you must file a return or statement with us for any tax you are liable for. Your response is mandatory under these sections."

I have to point out to you that the IRS again uses the word "liable for".

Now, let's look at the Internal Revenue Code to see what it has to say. The two sections 6001 and 6011 follow as written in the code of 1994.

SECTION 6001. Notice or regulations requiring records, statements, and special returns

Every person liable for any tax imposed by this title, or for the collection thereof, shall keep such records, render such statements, make such returns, and comply with such rules and regulations as the Secretary may from time to time prescribe. Whenever in the judgment of the Secretary it is necessary, he may require any person, by notice served upon such person or by regulations, to make such returns, render such statements, or keep such records, as the Secretary deems sufficient to show whether or not such person is liable for tax under this title. The only records which an employer shall be required to keep under this section in connection with charged tips shall be charge receipts, records necessary to comply with section 6053(c), and copies of statements furnished by employees under section 6053(a).

SECTION 6011. General requirement of return, statement, or list

(a) General ruleWhen required by regulations prescribed by the Secretary any person made liable for any tax imposed by this title, or with respect to the collection thereof, shall make a return or statement according to the forms and regulations prescribed by the Secretary. Every person required to make a return or statement shall include therein the information required by such forms or regulations.

In these two sections we are instructed to file a return or statement for any tax we are liable for. Indeed, Section 6001 refers to "Every person liable for any tax imposed by [The Internal Revenue Code]..." and Section 6011 refers to "...any person made liable for any tax imposed by [The Internal Revenue Code]...". But, as you can see, nowhere in either of these two sections are we told who is liable for, in this case, the income tax. The government has , in effect, told us that a response is mandatory if we are liable for the tax, but neglected to tell us whether or not we are liable for the tax. The government has been very explicit in telling us that a response, either a return or statement, is mandatory for any tax that we are liable for; however, the government has remained silent in telling us who is liable for the tax. Thus, even after reading the government's official notices under the Privacy Act and Paperwork Reduction Act, we still do not know if an income tax return is required of us. In my opinion, by maintaining silence on this central issue, the government has not complied with either the spirit or the letter of the law of the two Acts. This opinion is shared by courts as well:

" 'Silence' is species of conduct, and constitutes an implied representation of the existence of facts in question... When silence is of such character and under such circumstances that it would become a fraud...it will operate as an estoppel." Carmine v. Bowen 64 AT. 932 .

Since the government has not told you whether you are required to file an income tax return, you have asked me to research this matter. Since you must be a "person liable" to be a "person required", lets address this issue.

The right to tax comes from the United States Constitution, the supreme law of the land, which authorizes the federal government to impose two broad categories of taxes: direct taxes under Article I, Section 2 and Article I, Section 9, and indirect taxes under Article I, Section 8. Direct taxes are required to be apportioned among the states, while indirect taxes must be uniform throughout the United States.

Briefly, a direct tax is a tax on an ownership interest which the owner cannot pass on, while an indirect tax is on an event where the transaction and the impact of the tax can be passed on, in whole or in part, to others. In order for a tax to fall into the indirect tax category the individual liable for the tax cannot be the ultimate, final consumer. This is so since the one paying the tax can then add it on to the price of the thing being taxed and recover it (pass it on) when it is sold. The ultimate, final consumer would have no way to recover (pass on) the tax, so any tax which the ultimate, final consumer is liable for would be a direct tax based on an ownership interest.

"The Sixteenth Amendment does not extend the power of taxation to new or excepted subjects...,"Pack v Lowe, 247 U.S. 165. "The Sixteenth Amendment conferred no new power of taxation..." Stanton v Baltic Mining Co., 240 US. 103, at 112.

"The individual, unlike the corporation, cannot be taxed for the mere privilege of existing. The corporation is an artificial entity which owes its existence in charter powers to the State, but the individual's right to live and own property are natural Rights for which an excise cannot be imposed." Redfield v Fisher, 292 P. 813, at 819.

"Neither can the tax be sustained on the [natural] person, measured by income. Such a tax would be, by nature, a capitation rather than an excise. "Peck v Lowe, 247 US. 165. (emphasis added).

"Income has been taken to mean the same thing as used in the Corporate excise Tax of 1909 (36 Stat. 112). The individual worker does not receive a profit or gain from his/her labors merely an equal exchange of funds for services. "Brushaber v. Union Pacific R.R.. 240 US. 1, 17, 36 S. CT. 236, 241.

"The taxpayer must be liable for the tax. Tax liability is a condition precedent to the demand. Merely demanding payment, even repeatedly, does not cause liability" Bothke v. Terry, 713 F. 2d 1405, at 1414 (1983).

"The Treasury Department cannot, by interpretive regulations, make income of that which is not income within the meaning of the revenue acts of Congress, nor can Congress, without apportionment, tax as income that which is not income within the meaning of the Sixteenth Amendment." Helvering v. Edison Bros. Stores, 133 F.2d 575.

Also, please note the voluntary nature of Social Security or the use of the W-4? The only place in the code that addresses the Social Security issue is in Title 26 U.S.C. subtitle C, chapter 21(Social Security Tax Act) of the Internal Revenue Code starting in subchapter A. Subtitle C includes sections 3101 through 3510 of Title 26 U.S.C..

The first issue is whether subtitle C is relative/jurisdictional to you. To make this determination please note in Subtitle C, at subchapter c, §3121, which has specific definitions which relate to Social Security. In this jurisdictional section at 3121(e) State,

United States and citizen reads as follows:

3121(e) State, United States, And Citizen

For purposes of this chapter-

3121(e)(1) State

The term "State" includes the District of Columbia, the Commonwealth of Puerto Rico, the Virgin Islands, Guam, and American Samoa.

3121(e)(2) United States

The term "United States" when used in a geographical sense includes the Commonwealth of Puerto Rico, the Virgin Islands, Guam, and American Samoa.

An individual who is a citizen of the Commonwealth of Puerto Rico (but not otherwise a citizen of the United States) shall be considered, for purposes of this section, as a citizen of the United States.

The jurisdiction in this section is very specific as you can see. Because there is no section that makes it mandatory in the 50 Union States it must be voluntary for citizens in these States. 1) Washington, D.C., enclaves in the 50 states (i.e.: land that has been ceded by the State to the federal government), and the territories and possessions, such as Puerto Rico, Virgin Islands, Guam, etc.

2) The 50 states.

The principal difference in the jurisdictions is that the Constitution of the United States of America has to be strictly adhered to in making laws that affect the 50 states. However in Washington, D.C., enclaves and territories, Congress has EXCLUSIVE jurisdiction, which means they can make any law they want to; The Constitution is not considered. (Article 1, Section 8 U.S. Const). See also CAHA v U.S. 152 U.S. 211:

"The laws of Congress in respect to those matters (outside of Constitutionally delegated powers) do not extend into the territorial limits of the states, but have force only in the District of Columbia, and other places that are within the exclusive jurisdiction of the national government."

DOWNES v. BIDWELL 182 U.S. 244 is also very explicit:

"Constitutional restrictions and limitations were not applicable to the area of lands, enclaves, territories and possessions over which Congress had exclusive legislative authority."

The Supreme Court has ruled consistently on this issue ever since America's inception. In fact, the latest case was U.S. v. LOPEZ 115 S. CT. 1624 (1995). The Court ruled a law applicable in Washington, D.C. was not applicable in San Antonio, Texas, because it did not conform to Constitutional restrictions.

Since an income tax is a tax on income created by a transaction which is (and must be) directly associated with, or effectively connected with, some particular type of revenuetaxable "privileged" activity [i.e. alcohol, firearms, tobacco, or other privileged activity or excise], the Internal Revenue Code and its implementing and controlling federal regulations must specify the particular type or kind of tax arising from a revenuetaxable, privileged activity that makes one a "person liable" or "made liable". For example, Internal Revenue Code Section 5005 establishes that liability for the tax on distilled spirits is placed on the distiller or the importer. Section 5043 places the liability for the tax, from wine, on the proprietor of the bonded wine cellar or on the importer. Section 5703 places the liability for the tax on cigars and cigarettes on the manufacturer or importer. Also, to be classified as an indirect tax, the individual liable for the tax must not be the ultimate, final consumer.

In support of this, look at some closely related taxes. Section 2502(c) establishes liability for the gift tax on the donor, the one giving the gift, not the donee, the one receiving the gift.

Section 2002 establishes liability for the estate tax on the executor, not on the inheritors receiving the property. "Section 2002, liability for payment. The tax imposed by this chapter shall be paid by the executor."

Since you must be liable for an income tax on your own income, neither section 6001 nor section 6011 require you to file an income tax return. However, I want to continue and discuss 6012, which is the section many believe require income tax returns be filed.

SECTION 6012. Persons required to make returns of income

(a) General rule Returns with respect to income taxes under subtitle A shall be made by the following:

(1)(A) Every individual having for the taxable year gross income which equals or exceeds the exemption amount, except that a return shall not be required of an individual (i) Who is not married (determined by applying section 7703), is not a surviving spouse (as defined in section 2(a)), is not a head of a household (as defined in section 2(b)), and for the taxable year has gross income of less than the sum of the exemption amount plus the basic standard deduction applicable to such an individual, (ii) Who is a head of a household (as so defined) and for the taxable year has gross income of less than the sum of the exemption amount plus the basic standard deduction applicable to such an individual, (iii) who is a surviving spouse (as so defined) and for the taxable year has gross income of less than the sum of the exemption amount plus the basic standard deduction applicable to such an individual, or (iv) Who is entitled to make a joint return and whose gross income, when combined with the gross income of his spouse, is, for the taxable year, less than the sum of twice the exemption amount plus the basic standard deduction applicable to a joint return, but only if such individual and his spouse, at the close of the taxable year, had the same household as their home.

To determine who must make returns lets see what type of taxes can be assessed, by whom and for what classification of tax. For this we must go to Section 6201 Assessment Authority, which reads as follows:

Sec. 6201. Assessment Authority

6201(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:

6201(a)(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.

6201(a)(2) Unpaid Taxes Payable By Stamp

Title 26 U.S.C. §6201 gives the secretary the authority to assess taxes not duly paid by stamp or by the individual who has assessed himself, ie: voluntary tax. Stamp taxes are associated with subtitle E of the Internal Revenue Code Title 26 or Title 27. Ie: Alcohol, Tobacco and Firearms. Here, again, you have to determine what activity you are involved in and does this activity pay taxes by stamp.

The First Amendment of the Constitution of the United States protects the freedom of speech and of the press. The freedom to speak, you must understand, also involves the freedom not to speak. If you do not have the right not to speak, (i.e. if the government could compel you to speak) then you have no freedom of speech. Since this right extends to printed and written materials, you have a First Amendment Right not to fill out government forms and not to give the government information.

The Fourth Amendment of the Constitution of the United States protects your privacy. You have a Fourth Amendment Right to keep your personal financial affairs private, and not to voluntarily give that information to the government. The Fourth Amendment provides that if the government wants to examine your books and records, a court order must be obtained. The mailing of a tax form along with instructions on how to complete it is not, for Fourth Amendment purposes, a valid order compelling a response.

The Fifth Amendment of the Constitution of the United States protects you as well, stating:

"No person shall . . be compelled in any criminal case to be a witness against himself . . ."

The fifth amendment seems to apply only to criminal matters, but the Supreme Court ruled in McCarthy v. Arndstein, 266 US. 34, that the fifth amendment "applies alike to criminal and civil proceedings." Similar rulings have stated:

"There can be no question that one who files a return under oath is a witness within the meaning of the Amendment. Sullivan v. United States, 15 F. 2nd 809, and

'The information revealed in the preparation and filing of an income tax return is, for Fifth Amendment analysis, the testimony of a "witness" as that term is used herein.' Garner v. United States, 424 US. 648.

Since you can't be compelled to be a witness against yourself, and since the Supreme Court has twice held that the filing of an income tax return is an act of being a witness against one's self, it follows that any statute compelling the filing of an income tax return would violate the protections of the Fifth Amendment.

The effect of the government's actions has been noted by the Supreme Court:

"Because of what appears to be a lawful command on the surface, many citizens, because of their respect for what only appears to be law, are cunningly coerced into waving their rights due to ignorance." U.S. v. Minker, 350 US. 179, at 187.

Section 6012, moreover, specifies a condition that must be met before the income tax return "shall be made". The individual has to have "for the taxable year a gross income of the exemption amount or more". Based on the following code sections, I will show you where no individual has any item of gross income that is includable:

First, look at the definition of "taxable year":

7701 (a) (23) Taxable year. The term "taxable year" means the calendar year, or the fiscal year ending during such calendar year, upon the basis of which the taxable income is computed under subtitle A. "Taxable year" means, in the case of a return made for a fractional part of a year under the provisions of subtitle A or under regulations prescribed by the Secretary, the period for which such return is made. (Section 441 (b) also defines Taxable year: For purposes of this subtitle, the term "taxable year" means(1)"the taxpayer's annual accounting period").

The definition of "taxable year" is important since the law requires that taxable income is to be computed on the basis of a taxable year:

"Section 441(a) COMPUTATION OF TAXABLE INCOME Taxable income shall be computed on the basis of the taxpayer's taxable year."

Now, let us look at the definition of "taxpayer" and "person":

Section 7701(a)When used in this title, where not otherwise distinctly expressed or manifestly incompatible with the intent thereof (14) TAXPAYER The term "taxpayer" means any person subject to any internal revenue tax.

(1) PersonThe term "person" shall be construed to mean and include an individual, a trust, estate, partnership, association, company or corporation. [Which is only an artificial, not a natural, person / human being].

So, by substituting the term "person subject to any internal revenue tax" for the term "taxpayer" in section 441(a), the section requires the tax to be computed on the basis of the taxable year of the person subject to the income tax. Using the same substitution as above, you find:

"Section 451 (a) General rule. The amount of any item of gross income shall be included in the gross income for the taxable year in which received by the taxpayer, unless, under the method of accounting used in computing taxable income, such amount is to be properly accounted for as of a different period.

The point is this: Taxable income is required to be computed on the basis of the taxable year of the person subject to the income tax. If the person does not have a liability, he cannot have a taxable year in which any amount can be included.

Based on all of the above, it is my professional opinion, supported by the Court in U.S. v. Flora, 362 US. 145, at 176, that the filing of an individual income tax return is voluntary. Quoting the Court:

"Our system of taxation is based on voluntary assessment and payment, not upon distraint." U.S. v. Flora, id.

Also, by the testimony of Mr. Avis in the Internal Revenue Investigation. "Your income tax is 100 percent voluntary tax, and your liquor tax is 100 percent enforced tax. Now, the situation is as different as night and day." (Exhibit A)

You may be asking yourself, why is it that so many people file tax returns each year? Let me give you a statement by Adolph Hitler. "If you tell or report a lie often enough and long enough people will eventually believe it." This is what has happened to the people of the United States of America. Every year the IRS sends millions of forms to people, along with instructions, on how to fill them out. The people do not question the form nor do they determine if there is a liability, but just fill in the lines and send them back with whatever money the form requires. No one ever asks what law requires them to fill out this form and does it apply to them.

Furthermore, the Privacy Act Notice says that the government must tell you the effects, if any, of not filing the return. Until 1981, the Privacy Act Notice read as follows: "If a return is not filed, or if we don't receive the information we ask for, the law provides that a penalty may be charged..." (the "penalty" being a penalty for filing and paying the tax late). Since 1982, the Privacy Act Notice has been revised, reading: "If you do not file a return, do not provide the information we ask for, or provide fraudulent information, the law provides that you may be charged penalties and, in certain cases, you may be subject to criminal prosecution." No mention was made in the previous Privacy Act Notice since it only referred to not filing a return or providing information. Added to the Privacy Act Notice in 1982 was a caution about "fraudulent information" and "in certain cases, you may be subject to criminal prosecution". Since it is true that filing a false or fraudulent return is a crime under Code sections 7206 and 7207, the "certain cases" referred to in the later Privacy Act Notice are undoubtedly cases where a false or fraudulent return has been filed; however, the Privacy Act Notice still has not told us that not filing a return is a punishable offense.

If you remember, at the outset of this letter I said that in order for the government to punish you for not filing an income tax return, certain elements must be present: they must first prove you had "taxable income"; then, they must prove that income made you "liable" for a tax; next, they must prove that "liability" made you a "required person", and lastly, that you failed to file a "required return", and if any one of these elements cannot be proven, you cannot be subject to punishment. The word "willfully", when used in a criminal statute, means an act done with a bad purpose. Felton v. United States, 96 US. 699: Potter v. United States, 155 US. 438: Spurr v. United States, 174 US. 728, or without justifiable excuse. Felton v. United States, supra; Williams v. People, 26 Colo. 272, 57P. 701; People v. Jewell, 138 Mich. 620, 101 NW 835; St. Louis I. M. & S Ry. Co. v. Batesville & W. Tel. Co., 80 Ark. 499, 97 SW 660; Clay v. State, 52 Tex. Cr. 555, 107 SW 1129; or Stubbornly, obstinately, perversely. Wales v. Miner, 89 Ind. 118, at 127; Lynch v. Commonwealth, 131 Va. 762; 109 S.E. 427; Claus v. Chicago Gt. W. Ry. Co., 136 Iowa 7, 111 N.W. 15; State v. Harwell, 129 N.C. 550; 40 S.E. 48. The word is also employed to characterize a thing done without grounds for believing it is lawful. Roby v. Newton, 121 Ga. 679, 49 S.E. 694, or conduct marked by a careless disregard whether or not one has the right so to act. United States v. Philadelphia & R. Ry Co., 223 Fed. 207, at 210; State v. Savra, 129 Iowa 122; 105 N.W. 387; State v. Morgan, 136 N.C. 628, 48 S.E. 670.

