\-\-\-\--Original Message\-\-\-\--

From: Molokai Advertiser-News (aka The MAN) George Peabody
\[[[mailto:molokaiman@usermail.flex.com]{.underline}](mailto:molokaiman@usermail.flex.com)\]

Sent: Monday, March 14, 2005 10:50 PM

To: Brendalee Salgado-Demello; comments

Subject: irs: PS: KGMB tax story corrections needed ASAP

Importance: High

BRENDA: this is an important PS:

Did you think the Federal Reserve was federal government? Guess again!
One of the biggest shocks of the last century was an admission by
President Reagan\'s Grace Commission, that none of the income taxesd
collected by IRS goes to pay for any federal government services. Those
taxes are paying interest to foreign banks who hold the debt notes.

IRS Official Threatens to Collect from Protesters

Senior IRS official by the name of Terry Lemons made the following
proclamation in response to a question by David Cay Johnston of the NY

Times: Why won\'t the IRS answer the questions set forth in the
petitions from We the People Foundation? Lemons said the government is
answering our Petitions through \"enforcement actions.\" The government
will now answer legitimate petitions for redress of grievance under the
First Amendment through the use of brute force because that\'s exactly
what the IRS\' \"enforcement actions\" amount to every day of the week.
This statement by Mr. Lemons is chilling and should be the clarion call
to every American out there who values freedom and believes that our
rights, so articulately defined in the Bill of Rights, cannot be
nullified or taken away by Mr. Lemons or any government official. The
right to petition the government has a long and detailed history. Every
American should know the history of this precious right because on
September 16, 2003, the IRS laid down the gauntlet to the American
people and simply decided to nullify part of the First Amendment. The
IRS has made the clear threat that if any American dares question their
unlawful activities, the IRS will respond with \"enforcement.\"

Here is a very informative letter about six questions asked of the IRS.
It is from an IRS tax law education leader, Larken Rose:

Questions 1 & 2 ask who should use 861 and its regs to determine their
taxable income (and ask where the law says who should use them).

Question 3 asks if 861 and its regs show the income of the average
American to be taxable.

Question 4 asks about how to determine if the \"items\" of income one
receives are taxable or not.

Question 5 asks the purpose of the list of non-exempt income in
1.861-8T(d)(2)(iii), and asks why the income of the average American is
not on the list.

Question 6 asks which income is exempted by the Constitution itself
(though not by any statute).

Again, if you can\'t answer those question, it is IMPOSSIBLE to
determine your \"taxable income,\" and therefore impossible to determine
what you owe.

As you probably know, thousands have sent out those questions, and by
now most of those who sent them out have received a copy of that
ridiculous IRS form letter, Letter 3175, which says nothing at all about
taxable income, gross income, Section 861, etc.

Well, one of the question-askers was not content with evasions and
insults, and wrote to his Congressmen, complaining about the IRS\'
failure to answer. The Congressman sent the letter to the IRS, who
eventually responded with another letter. While that letter only
confirms what many of us knew already, the fact that they ADMITTED it
(in writing, no less) is stunning.

Here is what the IRS had to say about their previous failure to answer
the questions mentioned above:

\"The questions are constructed in such a way that any answer could be
construed to support arguments that the tax laws of this country do not
apply to the questioner or his/her income.\"

Read that a few times, and let the significance sink in. The IRS just
admitted that they CANNOT answer the specific questions, without
SUPPORTING the conclusion that the one who asked the questions DOESN\'T
OWE THE TAX. (And yes, they WERE constructed in a way so the IRS
couldn\'t answer them without the truth being told.)

If this was one of those \"when did you stop beating your wife\"
questions, they might have reason to complain. But simple logic dictates
that in the case of the person writing the letter, there can only be ONE
right answer to each question. Either he should, or he shouldn\'t, use
the rules under 861 to determine his taxable income. Either those
sections show his income to be taxable, or they don\'t. And so on. And
of course, we WELCOME any elaboration they want to give, in case just
\"yes\" or \"no\" isn\'t sufficient.

