Pay no income taxes - legally?

[Anonymous]

Don't know if this is true or not, but I read it somewhere this morning and found it quite interesting reading:


IRS vs. KUGLIN
By Carl F. Worden

Forget the war in Iraq, Afghanistan and our excellent adventure in Liberia. Forget about Kobe, Arnold, Arriana, Scott and Laci. The biggest news of the entire week is that on August 8, 2003, the IRS was unable to convince a jury in Memphis, Tennessee that the Federal Tax Code requires the citizens to pay individual income taxes. I kid you not.

I watched as many Sunday news programs as I could possibly stand, and I didn’t hear a single mention of the IRS’ debacle in Memphis. If you ever had doubts about the mainstream media being controlled by the federal government, doubt no more.

For those not already aware, FedEx Pilot Vernice Kuglin began studying the IRS Code some years ago, and was simply unable to find anywhere in the code that she was required to pay federal income taxes.

And here’s the most remarkable part: Back in 1995, Kuglin wrote letters in good faith to the IRS, asking them to show her where the Tax Code requires individual citizens to pay federal income taxes. Incredibly, the IRS never answered a single one of her letters!

As she studied the facts, laws and related documents more, Kuglin became convinced that, regardless of the IRS’ failure to respond one way or the other, she was exempt from paying federal income taxes. So, Kuglin filled out W-4 forms showing 99 exemptions, and turned them in to her employer. Doing that meant Kuglin got to take home almost all of her paycheck each payday, instead of what was left after the feds ravaged it.

The IRS went after Kuglin for six counts of tax evasion on $920,000.00 income, and for filing “false” W-4 forms, charges that could have put the 58 year-old Kuglin in federal prison for up to 30 years and cost her 1.5 million in fines.

Apparently, things didn’t go quite the slam-dunk way federal prosecutor Joe Murphy thought they would. My money says the IRS wishes they had never gone after Kuglin at all. In fact, after the jury returned not guilty verdicts on all counts, Murphy is reported to have demanded that the judge order Kuglin to file her forms, pay her taxes and “obey the law”. The judge reportedly replied, “Sir, I don’t work for the IRS.”

Now pinch yourself and review this astonishing turn of events: A highly trained and educated federal prosecutor in Memphis was unable to convince 12 American citizens that Vernice Kuglin was required to pay federal income taxes. He was clearly unable to produce a single section of the Tax Code to that end, and the jury was unanimous in clearing Kuglin of all charges against her. If the foregoing was not so, Kuglin would have been convicted.

Jurors tend not to be very sympathetic with tax scofflaws, since each one of them is also a taxpayer and they understandably feel resentment towards anyone not paying “their fair share”. So in order for this federal jury to completely vindicate Kuglin, the government’s failure to prove their case against her had to have been clear and unequivocal!

I haven’t read the trial transcript yet, but I must assume the federal prosecutor at least tried to twist some vague and ambiguous section of the Tax Code to make it look like it applied to Kuglin. I don’t know that, but I’ll bet he tried. What else could he use to prosecute her with?

Thanks to the IRS’ arrogance and stupidity, and Kuglin’s refusal to plead to lesser charges, Kuglin accomplished what Bob Schultz and the other “tax protesters” had been denied all along: To force the IRS into a public debate and to answer the question of whether or not the Tax Code requires an individual to pay personal income taxes. Kuglin and her two attorneys, Larry Becraft and Robert Bernhoft, have unequivocally forced the IRS to show its hand, and 12 judges hearing that debate ruled the answer to be “NO”.

I think it’s time for everyone reading this to send a very polite letter to the IRS, telling them they read about the case in Memphis, and is it true that there is no section in the U.S. Tax Code that requires an individual citizen to pay federal income taxes?

Don’t be threatening in any way, or announce that you plan to stop paying federal income taxes. This request is for your personal edification, and you just simply want to know the truth.

