home
***
CD-ROM
|
disk
|
FTP
|
other
***
search
/
Software Vault: The Gold Collection
/
Software Vault - The Gold Collection (American Databankers) (1993).ISO
/
cdr20
/
fedzone.zip
/
CHAPTER9.TXT
< prev
next >
Wrap
Text File
|
1993-01-21
|
23KB
|
485 lines
Chapter 9:
The Law of Presumption
A nonresident alien who has filed one or more Forms 1040 in
the past is presumed by the IRS to be an individual who was
required to file those forms. The filed forms entitle the IRS to
presume that this individual either was required to file, or
elected to be treated as one who is required to file. Such a
requirement would be triggered by changing to resident status,
changing to citizen status, and/or opting to derive income from a
source inside the federal zone (like federal employment).
Accordingly, the IRS is entitled to presume that this nonresident
alien has "volunteered" to become a "taxpayer", that is, a person
who is subject to an internal revenue tax. Quite apart from the
day-to-day assumptions we all make about life in general, the
term "presumption" has a very special meaning in law. A
presumption in law is a logical inference which is made in favor
of a particular fact. The Uniform Commercial Code (UCC) defines
"presumption" and "presumed" as follows:
"Presumption" or "presumed" means that the trier of fact
must find the existence of the fact presumed unless and
until evidence is introduced which would support a finding
of its nonexistence.
[UCC 1-201 (31)]
Black's Law Dictionary, Sixth Edition, defines "presumption" as
follows:
A presumption is a rule of law, statutory or judicial, by
which finding of a basic fact gives rise to existence of
presumed fact, until presumption is rebutted. ... A legal
device which operates in the absence of other proof to
require that certain inferences be drawn from the available
evidence.
There are, in law, two different and directly opposite kinds
of presumptions: a conclusive presumption and a rebuttable
presumption. A conclusive presumption is one for which proof is
available to render some fact so "conclusive", it cannot be
rebutted. To "rebut" a fact is to expose it as false, to
disprove it. Thus, a "rebuttable fact" is one which can be
disproven and exposed as false. In other words, a rebuttable
fact is a lawyer's way of describing a fact that is not a fact.
(1984 was a long time ago; the book is even older than that.)
The opposite kind of presumption is a rebuttable presumption. A
rebuttable presumption is a one that can be overturned or
disproven by showing sufficient proof. We are interested
primarily in this second type of presumptions -- rebuttable
presumptions -- because the Code of Federal Regulations makes
explicit certain presumptions about nonresident aliens. The
regulations have this to say about the proof of alien residence:
Page 9 - 1 of 8
The Federal Zone:
Proof of residence of aliens.
(a) Rules of evidence. The following rules of evidence
shall govern in determining whether or not an alien
within the United States** has acquired residence
therein for purposes of the income tax.
(b) Nonresidence presumed. An alien by reason of his
alienage, is presumed to be a nonresident alien.
[26 CFR 1.871-4]
[emphasis added]
The regulations are very clear about a key presumption which
the IRS does make about aliens. Because of their "alienage",
that is, because of their status as aliens in the first place,
all aliens are presumed by Treasury regulations to be nonresident
aliens. This presumption is built into the law, because the Code
of Federal Regulations is considered to have the force of law.
(The CFR is judicially noticed, and courts have ruled that the
CFR is a supplement to the published Federal Register, which puts
the general public on actual notice too.) This presumption is
not a conclusive presumption, however; it is a rebuttable
presumption. The regulations establish the rules by which this
presumption can be rebutted or disproven, as follows:
Other aliens. In the case of other [not departing] aliens,
the presumption as to the alien's nonresidence may be
overcome by proof --
(i) That the alien has filed a declaration of his intention
to become a citizen of the United States** under the
naturalization laws; or
(ii) That the alien has filed Form 1078 or its equivalent;
or
(iii) Of acts and statements of the alien showing a definite
intention to acquire residence in the United States**
or showing that his stay in the United States** has
been of such an extended nature as to constitute him a
resident.