In short, the IRS just admitted that they CANNOT specifically tell you
how to determine your taxable income, because if they did, it would
SUPPORT the idea that your income IS NOT TAXABLE. The letter then says
this:

\"Clearly, the IRS cannot provide fodder for those who promote or accept
these frivolous and self-serving arguments. Therefore, the response of
the IRS group manager properly does not attempt to answer Mr.
\[redacted\]\'s questions.\"

Got that? It is PROPER for them NOT to tell you how to determine what
you owe, because if they did, it would SUPPORT the conclusion that you
owe nothing.

Of course, they have to make the accusation that such a conclusion is
\"frivolous\" and \"self-serving.\" (I\'m sure nothing politicians and
bureaucrats ever do is self-serving.)

Instead of actual ANSWERS, the IRS sent the person the ever-popular, and
ever-irrelevant \"Why Do I Have to Pay Taxes\" pamphlet, which
(according to the

IRS) \"make\[s\] clear the legitimacy of our nation\'s tax laws \[who
was questioning that?\] and the tax responsibilities of all Americans.\"
By giving the person a copy of that pamphlet, the IRS employee claims to
have \"attempted to discharge our obligation to help Mr. \[redacted\]
understand and meet his tax responsibilities.\"

Then they say this: \"Until he is willing to accept the facts in these
documents, and recognize that the law does in fact require him to file a
return showing all his income, from whatever source derived, I am not
sure we can help him further.\"

Read that one a couple times too, until the true meaning of it sinks in.
Until you are willing to accept that you owe, based on assertions,
insults and threats, instead of asking those darn questions about what
THE LAW ITSELF SAYS\... well, the IRS just won\'t be able to help you.
(As usual, the IRS letter ends with a thinly veiled threat of
prosecution.)

I hope you feel well served. Now stop asking those darn questions! Sit
down, shut up, and pay whatever some bureaucrat SAYS you owe. Have a
nice day.

Sincerely,

Larken Rose

larken@taxableincome.net

REPORT by George Peabody
[[http://www.MolokaiAdvertiserNews.com]{.underline}](http://www.MolokaiAdvertiserNews.com/)

Hi Brenda: that KGMB-TV IRS report by JULIE VALLESE was a whopping

propaganda lie: i.e., \" INCOME FROM NO MATTER WHAT SOURCE - IS TAXABLE;
\"The IRS is here to help and to insure that tax payers understand their

obligations and understand how to file lawfully\"; ANYONE WHO SAYS

OTHERWISE, SAYS THE IRS, IS NOT TELLING THE TRUTH; and, THE IRS CALLS
THE MOST COMMON SCAMS THE \"DIRTY DOZEN.\" SOME SHOW UP EVERY YEAR. LIKE
THOSE WHO ADVISE TAXPAYERS ABOUT CONSTITUTIONAL RIGHTS SAYING UNDER THE
FIFTH OR 16 AMENDMENT - AMERICANS AREN\'T REQUIRED TO PAY TAXES. THE IRS
SAYS THAT\'S JUST NOT TRUE.\"

KGMB-TV should counter these lies with the truth:

1\. Sen. Dan Inouye wrote: \"\...Based on the research performed by the

Congressional Research Service, there is no provision which specifically
and unequivocally requires an individual to pay income taxes.\" \[I have
a copy of his letter 1989\]

2\. The Supreme Court ruled in Brushaber v. Union Pacific, 240 U.S.1,
that wages are NOT income within the meaning of the 16th Amendment.