Like Kuglin, you probably won’t get an answer back, but just to prove you sent the letter and that they received it, be certain to send the letter via certified U.S. Mail, with a return receipt requested. When you get that receipt back, staple it to a copy of the letter you sent the IRS, and put it somewhere real secure, like a personal safe or bank deposit box.

I don’t have to explain why, now do I?

Now, how many calls to FOX’ Bill O’Reilly will it take to convince him we know he’s doing a spin in the No-Spin Zone by sitting on this story? Start e-mailing O’Reilly at oreilly@foxnews.com, and be sure to give him your city and state. He’s gonna love me.

[BWJR]

Kirby,

I would think twice before anyone sends a letter to the IRS questioning the tax code. I would make sure that you read the entire transcript of this trial before doing anything foolish. If you ever have worked for any company and signed a consentment to have taxes withheld from your income you are consenting to pay taxes to the Federal and State government. It is an implied consentment that you agree to pay taxes to the IRS. Don't be surprised that you receive a letter from the IRS at a later date about you being audited if you send a letter out questioning the tax code. Be Careful. In all due respect Kirby, I have to disagree.


BWJR

[Gary C]

It's a shame that we have to be afraid to send a note like that to our own goverment. BUT they are legal thugs and there is not much we can do about it. Even with my books being legal I still don't want the :eek::eek::eek::eek: exaim.

Gary

[Coinwash]

From my CPA

During America’s first century, the federal government raised the bulk of its revenue from tariffs, excise taxes, and property taxes. (During the Civil War, an income tax was temporarily imposed in the North.) However, great industries had been established and great fortunes had been made by the end of the nineteenth century, and populist reformers were advocating for reform of the monopolies and trusts and for fairer treatment of citizens. These populist sentiments led Congress to enact a highly progressive income tax in 1894, but it was declared unconstitutional the following year. This led eventually to the passage of the Sixteenth Amendment, which empowered Congress to levy an income tax. Woodrow Wilson signed the modern personal income tax into law in October 1913.

There were many similarities between this early personal income tax and today’s version—rates were graduated, home mortgage interest and tax payments to state and local governments were deductible, and interest on state and local bonds was excluded. Charitable contributions became deductible in 1917. Unlike today’s tax, however, the original personal income tax applied only to the wealthiest Americans. Rates ranged from 1 percent to 7 percent,8 and well over 90 percent of the population were exempt from filing.

With the advent of World War II, the increased need for revenue required that rates be increased and exemptions lowered. As Figure 3a, page 14, illustrates, personal income tax revenues, which had never exceeded 2 percent of GDP between 1913 and 1940, increased dramatically during the war.
By the war’s end, revenues stood at 8 percent of GDP. Despite the oft-heard claims about increasing income tax burdens in the postwar period, federal personal income tax revenues have remained close to 8 percent of GDP ever since World War II...

[Rondo]

A better idea , everybody sign up and write letters to your congressman and senator to get this passed into law. The bill HR-25 is a plan to completely get rid of the IRS and believe me it is the only fair way to tax everyone. I listened to Neil Boortz (radio talk show host) for 2 days with the Senator that is backing this plan (and it is getting support and may well be a reality soon) and he says there is only 2 problems with it.

1. Having enough Americans to fill all the new jobs that would be created.

2. The goverment knowing what to do with all the money it will be collecting.

If you really read all of the plan it is fool proof and would set our economy off like a rocket.

The second link below tells the impact on all industrys - go to the second page.



www.fairtax.org

http://www.fairtaxvolunteer.org/smart/sketch.html

[pete f]

did you read this in your email Kirby? It sounds like a hoax letter.

I know thier are groups of people challanging the IRS but I have not heard of them winning.

[mike]

Gee,
Canadians (Quebecers in particular) used to be so "proud" that we are the highest taxed in north america, pretty soon we can be even prouder as the ONLY taxed in north america !

[BWJR]

I agree with Rondo, do away with the IRS.