Thus, since the government's Privacy Act Notice and Paperwork Reduction Act Notice do not meet its intended purpose and does not specifically say that filing an income tax return is required, the courts have recognized that the word "willfully" in these statutes generally connotes a voluntary, intentional violation of a known legal duty. U.S. v. Bishop, 412 US. 346. The Supreme Court has ruled as recently as January 8, 1991, that a belief that one is not required to file an income tax return, based upon professional advice, precludes the "willfulness" requirement [Cheek v. U.S., 498 US. 192, at 207 (1991)].

To sum up, the government must prove that you have a liability and they must disprove your claim that you believed filing an income tax return was not required or is voluntary, and instead prove that you intentionally did not file one. This is a decision that you have to make on your own. If you have a tax liability you will have to file a return.

With all the facts and evidence presented herein, you should have no problem defending yourself should the government try to criminally prosecute you for not filing an income tax return if you have no liability.

I sincerely hope that all points have been clarified. If any additional questions arise please do not hesitate to write me again.

Sincerely,

John J Schlabach, Enrolled Agent Enrollment # 50614 *******************

John J Schlabach, EA. 17511 North Greenbluff Road Colbert, Washington 99005 Telephone (509) 238-4697 Fax (509) 238-4697

Mark and Catherine American

123 Main Street

Any Town, U.S.A.

May 27, 1997

Mr. and Mrs American;

At your request I have researched the Internal Revenue Code, Title 26 U.S.C., regarding Seizures and Levies. The questions you were concerned with were the procedures for levying a private persons property. Some of which are: Where does the IRS get it's authority without a court order? Does the property have to be turned over without a court order? Are the rights, as guaranteed by the United States Constitution, violated?

About my experience, I am an Enrolled Agent. Enrolled Agents are defined in the IRS Regulations Circular 230, as a person who has demonstrated technical competence in interpreting and administrating the Internal Revenue Code and regulations thereunder. This person has withstood an extensive background check as to moral and ethical practices and has passed a strenuous test in all areas of taxation administered by the Internal Revenue Service. Enrolled Agents are licensed by the Treasury Department and must continue to show proficiency in the tax laws and regulations with documented continuing professional education hours in order to maintain their licenses.

The IRS frequently serves levy notices on third parties who may be holding your property. The IRS knows that all of the notices of levy that are sent to you or your employer are incorrect unless you are involved in a privileged activity as noted at the end of this letter. The primary reason is their has been no assessment, because the IRS can not legally assess a Private Citizen who has his/her income from only private sources.

Further, in reading the information as stated on the levy, a person is required to turn over property because a tax liability exists and the person named has refused to pay. You cannot refuse to pay something that cannot exist. There can be no assessment pursuant to 26 U.S.C. §6201, without this there can be no levy, this a is evidenced by the court also as follows:

"In order to place a lien/levy against property, the IRS must make a valid assessment of taxes pursuant to 26 U.S.C. §6203. After the assessment is made, the IRS must send a §6212 "Notice of Deficiency" to the taxpayer. Then the IRS must provide a "Notice and Demand for Payment" of assessed tax as required by §6303(a). Only after full compliance with these procedures, may the IRS take a lien on the delinquent taxpayer's property." Brewer v. U.S., 764 F. Supp. 309, 315 (S.D.N.Y. 1991)

There are two concepts for me to get across. It is important to discuss the difference between a "levy" and a "seizure". A "seizure" means the act of taking into custody or control something which before was not in custody or control. A "levy" is not a single act, but rather is the whole process by which the money needed to pay a tax is raised, either by exercising control over something already in custody and control of the government or by distraining and seizing property not already in custody of the government. The levy process includes the sale of levied property and the application of the proceeds to the unpaid tax.

I must now advise you that a, "Notice of Levy", is not a levy or seizure. The "Notice of Levy" has no legal effect in the private sector unless it is accompanied with a Judicial Court Order and a "Notice of Seizure". The following cites will demonstrate that a "Notice of Levy" carries no authority to "Levy", and that a "Levy" must be done through "seizure" of the property.

A Notice of Seizure should be given for a Notice of Levy to be successful. That the levy was impermissible in the absence of the required Notice of Seizure. Arford v. United States, 934 F 2d 229 (9th Cir. 1991).

"A 'Levy' for-delinquent taxes requires that property be brought into legal custody through seizure, actual or constructive, and is absolute appropriation of property levied on, and a mere NOTICE OF INTENT TO LEVY DOES NOT CONSTITUTE A LEVY" (Emphasis added). Freeman v. Meyer. 152 F. Supp. 383, Affd 253 F. 2d 1295 (3rd Circuit 1968).

"A 'Levy' requires that property be brought into legal custody through seizure, actual or constructive, and is absolute appropriation in law of property levied on, and MERE NOTICE OF INTENT TO LEVY IS INSUFFICIENT" Emphasis added). United States v. O'Dell, 160 F. 2d 304, 307 (6th Circuit 1947).

The IRS is to comply strictly to the conditions imposed by statute in the seizure and levy process. Goodwin v. United States, 935 f 2d 1061, (9th Cir. 1991). A stickler for enforcing the statutory notice it is entitled to receive, the government should be no less punctilious with respect to the statutory notice it is required to give. Kulway v. United States, 917 F 2d 729, 735 (2nd Cir. 1990).

There are specific procedures that must be followed for a garnishment to be lawful unless one voluntarily consents. This is also known by IRS Agents as evidenced by the Internal Revenue Manuel, page 57(16), titled "Legal Reference Guide for Revenue Officers" (February 9, 1990) States: "A proper levy against any amounts held as due and owing by employers, banks, stockholders, etc. must issue from a warrant of distraint and not mere notice" it then cites United States v. O'Dell, 160 F2d 304.

I hope I have covered the definitions of seizures and levies for you. Now I will use Title 26 U.S.C. to tell you the procedures the IRS must use. I will start with "seizures". The authority for "seizures" comes from Internal revenue Code sections 7321 and 7608 as follows: As stated in Goodwin v. United States and Kulway v. United States, (Supra) the IRS compliance with the Lien-seizure-levy process must be strict and literal.

SECTION 7321. Authority to seize property subject to forfeiture.

Any property subject to forfeiture to the United States under any provision of this title may be seized by the Secretary.

SECTION 7608. Authority of internal revenue enforcement officers.

(a) Enforcement of subtitle E and other laws pertaining to liquor, tobacco, and firearms Any investigator, agent, or other internal revenue officer by whatever term designated, whom the Secretary charges with the duty of enforcing any of the criminal, seizure, or forfeiture provisions of subtitle E or of any other law of the United States pertaining to the commodities subject to tax under such subtitle for the enforcement of which the Secretary is responsible may--

(1) carry firearms;

(2) execute and serve search warrants and arrest warrants, and serve subpoenas and summonses issued under authority of the United States;

(3) in respect to the performance of such duty, make arrests without warrant for any offense against the United States committed in his presence, or for any felony cognizable under the laws of the United States if he has reasonable grounds to believe that the person to be arrested has committed, or is committing, such felony; and

(4) in respect to the performance of such duty, make seizures of property subject to forfeiture to the United States.

(b) Enforcement of laws relating to internal revenue other than subtitle E

(1) Any criminal investigator of the Intelligence Division or of the Internal Security Division of the Internal Revenue Service whom the Secretary charges with the duty of enforcing any of the criminal provisions of the internal revenue laws, any other criminal provisions of law relating to internal revenue for the enforcement of which the Secretary is responsible, or any other law for which the Secretary has delegated investigatory authority to the Internal Revenue Service, is, in the performance of his duties, authorized to perform the functions described in paragraph (2).

(2) The functions authorized under this subsection to be performed by an officer referred to in paragraph (1) are--

(A) to execute and serve search warrants and arrest warrants, and serve subpoenas and summonses issued under authority of the United States;

(B) to make arrests without warrant for any offense against the United States relating to the internal revenue laws committed in his presence, or for any felony cognizable under such laws if he has reasonable grounds to believe that the person to be arrested has committed or is committing any such felony; and

(C) to make seizures of property subject to forfeiture under the internal revenue laws.

As noted in these sections, Internal Revenue Enforcement Officers, when enforcing both Subtitle E taxes and other taxes as defined in 7608, are given authority to make seizures of "property subject to forfeiture". It becomes important to know at this point exactly what property comes within the meaning of "property subject to forfeiture" since if the property is outside the scope of the meaning of "property subject to forfeiture", the Internal Revenue Enforcement Officer is not authorized to seize it.

The definitions of "property subject to forfeiture" are found in Internal Revenue Code sections 7301 through 7304, as follows:

SECTION 7301. Property subject to tax:

(a) Taxable articles--Any property on which, or for or in respect whereof, any tax is imposed by this title which shall be found in the possession or custody or within the control of any person, for the purpose of being sold or removed by him in fraud of the internal revenue laws, or with design to avoid payment of such tax, or which is removed, deposited, or concealed, with intent to defraud the United States of such tax or any part thereof, may be seized, and shall be forfeited to the United States.

(b) Raw materials--All property found in the possession of any person intending to manufacture the same into property of a kind subject to tax for the purpose of selling such taxable property in fraud of the internal revenue laws, or with design to evade the payment of such tax, may also be seized, and shall be forfeited to the United States.

(c) Equipment--All property whatsoever, in the place or building, or any yard or enclosure, where the property described in subsection (a) or (b) is found, or which is intended to be used in the making of property described in subsection (a), with intent to defraud the United States of tax or any part thereof, on the property described in subsection (a) may also be seized, and shall be forfeited to the United States.

(d) Packages--All property used as a container for, or which shall have contained, property described in subsection (a) or (b) may also be seized, and shall be forfeited to the United States.

(e) Conveyances--Any property (including aircraft, vehicles, vessels, or draft animals) used to transport or for the deposit or concealment of property described in subsection (a) or (b), or any property used to transport or for the deposit or concealment of property which is intended to be used in the making or packaging of property described in subsection (a), may also be seized, and shall be forfeited to the United States.

SECTION 7302. Property used in violation of internal revenue laws.

It shall be unlawful to have or possess any property intended for use in violating the provisions of the internal revenue laws, or regulations prescribed under such laws, or which has been so used, and no property rights shall exist in any such property. A search warrant may issue as provided in chapter 205 of title 18 of the United States Code and the Federal Rules of Criminal Procedure for the seizure of such property. Nothing in this section shall in any manner limit or affect any criminal or forfeiture provision of the internal revenue laws, or of any other law. The seizure and forfeiture of any property under the provisions of this section and the disposition of such property subsequent to seizure and forfeiture, or the disposition of the proceeds from the sale of such property, shall be in accordance with existing laws or those hereafter in existence relating to seizures, forfeitures, and disposition of property or proceeds, for violation of the internal revenue laws.

SECTION 7303. Other property subject to forfeiture.

There may be seized and forfeited to the United States the following:

(1) Counterfeit stamps--Every stamp involved in the offense described in section 7208 (relating to counterfeit, reused, cancelled, etc., stamps), and the vellum, parchment, document, paper, package, or article upon which such stamp was placed or impressed in connection with such offense.

(2) False stamping of packages--Any container involved in the offense described in section 7271 (relating to disposal of stamped packages), and of the contents of such container.

(3) Fraudulent bonds, permits, and entries--All property to which any false or fraudulent instrument involved in the offense described in section 7207 relates.

SECTION 7304. Penalty for fraudulently claiming drawback.

Whenever any person fraudulently claims or seeks to obtain an allowance of drawback on goods, wares, or merchandise on which no internal tax shall have been paid, or fraudulently claims any greater allowance of drawback than the tax actually paid, he shall forfeit triple the amount wrongfully or fraudulently claimed or sought to be obtained, or the sum of $500, at the election of the Secretary.

These code sections give us the comprehensive list of property which Internal Revenue Enforcement Officers have authority to seize. If any property does not fall within the above descriptions it is not "property subject to forfeiture" and the Internal Revenue Enforcement Officers have no authority to seize it.

The levy process includes the power of seizure as authorized in section 7321 and 7608, which is evidenced by sections 7701(a)(21) and 6331(b), as follows.

SECTION 7701. Definitions

(a) (21) Levy--The term "levy" includes the power of distraint and seizure by any means.

SECTION 6331(b) Seizure and sale of property

--The term "levy" as used in this title includes the power of distraint and seizure by any means.

The word "distraint" basically means to retain possession of property, by force if necessary, once it is in the possession of the government. the phrase "by any means" applies to the seizures when and where authorized, and to distraining the property once in the government's possession. Internal Revenue Officers are thus given very broad authority to carry out their legitimate functions.

The authority to "levy" comes from Internal Revenue Code Section 6331, as follows:

SECTION 6331. Levy and distraint.

(a) Authority of Secretary--If any person liable to pay any tax neglects or refuses to pay the same within 10 days after notice and demand, it shall be lawful for the Secretary to collect such tax (and such further sum as shall be sufficient to cover the expenses of the levy) by levy upon all property and rights to property (except such property as is exempt under section 6334) belonging to such person or on which there is a lien provided in this chapter for the payment of such tax. Levy may be made upon the accrued salary or wages of any officer, employee, or elected official, of the United States, the District of Columbia, or any agency or instrumentality of the United States or the District of Columbia, by serving a notice of levy on the employer (as defined in section 3401(d)) of such officer, employee, or elected official. If the Secretary makes a finding that the collection of such tax is in jeopardy, notice and demand for immediate payment of such tax may be made by the Secretary and, upon failure or refusal to pay such tax, collection thereof by levy shall be lawful without regard to the 10-day period provided in this section.

(b) Seizure and sale of property--The term "levy" as used in this title includes the power of distraint and seizure by any means. Except as otherwise provided in subsection (e), a levy shall extend only to property possessed and obligations existing at the time thereof. In any case in which the Secretary may levy upon property or rights to property, he may seize and sell such property or rights to property (whether real or personal, tangible or intangible).

(c) Successive seizures--Whenever any property or right to property upon which levy has been made by virtue of subsection (a) is not sufficient to satisfy the claim of the United States for which levy is made, the Secretary may, thereafter, and as often as may be necessary, proceed to levy in like manner upon any other property liable to levy of the person against whom such claim exists, until the amount due from him, together with all expenses, is fully paid.

(d) Requirement of notice before levy

(1) In general--Levy may be made under subsection (a) upon the salary or wages or other property of any person with respect to any unpaid tax only after the Secretary has notified such person in writing of his intention to make such levy.

(2) 30-day requirement--The notice required under paragraph (1) shall be--

(A) given in person,

(B) left at the dwelling or usual place of business of such person, or

(C) sent by certified or registered mail to such person's last known address, no less than 30 days before the day of the levy.

(3) Jeopardy--Paragraph (1) shall not apply to a levy if the Secretary has made a finding under the last sentence of subsection (a) that the collection of tax is in jeopardy.

(4) Information included with notice--The notice required under paragraph (1) shall include a brief statement which sets forth in simple and nontechnical terms--

(A) the provisions of this title relating to levy and sale of property,

(B) the procedures applicable to the levy and sale of property under this title,

(C) the administrative appeals available to the taxpayer with respect to such levy and sale and the procedures relating to such appeals,

(D) the alternatives available to taxpayers which could prevent levy on the property (including installment agreements under section 6159),

(E) the provisions of this title relating to redemption of property and release of liens on property, and

(F) the procedures applicable to the redemption of property and the release of a lien on property under this title.

(e) Continuing levy on salary and wages--The effect of a levy on salary or wages payable to or received by a taxpayer shall be continuous from the date such levy is first made until such levy is released under section 6343.

(f) Uneconomical levy--No levy may be made on any property if the amount of the expenses which the Secretary estimates (at the time of levy) would be incurred by the Secretary with respect to the levy and sale of such property exceeds the fair market value of such property at the time of levy.

You can see that there are conditions that must be met before the Secretary is authorized to levy on property or rights to property. First, you must be a person "liable" to pay a tax. Second, you must have been sent a "notice and demand" for payment of the tax. Third, you must have neglected or refused to pay the tax. And fourth, ten days must have elapsed after the notice and demand. (The ten day period does not apply in the case of a jeopardy determination).

After a levy is authorized, the property upon which the levy extends is given in Section 6331(b), which says that the Secretary may levy "only to property possessed and obligations existing at the time thereof". If the property is not already possessed by the Secretary, the property may be brought into the Secretary's possession by seizure and distraint, but remember only property "subject to forfeiture" may be seized, Section 6331 embraces the power given under Sections 7321 and 7608, it does not expand upon it.

Section 6331(b) has given us a very important definition. It has given us the definition of "property subject to levy", a phrase which makes its appearance in certain key places in both the Internal Revenue Code and in the Treasury Regulations. "Property subject to levy" basically means property which is not exempt from levy under section 6334.

The term "Secretary" is defined in section 7701(a)(11):

SECTION 7701. Definitions

(a)(11) Secretary of the Treasury and Secretary,--

(A) Secretary of the Treasury--The term "Secretary of the Treasury" means the Secretary of the Treasury, personally, and shall not include any delegate of his.

(B) Secretary--The term "Secretary" means the Secretary of the Treasury or his delegate.

Thus, "Secretary" means "The Secretary of the Treasury or his delegate". Basically, the only property the Secretary (or his delegate) would already have in his possession would be accrued salaries or wages of federal or District of Columbia employees which have not yet been paid out of the federal coffers. Such accrued salaries or wages would be the only Property upon which the Secretary could levy without having to effectuate a seizure, and this is confirmed within section 6331(a) itself.

Section 6331(a) states that a levy can be made on accrued salaries or wages by serving a "notice of levy" on the employer of an officer, employee, or elected official, of the United States, the District of Columbia, or any agency or instrumentality of the United States or the District of Columbia. This confirms what was said before since the accrued salaries or wages of such officers, employees, or elected officials represents an obligation of the Secretary existing at the time the levy is made. Since these described individuals are paid from the Federal Treasury, the Secretary of the Treasury already has possession of the funds which would be used to pay the obligation, and the "notice of levy" is simply the Secretary's notice that said funds are being applied to unpaid taxes instead of being paid to the officer, employee, or elected official. No seizure is necessary, and thus no "notice of seizure" (explained later) is ever issued. The notice of levy is usually served on the head of the Federal (or District of Columbia) agency (or the agent designated by him who is charged with payroll duties).