3\. In a transcript of another case, Chief Justice Rhenquist and the
United State attorney Kent Jones admit there is NO statute that makes it
a crime for \"failure to file\" and income tax return: \"I am not
familiar with a statute that makes that a crime by itself\...but the
fact that you didn\'t file\.....its my impression that that would not by
itself be a crime\.....We\'d better not let the word get out\.....We\'ll
keep it just among ourselves.\"

4\. It is not a crime for someone to fail to file a tax return unless he
believed he was required to file, and failing to pay a tax is only a
crime if the person believed he owed the tax (see Cheek v. U.S., 498
U.S. 192 (1991). If the government were to force me to file a return
reporting my income as taxable, they would be forcing me to commit a
felony under 26 USC ¬ß 7206, since I would be signing under penalty of
perjury a return that I did not believe to be \"true and correct.\"
Obviously, the law cannot require

me to commit a felony. And contrary to IRS statements that all income

from whatever souce is taxable, the Constitution clearly does not
support such a fraud.
[[http://www.taxableincome.net]{.underline}](http://www.taxableincome.net/)
The law itself is perfectly valid and constitutional; it is simply being
misrepresented and misapplied by the tax professionals and government
officials. As a result, tens of millions of Americans now make payments
to the IRS based on the false assumption that they are just paying
\"their

taxes.\" In reality they are being defrauded via the myth that the
income

of most Americans is taxable.

5\. Thousands of people, including myself, have asked perfectly
reasonable, perfectly polite questions concerning how to determine my
\"taxable income\" using the laws as written including Section 861 and
we have been treated like criminals, threatened with fines or
prosecution, and then told that the IRS will not respond to further
inquiries about the matter (this despite the fact that the IRS \"Mission
Statement\" includes

helping Americans \"understand\" their tax responsibilities). We know
our

Rights are Individual and Unalienable. We know the Constitution is a set
of principles to govern the government. The IRS fraud must be stopped
now. NO ANSWERS, NO TAXES!

6\. Does this mean the IRS agents are qualified to run an organization

that prosecutes people for determining their \"taxable income\"
incorrectly, but are not qualified to tell those same people how they
should determine their taxable income? IRS and DOJ in particular)
routinely disregard the law and are willing to insult, threaten,
demonize, harass, and even forcibly censor Americans who dare to
question the \"conventional wisdom\" about the federal income tax.

7\. The IRS does not want to talk about the Constitutional limits on

taxation, wants to avoid the Bill of Rights all together, because the
IRS is violating this Law of the Land so far with impunity, and
victimizing the

whole Nation since 1913. Subchapter N, Section 861 prove the truth. The

regulations show that the types of income listed in the general
definition of \"gross income\" (such as compensation, interest, rent,
etc.) are in some

situations excluded for federal income tax purposes. The income tax

regulations give a specific list of those types of income which are not
exempt (i.e. which are taxable), and while that list includes income
derived from certain types of international and foreign commerce, the
income of the average American is not listed as being non-exempt (i.e.,
taxable). The IRS fraud must be stopped now.

8\. The Prosecution of Non-Withholding Business Owner Dick Simkanin
endured three grand juries, two trials and a previously suspended
federal judge who:

1\) Denied him the right to present ANY documentary evidence at his
trial ;

2\) Never forced the DOJ to aver, for the record, ANY specific law that
imposed a legal duty to file or withhold taxes from his workers, and

3\) Directed the jury to find him guilty.

Many similar recent sham trials have been prosecuted against innocent

Americans, now in jails. SEE these:

[[http://www.taxableincome.net/reconsider.html]{.underline}](http://www.taxableincome.net/reconsider.html)

9 Treasury Department, the IRS and DOJ have been ignoring the Supreme
Court and congressional mandates since the Brushaber decision in 1916 in

order to perpetuate the \"income\" tax fraud: irrefutable evidence in

support of the People\'s proposition that the Executive has been
deliberately and fraudulently taxing the People in a way that violates
the fundamental law and Supreme Court rulings. The Executive is clearly
prohibited from doing what it is doing - taxing the salaries, wages and
compensation of the working men and women of this country and forcing
the business entities that utilize the labor of ordinary American
citizens to withhold and turn over to the IRS a part of the earnings of
those workers. The income tax laws of the U.S. do not apply to the wages
of ordinary Americans.