[26 CFR 1.871-4]
Filing a declaration of intent to become a U.S.** citizen
will "rebut the presumption". Acts or statements by aliens
showing a definite intent to acquire residence will also "rebut
the presumption". Form 1078 is a Certificate of Alien Claiming
Residence in the United States**. The IRS Printed Product
Catalog describes this form as follows:
Page 9 - 2 of 8
The Law of Presumption
1078 171951 (Each)
Certificate of Alien Claiming Residence in the United States
Who May File. A resident alien may file the original and
one copy of this certificate with the withholding agent to
claim the benefit of U.S.** residence for income tax
purposes. (A withholding agent is responsible for
withholding tax from your income.) D:RF:F Tax Form or
Instruction
[page 10, emphasis added]
Notice, in particular, the explicit reference to "the
benefit of U.S.** residence for income tax purposes". What are
the benefits of U.S.** residence for income tax purposes?
Recall, from the previous chapter, the "benefits" of being under
the protection of Congress and thereby subject to its exclusive
jurisdiction. The actual scope of Social Security, for example,
is limited to the federal zone, except for those outside the zone
who wish to partake of its "benefits" voluntarily. Under the law
of presumption, your use of a social security number can be seen
by the federal government as proof that you have opted to obtain
benefits from the federal zone. Form 1078 is likewise ready-made
for those who begin as nonresident aliens, but later opt to
declare themselves "resident" in the United States** in order to
claim the benefit of that "residence". Simply stated, Form 1078
declares a nonresident alien to be a "resident" for income tax
purposes. It moves nonresident aliens out of the square at row
2/column 2 in The Matrix, and into the square at row 1/column 2.
There are other ways by which the presumed nonresidence of
aliens can be rebutted, or disproven, thereby moving their four-
square checkers into a square that is within the federal zone.
The regulations make reference to Form 1078 or its equivalent.
(Try to find a definition of the term "equivalent" in the statute
or its regulations.) If nonresident aliens sign a Form W-4, for
example, they are presumed to be government employees with income
from a source inside the federal zone. Employers are to treat
all employees as "residents" and to withhold pay as if the
employers have not been instructed otherwise.
Notice how the presumption has shifted. Contrary to the
regulations at 26 CFR 1.871-4 (quoted above), employers are told
by the IRS to make the opposite "presumption" about the residence
of their employees, even if they are not true "employees" as that
term is defined in Title 26. If individuals have W-4 and W-2
forms, the presumption is that they were either required to sign
these forms, or they have made elections to be treated as
residents. Recall that the instructions for Form 1040NR describe
the "election to be taxed as a resident alien". This is
accomplished by filing an income tax return on Form 1040 or
1040A, and attaching a statement confirming the "election".
Page 9 - 3 of 8
The Federal Zone:
An extremely subtle indicator of one's status is the perjury
oath which is found on IRS forms. Under Title 28 of the U.S.**
Codes, Section 1746, there are two different perjury oaths to
which penalties attach: one within the United States**, and one
without the United States** (see Appendix R for the precise
wording of 28 USC 1746). If an oath is executed without the
United States**, it reads, "I declare ... under the laws of the
United States of America." If an oath is executed within the
United States**, it reads, "I declare ... that the foregoing is
true and correct." Thus, your signature under the latter oath
can be presumed to mean that you are already subject to the
jurisdiction of the United States**. This latter oath is the one
found on IRS Form 1040.
It should be clear by now that the IRS may well be making
presumptions about your status which are, in fact, not correct.
If an original presumption of nonresidence has been rebutted, for
example, because a nonresident alien filed one or more 1040 forms
in the past, the filed forms do not cast the situation into
concrete. The IRS is entitled to formulate a presumption from
these filed forms, but this presumption is also rebuttable. If
you filed under the mistaken belief that you were required to
file, that mistaken belief, in and of itself, does not suddenly
turn you into a person who is required to file. Tax liability is
not a matter of belief; it is a matter that arises from status
and jurisdiction.