When the IRS must bring property into the possession of the Secretary by seizure, then we have to refer to section 6335, as follows:

SECTION 6335, Sale of seized property.

(a) Notice of seizure--As soon as practicable after seizure of property, notice in writing shall be given by the Secretary to the owner of the property (or, in the case of personal property, the possessor thereof), or shall be left at his usual place of abode or business if he has such within the internal revenue district where the seizure is made. If the owner cannot be readily located, or has no dwelling or place of business within such district, the notice may be mailed to his last known address. Such notice shall specify the sum demanded and shall contain, in the case of personal property, an account of the property seized and, in the case of real property, a description with reasonable certainty of the property seized.

So you see that whenever the IRS makes a seizure, they are required by law to issue a "Notice of Seizure"(Form 2433). This notice also has another effect. Remember, at the outset of this letter, I stated that a "levy" was not a single act, but rather the whole process by which money was raised and applied to an unpaid tax. The levy process includes seizure and sale of the property, along with the actual application of the proceeds. However, a levy must be made within six years (see Section 6502(a) after the tax is assessed, and there may come a time when a levy proceeding occurs near the end of the six year period. So, for the purpose of determining the exact point in time when the law would consider that the levy was made, section 6502(a) states;

SECTION 6502, Collection after assessment.

(b) Date when levy is considered made--The date on which a levy on property or rights to property is made shall be the date on which the notice of seizure provided in section 6335(a) is given.

The 9th Circuit Court agrees with these procedures. In "Arford v. United States (supra)," a Notice of Seizure was a procedural requirement in order to effectuate the actual levy upon the seizure of Arford's retirement pay. This finding is in accord with 26 U.S.C. section 6502(b) which provides that a levy occurs on the date the Notice of Seizure is given pursuant to 26 U.S.C. section 6335(a), and not before.

The IRS levies on accrued salaries or wages by serving a "notice of levy" (Form 668-A or 668-W) on the employer of a Federal or District of Columbia officer, employee, or elected official. This is the only time the Internal Revenue Code states that the service of a "Notice of Levy" makes a levy. In all other cases, section 6502(b) tells us that a levy is considered made only when the "Notice of Seizure" is given.

Now, after reading all this, it should occur to you that the IRS's power to levy is actually very limited. Only property already possessed by the Secretary is subject to levy, and only property subject to forfeiture can be seized and brought into the possession of the Secretary if that property is not already possessed by the Secretary. So to summarize, seizure is limited by statute to certain specific items. Sections 7321 and 7608(b)(2)(C) strictly limit seizure authority to "property subject to forfeiture". Such property is described in sections 7301 through 7304. Property not subject to forfeiture cannot be seized, and a levy on any other property must be made on items already in the possession of the government. Section 6331(b) further states that a levy extends only to "property possessed".

Of course, there is a third way the Secretary may acquire possession of property which is not already in his possession, but you won't find it written in the Internal Revenue Code. The third way is simply an extension of the Secretary's authority under section 6301 to accept collection of internal revenue taxes which are voluntarily paid to him. If the IRS can get property turned over to the Secretary on a voluntary basis, then this property becomes property subject to levy and the Secretary may then levy upon it.

Yes, the IRS is actually bluffing non-federal employers, banks, and other third-party asset holders into turning over property to the Secretary when no authority to enforce such is given in the Internal Revenue Code! I will explain how the bluff works and why any employer, bank, or other third-party asset holder may simply refuse to turn over such property to the Internal Revenue Service, and that there is no penalty for not turning over such assets.

The first part of the bluff is Treasury Regulation 301.6331-1(a)(1), which states:

"Levy may be made by serving a notice of levy on any person in possession of, or obligated with respect to, property or rights to property subject to levy, including receivables, bank accounts, evidence of debt, securities, and salaries, wages, and other compensation."

Of course, we know now that when the regulation says that the levy may be made by serving a "Notice of Levy" on anyone having property "subject to levy", it means that the levy is made on accrued salaries or wages when the "Notice of Levy" is served on the employer of federal or District of Columbia employees, and, in the case of any other property already possessed by the Secretary, when the "Notice of Levy" is served on the person who has such property. This is a proper procedure for the IRS to adopt since section 6331(b) provides for a levy on any other property already possessed, but does not specifically state how such levy is to be carried out. In the case of a seizure, section 6502(b) already told us that the levy is made when the "Notice of Seizure" is given.

Now, the average person reading this regulation doesn't know what "property subject to levy" is, and when the "Notice of Levy" is served on him, he is led to believe that the law requires him to turn over to the IRS any property he has which belongs to the delinquent taxpayer. You now know, after reading all of the above, that this is not the case.

The bluff continues when the IRS cites Code section 6332, as follows:

SECTION 6332, Surrender of property subject to levy.

(a) Requirement--Except as otherwise provided in this section, any person in possession of (or obligated with respect to) property or rights to property subject to levy upon which a levy has been made shall, upon demand of the Secretary, surrender such property or rights (or discharge such obligation) to the Secretary, except such part of the property or rights as is, at the time of such demand, subject to an attachment or execution under any judicial process.

(b) (Not reproduced here. Deals only with life insurance and endowment contracts)

(c) Special rule for banks--Any bank (as defined in section 408(n)) shall surrender (subject to an attachment or execution under judicial process) any deposits (including interest thereon) in such bank only after 21 days after service of levy.

(d) Enforcement of levy

(1) Extent of personal liability--Any person who fails or refuses to surrender any property or rights to property, subject to levy, upon demand by the Secretary, shall be liable in his own person and estate to the United States in a sum equal to the value of the property or rights not so surrendered, but not exceeding the amount of taxes for the collection of which such levy has been made, together with costs and interest on such sum at the underpayment rate established under section 6621 from the date of such levy (or, in the case of a levy described in section 6331(d)(3), from the date such person would otherwise have been obligated to pay over such amounts to the taxpayer). Any amount (other than costs) recovered under this paragraph shall be credited against the tax liability for the collection of which such levy was made.

(2) Penalty for violation--In addition to the personal liability imposed by paragraph (1), if any person required to surrender property or rights to property fails or refuses to surrender such property or rights to property without reasonable cause, such person shall be liable for a penalty equal to 50 percent of the amount recoverable under paragraph (1). No part of such penalty shall be credited against the tax liability for the collection of which such levy was made.

Again, we see that the law requires the surrender of "property subject to levy" upon which a levy "has been made". And again, the average person doesn't know exactly what all this means. You now know from reading the above that a levy "has been made" when a "Notice of Levy" is served on a person who has property "subject to levy", which means the "Notice of Levy" is given to some other delegate of the Secretary of the Treasury who has such property in his possession (or, in the case of accrued salaries or wages, to the head (or designated payroll agent) of a Federal or District of Columbia agency or instrumentality). It now becomes clear that this Code section was directed to other Treasury Secretary Delegates or heads of Federal or District of Columbia agencies or instrumentalities who may have possession of property, rights to property, or accrued salaries or wages belonging to the delinquent taxpayer, and the law requires them to surrender such property when the "Notice of Levy" is served on them..

Section 6332(c) also hints that there are penalties for failure to turn over property after a "Notice of Levy" has been served. You now know enough to know that this penalty would only apply if you have "property subject to levy" and you fail to surrender it upon demand by the Secretary. This was all discussed earlier and unless you're a person having such property in your possession or control, this penalty cannot possibly apply to you.

The IRS agents should take their case to court to allow you to be heard or you rights of due process will be violated. And indeed this is essentially what the IRS is supposed to do in every case. To enforce collection of a delinquent tax, the IRS needs a court order, just like any other judgment creditor. A Notice of Levy is not sufficient to reach property unless the asset holder is tricked by it into voluntarily turning it over to the revenue agent, or the property is already in the custody and control of the Secretary. The procedure to reach property by suit is given in the Internal Revenue Code under Code section 7401, as follows:

SECTION 7401, Authorization.

No civil action for the collection or recovery of taxes, or of any fine, penalty, or forfeiture, shall be commenced unless the Secretary authorizes or sanctions the proceedings and the Attorney General or his delegate directs that the action be commenced.

And section 7403, as follows:

SECTION 7403, Action to enforce lien or to subject property to Payment of tax.

(a) Filing--In any case where there has been a refusal or neglect to pay any tax, or to discharge any liability in respect thereof, whether or not levy has been made, the Attorney General or his delegate, at the request of the Secretary, may direct a civil action to be filed in a district court of the United States to enforce the lien of the United States under this title with respect to such tax or liability or to subject any property, of whatever nature, of the delinquent, or in which he has any right, title, or interest, to the payment of such tax or liability. For purposes of the preceding sentence, any acceleration of payment under section 6166(g) shall be treated as a neglect to pay tax.

(b) Parties--All persons having liens upon or claiming any interest in the property involved in such action shall be made parties thereto.

(c) Adjudication and decree--The court shall, after the parties have been duly notified of the action, proceed to adjudicate all matters involved therein and finally determine the merits of all claims to and liens upon the property, and, in all cases where a claim or interest of the United States therein is established, may decree a sale of such property, by the proper officer of the court, and a distribution of the proceeds of such sale according to the findings of the court in respect to the interests of the parties and of the United States. If the property is sold to satisfy a first lien held by the United States, the United States may bid at the sale such sum, not exceeding the amount of such lien with expenses of sale, as the Secretary directs.

This is the due process written into the Internal Revenue Code. If the IRS wants to enforce collection of a tax, they have to file suit in Federal District Court, obtain a judgment, and execute the judgment with a court order in order to lawfully enforce the collection of the delinquent tax. The only obvious exception to this is when the Secretary already has possession of some property, in which case no court order is needed to reach the property since the property is already possessed.

Of course, the IRS likes to bluff people into voluntarily turning property over to them by serving "Notices of Levy" on them, as if this "makes" a levy and as if the person must surrender to the IRS any property he has belonging to the delinquent taxpayer. This is not the case, but as long as enough people fall for this bluff the IRS is going to continue using this ploy since it is far less expensive and far more efficient than having to go to court.

So the question comes down to this: What am I to do if I am ever served with a "Notice of Levy"? Before I answer this, you must realize that you do not have to surrender any property to the IRS on the basis of such a notice, unless of course you are in custody or control of property "subject to levy". If the government wants to compel you to surrender any property belonging to the delinquent taxpayer, they must get a court order just like in any other garnishment proceedings. Basically, you should just sit back and wait for the Department of Justice to file suit. This way you will be protected by the court should you have to turn any property over to the government.

If you think that you can avoid being sued by complying with the "Notice of Levy" and turning over the property to the IRS, you would be wrong. It is true that you would avoid being sued by the Department of Justice, but you would then expose yourself to being sued by the person whose property you turned over. His cause of action would be against you since you turned his property over to the government without a court order, without his consent or permission, and without being required to surrender the property under any statute. He would have no cause of action against the IRS since the IRS basically did nothing wrong, and they were acting within the scope of their authority by accepting any property voluntarily turned over to them.

No protection is offered by section 6332(d), as follows:

SECTION 6332(e) Effect of honoring levy--Any person in possession of (or obligated with respect to) property or rights to property subject to levy upon which a levy has been made who, upon demand by the Secretary, surrenders such property or rights to property (or discharges such obligation) to the Secretary (or who pays a liability under subsection (d)(1)) shall be discharged from any obligation or liability to the delinquent taxpayer and any other person with respect to such property or rights to property arising from such surrender or payment.

This section relies on 6331 and both sections require a levy on property. Because there is no judicial process and no levy has been made the person taking property based on a "Notice of Levy" is not relieved from liability to the person owning the property. Also, this section was written for the government's own Treasury Secretary Delegates or heads (or designated payroll agents) of Federal or District of Columbia agencies or instrumentalities who turn over "property subject to levy" upon which a levy "has been made". Unless you're a delegate of the Secretary of the Treasury or head (or designated payroll agent) of a Federal or District of Columbia agency or instrumentality you are not indemnified and you are exposed to a lawsuit by the owner of the property should you turn it over to the IRS.

The IRS will attempt to make you believe they have the authority pursuant to §6331, however their own documents prove them wrong. As stated in the rules and regulations filed in the federal register 11-23-73:

"this treasury decision recodifies the portion of 26 CFR Part 301 entitled "Discovery of Liability and Enforcement of Title" into 27 CFR Part 70"

Federal Register, Vol 38, NO 226-Monday, November 26, 1993

27 CFR Part 70 is exclusively for the enforcement of Alcohol, Tobacco and Firearms. Unless you are providing services and or are involved in this type of activity the taking of money on a Notice of Levy is theft.

Turn the property over, and the owner will sue you. Don't turn the property over, and the government may sue you, but should this happen you will have a judicial order which will protect you and your company from civil action. The best thing to do, under the circumstances, is to simply not turn over any property to the IRS unless you get a court order ordering you to do so. The "Notice of Levy" has no legal muscle behind it as explained earlier.

When served with a "Notice of Levy", my suggestion would be to write a letter to the IRS agent who signed the notice and ask him the following questions: 2. Please explain the indemnification process under section 6332(d) if I turn the property over to you and the owner of the property sues me.

3. Is this "Notice of Levy" the result of a judgment entered by a court? Since it does not appear to be a court order, and does not have a case number or a Judicial signature. What will happen to me if I do not turn this property over to you?

All of these are legitimate questions which should express genuine concerns you have about the whole levy procedure. Of course, the IRS will try to hint that you should turn the property over in order to avoid any penalties and court proceedings, but when they answer question #3, they will be forced to tell you that they will simply have to go to court in order to reach the "Levied" property. If you've ever been the garnishee in a garnishment proceeding, it is really not that bad. I would also suggest you give the agent a copy of this letter.

This letter should have answered most of your questions about levies and what your duties are if you should ever receive one. If you have any further questions, please do not hesitate to contact me again.

Please use the check sheet that I have attached to help you when you receive a Notice of Levy to see if it is valid or just an attempt to deceive you. ___________________________

John J Schlabach, Enrolled Agent Enrollment # 50614, ******************** *************************************************************************************************

Warning - Please NOTE !!!! There are articles & links on UCC REDEMPTION on these pages, the information is interesting to read but case loses linked below tells it not a good way to go !

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NOTICE READ SEN. W. STUMP

*****Preamble Citizens (also known as de jure Citizens)*****former Arizona State Senator Wayne Stump (1989)

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http://www.doprocess.net/articles/article%20howard%20freemans%20ucc_conn.htm

THE UCC CONNECTION

Free Yourself From Legal Tyranny

by Howard Freeman

READ and STUDY - THINK

Forward

This is a slightly condensed, casually paraphrased transcript of tapes of a seminar given in 1990 by Howard Freeman. It was prepared to make available the knowledge and experience of Mr. Freeman in his search for an accessible and understandable explanation of the confusing state of the government and the courts. It should be helpful to those who want to develop a deeper understanding of this information without having to listen to three or four hours of recorded material. The frustrations many Americans feel about our judicial system can be overwhelming and often frightening; and, like most fear, is based on lack of understanding or knowledge. Those of use how have chosen a path out of bondage and into liberty are faced, eventually, w/the seemingly tyrannical power of some governmental agency and the mystifying and awesome power of the courts. We have been taught that we must "get a good lawyer," but that is becoming increasingly difficult, if not impossible. If we are defending ourselves from the government, we find that the lawyers quickly take our money and then tell us as the ship is sinking, "I can't help you w/that -- I'm an officer of the court." Ultimately, the only way for us to have ever a "snowballs' change" is to understand the RULES OF THE GAME and to come to and understanding of the true nature of the Law. The lawyers have established and secured a virtual monopoly over this area of human knowledge by implying that the subject is just too difficult for the AVERAGE PERSON to understand, and by creating a separate vocabulary out of English words of otherwise common usage. While it may, at times, seem hopelessly complicated, it is not that difficult to grasp -- are lawyers really as smart as they would have us believe? Besides, anyone who has been through a legal battle against the government with the aid of a lawyer has come to realize that lawyers learn about procedure, not about law. Mr. Freeman admits he is not a lawyer. and as such, he has a way of explaining law to use that puts it well w/in our reach. Consider also that the framer of the Constitution wrote in language simple enough that the people could understand, specifically so that it would NOT have to be interpreted. So again we find, as in many other areas of life, "THE BUCK STOPS HERE!" It is we who must take the responsibility for finding and putting to good use the TRUTH! It is we who must claim and defend our God given rights and our freedom form those who would take them from us. It is WE who must protect ourselves, our families, and our posterity from the inevitable intrusion into our lives by those who live parasitically off the labor, skill and talents of others. To these ends, Mr. Freeman offers a simple, hopeful explanation of our plight and a PEACEFUL method of dealing w/it. Please take note that this lecture represents one chapter in the book of his understanding, which he is always refining, expanding, improvign. It is, as all bits of wisdom are, a point of departure from which to begin our own journey into understanding, that we all might be able to pas on to others: greater knowledge and hope, and to God: the gift of lives lived in peace, freedom and praise

THE UCC CONNECTION

*"I send you out as sheep in the midst of wolves, be wise as a serpent and harmless as a dove."*

INTRODUCTION

When I beat the IRS, I used Supreme Court (SC) decisions. If I had tried to use these in court, I would have been convicted. I was involved with a patriot group and I studied supreme Court cases. I concluded that the SC had declared that I was not a person required to file an income tax -- that that tax was an excise tax on privileges granted by government. So I quit filing and paying income taxes and it was not long before they came down on me w/a heavy hand. They issued a notice of deficiency, which had such a fantastic sum on it that the biggest temptation was to go in with their letter and say "Where in the world did you ever get that figure?" They claimed I owed them some $60,000. But even if I had been paying taxes, I never had that much money, so how could I have owed them that much?