10\. EXCELLENT SERVICE? Bush\'s 2006 budget requests an additional \$500

million for IRS ENFORCEMENT activities, above the current \$6.392
billion

for IRS enforcement. This increase will give the IRS vast new resources

to harass and rob Americans.

Secretary of the Treasury John Snow. \"Increasing enforcement not only
catches tax cheats, but discourages others from avoiding paying their
taxes. The IRS is committed to striking a balance between catching those
who would avoid paying and providing excellent service to all
taxpayers.\" \"Enforcement more than pays for itself,\" IRS Commissioner
Mark W. Everson similarly said. \"Particularly in a period of deficit
reduction, funding IRS enforcement is a wise investment.\"

11\. On Monday, February 14, 2005, three days before the President\'s
IRS Tax Reform pannel meeting, each member of the Panel received written
input from the We The People Foundation for Constitutional Education,
including a request for answers to 43 specific questions regarding the
constitutional and statutory authority behind the current direct,
non-apportioned tax on labor. The Foundation advised the Panel members
that there can be no meaningful reform until the government answers
those fundamental questions. The Panel members were respectfully asked
to let the Foundation know if they intended to provide answers. With
placard in hand, Bob Schulze arrived outside the main entrance of the
Reagan Building at 8:30 am. Bob and his sign were on hand for the
duration of the meeting. No representative from the Panel approached Bob
to let him know whether the Panel intended to

answer the Foundation\'s questions. \"More revenue is urgently needed by

the self-anointed ruling class of intellectual, political and financial
elite to support a behemoth, out of control central government with its
addiction to money, power, control and social engineering here at home
and

imperialism abroad,\" said Schulz. \"Unless the working men and women of

America find their voice in the next few months and take serious offense
over the government\'s breach of our most fundamental legal and moral
codes, the yoke of involuntary servitude will be tightened.\"

IRS Tax Panel Seeks Public Comments!

DEADLINE DUE March 18, 2005

At the first public meeting of the President\'s Advisory Panel on
Federal IRS Tax Reform, the Panel announced that as part of its process
of making recommendations on fundamental tax reform it was seeking
comments from the public regarding the current tax system. In its first
request, the Panel is soliciting comments on the following specific
topics: (Quoting from the panel\'s website,
[[www.taxreformpanel.gov]{.underline}](../www.taxreformpanel.gov)) 1.
Headaches, unnecessary complexity, and burdens that taxpayers - both
individuals and businesses - face because of the existing system. 2.
Aspects of the tax system that are unfair. 3. Specific examples of how
the tax code distorts business or personal decisions. 4. Goals that the
Panel should try to achieve as it recommends options for reform. We The
People is encouraging everyone to take a few moments out of your busy
lives and pen an articulate, deliberative note to the Panel with your
comments. Your comments will become part of the public record for reform
or ending the IRS. We urge everyone to consider the significant
consequences of missing this historic opportunity to put before the
Panel, and document for our children\'s National Archives, the most
important matters of constitutional abuse, moral outrage, and concern
for the future of this nation as the Panel ponders whether to continue
to impose upon the People a method of taxation that violates virtually
every Constitutional principle and protection provided by the Bill of
Rights. The time has come to personally Petition the President\'s tax
panel with your Grievances. The DUE DATE for comments is 5 PM, March 18,
2005. WTP strongly urges comments be sent via US Mail with delivery
verification. To facilitate the Advisory Panel\'s consideration and
review, there are two methods by which statements can be submitted.
Please use only one of the methods. 1. Typewritten statements may be
mailed to the panel at: The President\'s Advisory Panel on Federal Tax
Reform 1440 New York Avenue NW Suite 2100 Washington, DC 20220 2. Email
as a MS Word attachment to: comments@taxreformpanel.gov Page Limit - The
Advisory Panel strongly encourages parties to limit their statements to
a maximum length of 5 pages of double-spaced written text in 12 point
font. Identification and Cover Sheet - Each page of the submission
should be clearly marked with the submitter\'s name or organization
name. Each submission should also include a cover page with the
submitter\'s name (and organization if applicable), date of submission,
and contact information (if the submitter chooses to provide it). Each
submission should be clearly marked as originating from one of the
following categories of submitters: Individuals, Business, Government,
or Organizations and Associations.

