Look at your Tax Lien

Many of us may have been wrong about the meaning behind this "1040". The "1040" that appears on the IRS' Notice of Lien for the type of tax does not pertain to Form 1040; it may pertain to Section 1040 of the tax code. If you look under Subtitle A of Title 26 there is, lo and behold, a Section 1040. Here is what it says:

Section 1040 - Transfer of certain farm, etc. real property

If the executor of the estate of any decedent transfers to a qualified heir (within the meaning of section 2032A(e)(1)) any property with respect to which an election was made under section 2032A, then gain on such transfer shall be recognized to the estate only to the extent that, on the date of such transfer, the fair market value of such property exceeds the value of such property for purposes of chapter 11 (determined without regard to section 2032A)

When you go to Section 2032A it says "valuation of certain farm, etc. real property" like Section 1040 does, but now an important change takes place. Instead of talking about something under Subtitle A of the tax code, it is talking about something under Subtitle B of the tax code. Well, Subtitle B pertains to estate and gift taxes, not income taxes.

Section 2032A - Valuation of certain farm, etc. real property

(a)Value based on use under which property qualifies

(1)General rule If—

(A) the decedent was (at the time of his death) a citizen or resident of the United States, and

(B) the executor elects the application of this section and files the agreement referred to in subsection (d)(2),

then, for purposes of this chapter, the value of qualified real property shall be its value for the use under which it qualifies, under subsection (b), as qualified real property.

What this all means is, the 1040 listed as the "type of tax" on the IRS' Notice of Lien is not referencing a Subtitle A income tax; it is referencing a Subtitle B estate tax. When you go to Sections 2001 & 2002 of the tax code under Subtitle B it talks about two things: the imposition of an estate tax and the liability for its payment by the executor.

26 U.S. Code § 2001 - Imposition and rate of tax

(a) Imposition

A tax is hereby imposed on the transfer of the taxable estate of every decedent who is a citizen or resident of the United States.

26 U.S. Code § 2002 - Liability for payment

The tax imposed by this chapter shall be paid by the executor.

As you can begin to understand as it unfolds is that the Notice of Federal Tax Lien is on an alleged estate and they consider you as an executor of the estate. Since an estate tax is imposed upon an executor under Section 1040 of the tax code they consider you liable to pay it. The interesting thing is, in order for you to become the executor of an estate, somebody has to die. This revelation shows us how the IRS has tricked us again. They have misled people into thinking that their Notice of Lien pertains to some kind of Form 1040 tax; yet in reality, it pertains to a Section 1040 tax described under Section 2032A of the tax code. That is an estate tax that has nothing to do with Subtitle A income taxes.

Now let’s look examine the 6209 Manual the IRS Decoder

Here is the link that will take you to 2016:

https://www.irs.gov/privacy-disclosure/2016-document-6209-adp-and-idrs-information

 “Kind of Tax”.  I want to note here that “KIND” is a word interchangeable with “CLASS”, see “The Synonym Finder, J.I. Rodale, ISBN 0-446-37029-0, at page 626 Kind, n 1. “Class”; this distinction is very important.

Talk about smoke and mirrors see this.

Who died a left me as an executor?

When did that event happen?

Who was the decedent?

DEFINITIONS:

United States 26 USC § 7701(a)(9)

(9)The term “United States” when used in a geographical sense includes only the States [Federal area] and the District of Columbia.

executor 26 USC § 2203

The term “executor” wherever it is used in this title in connection with the estate tax imposed by this chapter means the executor or administrator of the decedent, or, if there is no executor or administrator appointed, qualified, and acting within the United States, then any person in actual or constructive possession of any property of the decedent.

qualified real property 26 USC § 2032A(b)(1)

(1)For purposes of this section, the term “qualified real property” means real property located in the United States which was acquired from or passed from the decedent to a qualified heir of the decedent and which, on the date of the decedent’s death, was being used for a qualified use by the decedent or a member of the decedent’s family, but only if— (A)50 percent or more of the adjusted value of the gross estate consists of the adjusted value of real or personal property which— (i)on the date of the decedent’s death, was being used for a qualified use by the decedent or a member of the decedent’s family, and (ii)was acquired from or passed from the decedent to a qualified heir of the decedent. (B)25 percent or more of the adjusted value of the gross estate consists of the adjusted value of real property which meets the requirements of subparagraphs (A)(ii) and (C), (C)during the 8-year period ending on the date of the decedent’s death there have been periods aggregating 5 years or more during which— (i)such real property was owned by the decedent or a member of the decedent’s family and used for a qualified use by the decedent or a member of the decedent’s family, and (ii)there was material participation by the decedent or a member of the decedent’s family in the operation of the farm or other business, and (D)such real property is designated in the agreement referred to in subsection (d)(2).