NEVER ARGUE THE AMOUNT OF DEFICIENCY

Fortunately, I had been given just a little bit of information: NEVER ARGUE THE FACTS IN A TAX CASE. If you're not required to file, what do you care whether they say you owe sixty dollars or $60,000. If you are not required to file, the amount doesn't matter. DON'T ARGUE THE AMOUNT -- that is a fact issue. In most instances, when you get a Notice of Deficiency, it is usually for some fantastic amount. The minute you say "I don't owe that much," you have agreed that you owe them something, and you have given them jurisdiction. Just don't be shocked at the amount on a Notice of Deficiency, (NoD) even if it is ten million dollars! If the law says that you are not required to file or pay tax, the amount doesn't matter. By arguing the amount, they will just say that you must go to tax court and decide what the amount is to be. By the time you get to tax court, the law issues are all decided. You are only there to decide HOW MUCH YOU OWE. They will not listen to arguments of law. So I went to see the agent and told him that I wasn't required to file. He said, "You ARE required to file, Mr. Freeman." But I had all these SC cases, and I started reading them to him. He said, "I don't know anything about law, Mr. Freeman, but the Code says that you are required to file, and you're going to pay that amount or you're going to go to tax court." I thought that someone there ought to know something about law, so I asked to talk to his superior. I went to him and got out my SC cases, and he wouldn't listen to them. "I don't know anything about law, Mr. Freeman...." Finally I got to the Problems Resolution Officer, and he said the same thing. He said that the only person above him was the District Director. So I went to see him. By the time I got to his office, they had phoned ahead, and his secretary said he was out. But I heard someone in his office, and I knew he was there. I went down the elevator, around the corner to the Federal Building and into Senator Simpson's office. There was a girl sitting there at a desk, and she asked me if she could help me. I told her my problem. I said that I really thought the District Director was up there. I asked her to call the IRS and tell them that it was Senator Simpson's office calling and to ask if the District Director was in. I said, "If you get him on the phone, tell him that you are from the Senator's office and you have a person who you are sending over to speak to him -- if he is, can he wait just five minutes." It worked. He was there, and I ran back up to his office.

His secretary met me when I came in and said, "Mr. Freeman, you're so lucky -- the Director just arrived." The Director was very nice and offered me coffee and cookies and we sat and talked. So he asked me what I wanted to talk to him about. (If you ever have someone say to you, "I'm from the government and I'm here to do you a favor" watch out! -- but we can turn that around and approach them the same way.) So I said, "I thought you ought to know that there are agents working for you who are writing letters over your name that you wouldn't agree with. Do you read all the mail that goes out of this office over your signature?" The Director said, "Oh, I couldn't read everything -- it goes out here by the bagful." That was what I thought. I said, "There are some of your agents writing letters which contradict the decisions of the SC of the United States, and they're not doing it over their name, they're doing it over YOUR name." He was very interested to hear about it and asked if I had any examples. I just happened to have some w/me, so I got them out and presented them to him. [Supreme Court cases supporting his position] He thought it was very interesting and asked if I could leave this information with him, which I did. He said he would look it over and contact me w/in 3 days. Three days later he called me up and said, "I'm sure, Mr. Freeman, that you will be glad to know that your Notice of Deficiency has been withdrawn. We've determined that you're not a person required to file. Your file is closed and you will hear no more from us." I haven't heard another word from them since. That was in 1980 and I haven't filed since 1969.

The Supreme Court on Trial

I thought sure I had the answer, but when a friend got charged w/Willful Failure to File an income tax, he asked me to help him. I told him that they would have to prove that he _willfully_ failed to file and I suggested that he should put me on the witness stand. He should ask me if I spoke at a certain time and place in Scott's Bluff and did I see him in the audience. He should then ask me what I spoke of that day.

When I got on the stand. I brought out all of the SC cases I had used w/the District Director. I thought I would be lucky to get a sentence or two out before the judge cut me off, but I was reading whole paragraphs and the judge didn't stop me. I read one and then another and so on. And finally when I had read just about as much as I thought I should, the judge called a recess of the court.

I told Bob I thought we had it made. There was just no way that they could rule against him after all that testimony. So we relaxed. The prosecution presented it's case and he [Bob] decided to rest his case on my testimony, which showed that he was not required to file. and that the SC had upheld this position. The prosecution then presented it's closing statements and we were just sure that he had won. But at the very end, _the judge spoke to the jury and told them, "You will decide the facts of this case and I will give you the law.

The law required this man to file an Income Tax form; you decide whether or not he filed it." What a shock! The jury convicted him. Later some of the members of the jury said, "What could we do? The man had admitted that he had not filed the form, so we had to convict him."_

As soon as the trial was over, I went around to the judge's office and he was just coming in through his back door. I said, "Judge, by what authority do you overturn the standing decisions of the United States SC? You sat on the bench while I read that case law. Now how do you, a District Court Judge, have the authority to overturn decisions of the Supreme Court?" He says, "Oh, those were _old_ decisions." I said, "Those are _standing_ decisions. They have never been overturned. I don't care how old they are; you have no right to overturn a standing decision of the US SC in a District Court." Public Law v. Public Policy He said, "Name any decision of the Supreme Court _after_1938_ and I'll honor it, but all the decisions you read were prior to 1938, and I don't honor those decisions." I asked what happened in 1938. He said, "Prior to 1938, the SC was dealing w/_Public_Law_; since 1938, the SC has dealt w/_Public_Policy_. The charge that Mr. S was being tried for is a _Public_Policy_Statute_, not Public Law, and those SC cases do not apply to the Public Policy." I asked him what happened in 1938. He said that he had already told me too much - he wasn't going to tell me any more.

1938 and the Erie Railroad Well I began to investigate. I found that 1938 was the year of the *Erie Railroad v. Tompkins* case of the SC. It was also the year the courts claim they blended _Law_ w/_Equity_. I read the Erie Railroad case.

A man had sued the Erie railroad for damages when he was struck by a board sticking out of a boxcar as he walked along besides the tracks. The district court had decided on the basis of Commercial (Negotiable Instruments) Law: that this man was not under any contract w/the Erie Railroad, and therefore he had no standing to sue the company.

Under the Common Law, he was damaged and he would have had the right to sue. This overturned a standing decision of over one hundred years. *Swift v. Tyson* in 1840 was a similar case, and the decision of the SC was that in any case of this type, the court would judge the case on Common Law of the _state_ where the incident occurred - in this case Pennsylvania. But in the Erie Railroad case, the SC ruled that all federal cases will be judged under the Negotiable Instruments Law. There would be _no_ _more_ _decisions_ _based_ _on_ _the_ _Common_ _Law_ at the federal level. So here we find the blending of the Law w/ Equity. This was a puzzle to me.

As I put these new pieces together, I determined that _all our courts since 1938 were Merchant Law courts and not Common Law Courts._ There were still some pieces of the puzzle missing.

A Friend in the Court

Fortunately, I made a friend of a judge. Now you won't make friends w/a judge if you go into the court like a "wolf in black sheep country." You must approach him as though you are the sheep and he is the wolf. If you go into court as a wolf, you make demands and tell the judge what the law is -- how he had better uphold the law or else... Remember the verse: I send you out as a sheep in wolf country; be wise as a serpent and harmless as a dove. We have to go into court and be wise and harmless, and not make demands. We must play a _little dumb_ and ask a lot of questions. Well, I asked a lot of questions and boxed the judges into the corner where they had to give me a victory or admit what they didn't want to admit.

I won the case and on the way out I had to stop by the clerk's office to get some papers. One of the judges stopped and said "You're an interesting man, Mr. Freeman. If you're ever in town, stop by and if I'm not sitting on a case we will visit."

America is Bankrupt

Later, when I went to visit the judge, I told him my problem w/the SC cases dealing with Public Policy rather than Public Law. He said, "In 1938, all the higher judges, the top attorneys and the US Attorneys were called together into a secret_meeting, and this is what we were told: America is a bankrupt nation -- it is owned completely by its creditors. The creditors own the Congress, they own the executive, they own the Judiciary and they own all the state governments. _Take silent judicial notice_ of this fact, but _never_ reveal it openly. Your court is operating in a Admiralty Jurisdiction -- call it anything you want, but do not call it Admiralty.

Admiralty Courts

The reason they cannot call it Admiralty Jurisdiction is that your defense would be quite different in Admiralty Jurisdiction from your defense under the Common Law. In Admiralty, there is no court which has jurisdiction unless there is a valid International contract in dispute. If you know wit is Admiralty Jurisdiction, and they have admitted on the record that you are in an Admiralty Court, you can demand that the international maritime contract, to which you are supposedly party, and which you supposedly have breached, _be placed into evidence._ No court has Admiralty/Maritime Jurisdiction unless there is a valid international maritime contract that has been breached. So you say, just innocently like a lamb, "Well, I never knew that I got involved with an international maritime contract, so I deny that such a contract exists. If this court is taking jurisdiction in Admiralty, then place the contract in evidence, so that I might challenge the validity of the contract."

What they would have to do is place the _national debt_ into evidence. They would have to admit that the international bankers own the whole nation, and that we are their slaves. Not Expedient But the bankers said it is not expedient at this time to admit that they own everything and could foreclose on every nation of the world.

[note: DAMN RIGHT! "at this time" That is the KEY behind the building up of the UN as a MILITARY FORCE! That is the KEY to disarming America, that is the KEY to "ending" the cold war. Like now we have no more enemy, so we can melt all our guns. WRONG. The Bankers PLAN to foreclose, they just don't want their HEADS BLOWN OFF WHILE DOING IT, so they DICTATE to the "congress" to get rid of the guns.." e.g. The reason they don't want to tell everyone that they own everything is that there are still too many privately owned guns. [see! ITYS. :)e.g. There are uncooperative armies and other military forces. So until they can gradually consolidate all armies into a WORLD ARMY, and all courts into a WORLD COURT, it is not _expedient_ to admit the jurisdiction of the courts are operating under.

When we understand these things, we realize that there are certain secrets they don't want to admit, and we can use this to our benefit. Jurisdiction The Constitution of the united States mentions three areas of jurisdiction in which the courts may operate:

1. Common Law

Common Law is based on God's Law: Anytime someone is charged under the Common Law, there must be a _damaged party._ You are free under the Common Law to do anything you please, as long as you do not infringe on the life, liberty or property of someone else. You have a right to make a _fool_ of yourself provided you do not infringe on the life, liberty or property of someone else. The Common Law does not allow for any government action which prevents a man from making a fool of himself. For instance, when you cross over state lines in most states, you well see a sign which says, "BUCKLE YOUR SEAT BELTS -- IT'S THE LAW." This cannot be Common Law, because who would you injure if you did not buckle up? Nobody. This would be compelled performance. But Common Law cannot compel performance. Any violation of Common Law is a CRIMINAL ACT, and is punishable.

2. Equity Law

Equity Law is law which _compels performance. It compels you to perform to the exact letter of any _contract_ that you are under. So, if you have compelled performance, there must be a contract somewhere, and you are being compelled to perform under the obligation of the contract. Now this can only be a civil action -- not criminal. In Equity Jurisdiction, you cannot be tried criminally, but you can be compelled to perform to the letter of the contract. If you then refuse to perform as directed by the court, you can be charged with the contempt of court, this is a criminal action. Are our set belt laws Equity laws? No. They are not, because you cannot be penalized or punished for not keeping to the letter of the contract. [this has of course changed since the publishing of the article, so read on....e.g.

3. Admiralty/Maritime Law

This is _civil_ jurisdiction of Compelled Performance which also has Criminal Penalties for not adhering to the letter of the contract, but this only applies to International Contracts. Now we can see what jurisdiction the seat belt laws (and all traffic laws, building codes, ordinances, tax codes, etc.) are under. Whenever there is a penalty for failure to perform (such as willful failure to file) that is Admiralty/Maritime Law and there must be a valid international contract in force. However, the courts don't want to admit that they are operating under Admiralty/Maritime [hereafter noted by A/M] Jurisdiction, so they took the international law or Law Merchant and adopted it into our codes. This is what the SC decided in the Erie Railroad case - that the decisions will be based on commercial law or business law and that it will have criminal penalties associated w/it. Since they were instructed not to call it A/M Jurisdiction, they call is Statutory Jurisdiction. [my note: I looked for Statutory Jurisdiction in the 4th edition of Black's. It's not there, so looked up Statue and under the definition is this paragraph: This word is used to designate the written law in contradistinction to the unwritten law. Foster v. Brown, 199 Ga. 444, 34 S.E.2d, 530 535 See Common Law. Unwritten law is common law, contradistinction you can look up, but it means "as opposed to" "opposite to." Also I looked up Common Law (w/my new understanding) and it's quite enlightening! :)

Courts of Contract

You may ask how we got into this situation where we can be charged w/failure to wear set belts and be fined for it. Isn't the judge sworn to up hold the Constitution? Yes, he is. But you must understand that the Constitution in Art. I, Sect. 10, gives us the _unlimited right to contract_ as long as we do not infringe on the life, liberty, or property of someone else. Contracts _are_ enforceable, and the Constitution gives two jurisdictions where contracts can be enforced, _Equity_ or _Admiralty._ But we find them being enforced in _Statutory Jurisdiction. This is the embarrassing part for the courts, but we can use this to box the judges into a corner in their own courts. We will cover this more later.

Contracts must be voluntary _Under the Common Law, every contract must be entered into knowingly, voluntarily, and intentionally by both parties or it is void and unenforceable._ These are characteristics of a Common Law contract. There is another characteristic - it must be based on substance. For example, contracts used to read, "For one dollar and other valuable considerations, I will paint your house, etc." That was a valid contract -- the dollar was a genuine silver dollar. Now suppose you wrote a contract that said, "For one _Federal Reserve Note_ and other considerations, I will paint your house.." And suppose for example, I painted your house the wrong color. Could you go into a Common Law court and get justice? NO, you could not. You see a Federal Reserve Note is a "colorable" dollar, as it has no substance, and in a Common Law jurisdiction, that contract would be unenforceable. Colorable Money-Colorable Courts

The word "colorable" means something that appears to be genuine, but is not. Maybe it looks like a dollar, and maybe it spends like a dollar, but it if is not redeemable for lawful money (silver or gold) it is "colorable." If a Federal Reserve Note is used in a contract, then the contract becomes a "colorable" contract. And "colorable" contracts must be enforced under a "colorable" jurisdiction. So by creating Federal Reserve Note, the government had to create a jurisdiction to cover the kinds of contracts that use them. We now have what is called Statutory Jurisdiction, which is not a genuine Admiralty jurisdiction. It is a "colorable" Admiralty Jurisdiction the judges are enforcing because we are using "colorable money." Colorable Admiralty is now known as Statutory Jurisdiction.

Let's see how we got under this Statutory Jurisdiction. Uniform Commercial Code The government setup a "colorable" law system to fit the "Colorable" currency. It used to be called the Law Merchant or the Law of Redeemable Instruments, because it dealt w/paper which was redeemable in something of substance. But once Federal Reserve Notes had become unredeemable, there had to be a system of law which was completely "colorable" from start to finish. This system of law was codified as the Uniform Commercial Code, and has been adopted in every state. This is "colorable" law, and it is used in all the courts. I explained one of the keys earlier, which is that the country is bankrupt and we have no rights. If the master says "Jump!" then the slave had better jump, because the master has the right to cut his head off. As slaves we have no rights. But the creditors/masters had to cover that up, so they created a system of law called the UCC. This "colorable" jurisdiction under the UCC is the next key to understanding what has happened.

Contract or agreement

One difference between Common Law and the UCC is that in Common Law, contracts must be entered into: (1) knowingly, (2) voluntarily, and (3) intentionally. Under the UCC this is not so. First of all, contracts are necessary. Under this new law, "agreements" can be binding, and if you only exercise the benefits of an "agreement" it is presumed or implied that you intend to meet the obligations associated w/the those benefits. If you accept a benefit offered by government, then you are obligated to follow, to the letter, each and every statute involved with that benefit. The method has been to get everybody exercising a benefit and they don't even have to tell the people what the benefit is. Some people think it's the driver's license, the marriage license, or the birth certificate, etc. I believe it's none of these. Compelled Benefit I believe the benefit being used is that we have been given the _privilege of DISCHARGING [my emphasis e.g.] debt w/limited liability, instead of paying debt. When we pay a debt, we give substance for substance. If I buy a quart of milk w/a silver dollar, that dollar bought the milk, and the milk bought the dollar -- substance for substance. But if I use a Federal Reserve Note [hereafter FRN e.g.] to buy the milk, I have not PAID for it. [my emphasis e.g.] There is no substance in the FRN. It is worthless paper given in exchange for something of substantive value. Congress offers us this benefit: Debt money, created by the federal United States, can be spent all over the continental united States, it will be legal tender for all debts, public and private, and the limited liability is that you cannot be sued for not paying your debts. So now they have said, "We're going to help you out, and you can just discharge your debts instead of paying your debts." When we use this "colorable" money to discharge our debts, we cannot use Common Law court. We can only use "colorable court." We are completely under the jurisdiction of the UCC -- We are using non-redeemable negotiable instruments and we are discharging debt rather than paying the debt.

Remedy and Recourse

Every system of civilized law must have two characteristics: Remedy and Recourse. Remedy is a way to get out from under the law. The Recourse is if you have been damaged under the law, you can recover your loss. The Common Law, the Law of Merchants, and even the UCC all have remedy and recourse, but for a long time we could not find it. If you go to a law library and ask to see the UCC they will show you a shelf of books completely filled w/the UCC. When you pick up one volume and start to read it it will seem to have been intentionally written to be confusing. It took us a long time to discover where the Remedy and Recourse are found in the UCC. They were found right in the first volume, at 1-207 and 1-103.