The best approach is to "clean the slate". In other words,
clear the administrative record of any written documents which
may have been filed in error, or in the mistaken belief that the
filer was required. In Appendix F of this book, there is an
Affidavit of Revocation which can be used to clean the slate.
This affidavit is not meant to be a document with universal
application, because everyone's situation is different. For
example, the affidavit makes certain statements about the laws
and regulations which have been studied by the individual who
signs it. Not everyone has read these same laws and regulations.
The affidavit does, however, cover a wide range of factual
matters which will serve to educate the reader about the
constructive fraud which Congress and other federal officials
have perpetrated on the American people. Various qualified
organizations are now available to assist individuals with the
procedure for executing this affidavit, filing it with a County
Recorder, and serving it on the appropriate government officials.
The Save-A-Patriot Fellowship in Maryland is one such
organization. Their address is in the list of organizations
found in Appendix M of this book.
Now, let's have a little fun with this law of presumption,
as it is called. The law works both ways. This means that you
can use it to your advantage as well as anyone else can. One of
the most surprising and fascinating discoveries made by the
freedom movement in America concerns the bank signature card. If
you have a checking or savings account at a bank, you may
Page 9 - 4 of 8
The Law of Presumption
remember being asked by the bank officer to sign your name on
several documents when you opened that account. One of these
documents was the bank signature card. You may have been told
that the bank needed your signature in order to compare it with
the signatures that would be found on the checks you write, to
detect forgeries. That explanation sounded reasonable, so you
signed your name on the card.
What the bank officer probably did not tell you was that you
signed your name on a contract whereby you agreed to abide by all
rules and regulations of the Secretary of the Treasury. You see,
bank signature cards typically contain such a clause in the fine
print. These rules and regulations include, but are not limited
to Title 26 (all 2,000 pages of it) and the Code of Federal
Regulations for Title 26 (all 6,000 pages of it). These rules
may also include every last word of the Federal Reserve Act,
another gigantic statute. Now, did the bank have all 8,000 pages
of Title 26 and its regulations on exhibit for you to examine
upon request, before you signed the card? Your bank should be
willing, at the very least, to identify clearly what rules and
regulations adhere to your signature.
You are presumed to be a person who knows how to read, and
who knows how to read a contract before signing your name to it.
Once your signature is on the contract, the federal government is
entitled to presume that you knew what you were doing when you
signed this contract. Their presumption is that you entered into
this contract knowingly, voluntarily, and intentionally. Why?
Because your signature is on the contract. That's why. Is this
presumption rebuttable? You bet it is. Here's why:
Instead of telling you that the bank needed your signature
to catch forgeries, imagine that the bank officer described the
signature card as follows:
Your signature on this card will create a contract
relationship between you and the Secretary of the Treasury.
This Secretary is not the U.S. Secretary of the Treasury,
because the U.S. Treasury Department was bankrupted in the
year 1933. The Treasury Department referred to on this card
is a private corporation which has been set up to enforce
private rules and regulations. These rules and regulations
have been established to discharge the bankruptcy of the
federal government. Your signature on this card will be
understood to mean that you are volunteering to subject
yourself to a foreign jurisdiction, a municipal corporation
known as the District of Columbia and its private offspring,
the Federal Reserve system. You accept the benefits of
limited liability offered to you by this corporation for
using their commercial paper, Federal Reserve Notes, to
discharge your own debts without the need for gold or
silver.
[continued ... ]
Page 9 - 5 of 8
The Federal Zone:
By accepting these benefits, you are admitting to the waiver
of all rights guaranteed to you by the Constitution for the
United States of America, because that Constitution cannot
impair any obligations in the contract you will enter by
signing this card. Your waiver of these rights will be
presumed to be voluntary and as a result of knowingly
intelligent acts done with sufficient awareness of the
relevant circumstances and consequences, as explained by the
Supreme Court in the case of Brady vs U.S. With your
signature on this card, the Internal Revenue Service, a
collection agency for the Federal Reserve system, will be
authorized to attach levies against any and all of your
account balances in order to satisfy any unpaid liabilities
which the IRS determines to exist. You will waive all
rights against self-incrimination. You will not be entitled
to due process in federal administrative tribunals, where
the U.S. Constitution cannot be invoked to protect you.
