A free, sovereign American that has applied for a Social Security number has given away all sovereignty and become a “U.S. resident” as defined at 26 USC Sec. 865(g), which includes the definition of “taxpayer” as defined at 26 CFR 2.1-1(a)(5) and the definition of “U.S. citizen” as exemplified at 26 CFR 25.2501-1(c), along with the cite to importing at 26 USC Sec. 911 – please read the first page of this blog to see the actual definitions and link to the Defendant’s Reply (Case # 08-273 WDPA) therein to see the actual laws – statutes and regulations.
The Social Security number is a “U.S. resident’s” partnership number. FICA is a U.S. possession tax (26 USC Sec. 7655) and the possessions are treated as foreign countries (26 USC Sec. 865(i)(3), 26 USC Sec. 872(b)(7), 26 USC 2014(g), etc.). Therefore FICA is a foreign tax.
The basis of filing a personal federal income tax begins at title 26 USC Sec. 901, “Taxes of foreign countries and of possessions of United States”. This section allows a credit of any tax paid to a U.S. possession if the tax is a gross based tax, but not a net based tax (26 USC Sec. 901 (k)(1)(B)). This is to distinguish between FICA, the gross based tax, and the income tax, the net based tax.
Title 26 USC Sec. 902, “Deemed paid credit where domestic corporation owns 10 percent or more of voting stock of foreign corporation”, allows for a domestic corporation to be deemed as paying a percentage of its foreign affiliate’s income taxes, if the domestic corporation received dividends from its foreign affiliate.
Title 26 USC Sec. 901 concerns the dividends that the domestic corporation, as the partnership in the definition of “taxpayer”, has attributed to the individual partners – identified by the Social Security numbers. This dividend is known as a “patronage dividend”, and it includes as its basis a percentage of the income taxes paid by the domestic corporation’s foreign affiliate.
As identified within the Defendant’s Reply linked on page 1 of this blog, a partner is allowed to make the election under title 26 USC 901 individually, see 26 USC Sec. 901(m)(2) which cites to 26 USC 703(b).
So by filing an IRS Form 1040, an individual is taking a foreign tax credit against his partnership self-employment earnings, which includes his patronage dividend. This dividend is not distributed, so the individual never knows about this foreign tax credit.
If the individual fails to file an IRS Form 1040, then the individual has taken a credit that the individual is not eligible to take – the offsetting foreign tax credit of FICA. So under title 26 USC Sec. 901(m)(4) the individual is cited to 26 USC Sec. 6038, “Information reporting with respect to certain foreign corporations and partnerships”, for a reduction of credit for failing to file his partnership earnings.
Title 26 USC Sec. 6038(a)(4) is the requirement that all individuals treated as “shareholders” having income (under subpart F of part III of subchapter N of chapter 1) must file a return. The income from subpart F of part III of subchapter N of chapter 1 is revenue from the collection of duties on importing within the jurisdiction of the internal revenue laws. This income is what makes a person liable for the income tax.
Title 26 USC Sec. 6038(f)(1) is the cite to 26 USC Sec. 7203 for provisions for violating 26 USC Sec. 6038. Title 26 USC Sec. 7203 is “Willful failure to file return, supply information, or pay tax”.
So a charge of failure to file is not for the failure to file income taxes because of simply earning income per se, it is for failing to file partnership earnings, which include a patronage dividend based upon revenue from importing duties within the jurisdiction of the internal revenue laws, and taking a foreign tax credit that the individual is not allowed to take without filing.
The income tax only applies to collectors/assessors of internal revenue taxes (Act of Congress approved on August 5, 1861, in sections 49 through 51). The patronage dividend is based upon income taxes paid by the foreign affiliate of the domestic corporation, which itself is the “taxpayer” (the agreement made by the “American employer” under title 26 USC Sec. 3121(l)). Once the patronage dividend is attributed to the individual partner, then that individual is subject to the income tax. A partnership does not pay income taxes, but instead, the partners are liable to file for their proportionate share of the profits or losses (26 USC Sec. 701).
Now title 26 USC Sec. 7203 is within subtitle F, “Procedure and Administration”. Within subtitle F is 26 USC Sec. 7701, “Definitions”. At 26 USC Sec. 7701(a)(28) , “Other terms”, it states that any term used in this subtitle shall have the same meaning as in any other subtitle. So the definitions of the terms “taxpayer”, “U.S. citizen”, and “U.S. resident” have the same meaning here as elsewhere in the Code.
However, at first glance, title 26 USC Sec. 7203 doesn’t use any of the above terms. It simply states “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…”. But within 26 USC Sec. 7203 are the cites to 26 USC Sec. 6654 and 26 USC Sec. 6655. These two sections include all of the terms required to define the income tax – Sec. 6654 is for individuals and Sec. 6655 is for corporations. Within Sec. 6654 are all of the following references and terms: chapter 1 (income tax), chapter 2 (self-employment tax), “taxpayer”, “citizen of the United States”, “resident of the United States”, “gross income”, “taxable income”, “self-employment income”, “the Secretary”, and “regulations”. The “any person” cited at the beginning of 26 USC Sec. 7203 is a “U.S. person” and it is defined also under 26 USC Sec. 7701 at (a)(30) as a citizen of the United States, a resident of the United States, a domestic partnership, a domestic corporation, an estate, or a trust. So the charge of violation of 26 USC Sec. 7203 of willful failure contains all of the necessary terms of the charge (imported from sections 6654 and 6655) without anyone realizing exactly what the charge is, making it appear that the simple act of earning money is somehow under federal jurisdiction. However, since the Declaration of Independence is the organic law of the land, superceding the Constitution and the Articles of Confederation, and it states that “all men are created equal”, no individual or group may own any other individual or group. The bottom line is that the Social Security fraud, leading to the enslavement of sovereign Americans, was the only way that the federal government could subvert the phrase “all men are created equal”. The federal government, and its owners, the international counterfeiters (Federal Reserve Board), know that they have no jurisdiction over sovereign Americans and have resorted to the most malevolent fraud in history.