REMEDY

The making of a valid Reservation of Rights preserves whatever rights the person then possessed, and prevents the loss of such rights by application of concepts of waiver or estoppel. (UCC 1-207.7) It is important to remember when we go into a court, that we are in a commercial, international jurisdiction. If we go into court and say, "I DEMAND MY CONSTITUTIONAL RIGHTS," the judge will most likely say, "You mention the Constitution again and I'll find you in contempt of court!" Then we don't understand how he can do that. Hasn't he sworn to uphold the Constitution? The rule here is: you cannot be _charged_ under one jurisdiction and _defend_ under another. For example, if the French government came to you and asked where you filed your French income tax in a certain year, do you go to the French Gov. and say, "I demand my Constitutional Rights?" No. The proper answer is "THE LAW DOESN'T APPLY TO ME -- I'M NOT A FRENCHMEN." You must make your reservation of rights under the jurisdiction in which you are charged - not under some other jurisdiction. So in a UCC court, you must claim your reservation of rights under the UCC 1-207. The UCC 1-207 goes on to say: When a waivable right or claim is involved, the failure to make a reservation thereof causes a loss of the right, and bars it's assertion at a later date. (UCC 1-207.9) You have to make your claim known early. Further it says: The Sufficiency of the Reservation -- Any expression indicating an intention to reserve rights, is sufficient, such as "without prejudice." (UCC 1-207.4) Whenever you sign any legal paper, that deals w/the FRNs in any way, shape or manner -- under your signature write: Without Prejudice UCC 1-207. This reserves your rights. You can show, at 1-207.4 that you have sufficiently reserved your rights. It is VERY IMPORTANT to understand just what this means. For example, one man who used this in regard to a traffic ticket was asked by the judge just what he meant by writing "without prejudice UCC 1-207" on his statement to the court. He had not tried to understand the concepts involved. He only wanted to use it to get out of the ticket. He did not know what it meant. When the judge asked him what he meant by signing in that way, he told the judge that he was not prejudice against anyone... The judge knew that the man had NO IDEA what it meant and he lost the case. You MUST know what it means. WITHOUT PREJUDICE UCC 1-207 When you use "without prejudice UCC 1-207" in connection w/your signature, you are saying: "I reserve my right not to be compelled to perform under any contract or commercial agreement that I did not enter KNOWINGLY, VOLUNTARILY AND INTENTIONALLY. And furthermore, I do not accept that liability of the compelled benefit of any unrevealed contract or commercial agreement. What is the compelled performance of an unrevealed commercial agreement? When you use FRNs instead of silver dollars is it voluntary? No. There is no lawful money, so you have to use FRNs -- you have to accept the benefit. The government has given you the benefit to discharge your debts. How nice they are! But if you did not reserve your rights under 1-207.7, you are compelled to accept the benefit, and therefore obligated to obey every statue, ordinance, and regulation of the government, at all levels of government - federal, state and local. If you understand this, you will be able to explain it to the judge when he asks. And he WILL ask, so be prepared to explain it to the court.

You will also need to understand UCC 1-103 -- the argument and the recourse. If you want to understand this fully, go to a law library and photocopy these two sections from the UCC. It is important to get the Anderson's edition. Some of the law libraries will only have the West Publishing version and it is very difficult to understand. In Anderson, it is broken down w/decimals into ten parts and most importantly, it is written in plain English.

RECOURSE

The Recourse appears in the UCC at 1-103.6, which says: The Code is complimentary to the Common Law, which remains in force, except where displaced by the code. A statute should be construed in harmony with the Common Law, unless there is a clear legislative intent to abrogate the Common Law. This is the argument we use in court. The Code recognizes the Common Law. If it did not, recognize the Common Law, the government would have had to admit that the US is bankrupt, and is completely owned by it's creditors. But it is not expedient to admit this, so the Code was written so as not to abolish the Common Law entirely. Therefore, if you have made a sufficient, timely, and explicit reservation of your rights at 1-207, you may then insist that the statutes be construed in harmony with the Common Law. If the charge is a traffic ticket, you may demand that the court produce the injured person, who has filed a verified complaint. If, for example, you were charged w/failure to buckle your seat belt, you may ask the court who was injured as a result of your failure to "buckle up." However, if the judge won't listen to you, and just moves ahead w/the case, then you will want to read to him the last sentence of 1-103.6, which states: The Code cannot be read to preclude a Common Law action. Tell the Judge, "Your honor, I can sue you under the Common Law, for violating my rights under the UCC." I have a remedy, under the UCC to reserve my rights under the Common Law. I have exercised the remedy, and now you must construe this statue in harmony with the Common Law. To be in harmony with the Common Law, you must come forth w/the damaged party. If the judge insists on proceeding w/the the case, just act confused, and ask this question: "Let me see if I understand, Your Honor: Has this court made a legal determination that the Sections of 1-207 and 1-103 of the UCC, which is the system of law you are operating under, are not valid law before this court? Now the judge is in a jamb! How can the court throw out one part of the Code and uphold another? If he answers, "yes", then you say: "I put this court on notice, that I am appealing your legal determination." Of course, the higher court will uphold the Code on appeal. The judge knows this, so once again you have boxed him into a corner.

Practical Applications -

Traffic Court Just so we can understand how this whole process works, let us look at a court situation such as a traffic violation. Assume you ran through a yellow light and a policeman gave you a traffic ticket.

1.The first thing you want to do is to delay the action at least three weeks. This you can do by being pleasant and cooperative w/the officer. Explain to him that you are very busy and ask if he could please set your court appearance for about three weeks away. (At this point we need to remember that government's trick: "I'm from the government, I'm here to help you." Now we want to use this approach w/them.)

2.The next step is to go to the clerk of the traffic court and say, "I believe it would be helpful if I talk to you, because I want to save the government some money (this will get his attention.) I am undoubtedly going to appeal this case. As you know, in an appeal, I have to have a transcript, but the traffic court doesn't have a court reporter. It would be a waste of taxpayer's money to run me through this court and then have to give me a trial *de novo* [new trial] in a court of record. I do need a transcript for appealing, and to save the government some money, maybe you could schedule me to appear in a court of record." You can show the date on the ticket and the clerk will usually agree that there is plenty of time to schedule your trial for a court of record. Now your first appearance is in a court of record and not in traffic court, where there is no record. When you get into the court there will be a court reporter there who records every word the judge speaks, so that judge is much more careful in a court of record. You will be in a much better situation there than in traffic court. If there is no record, the judge can say whatever he wants -- he can call you all sorts of names and tell you that you have no rights, and so on -- and deny it all later.

3.When you get into court, the judge will read the charges: driving through a yellow light, or whatever, and this is in violation of ordinance xyz. He will ask, "Do you understand the charge against you?"

4."Well your Honor, there is a question I would like to ask before I can make a plea of innocent or guilty. I think it could be answered if I could put the officer on the stand for a moment and ask him a few short questions. Judge: "I don't see why not. Let's swear the officer in and have him take the stand."

5."Is this the instrument that you gave me?" (handing him the traffic citation) Officer: "Yes, this is a copy of it. The judge has the other portion of it." "Where did you get my address that you wrote on the citation?" Officer: "Well I got it from your driver's license." (Handing the officer you driver's license) "Is this the document you copied my name and address from?" Officer: "Yes, this is where I got it." "While you've got that in your hand, would you read the signature that's on that license?" (The officer reads the signature) "While you're there, would you read into the record what it says under the signature?" Officer: "It says, `Without Prejudice, UCC 1-207." Judge: "Let me see that license!" (He looks and turns to the officer) "You didn't notice this printing under the signature on this license, when you copied his name and address onto the ticket?" Officer: "Oh no. I was just getting the address -- I didn't look down there." Judge: "You're not very observant as an officer. Therefore, I'm afraid I cannot accept your testimony in regards to the facts of this case. This case is dismissed."

6.In this case, the Judge found a convenient way out -- he could say that the officer was not observant enough to be a reliable witness. He did not want to admit the real nature of the jurisdiction of his court. Once it was in the record that you had written `Without prejudice UCC 1-207 on your license, the judge knew that he would have to admit that: a. you had reserved your Common Law rights under the UCC; b. you had done it sufficiently by writing `Without prejudice' UCC 1-207 on your driver's license; c. the statute would now have to be read in harmony with the Common Law, and the Common Law says the statute exists, but there is no injured party; and d. since there is no injured party or complaining witness, the court has no jurisdiction under the Common Law.

7.If the judge tries to move ahead and try the facts of the case, then you will want to ask him the following question: Your Honor, let me understand this correctly: has this court made a legal determination that it has authority under the jurisdiction that it is operating under, to ignore two sections of the Uniform Commercial Code which have been called to it's attention? If he says yes, tell him that you put the court on notice that you will appeal that legal determination, and that if you are damaged by his actions, you will sue him in a common law action-- under the jurisdiction of the UCC. This will work just as well with the Internal Revenue Service. In fact, we can use the UCC w/the IRS before we get to court. Using the Code w/the IRS If the IRS sends you a Notice of Deficiency this is called a "presentment" in the UCC. A "presentment" in the UCC is very similar to the Common Law. First we must understand just how this works in the Common Law. Suppose I get a man's name from a phone book -- someone I have never meet. And I send him a bill or invoice on nice letterhead which says, "For services rendered: $10,000.00" I send this by certified mail to him at the address taken from the phone book. The man has to sign for it before he can open it, so I get a receipt that he received it. When he opens it, he finds an invoice for $10,000 and the following statement: "If you have any questions concerning this bill or the services rendered, you have thirty days to make your questions or objections known." Of course he has never heard of me, so he just throws the bill away and assumes that I'm confused or crazy. At the end of thirty days, I go to court and get a default judgment against him. He received a bill for $10,00, was given thirty days to respond. He failed to object to it or ask any questions about it. Now he has defaulted on the bill and I can lawfully collect the $10,000. That's common law. The UCC works on the same principle. The minute you get a notice of Deficiency from the IRS, you return it immediately with a letter that says: The presentment above is dishonored. ____(your name)_____ has reserved all of his/her rights under the Uniform Commercial Code at UCC 1-207. This should be all that is necessary, as there is nothing more that they can do. In fact, I recently helped someone in Arizona who received a Notice of Deficiency. The man sent a letter such as this, dishonoring the "presentment." The IRS wrote back that they could not make a determination at that office, but were turning it over to the Collections Department. A letter was attached from the Collections Department which said they were sorry for the inconvenience they had caused him and the NoD had been withdrawn. So you can see that if it's handled properly these things are easily resolved.

Impending Bankruptcy

On my way here, I had a chance to visit w/the the Governor of Wyoming. He is very concerned that if he runs for office this November, that there won't be a State of Wyoming at the end of four years. He believes that the International Bankers might foreclose on the nation and officially admit that they own the whole world. They could round up everybody in the state capital building, put them in an internment camp and hold them indefinitely. They may give them a trial, or they may not. They may do whatever they want. As I explained earlier, it has not been expedient to foreclose on the nation until they could get everything ready.

This is where the Federal Emergency Management Agency comes in. It has been put in place w/o anyone really noticing it. FEMA or the Federal Emergency Management Agency has been designed for when America is officially declared bankrupt, which would be a national emergency. In a national emergency, all Constitutional Rights and all law that previously existed, would be suspended. FEMA has created large concentration camps where they would put anyone who might cause trouble for the orderly plan and process of the new regime to take over the nation. Even a governor could be thrown into one of these internment camps, and kept there indefinitely. This is all in place now, and they are just waiting to declare a national emergency. Then even state government could be dissolved. Anybody who might oppose the new regime could be imprisoned until a new set of laws could be written and a new government set up. The Governor knows all this, and he is very concerned. He doesn't want to be in office when all this happens. I visited with him and I told him that there are certain action we should take right now. I think we should consider the fact that, according to the UCC, Wyoming is an accommodation party to the national debt. To understand we must realize that there are two separate entities know as the United States. The Rothschild Influence When America was founded, the Rothschild were very unhappy because it was founded on the Common Law. The Common Law is based on substance, and this substance is mentioned in the Constitution as gold or silver. America is a Constitutional Republic -- that is: a union of the States under the Constitution. When Congress was working for the Republic, the only thing it could borrow was gold or silver, and the Rothschild banks did not load gold or silver. Naturally, they did not like this new government. The Rothschild's had a deal w/the King of England. He would borrow paper and agree to repay in gold. But these united States, with their Constitution, were an obstacle to them, and it was much to be the Rothschild's advantage to get the colonies back under the King. So the Rothschild's financed the War of 1812 to bring America back under England. Of course, that didn't work, so they had to find another way.

The Flaw in the Constitution:

Two Nations in One. It was around the time of the American Civil War that they discovered a flaw in the Constitution. The flaw was Art. I, Sect. 3, Clause 17. Remember that there are two nations called "United States." What is a nation? See if you would agree to this definition: Whenever you have a governing body, having a prescribed territory containing a body of people. [this is an easy to understand restatement of how it's presented in Black's Law Dictionary, btw] Is that a nation? Yes. We have a governing body in the Republic -- the three branch government. There are the legislative, the executive and the judicial branches, with a constitution. There is a prescribed territory containing a body of people. This is a Constitutional Republic. But, Article I, Sect. 8, Clause 17 gave Congress which is the legislative branch of the three branch government, exclusive rule over a given territory known as the District of Columbia, containing a body of people. Here we have a nation w/in a nation. This is a legislative democracy w/in a Constitutional Republic. When Congress was part of a Constitutional Republic, it had the obligation of providing a medium of exchange for us. Its duty was to coin gold and silver. Anyone who had a piece of gold or silver could bring it in and have it freely minted into coin. This was the medium of exchange for the Republic. But in the Legislative Democracy (over Washington DC) Congress is not limited by the Constitution. Congress has exclusive rule over the District of Columbia. The legislators can make the law by a majority vote -- that makes it a democracy; they have the authority to have administrative agents to enforce their own law; and they have courts in the legislative branch of the government, to try their own law. Here we have the legislature making the law, enforcing the law and trying the law, all w/in the one branch of government. This is a one branch government w/in a three branch government.

Under the three branch government, the congress passes the law which has to be in harmony w/the Constitution, the executive enforces the law passed by the congress, and the judiciary tries the law, pursuant to the Constitution. THE THREE BRANCH CONSTITUTIONAL REPUBLIC AND THE ONE BRANCH LEGISLATIVE DEMOCRACY are both called the United States. One is the federal United States, and the other is the continental united States. Are you a United States Citizen? If you say that you are a United States citizen, which United States are you referring to? Anyone who lives in the District of the Columbia is a United States citizen. The remaining population in the fifty states is the national citizenry of the nation. We are domiciled in various sovereign states, protected by the constitutions of those states from any direct rule of Congress over us. In the democracy, anyone who lives in those states known as Washington DC, Guam, Puerto Rico, or any of the other federally held territories is a citizen of the United States (DC) We must be careful with our choice of words -- we are not citizens of the United States.

We are not subject to Congress. Congress has exclusive rule over a given territory, and we are not part of that territory. Where did Congress get the authority to write the Internal Revenue Code? It is found in Art. I, Sect. 8 Clause 17 of the Constitution. To pass that law, they only needed a majority vote. There is no other way that they could pass laws directly affecting individuals. Title 26, the Internal Revenue Code, was passed as law for another nation. (remember our definition of `nation'), but Title 26 is not consistent w/the Bill of Rights. If you try to fight the IRS, you have no rights -- the Code does not give you any of your Constitutional rights. It simply says, "You failed to file an income tax form -- you failed to perform in some specific manner." Remember, under the Common Law, you are free to do whatever you want as long as you do not infringe upon the life, liberty or property of anyone else. If you do not want to perform, you don't have to. The only way you can be compelled to perform under the Constitution in the continental united States, is if you have entered a contract. But if you are not under a contract you cannot be compelled to perform. How can you be compelled to file an income tax form, or any form? When Congress works for the Republic, every law it passes must be in harmony with the Constitution and the Bill of Rights, but when Congress works for the Legislative Democracy, any law it passes becomes the law of the land (remember, Congress has exclusive legislative control over federal territory.) If you are charged w/Willful Failure to File an income tax 1040 form, that is a law for a different nation. You are a non-resident alien to THAT nation. It is a foreign corporation to you. It is not the Republic of the continental united States coming after you, it is a foreign nation -- a legislative democracy of a foreign nation coming after you. If you get a Notice of Deficiency from the IRS, it is a presentment from the federal United States, and then you can use the UCC to dishonor it, and you can also mention that you are among the national citizenry of continental united States, and you are a non-resident alien to the federal United States. You never lived in a federal territory and never had any income from the federal United States. Furthermore, you cannot be required to file or pay taxes under the compelled benefit of using the Federal Reserve Notes (FRNs), because you have reserved your rights under the Common Law through the UCC at 1-207 Original Intent of the Founders The Founding Fathers would never have created a government that was going to boss them around! There were 13 sovereign States. There were nations, and they joined together for protection from a foreign enemies. They provided a means by which the union of the sovereign states could fend off foreign enemies. But they never gave the congress of the federal United States direct rule over any citizen of any state. They were not going to be ordered around by that government they set up.

