Which statute requires who to file? Did I make income? If so, by whose definition?
If the IRS and its agents and the courts are confused about the tax laws, how can anyone then be held accountable? To wit:
As the IRS claimed
and the Tax Court affirmed,
“The IRS admitted that it made errors in applying its own code and regulations. The Tax Court’s finding that the IRS was excused because its own regulations were “complex” was an abuse of
discretion.” (see 9th Circuit Appeals Court case, McKee v. Commissioner of the Internal Revenue, No. 04-74846, IRS No.. 4036-03).
The tax Code contains “language so complicated and circumambient that neither Solomon nor all the wise men of the East could understand it or interpret it.” - Senator Alben W. Barkley, Senate Majority Leader, Congressional Record, 78th Congress, 2nd Session, Vol. 90, Part 2, February 23, 1944,
page 1965
“I guess you will have to go to jail. If that is the result of not understanding the Income Tax Law I shall meet you there. We shall have a merry, merry time, for all of our friends will be there. It will be an intellectual center, for
no one understands the Income Tax Law except persons who have not sufficient intelligence to understand the questions that arise under it.” In 1913, a debate on the Senate floor, regarding the first income tax act under the 16th Amendment was held. Senator Elihu Root commented about the complexity of the tax laws.
THE KEY PHRASE
Title 26 USC § 6012, states that every person
liable for any income (internal revenue) tax must file a return or statement as provided by law. For the reasons stated herein, I believe that I am not liable for any internal revenue income tax or filing requirement. However, people file a statement in
order to avoid ambiguity or confusion regarding any filing requirement and status as well as to avoid any possible sanctions for failure to file, which in many instances have dug a deeper hole to climb out of.
If I am incorrect in this
understanding, I ask that you immediately inform me of any mistake and identify the Form or Statement that I am required to file, if any.
Return. - The term “return” includes any return, statement, schedule, or list, and any amendment or supplement thereto, filed with respect to any tax imposed by Subtitle A or B, or
chapter 41, 42, 43, or 44. This Statement complies with all legal requirements and is a statement or return within the meaning of 26 USC §§ 6011, 6012 and 6213(g):
The question as to which statute controls a duty to file an income tax return is the
subject of many judicial disputes by the top legal minds of this country as evidenced by the following:
In Commissioner v. Lane-Wells Co., 321 U.S. 219, 222, 64 S.Ct. 511, 513 (1944), the Court noted that section 54 of the 1939 Internal
Revenue Code, the predecessor for Internal Revenue Code § 6001, related to the filing requirement; see also Updike v. United States, 8 F.2d 913, 915 (8th Cir. 1925). In True v. United States, 354 F.2d 323, 324 (Ct.Cl. 1965), United States v. Carlson, 260 F.Supp. 423, 425 (E.D.N.Y. 1966), White v. Commissioner, 72 U.S.T.C. 1126, 1129 (1979), McCaskill v. Commissioner, 77 U.S.T.C. 689, 698 (1981), Counts v. Commissioner, 774 F.2d 426, 427 (11th Cir.
1985), Blount v. Commissioner, 86 U.S.T.C. 383, 386 (1986), and Beard v. Commissioner, 793 F.2d 139 (6th Cir. 1986), these courts held that Internal Revenue Code § 6011 related to the filing requirement. In United States v. Moore, 627 F.2d 830, 834 (7th Cir. 1980), United States v. Dawes, 951 F.2d 1189, 1192, n. 3 (10th Cir. 1991), and United States v. Hicks, 947 F.2d 1356, 1360 (9th Cir. 1991), those courts held that Internal Revenue Code §§ 6011 and 6012
governed this duty. In contrast, the cases of Steinbrecher v. Commissioner, 712 F.2d 195, 198 (5th Cir. 1983), United States v. Bowers, 920 F.2d 220, 222 (4th Cir. 1990), and United States v. Neff, 954 F.2d 698, 699 (11th Cir. 1992), held that only section 6012 governed this duty. But in United States v. Pilcher, 672 F.2d 875, 877 (11th Cir. 1982), none of the above sections were mentioned and it was held that §7203 required returns to be filed. It is apparent
that there exists an extreme vicissitude of opinion in the federal courts regarding which statutes govern the requirement to file income tax returns.
If the Federal District Courts, Tax Court, Court of Claims and the Supreme Court cannot definitively decide
the fundamental question as to which section of the Internal Revenue Code requires the filing of an income tax return, whether the tax imposed is an excise or a direct tax, it is obvious that the average American, not educated in the law, will have great difficulty in understanding the tax imposed and this basic question on filing requirements, the species of the tax, among many other questions.
Since the courts are so deeply split over this issue, how can anyone understand the law in an atmosphere of judicial incertitude? Due process requires that the law be such that the duty imposed is unambiguous and those subject to it are able to understand the law. This is not the case with Title 26 USC or 26 CFR implementing
regulations.
The term "income" is not defined in Title 26, Internal Revenue Code; see United States v. Ballard, 535 F.2d 400, 404 (8th Cir. 1976).
However, the Secretary defines “Income”, in part. To wit:
§ 1.643(b)-1
Definition of income.
For purposes of subparts A through D, part I, subchapter J, chapter 1 of the Internal Revenue Code, “income,” when not preceded by the words “taxable,” “distributable net,” “undistributed net,” or “gross,” means the amount of income of an estate or trust for the taxable year determined under the terms of the governing instrument and applicable local law*. Trust provisions that depart fundamentally from traditional principles of income and principal will generally not be recognized. For example, if a trust instrument directs that all the trust income shall be paid to the income
beneficiary but defines ordinary dividends and interest as principal, the trust will not be considered one that under its governing instrument is required to distribute all its income currently for purposes of section 642(b) (relating to the personal exemption) and section 651 (relating to simple trusts)….
*Remember now what the W-2 and the W-9 forms are for? Gift and Estate Tax!