Your home, papers and effects will not be secured against
search and seizure. Now, please sign this card.
How does the law of presumption help you in this situation?
First of all, you presumed that your signature was required, to
compare it with the signatures on checks you planned to write.
This was a reasonable presumption, because that's what the bank
officer told you, but it is also a rebuttable presumption,
because of what the fine print says. That fine print can be used
to rebut, or disprove, your presumption when push comes to shove
in a court of law. The federal government is entitled to presume
that you knew what you were doing when you signed this contract.
Well, did you? Did the bank officer explain all the terms and
conditions attached thereto, as explained above? Did you read
all 8,000 pages of law and regulations before deciding to sign
this contract? Did you even know they existed? Was your
signature on this contract a voluntary, intentional and knowingly
intelligent act done with sufficient awareness of all its
relevant consequences and circumstances? The Supreme Court has
stated clearly that:
Waivers of Constitutional Rights not only must be voluntary,
but must be knowingly intelligent acts done with sufficient
awareness of the relevant circumstances and likely
consequences.
[Brady vs United States, 397 U.S. 742, 748 (1970)]
Fortunately, the federal government's presumption about you
is also rebuttable. Why? Because the feds are guilty of fraud,
among other reasons, by not disclosing the nature of the
bankruptcy which they are using to envelope the American people,
like an octopus with a suction tentacle in everybody's wallet,
adults and children alike. The banks become an unwitting party
Page 9 - 6 of 8
The Law of Presumption
to this fraud because the Congress has obtained a controlling
interest in the banks through the Federal Deposit Insurance
Corporation and their traffic in Federal Reserve Notes and other
commercial paper issued by the Federal Reserve banks, with the
help of their agent, the private Treasury Department.
Social Security is another example. Your signature on the
original application for Social Security, the SS-5 Form, is
presumed by the federal government to mean that you knew what you
were getting into, namely, that you knew it was voluntary, that
you knew it wasn't an insurance program, that you knew it was a
tax, and that you knew it would render you a subject of the
Congress because you knowingly, intentionally and voluntarily
chose to accept the "benefits" of this government program. Now
ask yourself the 64,000 dollar questions: How could you have
known any of these things, if nobody told you? How could you
have known, if the real truth was systematically kept from you?
How could you have known, if all applicable terms and conditions
were not disclosed to you before you joined the program? And how
could you have made a capable, adult decision in this matter when
you signed the form as a minor, or your parents signed it for
you? The answers to these questions are all the same: there is
just no way.
For the record, Black's Law Dictionary, Sixth Edition,
defines "fraud" as follows:
An intentional perversion of truth for the purpose of
inducing another in reliance upon it to part with some
valuable thing belonging to him or to surrender a legal
right. A false representation of a matter of fact, whether
by words or by conduct, by false or misleading allegations,
or by concealment of that which should have been disclosed,
which deceives and is intended to deceive another so that he
shall act upon it to his legal injury.
[emphasis added]
The law with respect to fraud is crystal clear. "Constructive
fraud as well as actual fraud may be the basis of cancellation of
an instrument." El Paso Natural Gas Co. vs Kysar Insurance Co.,
605 Pacific 2d. 240 (1979).
How do you reverse these ominous presumptions which the
federal government is entitled to make about the "contract" you
signed at your friendly local bank, or the "contract" you signed
to apply for Social Security? Spend some time to read carefully
the Affidavit found in Appendix F of this book. This Affidavit
is normally served on the Secretary of the Treasury. You might
also be motivated to obtain and study some of the other books
listed in the Bibliography (Appendix N) and/or to join some of
the organizations listed in Appendix M. The situation is a
serious one, but knowledge can help to set you free. It is
better to light a candle than to curse the darkness. And light
always drives out darkness; darkness never drives out light.
Page 9 - 7 of 8
The Federal Zone:
Reader's Notes:
Page 9 - 8 of 8