Federal Regions

The supreme Court has declared that Congress can rule what Congress creates. Congress did not create the States, but Congress did create federal regions. So Congress can rule the federal regions, but Congress cannot rule the States. How have we been tricked into Federal regions? The Zip Code Trick Remember how the government always comes to us and says, "I'm from the government, and I'm here to help you." The government went out into the various states and said, "We don't want you to have to go to all that trouble of writing three or four letters to abbreviate the name of the state -- such as Ariz. for Arizona. Just write AZ instead of Ariz. Or you can just write WY for Wyoming instead of Wyo." So all of the states of the union have got a new two letter abbreviation. Even a state such as Rhode Island has a new abbreviation. It is RI instead of R.I. They have just left off the periods. When you use a two letter state abbreviation, you are compelled to use a zip code, because there are so many states, for example, which start with `M.' ME is Maine -- MI is Michigan. How many people do ever `i' or make an i that looks like an `e?' With MA, MO, MN, MS, etc and some sloppy writing, and you could not tell one from another. So we have to use the zip code in order to tell them apart. But if you wrote Mich. or Minn., or Miss., there would be no real problem telling which state it was. There is no harm in using the zip code, if you lawfully identify your state. I found out that no state legislature has met to lawfully change the abbreviation of the state from it's old abbreviation to the new. Therefore, if you do not use the lawful abbreviation for your state, but use the shorter new abbreviation, you have to use the zip code. Look on page 11 of the Zip Code Directory, and it will tell you that the first digit of your zip code is the federal region in which you reside. If you us AZ for Arizona, you cannot use the state constitution to protect you because you did not identify your state. You used the zip code, which identifies which federal region you live in. And Congress may rule directly federal regions, but it cannot rule the citizens of any state. Accommodation Party Let's look at how the states have become the accommodation party to the national debt. There are many people I have talked to, including the Governor, who are very concerned about this, and who know that it could happen very soon. If America is declared a bankrupt nation, it will be a national emergency. FEMA will take over, and anyone who opposes the new government of the creditors can be sent to a detention camp in Alaska. We will have no rights whatsoever. They have already setup prison camps w/work camps nearby so the people can be used for slave labor. It could be the governors, legislators and other leaders who would be hauled away to Alaska, while the people now disenfranchised from power would likely be chosen to run the new government. This could all happen very soon, as the national debt is so large as to be unpayable. Even the interest on the debt is virtually unpayable. As I explained, the national debt -- more than three trillion dollars -- [now almost double that in the 5 years since this was recorded] is not owed by the Continental united States. It is the federal United States that had the authority to borrow bank credit. When Congress worked for the Continental united States, it could only borrow gold or silver, so the national debts was borrowed in the names of the federal United States. The federal United States had to trap the States into assuming the debt obligation of the federal debt. In the UCC, we find the term, `accommodation party.' How did the states become the `accommodation party' to the federal debt? The federal government through our money system made the states deal in Federal Reserve Notes, which means that everything the states does is `colorable.' Under the `colorable' jurisdiction of the UCC, all of the states are the accommodation party to the federal debt.

Now the concern is to find out how we can get out of this situation. I told the Governor that in the Common Law and the Law of Merchants -- that's the International Law Merchant -- there is a term called `no-interest contract.' A no-interest contract is void and unenforceable. What is a no-interest contract? No-Interest Contract If I were to insure a house that did not belong to me, that would be a no-interest contract. I would just want the house to burn down. I would pay a small premium, perhaps a few hundred dollars, and insure it for $80,000 against fire. Then I would be waiting for it to burn down so I could trade my small premium for $80,000. Under the Common Law, that is called a no-interest contract, and it is void and unenforceable in any court. Unconscionable Contracts In the UCC, no-interest contracts are called unconscionable contracts. The section on unconscionable contracts covers more than forty pages in the Anderson Code. The federal United States has involved the states as the accommodation party to the federal debt, and I believe we could prove this to be an unconscionable contract. We should get some litigation into the courts before the government declares a national emergency, claiming that this state has no lawful responsibility for the national debt (of the federal United States,) because it became an accommodation party to this debt through an unconscionable contract. If we have this litigation before the courts under International Law when the nation is declared bankrupt, the creditors would have to settle this matter first, and it would delay them. They would want the new government to appear to be legitimate, so they could not just move right in and take over the state, because it would be in an International Court. This is very important at this time.

Questions and Review:

Note: These are some of the questions asked after the main lecture. Some are restatements of material presented earlier, but they contain very valuable information which is worth repeating.

Courtroom Techniques

Q) How did you "box in" the Judge?

A). This is easy to do if you don't know too much. I didn't know too much, but I boxed them in. You must play a little dumb. If you are arrested and you go into court, just remember that in a criminal action, you have to understand the law or it is a reversible error for the court to try you. If you don't understand the law, they can't try you. In any traffic case or tax case you are called into court and the judge reads the law and then asks, "Do you understand the charges?" Defendant: No, Your Honor, I do not. Judge: Well, what is so difficult about that charge? Either you drove the wrong way on a one-way street or you didn't. You can only go one way on that street, and if you go the other way it's a fifty dollar fine. What's so difficult about this that you don't understand? D. Well, Your Honor, it's not the letter of the law, but rather the nature of the law that I don't understand. The Sixth Amendment of the Constitution gives me the right to request that court explain the nature of any action against me, and upon my request, the court has the duty to answer. I have a question about the nature of this action. J. Well, what is that -- what do you want to know? D. Well Your Honor, is this a Civil or a Criminal Action? J. It is criminal. (If it were a civil action, there could be no fine, so it has to be criminal.) D. Thank you. Your Honor, for telling me that. Then the record will show that this action against ___(your name)___ is a criminal action, is that right? J. Yes. D. I would like to ask another question about this criminal action. There are two criminal jurisdictions mentioned in the Constitution.: one is under the Common Law, and the other deals w/International Maritime Contracts, under an Admiralty Jurisdiction. Equity is Civil, and you said this is a Criminal action, so it seems it would have to be under either Common Law, or Maritime Law. But what puzzles me, Your Honor, is that there is no *corpus delecti* here that gives this court jurisdiction over my person and property under the Common Law. Therefore, it doesn't appear to me that this court is moving under Common Law. J. No. I can assure you this court is not moving under the Common Law. D. Well, thank you, Your Honor, but now you make the charge against me even more difficult to understand. The only other criminal jurisdiction would apply only if there was an International Maritime Contract involved, I was a party to it, it had been breached, and the court was operating in an Admiralty Jurisdiction. I don't believe I have ever been under any International Maritime contract, so I would deny that one exists. I would have to demand that such a contract, if it does exist, be placed into evidence, so that I may contest it. But surely, this court is not operating under an Admiralty Jurisdiction. You just put the words in the judges mouth. J. No, I can assure you, we're not operating under an Admiralty Jurisdiction. We're not out in the ocean somewhere -- we're right here in the middle of the state of _____. No this is not an Admiralty Jurisdiction. D. Thank you Your Honor, but now I am more puzzled than ever. If this charge is not under the Common Law or under Admiralty -- and those are the only two criminal jurisdictions mentioned in the Constitution -- what kind of jurisdiction could this court be operating under? J. It's Statutory Jurisdiction. D. Oh, thank you, Your Honor. I'm glad you told me that. But I have never heard of that jurisdiction. So if I have to defend under that, I would need to have the Rules of Criminal Procedure for Statutory Jurisdiction. Can you tell me where I might find those rules? There are no rules for Statutory Jurisdiction, so the judge will get very angry at this point and say: J. If you want answers to questions like that, you get yourself a licensed attorney -- I'm not allowed to practice law from the bench. D. Oh, Your Honor, I don't think anyone would accuse you of practicing law from the bench if you just answer a few questions to explain to me the nature of this actions, so that I may defend myself. J. I told you before, I am not going to answer any more questions. Do you understand that? If you ask anymore questions in regards to this, I'm going to find you in contempt of court! Now if you cant afford a licensed attorney, the court will provide you w/one. But if you want those questions answered, you must get yourself a licensed attorney. D. Thank you, Your Honor, but let me just see if I got this straight. Has this court made a legal determination that it has authority to conduct a criminal action against me, the accused, under a secret jurisdiction, the rules of which are known only to this court and licensed attorneys, thereby denying me that right to defend in my own person? He has no answer for that. The judge will probably postpone the case and eventually just let it go. In this way, you can be wise as a serpent and as harmless as a dove, but you mustn't go into court w/a chip on your shoulder and as a wolf in "black sheep" country. Remember Jesus' words, "I send you out as sheep in wolf country, be wise as a serpent, and harmless as a dove." Sheep do not attack wolves directly. Just be an innocent little lamb who just can't understand the charge, and remember -- they can't try you criminally if you don't understand the charge. That would automatically be a reversible error on appeal.

The Social Security Problem

If I were a young man, 18 or 20 years old and just starting out in my first job, I would not want Social Security. W/my signature on the application, I would write, `Without Prejudice' UCC 1-207, and I would reserve my Common Law rights. But why wouldn't I want Social Security today? I got into the Social Security system in the 1930's, and I paid into it dollars that had good purchasing power. Now I'm getting a promised return in FRNs which have considerably less value. For example, in 1940 you could buy a deluxe Chevrolet for 800 dollars. With today's FRNs that won't buy the rear fenders and trunk on a new Chevrolet. If I were a young man, I would not want to put FRNs into SS now, and get back something later like the German mark after WWI -- when it took a billion to buy a loaf of bread. They will give you every FRN back they promised you, but it might not buy anything. Assurance Under the UCC, you have the right in any agreement to demand a guarantee of performance. So, don't go to them and say, "I want to rescind my SSN," or "I refuse to take it." Just take it easy and say, "I would be happy to get a SSN and enter into this contract, but I have a little problem. How can I have assurance before I enter into this contract that the purchasing power of the FRNs I get back at the end of the contract will be as good as the ones that I pay in at the beginning. They can't guarantee that, and you have a right under the UCC to assurance of performance under the contract. So tell them, "Well, I can not enter this contract unless the government will guarantee to pay me at the end of the contract w/the same value FRNs that I'm paying in. Both may be called FRNs, but you know that these FRNs don't hold their value. I want assurance on this contract that the FRNs that I get in my retirement will buy as much as the ones I'm giving you now in my working years." They can't make that guarantee. If they won't give you that guarantee, just say, "I'd be glad to sign this but if you can't guarantee performance under the contract, I'm afraid I can not enter the contract." Now, did you refuse or did they refuse?

You can get the sections of the UCC which grant the right to have assurance that the contract you have entered will be fulfilled properly -- that the return will equal the investment, and you can reject the contract using the Code. Using their own system of law, you can show that they cannot make you get into a contract of that nature. Just approach them innocently like a lamb. It is very important to be gentle and humble in all dealings with the government or the courts -- never raise your voice or show anger. In the courtroom, always be polite, and build the judge up -- call him "Your Honor." Give him all the `honor' he wants. It does no good to be difficult, but rather be cooperative and ask questions in a way that leads the judge to say the things which you need to have in the record. THE COURT REPORTER In many courts, there will be a regular court reporter. He gets his job at the judge's pleasure, so he doesn't want to displease the judge. The court reporter is sworn to give an accurate transcript of every word that is spoken in the courtroom. But if the judge make a slip of the tongue, he turns to his court reporter and says, "I think you had better leave that out of the transcript; just say it got a little to far ahead of you, and you couldn't quite get everything in." So this will be missing from the transcript. In one case, we brought a licensed court reporter with us and the judge got very angry and said, "This court has a licensed court reporter' right here, and the record of this court is this court reporter's record. No other court reporter's record means anything in this court." We responded with, "Of course, Your Honor, we're certainly glad to use your regular court reporter. But you know, Your Honor, sometimes things move so fast that a court reporter gets a little behind, and doesn't quite keep up with it all. Wouldn't it be nice if we had another licensed court reporter in the courtroom, just in case your court reporter got a little behind, so that we could fill in from this other court reporter's data. I'm sure, Your Honor, that you want an accurate transcript. (I like to use the saying; give bad dog a good name, and he'll live up to it!) The judge went along with it, and from that moment on, he was very careful of what he said. These are little tricks to getting around in court. This is how to be wise as a serpent and harmless as a dove when we enter a courtroom. There are others using the same information presented here who end up in jail, handcuffed and hit over the head, because they approach the situation with a chip on their shoulder. They try to tell the judge what the law is and he is a no-good scoundrel and so on. Just be wise and harmless.

UCC 1-207 Review

It is so important to know and understand the meaning of "without prejudice" UCC 1-207, in connection w/your signature, that we should go over this once more. It is very likely that a judge will ask you what it means. So please learn and understand this carefully: The use of "Without prejudice" UCC 1-207 in connection w/my signature indicates that I have reserved my Common Law right NOT TO BE COMPELLED TO PERFORM under any contract I did not enter into KNOWINGLY, VOLUNTARILY, and INTENTIONALLY. And furthermore, I do not accept the liability associated w/the the compelled benefit of any UN-REVEALED CONTRACT OR COMMERCIAL AGREEMENT. Once you state that, that is all the judge needs to hear. Under the Common Law, a contract must be entered into knowingly, voluntarily, and intentionally, by both parties or it can be declared void and unenforceable. You are claiming the right not to be compelled to perform under any contract that you did not enter into knowingly, voluntarily and intentionally. And you do not accept the liability associated w/the compelled benefit of any unrevealed contract or agreement. The compelled benefit is the privilege to use FRNs to discharge your debts w/limited liability rather than to pay your debts w/silver coins. It is a compelled benefit, because there are no silver coins in circulation. You have to eat, and you can only buy food w/a medium of exchange provided by the government. You are not allowed to print your own money, so you are compelled to use theirs. This is the compelled benefit of an unrevealed commercial agreement. If you have not made a valid, timely and explicit reservation of your rights under UCC 1-207, and you simply exercise this benefit rendered by government, you will be obligated, under an implied agreement to obey every statute, ordinance and regulation passed by government, at all levels -- federal, state and local. =========================================================

IN CONCLUSION

The editor of this transcript has taken great liberties in putting this to paper in an effort to make it readable and somewhat compact. He wishes to offer his gratitude to Howard Freeman for the opportunity to work w/the information so absolutely vital to our survival as dignified, unenslaved human beings. He must also ask Mr. Freeman's forgiveness for any errors committed in getting this to print. [And again to e-test.] It's purpose, as stated in the Foreword, is to make this knowledge and wisdom available to as many people as will take the time and trouble to read it. This is meant to be supplemental to Mr. Freeman's recorded lectures, not a substitute. Indeed, there is NO SUBSTITUTE for hearing him present this material in his own words. It is not just the LAW and the FACTS that are important here, but the way they are used. His numerous reminders of Jesus' commission to be "like sheep among wolves.." cannot be overstated, and is certainly good advice to us in all dealings -- not just in court or with the government. Hearing him explain this in his own words brings to life the practical application and usefulness of being "wise" and "harmless." In fact, after being introduced to this approach, it becomes difficult to imagine that any other way of defending oneself from the government would be effective. It goes without saying that none of this information presented here is in any way, shape, or form offered as legal advice. For that, as you know, you must "get yourself a licensed attorney." Having said that, I feel obliged to point out that one of the most difficult aspects of dealing with a licensed attorney -- even a good one -- may be knowing just whose side he is on. (he is, after all, an OFFICER OF THE COURT)! So for those of use who have concluded that having an attorney means that you will soon be chained, gagged and lead to the gallows, this information may be in-dispensable. For the extraordinary challenges of appearing in court in one's own person -- *pro per* --there are few reliable sources of information. Learning to defend ourselves, that is, being *responsible* instead of turning over one more area of our lives to "professionals" -- may be the only way to have any chance of digging ourselves out of this pit of legal tyranny. Perhaps the greatest problem we face in education today is the matter of widespread legal illiteracy. Naturally, there will always be a number of people who just don't care about these issues who either:

1.have a soft life which is supported and maintained by this secret system of law and institutions which have grown up around it (`I can make a bundle buying these IRS seized homes cheap and reselling them.') or

2.don't believe that anything can be done about it (you can't fight city hall.')

3.simply don't have the energy or inclination to do anything about it. (`that's nice, but let's see what's on TV'.) For those good `citizens' this whole effort may seem useless or even threatening. But it is this writers view that God did not intend for us to spend our lives in statutory slavery for the benefit of a handful of secret world manipulators, even if the `masters' grant us some token of pleasures and diversions. Human dignity requires much more than entertainment. The door is there and the key exists; we must find it and we must use it to return to freedom! Let us discover the mistakes we have made, let us find the truth, let us apply it with meekness and wisdom and let us gently but firmly reclaim the precious freedom which we have so foolishly given up.

Well there you have it, The UCC Connection. There is also a list of other publications available from American's for Constitutional Government. If you found this information useful, I would recommend contacting them for a list of their materials. I hope I didn't put all this effort in only for someone to tell me "Yea, that's on the Internet...." I tried to find stuff like this for some time now and other then John Freeman's articles, I found none. Also, I like the authors approach here. Many of the so called "patriot" organizations seem to be more "profiteers" than patriots. I understand bills need to be paid, but after reading lists and lists of "products available for $xxxx" I saw this as a little different. Good luck. And a few more quotes:

"When even one American -- who has done nothing wrong -- is forced by fear to shut his mind and close his mouth, then all Americans are in peril." Harry Truman

"In the beginning of a change, the patriot is a scarce man, brave, hated and scorned. When his cause succeeds however, the timid join him, for then it costs nothing to be a patriot." Mark Twain

"Truth is less than truth until it is made known." John Wheeler

Mr. Howard Freeman died in 1992, at the age of 92. He gave lectures all over the country for more than fifty years. -----------------------------------

Invisible contracts by George Mercier
Do you need a SS#
Are You a Practicing Communist?
Roll of UN
legal guns taken ?
Garden plot update
Authoritarianism
Chosen Battles
-----------------------------------

Police State The Law Enforcement Growth Industry by George Gordon

In trying to appraise this issue of law enforcement, much has been written and much more will be written. One point that everyone seems to agree on is that crime is out of control, and something must be done about it.

We call America the land of the free, and refer to the Soviet Union as a police state. But the facts tell us another story: they show that this country holds more people per capita in jail than any other country, including the Soviet Union and South Africa.

In reality, most people in America live in a police state, and are completely unaware of it. There is little difference between tyranny in governments, no matter where it may be. For example, the people of Poland: have national identity cards- cannot drive without licenses - cannot work where they choose - are required to register firearms and cars - cannot build on their land without government approval - are compelled to buy insurance - must show identification papers upon demand - have a portion of their wages stolen - are incarcerated without trial or due process - have ports of entry which compel them to stop, clear and pay duties - are subject to searches on their highways may be arbitrarily taken into custody and fingerprinted without court order

The list goes on. It makes no difference where you may be located; citizens of any country who are so constrained are not free, but living under tyranny. It matters not whether we think we have it somehow "better" than the Poles. Both systems are tyrannical in nature, the only difference being the degree of tyranny applied and the understanding of the system by the citizens. The Poles understand that they live in tyranny, while Americans have been convinced that it can't happen here, even though it has already come to pass. We recognize tyranny in foreign countries, but in our own, we refer to it as "law and order." But a police state by any other name is still a police state.