YES, lets all give the IRS some messages!

aloha, George Peabody editor Molokai Advertiser-News

ph. 558-8253

\-\-\-\-\-\-\-\-\-\-\-\-\-\-\-\-\-\-\-\-\-\-\-\-\-\-\-\-\--KGMB-TV
newscast 3-13-05:

\>\[Anchor:KIM\]

\>{\*\*\*KIM\*\*\*}

\>\[Notes:OTS: TAX TIME\]

\> A WARNING TONIGHT AS TAX TIME DRAWS CLOSER.

\> THE I-R-S SAYS SCAM ARTISTS COULD STAND IN THE WAY OF GETTING YOUR

\>TAXES IN ACCURATELY \-- AND ON TIME.

\> JULIE VALLESE SHOWS US WHAT TO WATCH OUT FOR.

\>\[CG at 0\'01\":Story-Banner\\Tax Scam Warning\\ \]

\>\<CNN NEWSOURCE:TAXES/DIRTY DOZEN TAX SCAMS ITEM: PY-54FR\>

\>

\>\[CG at 0\'13\":2-line Super\\Nancy Jardini\\Chief IRS Criminal

\>Investigation\]

\>

\>Julie Vallese\\Reporting

\>\[Notes:TAPE: #3568@1:24:44\]

\>

\>WHEN IT COMES TO TAXES THERE\'S A LOT OF MONEY FLOATING AROUND. SOME

\>THAT\'S OWED TO THE GOVERNMENT AND SOME THAT\'S OWED TO THE TAX PAYER.

\>AND SOMETHING AS SURE AS DEATH AND TAXES ARE SCAM ARTISTS WANTING IN
ON

\>THE ACTION.

\>

\>\"The IRS is here to help and to insure that tax payers understand
their

\>obligations and understand how to file lawfully.\"

\>

\>ANYONE WHO SAYS OTHERWISE, SAYS THE IRS, IS NOT TELLING THE TRUTH AND

\>MAY BE BEHIND A SCAM. A SCAM INVOLVING RETURN PREPARERS IS THE ONE THE

\>IRS SAYS IT IS MOST CONCERNED ABOUT.

\>

\>\"Any preparer that promises a bigger return or refund than any other

\>preparer, that\'s a danger sign.\"

\>

\>AND THERE ARE OTHERS. THE IRS CALLS THE MOST COMMON SCAMS THE \"DIRTY

\>DOZEN.\" SOME SHOW UP EVERY YEAR. LIKE THOSE WHO ADVISE TAXPAYERS
ABOUT

\>CONSTITUTIONAL

\>RIGHTS SAYING UNDER THE FIFTH OR 16 AMENDMENT - AMERICANS AREN\'T

\>REQUIRED TO PAY TAXES. THE IRS SAYS THAT\'S JUST NOT TRUE. AND IF
YOU\'RE

\>LATE TO PAY, YOU ARE LIABLE, NOT THE PERSON WHO MAY HAVE GIVEN YOU BAD

\>ADVICE.

\>

\>OTHER INCOME TAX SCAMS INVOLVE EITHER THE ESTABLISHMENT OF
ILLEGITIMATE

\>TRUSTS, MOVING MONEY OFFSHORE, OR ESTABLISHING ILLEGITIMATE CHARITABLE

\>INSTITUTIONS

\>THAT FOOL TAX PAYERS ABOUT THEIR TAX LIABILITIES.

\>

\>HERE\'S THE RULE OF THUMB: KEEP YOUR INFORMATION PRIVATE, ONLY SHARE
IT

\>WITH TRUSTED AND LEGITIMATE BUSINESSES AND KEEP IN MIND - INCOME FROM

\>NO MATTER WHAT

\>SOURCE - IS TAXABLE.

\>

\>IN WASHINGTON I\'M JULIE VALLESE.