BWJR

[Anonymous]

From the site:

"If you choose to buy used goods used car, used home, used clothing you do not pay the FairTax. "

Hmmm... I'd want to have a couple zillion shares of ebay before this went through.

pk

[Andy]

The United States is a great place to live and do business in. It is so because of the contributions of 10's if not 100's of millions of Americans and others. These contributions were paid in dollars, sweat and blood. You may not agree with the tax policy, this is a different issue. If you think this country can be maintained at its' current state, let alone making improvements, while placing the tax burden on an ever lessening group I think you are mistaken. With that said, I do apply every legal means to lessen my tax burden, but I think every capable citizen should contribute in some way as they benefit from our free society.

This article above is a deravitive of the asertion of a person who said that this tax is voluntary therefore you can voluntarily refuse to pay tax. I believe this has been prosecuted in court on more than one account and the IRS has prevailed. I would advise against following the advise of dubious characters citing "little known IRS code" or the "code the IRS doesn't want you to know about" .

[Andy]

Check this out:

http://www.bankrate.com/brm/itax/news/20010216a.asp

[Anonymous]

Dadgum, that was a good post, Andy!

Here's where I stand on *my* IRS return. Last year, I was mostly self-employed, money paid directly to my bank account from a company in Germany. I sent invoices, they wired money.

Before I took the assignment, I called the IRS and explained the situation, to make sure I wouldn't be liable for German taxes. "Just U.S. taxes, ma'am".

The guy at the German company said, and I quote, "You can get away with not paying any taxes in either country, don't you think that is a nice thing?"

I declared every penny, but also took every deduction I legally could. Good thing I've got good records! Being honest doesn't make you a schmo... :)

I may be weird, but after 9/11, and with SO many of our local guys (and gals) dying in Iraq, I cannot, CANNOT in good conscience cheat on my tax returns.

Sorry for the flag waving... just had to remind myself why I paid $30k to the gub'ment for last year.

Cheers,
pk

[Fred50]

CPK,

FYI, as someone who has lived and worked around the world the term used for US citizens is "worldwide income". Translation - you must pay US taxes for every penny that you make no matter where you made it or who is paying it to you. Note that there are some juicy deductions for US expats, but not for a US citizen who is a resident.

Sorry! I agree with you on the tax evasion stance, but tax avoidance is perfectly legal and we all should tax full advantage of all of the available tax breaks without losing a minute of sleep.

[Anonymous]

Mark,

Absolutely on all counts... :) Luckily, since I physically did the work in the U.S., I was exempt from German taxes. The pain would have come from having to pay Germany first, then playing the paperwork game to apply that to my U.S. tax bill.

My fiance' did that in Italy; it about killed him. He told me that he knew TONS of Americans (not expats) who played the game and paid neither country. IMHO, thumbing one's nose at the IRS just ain't worth it. They have more lawyers and more $$$ than I do.

I take as many deductions as I *legally* can; more importantly, all I can substantiate. No worries... I sleep just fine at night over my taxes... O:) <---like my halo?

pk

Originally posted by Mark
CPK,

FYI, as someone who has lived and worked around the world the term used for US citizens is "worldwide income". Translation - you must pay US taxes for every penny that you make no matter where you made it or who is paying it to you. Note that there are some juicy deductions for US expats, but not for a US citizen who is a resident.

Sorry! I agree with you on the tax evasion stance, but tax avoidance is perfectly legal and we all should tax full advantage of all of the available tax breaks without losing a minute of sleep.

[Fred50]

CPK,

Unless you did a substantial amount of the work in Germany, then no problem with German taxes. One year I had to pay taxes in 3 countries, so I know what you mean. If you think your regular taxes are a bear, try dealing with Foreign Tax Credits! Thankfully, my company took care of the dirty work.

[Anonymous]

Millions on welfare are depending on us, if they work they may miss jerry springer.