There must be a simple solution; one which will free us from this morass of crime and punishment. Any solution must conform to our Constitution (if we wish to avoid armed revolution), refrain from punishing the innocent, and punish those who are guilty. The current system does nothing but spawn an endless circle of recidivism and contempt for law in general. Our prisons, rather than being rehabilitative, are merely schools, which teach further crime.

If a victim loses their property, the criminals lose their freedom, but never make restitution to the damaged party. And the taxpayers are fleeced out of their money to fund these human warehouses. The beneficiaries of this system are not the victims -- they are the public defenders, lawyers, judges, jailers, prison guards, policemen and political administrations, and they quite literally thrive off the system.

Crime does pay, and quite handsomely. What is worse is that the victim not only loses by having his original property stolen, but by a continual drain of his resources to provide food and shelter for the thief.

Solutions to the crime problem must provide restitution for the victim, punish the criminal, decrease the prison population, eliminate over- crowding of prisons which cannot be emptied, eliminate capital punishment, and make the entire criminal justice system self-supporting by paying for itself in productive accomplishment.

How many broken homes, welfare payments, divorces, fines, jail terms and shattered lives must there be in the name of law and order, merely for the benefit of the law enforcement growth industry? How many people derive their livelihood from this industry? How many agencies are created by legislatures, city councils and Congress?

In the state of Idaho, it would probably be conservative to estimate that there are over 2,500 persons employed in this industry. That sounds like a lot, but consider the following:

1.There must be over 100 policemen in the city of Boise alone. There must also be 50 or more cities in the state which maintain a city police department and employ from 3 to 100+ persons.

2.There are 44 counties, all employing a sheriff, deputies and support personnel from 5 to 100+.

3.The state police employ several hundred officers and support personnel. In addition, the state employs many varied special agents. Then we must consider the administrative agencies which bring actions against citizens, such as building, electrical, health, fire, welfare and plumbing departments and the like.

4.There is no way to estimate the number of federal agents swarming over the state, from such agencies as OSHA, EPA, FCC, BLM, BATF, etc.

5.There are the jail and prison staffs, and their supporting personnel.

6.There is the judicial system at the county, state and federal levels, their marshalls and support personnel.

7.And there is the lawyer workforce.

It should be quite clear that we have no idea how many persons are employed by this industry. And each and every one of these people are looking for lawbreakers to apprehend and punish, in order to justify their employment.

It seems as though it is the purpose of government to build a system so big that everyone will either be employed by it or imprisoned by it.

This industry is nothing more than a business and customer relationship. Like any business, this industry needs more and more customers to continue to grow and prosper, in order to justify its existence and size to the people, in order to obtain more funds to further that growth. The cycle goes something like this:

1."We ought to have more laws."

2.The executive proposes new statutes to the legislature.

3.The legislature passes those statutes, and creates a criminal act where there was none before (i.e., eating bananas on Sunday).

4.The executive branch now has more statutes to enforce, and therefore needs more employees to enforce them.

5.The executive appeals to the legislature for more funds, due to the increasing crime rate caused by these legislated crimes.

6.Funds are made available, and more employees are hired.

7.More employees must now justify their existence, and therefore, must find (or entrap) more "customers" into committing these so-called crimes.

8."We ought to have more laws."

9.Etc.

In order for the sheriff, or any administrator, to justify their budget, they must itemize their expenses. Every year, we see a steady rise in crime. We also see this industry exploit their self-generated problem through the media. We constantly hear about all the crime being committed, and the answer proposed is always more laws, more police, more prosecutors, more judges, more money. We never hear how they propose to eliminate crime, prisons, jails and jailers; all we hear is that more money is needed. So we pass more laws, hire more police, and spend more money, only to learn next year that crime has risen by five percent, and we need more money to combat it.

Headlines do not exist stating, "Idaho's Prison Population Declines For Fifth Consecutive Year," or "Sheriff Submits Third Successive Budget With 5% Reduction In Requests." We have been spending more every year on the criminal justice system. And we are getting exactly what we have paid for: MORE CRIME.

As an example, let's look at a city, X. City X has one hundred policemen. The crime rate is up 5% over last year, so the media is told that the reason these one hundred policemen could not hold crime to the same level as last year is that they are understaffed and underbudgeted. Oh yes, and there were some defects in the existing statutes. So we need more money, and more laws.

City X gets five new policemen, 5% more money and another 7% to compensate for inflation (another government-created industry), and a few new laws to enforce. The product the industry sells is crime; our product line has been expanded by a few more laws, and our sales staff has increased by 5%. Our operating budget has been expanded to cover the additional overhead. Our police chief, the sales manager, now has a larger sales staff and additional responsibility, and needs a raise. Supervisors have a similar gain, and also obtain raises.

Now we must prepare for the coming year's expansion. We must justify our expanded budget, size and new products to the board of directors (the legislature). The sales staff is therefore sent into the street to ticket more violators, arrest more drunks, catch or entrap more prostitutes and drug pushers, etc. With proper management, and a little luck, we increase our business by 5%.

Now, we must make sure the media is aware of the growing crime rate. The public must be made aware that there is more crime because we are understaffed and overbudgeted, and besides, there are several loopholes in the laws that need filling. To illustrate the seriousness of the problem, the chief of police will recount some of the more horrendous crimes of the past year. Just like insurance salesmen sell insurance by using fear of death to motivate the prospective customer, the law enforcement growth industry uses fear of crime.

So another year comes and goes, and now we have 110 police, at least a 10% increase over our budget of two years ago, and a few more laws. Now our increased sales staff can get back out on the street to find and entrap more violators. This increases the population of the jail, and causes the sheriff to go to the city commissioners to request more funds to feed, house and guard the increasing load of criminals (making sure the media is made aware of his difficulties).

A proportion of the new increase in sales (arrests and jailings) bleeds over into felonies, and these criminals must be housed in the state prison. The warden, of course, must now go to the legislature and request his own budget increase, and maybe a new prison. Of course, all this business creates activity in numerous support areas; more food is needed to feed the criminals, more buildings are needed to house them, more judges are needed to handle the case loads, and more public defenders and lawyers are needed to defend the customers (citizens). The cycle is more or less complete at this point, and begins all over again.

The customer of this industry is the average citizen. It is the citizen who pays the bills; it is the citizen who is persecuted in the name of crime prevention; it is the citizen who is entrapped into committing violations of statutes by law enforcement personnel, who are simply justifying their existence by ensuring that crime exists.

The following is an actual conversation between a prisoner, "Joe," and another citizen. Joe is a bright college student, low on funds.

Citizen: What happened to cause you to be put in prison?

Joe (matter of factly): I stole $350.

Citizen: So you are guilty of the crime, and deserve to be punished? Citizen: Tell me exactly what happened.

Joe: Okay, I was in the B.S.U. auditorium, broke and didn't know how to make ends meet, and I saw this lady's open purse on a chair. It had money in it, so I took it. Apparently, someone saw me take it and called the police. They told the police who I was, and the police came to my apartment and arrested me. That's all there is to it. The law in Idaho is that any theft over $150 is grand larceny. I was convicted of grand larceny and sentenced to indeterminate five years. That means I can spend anywhere from eighteen months to five years in prison.

Citizen: Did you plead guilty to the charge?

Joe: No, I pled not guilty. My public defender advised me to take it to trial.

Citizen: How long was the trial?

Joe: One and a half days.

Citizen: How much time have you served so far?

Joe: Eleven months.

Citizen: Did the lady get her purse and money back?

Joe: No, I spent the money to pay bills and I threw the purse away.

This conversation can be repeated in hundreds of ways, hundreds of times. This shows how a real crime happens: There was a real criminal, and a real victim. Let's see how much this crime actually cost the taxpayers to apprehend, try, convict, incarcerate and then parole back into productive society.

It costs at least $2,000 to try, defend and incarcerate Joe. He will spend an absolute minimum of eighteen months in prison. It costs $15,000 per year to feed and house Joe in the prison. Assuming Joe will be paroled for the remaining three and a half years, at $13.86 per day, his parole will cost another $27,771.50. And the lady didn't even get her $350 back -- making a grand total cost for Joe's crime of $67,271.50.

Who is paying this bill? The victim, and the rest of the community. But what about Joe? Joe plays cards, consumes food, needs clothes and shelter, and produces nothing. In addition, he provides employment for everyone involved in trying, convicting and incarcerating him. Multiply this example by hundreds, even thousands, and we can readily see how billions of dollars are wasted each year in the name of law and order. The lady who had her purse stolen would have been ahead if she had not reported the theft of her purse. The victim sentenced herself to a fine by taxation. She lost her purse and the money in it, and on top of that, was taxed to support Joe and the law enforcement growth industry for the next five years. She would have been better off if she had simply bought Joe an airplane ticket to California.

Joe is also a loser, and once again, the winner is the industry. Just how is Joe a loser? This is a story in itself.

The law in Idaho which declares $150.00 as the amount which indicates grand larceny was passed in 1949. Because of inflation, his crime should now be a misdemeanor. But he is branded a felon for life. It is his first offense. Now he is in a school which teaches crime, and he has learned from his mistakes. When he comes out of prison, he will have a degree in crime. Society will be biased against him beacuse of this mistake, and it is quite likely that he will turn to further crime to make a living. Crime pays, because most crimes are never reported, and of the few that are reported, most are not solved. Joe will be occasionally caught, and he will be a regular customer of the industry for the rest of his life. When he is caught, he will be institutionalized, and forced to live in an unnatural, zoo-like environment.

Whether we like it or not, Joe is going to be out on the street again, and everyone will be faced with another problem. At some point, we will again have to deal with Joe. For the past forty-plus years, we have been dealing with all of these Joes, and what we have been doing has not only not worked, it has failed disastrously. It is time to admit that the criminal justice system needs drastic reformation.

We know there is a problem, but what can we do about it? There is another fact to examine: Where did prisons and dungeons as a form of punishment come from? The answer is lost in antiquity. In the Bible, there are numerous accounts of individuals being imprisoned, such as Joseph, Daniel and Peter. Many nations used prisons and dungeons to punish criminals and political prisoners.

The only exception is found in the time of Moses. When the Isrealites crossed the Jordan River, they had a different kind of law: a substantive law, based upon substance and labor. The common law, and our Rights at law which our Constitution and Bill of Rights guarantee to each and every one of us, is likewise based upon substance. The connection is seen in the axiom, "If there is a remedy at law, equity may not prevail."

Our common law came from England, but its roots are at Mount Sinai. Moses brought the law down from the Mount, and it is recorded in Exodus 20. The next five chapters of Exodus contain the criminal codes. They are short and precise. There were no prisons or dungeons. The Israelites borrowed the prison system from the Romans, Egyptians and Babylonians, and we have that system in use today.

The act of punishing the victim of a crime by taxing him to house, feed and guard the criminal is adding crime upon crime, and in addition, it is unusually cruel to lock a man up like an animal.

Let's examine Joe's case again. Joe stole $350 cash, but he also threw the woman's purse away, so the victim has suffered a further loss of time to replace such things as pictures, credit cards, etc. Let's set a value upon the crime. It's a common law crime, since it involves the loss of life, liberty or property. The common law is designed to restore property and to remedy damages. Let's value Joe's crime at $50,000, which is a bit excessive, but it's a starting point for the sake of discussion. So Joe gets five years or a fine of $50,000, whichever he prefers. However, Joe is poor, which was the reason for the theft, so we are going to enforce the option of five years. Since Joe has an obligation -- let's have him work it off!

Let's put Joe in a productive capacity. Joe is not dangerous. Let's teach him the dignity of work, and of making restitution for the cost of his crime. Convict labor is not a new idea; it has been used before in many places, such as California. Joe can be placed at the Atlanta, Idaho Prison Camp to work on forest projects, such as helping fight fires, replanting trees, cutting down diseased trees and firewood. He will be paid an hourly wage -- let's say $5. If Joe works ten hours per day, six days per week, for three years, he earns his freedom -- with no parole or other strings attached. He is a free man. And the victim receives her loss in tax credits or direct payments from sales resulting from his labor.

Unions and the law enforcement growth industry will resist change, as they have done in the past. But the State is losing more with our present system. No one is hurt by setting convicts to work, and there is an unending supply of work. Numerous prisoners, when interviewed, have stated that they would welcome a chance to work off their sentences.

If the Scriptural examples cited earlier are repulsive to you, then leave God out of the equation. Ignore God, and rely only upon your own self-interest. Simple logic will tell you that it is in the best interest of everyone to change our prison system approach to crime and punishment. As a victim, which would you prefer -- restitution for the loss, or taxation to pay for the incarceration of the thief?

Some years ago, a car was stolen, and when it was recovered by the police, they issued the owner a ticket for leaving the keys in the ignition. In other words, for every crime that is committed, there may be another manufactured by the legislature. Maybe they will pass a law making it a crime to leave your house unlocked -- then when something is stolen from your house, you will be guilty for failing to secure your property. Why should the citizen even report the theft if he is going to be hassled by the police? Oh, the insurance company needs the report. In this class of "crimes," the real party of interest is the insurance company. They are the ones that want you to remove your keys from the car, and lock your house. They are the ones who stand to lose profits from your failure to perform these actions, and therefore, they want you punished when you fail to perform. Such legislation is using the police powers of the state to enforce private interests (decreasing claims and increasing profits of insurance companies).

The traffic courts provide a further example of government protecting private interests. Who cares if a person "speeds," especially if that person is in the only vehicle on the road? If we are at home and asleep, do we really care? But statistics show that "speed kills," and therefore, increasing claims at the insurance window; these cause an increase in operating costs, and therefore, a decrease in profits.

The "Law of Merchants" has crept in upon us and attempted to deny us our inalienable rights. Unfortunately, most citizens have passively, and sometimes even voluntarily, accepted this system.

Let's look at the traffic code to illustrate how we have enveloped ourselves in tyranny.

We begin at the time when there were no traffic laws, for traffic on roads, trails and highways preceded traffic codes. Whether on foot, in wagons, on horseback, carriage or stagecoach, there was traffic. In all human endeavor, there are bound to be mishaps. When our common law was in everyday use, affixing fault without any statutory law was done by litigation to determine liability and assess damages to the injured party.

With the advent of the "horseless carriage," we began to see a proliferation of traffic laws. As their number increased, the average person shifted his status, sometimes knowingly, but more often unknowingly, from "at law" to "equity" by entering into a quasi-contract through the use of the "driver's license."

Through the use of licenses and permits, the age-old rivalry of the equity courts and the common law courts took a decided turn to equity by status, and the death of the common law began. Eighty years later, we find the common law in use only in major crimes, and the grand jury, for all practical purposes, has been abolished. If our Constitution is based upon the common law, and the grand jury is a fixed right pursuant to the Bill of Rights, government cannot eliminate it, for as the Supreme Court said:

"Where rights secured by the Constitution are involved, there can be no rule-making or legislation which would abrogate them." Miranda v Arizona, 384 U.S. 436,491.

How, then, can any state abrogate the entire common law by statute? Simply by coercing everyone to waive their common law rights by getting them to volunteer into equity jurisdiction by the use of contracts. The state simply licenses everyone, inducing them to accept a privilege in place of rights.

No foreign power, by force of arms or ideology, has enslaved us. Our lack of understanding of our common law heritage, and ignorance of, or unwillingness to obey, natural law, has enslaved us to this Civil jurisdiction.

The police state imposed upon the Polish people by force in 1945 is no different than that which we Americans have imposed upon ourselves today, except in one area: We paid to have our rights subjugated to contract. The Poles, at least, saved some money.

We still have our Constitution, and we can reject limited liability, perpetual slavery and debt whenever we want to accept responsibility for our actions and debts.

The Poles cannot.

There are not many people who want to trade their slavery for the rigors of the life of a freeman. But for those few men and women who want to be free, the choice is theirs. Every person who wants to be free can free themselves, but no other person can free them.

Redress of greivances comes on the courtroom floor. Not in a political rally. Not in a union meeting. Not in a letter to the editor. The courts are open, and are manned by knowledgeable jurists who will listen to, and rule in favor of, a person's natural inalienable rights, if only they know how to claim them. And they will just as quickly slam the door on a slave, and leave him in his security. There is no security in freedom -- only boundless opportunity.

There are thousands of freemen in America, not millions. The masses prefer security, welfare, limited liability, and the satisfaction of having others control their lives. To claim your rights, you must be compelled to defend them on the courtroom floor.

Limits on Congress http://www.doprocess.net/articles/article%20limit%20on%20congress%20power.htm

Obsolete info: From the Patriot Archives ftp site at: ftp://tezcat.com/patriot. Note: This piece was written sometime in the early 80's. This file was found elsewhere on the Internet and uploaded to the Patriot Archives FTP site by S.P.I.R.A.L., the Society for the Protection of Individual Rights and Liberties. E-mail alex@spiral.org http://www.doprocess.net/articles/article%20social%20pecking%20order%20steve%20pattison.htm

From: "Steven Pattison" TO ALL:

The following in part is from There are few ways out of bondage. Bloodshed and war often result, but our founding fathers learned of a better way. Realizing that a CREATOR is always above and greater than that which He creates, they established a three vote system by which an informed citizenry can control those acting in the name of govenment. To be a good master you must always remember the true "pecking order" or chain of command in this nation:

1. GOD created man...

2. Man (that's you) created the Constitution

3. The Constitution created government...

4. Government created corporations...etc.

The base of power was to remain in WE THE PEOPLE but unfortunately, it was lost to those leaders acting in the name of government, such as politicians, bureaucrats, judges, lawyers, etc.

As a result America began to function like a democracy instead of a REPUBLIC. A democracy is dangerous because it is a one-vote system as opposed to a Republic, which is a three-vote system. Three votes to check tyranny, not just one. American citizens have not been informed of their other two votes.

Our first vote is at the polls on election day when we pick those who are to represent us in the seats of government. But what can be done if those elected officials just don't perform as promised or expected? Well, the second two votes are the most effective means by which the common people of any nation on earth have ever had in controlling those appointed to serve them in government.

The second vote comes when you serve on a Grand Jury. Before anyone can be brought to trial for a capital or infamous crime by those acting in the name of government, permission must be obtained from people serving on the Grand Jury! The Minneapolis Star and Tribune in the March 27th 1987 edition noted a purpose of the Grand Jury this way:

"A grand jury's purpose is to protect the public from an overzealous prosecutor."

The third is the most powerful vote; this is when you are acting as a jury member during a courtroom trial. At this point, "the buck stops" with you! It is in this setting that each JUROR has MORE POWER than the President, all of Congress, and all of the judges combined! Congress can legislate (make law), the President or some other bureaucrat can make an order or issue regulations, and judges may instruct or make a decision, but no JUROR can ever be punished for voting "Not Guilty!" Any JUROR can, with impunity, choose to disregard the instructions of any judge or attorney in rendering his vote. If only one JUROR should vote "Not Guilty" for any reason, there is no conviction and no punishment at the end of the trial. Thus, those acting in the name of government must come before the common man to get permission to enforce a law. YOU ARE ABOVE THE LAW!

As a JUROR in a trial setting, when it comes to your individual vote of innocent or guilty, you truly are answerable only to GOD ALMIGHTY.

The First Amendment to the Constitution was born out of this great concept. However, judges of today refuse to inform JURORS of their RIGHTS. The Minneapolis Star and Tribune in a news paper article appearing in its November 30th 1984 edition, entitled: "What judges don't tell the juries" stated:

"At the time of the adoption of the Constitution, the jury's role as defense against political oppression was unquestioned in American jurisprudence. This nation survived until the 1850's when prosecutions under the Fugitive Slave Act were largely unsuccessful because juries refused to convict."

"Then judges began to erode the institution of free juries, leading to the absurd compromise that is the current state of the law. While our courts uniformly state juries have the power to return a verdict of not guilty whatever the facts, they routinely tell the jurors the opposite."

"Further, the courts will not allow the defendants or their counsel to inform the jurors of their true power. A lawyer who made...Hamilton's argument would face professional discipline and charges of contempt of court."

"By what logic should juries have the power to acquit a defendant but no right to know about the power? The court decisions that have suppressed the notion of jury nullification cannot resove this paradox."

"More than logic has suffered. As orignally conceived, juries were to be a kind of safety valve, a way to soften the bureaucratic rigidity of the judicial system by introducing the common sense of the community. If they are to funciton effectively as the 'conscience of the community,' jurors must be told that they have the power and the right to say no to a prosecution in order to achieve a greater good. To cut jurors off from this information is to undermine one of our most important institutions."

"Perhaps the community should educate itself. Then citizens called for jury duty could teach the judge a needed lesson in civics."

This information is designed to bring to your attention one important way our nation's founders provided to insure that you, (not the growing army of politicians, judges, lawyers, and bureaucrats, rule this nation. It will focus on the true power you possess as a JUROR, how you got it, why you have it, and remind you of the basis on which you must decide not only the facts placed in evidence but also the validity or application of every law, rule, regulation, ordinance, or instruction given by any man seated as a judge or attorney when you serve as a JUROR.

One JUROR can stop tyranny with a "NOT GUILTY VOTE!" He can nullify bad law in any case, by "HANGING THE JURY!"

I am only one, but I am one. I cannot do everything, but I can do something. What I can do, I should do and, with the help of God, I will do!

Everett Hale

The only power the judge has over the JURY is their ignorance!

"WE THE PEOPLE," must relearn a desperately needed lesson in civics. ___________________________

End of snip please go to the site to read what they have printed for you.

Lessons

1. Go to sites: 2. Then go to On 11-22-94, our nation's incumbent Republican governors alleged via the Williamsburg Resolve that "Federal action has exceeded the clear bounds of its jurisdiction under the Constitution and thus violated rights guaranteed the people." I find this not only true but to harbor serious implications for our nation.

3. Read the information located here: 4. Read the information located here: 5. Read the information located here: In part you will read the following:

If you look through the copy of the United States constitution found in the 1990 edition of Black's Law Dictionary, you'll notice something very interesting. The word "Citizen" is always capitalized until you get to the fourteenth amendment, which was adopted in 1868. After that, it's no longer capitalized. This isn't an isolated occurrence either. In the definition of "Dred Scott Case," a supreme court case decided before the fourteenth amendment, they capitalize "Citizen," but everywhere else in the dictionary,where it refers to the laws of today, the word isn't capitalized. As you shall see, this is just one small indicator of many that the fourteenth amendment created a new class of citizen.

snip

6. Read the information located: In part:

What is Sovereign Citizenship? Sovereign Citizenship is the status held by our forefathers. George Washington, Benjamin Franklin, and everyone else who won their freedom from the British Empire had this status. It was the birthright of all Americans, and we were generous in extending this most important right to foreign-born persons through the naturalization laws.

With this status, our unalienable rights of life, liberty, and property couldn't be infringed. During the Civil War a method was discovered by the leading attorneys, financiers, and politicians of the day to deprive us of this status. Fortunately, we can get it back.

This brings us to the question, "What are we getting back?" What does it mean to be a Sovereign Citizen?

The word "sovereign" is defined in the 6th edition of Black's Law Dictionary, published in 1990, as being, A person, body, or state in which independent authority is vested; a chief ruler with supreme power; a king or other ruler in a monarchy." Prior to the War for American Independence, the British king was the sovereign and the American people were his subjects. The war's outcome changed all this:

snip

7. Learn that you can make a difference. Read and understand how we lost our "Natural Rights". Copy and give to everyone that you care about.

8. Learn that nothing will happen until you and everyone that you share this with does something. Learn that as a 14th Amendment Citizenship, you will not be able to win any of the battles that you currently are involved in. Make a promise to yourself to inform ten people and get a commitment that they will inform ten people. This alone will make a difference.

9. When you learn the truth then go to: Where you will read the following in part and will come to the truth of who we have become:

The reason why there are two classes of citizens is because there are two classes of states. There are, in contemplation of law, Citizens of the 35 states(1) respectively, and citizens of the 50 States(2) respectively.

This fact was discovered working backwards. Realizing that modern law doesn't refer to the same "states" that we had back in 1789, from there it was just a matter of tracing the existence of the States(2) back to their origin. Here are just a few of the differences between the states(1) from before the war, and the States(2) from after the war:

snip

The colonies appealed to God, the Supreme Judge of the world. We will all have to appeal to God, no matter what we all do!

Respectfully submitted,Steven Pattison

Remember this !

SOCIALISTS Politicans believe "that the only constitutional right in the United States which is absolute & is your right to believe anything you want."

From: Jeff Gordon

Date: Tue Jul 17, 2001 9:31 am

Subject: Sen. McClintock, Remarks on Freedom, 9-Jun-01

Senator Tom McClintock

Date: June 9, 2001

Publication Type: Speech or Statement A Speech by Senator Tom McClintock Western CPAC Conference, Los Angeles, June 9, 2001

There are two modern views of government that begin from entirely different premises.

There is the 18th Century American view propounded by our nation's founders. They believed, and formed a Republic form government based upon that belief, that each of us is endowed by our Creator with certain rights that cannot be alienated, and that governments are instituted to protect those rights. This view is proclaimed in the Declaration of Independence and reflected in the American Bill of Rights.

The second view is 19th Century German in origin and expressed in the philosophies of Marx and Hegel and Nietzsche. It is a restatement of philosophies of absolutism that have plagued mankind for millennia. In this view, rights come not from God, but from the state. What rights you have are there because government has given them to you, all for the greater good defined, of course, by government.

In the 20 years I have been actively engaged in public policy, I have seen the growing influence of this 19th Century German view. It disdains the view of the American Founders. It rejects the notion of inalienable rights endowed equally to every human being by the laws of nature and of nature s God. In this view, it is the state, and not the individual, where rights are vested.

I mention this, because of a debate that occurred last week on the floor of the State Senate. It was a debate that occurred under the portrait of George Washington and the gold-emblazoned motto, Senatoris Est Civitatis Libertatum Tueri - (The Senators protect the Liberty of the Citizens.)

At issue was a measure, SB 52, which will require a state-issued license to own a firearm for self-defense. To receive a license, you would have to meet a series of tests, costs and standards set by the state.

We have seen many bills considered and adopted that would infringe upon the right of a free people to bear arms. But this was the most brazen attempt in this legislature to claim that the very right of self-defense is not an inalienable natural right at all, but is rather a right that is licensed from government; a right that no longer belongs to you, but to your betters, who will license you to exercise that right at their discretion.

During the debate on this measure, which passed the Senate 25 to 15, I raised these issues. And I would like to quote to you the response of Senator Sheila Kuehl, to the approving nods of the Senators whose duty is to protect the liberty of the citizens.

She said,

"There is only one constitutional right in the United States which is absolute and that is your right to believe anything you want."

I want to focus on that statement: "The only constitutional right which is absolute is your right to believe anything you want."

Now, compare that to the Declaration of Independence:

"We hold these truths to be self-evident: that all men are created equal; that they are endowed by their creator with certain inalienable rights, that among these are life, liberty and the pursuit of happiness; that to secure these rights, governments are instituted among men, deriving their just powers from the consent of the governed."

What rights have a slave? There is only one: a slave can think anything he wants: as long as he doesn't utter it or act on it he may think what he wants. He has no right to the fruit of his labor; no right to self-defense, no right to raise his children, no right to contract with others for his betterment, no right to worship except as his master allows. He has only the right to his own thoughts. All other rights are at the sufferance of his master whether that master is a state or an owner.

Now, let us continue to look at this new constitutional principle propounded by Senator Kuehl, under the portrait of George Washington to the delight of her colleagues whose duty, according to the proud words above them, is to Protect the Liberty of the Citizens.

She continued, "Other than that [the right to your own thoughts] government has the ability to say on behalf of all the people your right to swing your fist ends where my nose begins. It's a balance of your rights and my rights because we all have constitutional rights. And the question for government is how do we balance those rights"

Indeed, the right to swing your fist does end where my nose begins. An excellent analogy. Shall we therefore amputate your fist so that you can never strike my nose? And would you deny me the use of my own fist to protect my nose?

Senator Kuehl and her colleagues believe government has the legitimate authority to do so. It is simply the question of balancing.

It is very important that we understand precisely what Senator Kuehl and the Socialist Left are saying.

A thief balances your right to your wallet against his right to eat. A murderer balances your right to life against his right to freedom. A master balances your right to work and toil and make bread, against his right to eat it. These are matters of balance.

The American view is quite different. In the view of the American Founders, the Laws of Nature and of Nature s God endow each of us with rights that are inalienable, and we are each equal in those rights. It is not a balancing act. These rights are absolute.

They cannot be alienated.

But in a state of nature, there are predators who would deny us those rights. And thus we come together to preserve our freedom. In the American view, the only legitimate exercise of force by one person over another, or by one government over its people, is to secure these rights.

Senator Kuehl continues, "My right to defend myself in the home does not extend to my owning a tank, though that would make sense to me, perhaps, that no one would attack my home if I had a tank sitting in the living room."

Let us put aside, for a moment, the obvious fact that a tank is only an instrument of self-defense against a power that employs a tank. But let us turn to the more reasonable side of her argument: that rights can be constrained by government; that there is, after all, no right to shout fire in a crowded theater. How can a right be absolute and yet constrained by government?

To Senator Kuehl and the Left, the answer is simply, it's easy - whenever we say so. Or, in her words, government has the ability to say (so) on behalf of all the people.

The American Founders had a different view, also, not surprisingly, diametrically opposed to Senator Kuehl's way of thinking.

The right is absolute. In a free nation, government has no authority to forbid me from speaking because I might shout fire in a crowded theater. Government has no authority to forbid me from using my fist to defend myself because I might also use it to strike your nose. And government has no authority to forbid me from owning a firearm because I might shoot an innocent victim.

Government is there to assure that the full force of the law can be brought against me if I discharge that right in a manner that threatens the rights of others. It does not have the authority to deny me those very rights for fear I might misuse them.

Senator Kuehl continues, "In my opinion, this bill is one of those balances. It does not say you cannot have a gun. It does not say you cannot defend yourself. It says if you are going to be owning and handling and using a dangerous item you need to know how to use it, and you need to prove that you know how to use it by becoming licensed."

How reasonable. How reassuring. How despotic!

We must understand what they are arguing, because it is chilling. They are arguing that any of our most precious rights enshrined in the Bill of Rights , any at least which they decide are conceivably dangerous -- may only be extended through the license of the government.

If that is the case, they are not rights. With that one despotic principle, you have just dissolved the foundation of the entire Bill of Rights. You have created a society where your only right is to your own thoughts.

Inalienable rights are now alienated to government, and government may extend or refuse them upon its whim or, more precisely, upon a balancing act to be decided by government. Let us follow in our minds at least a little farther down this path.

Hate groups publish newsletters to disseminate their hatred and racism. Sick individuals in our society act upon this hatred. The Oklahoma City bombing killed a score of innocent children. Shouldn't we license printing presses and Internet sites to prevent the pathology of hate from spreading? Such an act doesn't say you cannot have a press. It does not say you cannot express yourself. It do say if you are going to be owning and handling a printing press, you should know what not to say and prove that you can restrain yourself by becoming licensed.

And what are we to do about rogue religions like those that produced Heaven's Gate and Jonestown? How many people around the world are killed by acts of religious fanaticism every year? Should we not license the legitimate churches? Such an act doesn't say you cannot have a church. It does not say you cannot worship. It says if you are going to be running and conducting a church, that you must know how to worship and prove that you know how by becoming licensed.

The only right you have is the right to believe anything you want!, the only right of a slave. The rest is negotiable or to use the new word, balanceable.

In 1838, a 29-year-old Abraham Lincoln posed the question for which he would ultimately give his life. Years later, he would debate Stephen Douglas, who argued that freedom and slavery were a matter of political balance. But in this speech, he spoke to the larger question that we must now confront:

"Shall we expect some transatlantic military giant, to step over the ocean, and crush us at a blow? Never! All the armies of Europe, Asia and Africa combined, with all the treasure of the earth (our own excepted) in their military chest; with a Bonaparte for a commander, could not by force, take a drink from the Ohio, or make a track on the Blue Ridge, in a trial of a thousand years. At what point, then, is the approach of danger to be expected? I answer, if it ever reach us, it must spring up amongst us. It cannot come from abroad. If destruction be our lot, we must ourselves be its author and finisher. As a nation of freemen, we must live through all time, or die by suicide."

The American Founders worried about the same thing. Late in life, Jefferson wrote to Adams, "Yes we did create a near perfect union; but will they keep it, or will they, in the enjoyment of plenty, lose the memory of freedom. Material abundance is the surest path to destruction."

And as I listened to Senator Kuehl proclaim that the only constitutional right in the United States which is absolute & is your right to believe anything you want, and as I gazed at the portrait of George Washington, and as I thought about the solemn words " the Senators Protect the Liberty of the Citizens " I couldn't help but think of an aide to George Washington by the name of James McHenry, who accompanied the General as they departed Independence Hall the day the Constitution was born. He recorded this encounter between Benjamin Franklin and a Mrs. Powell. She asked, "Well, Doctor, what have we got, a republic or a monarchy?" Answered Dr. Franklin,

"A republic, madam, if you can keep it."

For this generation, that is no longer a hypothetical question. History warns us that, to one generation in five falls the duty, the highest duty, and the most difficult duty of this Republic " to preserve the liberty of the citizens." It is the most difficult, because as Lincoln warned, it is a threat that springs up not on a foreign shore, where we can see it; it springs up amongst us. It cannot be defeated by force of arms. It must be defeated by reason.

Have you noticed yet, that ours is that generation? And how ironic it would be that the freedoms won with the blood of Washington's troops, and defended by so many who followed, should be voluntarily thrown away, piece by piece, by a generation that had become so dull and careless and pampered and uncaring, that it lost the memory of freedom.

The Athenian Democracy had a word for "citizen", that survives in our language today. Politikos. Politician. The Athenians believed that a free people who declare themselves citizens assume a duty to declare themselves politicians at the same time. It is time we took that responsibility very seriously.

In 1780, the tide had turned in the American Revolution, and the Founders began to sense the freedom that was within sight. John Adams wrote these words to his wife that spring. He said, "The science of government it is my duty to study, more than all other sciences; the arts of legislation and administration and negotiation ought to take the place of, indeed exclude, in a manner, all other arts. I must study politics and war, that our sons may have liberty to study mathematics and philosophy. Our sons ought to study mathematics and philosophy, geography, natural history and naval architecture, navigation, commerce and agriculture in order to give their children a right to study painting, poetry, music, architecture, statuary, tapestry and porcelain."

Ladies and gentlemen, the debate is not about guns. It is about freedom. And the wheel has come full circle. Our generation must study politics that we may restore the liberty that our parents and grandparents expect us to pass on to our children and grandchildren.

If we fail, what history will demand of our children and grandchildren, in a society where their only right is to their own thoughts, is simply unthinkable. And be assured, history will find it unforgivable. A generation that is handed the most precious gift in all the universe " freedom " and throws it away, deserves to be reviled by every generation that follows and will be, even though the only right left to them is their own thoughts.

But, if we succeed in this struggle, we will know the greatest joy of all ; the joy of watching our grandchildren secure with the blessings of liberty, studying arts and literature in a free nation and under God's grace, once again.

Ladies and Gentlemen, isn't that worth devoting the rest of our lives to achieve?

C. Heston
measure it