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Notice of Federal Tax Lien 668Y

Response to 668-Y

Internal Revenue Service

Location

From:

This is in response to your Notice of Federal Tax Lien under Internal Revenue Laws.  It is not very comforting to know that the IRS is governed by Title 26 of the United States Code, a non-positive law known as "prima facie" law.  I picked up this information when I went to the law library and found that many of the Code Titles have not been enacted into positive law. 

Naturally, I didn't stop there, because I am curious to find out what underlying positive law the IRS Code relies upon.  I found that all laws in all of the titles not codified as positive law receive their authority from the United States Statutes at Large which have been codified in the United States Code of Federal Regulations.  Of course, I'm sure you know this.

I'm sure this lien must be a mistake, but your "Notice of Federal Tax Lien Under Internal Revenue Laws, form 668 (Y)" you sent to me claims its authority "as provided by sections 6321, 6322, and 6323 of the Internal Revenue Code." Please take the time to notice for yourself that Sections 6323 and 6322 refer only to Section 6321.  And Section 6321 gets its "rule making authority" from Title 27, Part 70.

If you will please refer to the Internal Revenue Manual - Administration, 1111.5(7), it states:

(a) Alcohol and Tobacco Tax Division renamed Alcohol, Tobacco and Firearms Division

Then at 1111.6(2), it states:

(2)  Effective in 1972:

(a) Alcohol, Tobacco and Firearms activity transferred to Department of the Treasury as a separate bureau...

This is important because in the same Internal Revenue Manual - Administration at 1112.41 (8­15-90) it declares:

The mission of district offices is to administer the internal revenue laws (except those relating to alcohol, tobacco and firearms) within a Geographically defined internal revenue district and to provide services to, and contact with, taxpayers.

In title 27 just above para 70.1, it gives a list of the sections of Title 26 the Bureau of Alcohol, Tobacco and firearms claims as their authority source.  Among them is Section 6321 of Title 26. 

I am sure you know that Title 27 has nothing to do with Title 26 Part I (Income Tax).  Title 27 CFR Part 70 is involved only with Alcohol, Tobacco Products and Firearms.  Therefore, form 668(Y) can only be used by the Bureau of Alcohol, Tobacco and Firearms.

The Code of Federal Regulations is a codification of the Federal Register (USC 44 15 1 0) and "the contents of the Federal Register shall be judicially noticed and without prejudice to any other mode of citation..." (USC 44, 1507).

Now, if we go to 27 CFR 70:

Subpart A – Scope

70.1 General

This part set forth the procedural and administrative rules of the Bureau of Alcohol, Tobacco and Firearms for:

(a) the issuance and enforcement of summonses, examination of books of account and witnesses, administration of oaths, entry of premises for examination of taxable objects, granting, of rewards for information, canvas of regions for taxable objects and persons, and authority of ATF officers.  Are you an ATF officer, or do you work for the BATF?

I can find no where in 27 CFR 70 where it refers to IRS, IRS Agent, District Director, Form 668(Y), or Chief, Collection Branch.  In fact, I find the following definitions:

ATF officer, to mean an officer or employee of the Bureau of Alcohol, Tobacco and Firearms (ATF) authorized to perform any function relating to the administration or enforcement of this part;

Bureau to mean The Bureau of Alcohol, Tobacco and Firearms, Department of the Treasury, Washington, D.C. 20226;

Chief, Tax Processing Center, the ATF officer principally responsible for administrating regulations in this part concerning special occupation tax and also responsible for filing tax liens and issuing third party levies, and for disbursing money due to taxpayers under the provisions 26 U.S. C. enforced and administered by the Bureau.

"Notice of Federal Tax Lien Under Internal Revenue Laws" is mentioned in 27 CFR 70.144 (c) as ATF Form 5651.2. Where does it mention Form 668(Y) either in the IRC or the CFR? 

The ability to tax is given to Congress by the Constitution of the United States.  The IRS does not have the ability to impose taxes, only carry out rules and regulations passed by Congress.  The Internal Revenue Service does not have the power to tax.  Rather, it is responsible for administering and enforcing the internal Revenue laws and related statutes which have been passed by Congress. (Congressional Research Services, 1988)

Federal income tax is an indirect excise tax authorized under Article I, Section 8, Clause I of the Constitution, as amended by the Sixteenth Amendment to the Constitution.  Excise taxes are imposed on taxable activities.

A person's activities can be classified in two categories:

1.  Activities which are taxable for revenue purposes.

2.  Activities which only involve the exercise of constitutionally guaranteed rights, such as earning one's living by engaging in lawful, innocent and harmless activities.

Realizing the importance of making a distinction between these two types of activities is because, as the U.S. Supreme Court said:

"A state may not impose a charge for the enjoyment of a right granted by the Federal Constitution." Murdock v. Pennsylvania, 319 19 U.S. 105, at page 113. (1943)

Another reason you will realize the importance of making this distinction is because, as the Oregon Supreme Court said:

"The individual, unlike the corporation cannot be taxed for the mere privilege of existing.  The corporation is an artificial entity which owes its existence and charter powers to the state; but the individual's fight to live and own property are natural fights for the enjoyment of which an EXCISE cannot be imposed." Redfield v- Fisher, 292 P. 8 1 at page 819. (193 0) (Emphasis added)

The only person who can be subject to such indirect taxes, and thus be a "taxpayer" as defined, is one who is involved in taxable events or products.  So when the Internal Revenue Code imposes a tax on "taxable income" (see 26 U. S.C. 1), it is imposing a tax on the taxable events.

In fact, that the courts have ruled:

L)iability for taxation must clearly appear.  Higley v. C.I.R., 69 F. 2d 160 at 162-163 (8th Cir. 1943);

and,

reasonable construction of the taxing statutes does not include vesting any tax official with absolute power of assessment against individuals not specified in the states as persons liable for the tax without an opportunity for judicial review of this status before appellation of "taxpayer" is bestowed upon them and their property is seized and sold.  A fortiori is the case where the liability is asserted by way of a penalty for a willful act.  Botta v. Scanlon, 288 F. 2d 504, (2nd Cir. 1961)

Therefore, the only person who can be subject to or liable for such a tax is one who is involved in a taxable event.  There are many ways a person can be involved with a taxable event.  Here are four examples:

1. Be employed by the Federal Government.

SALARIES AND PAY OF OFFICERS AND PERSONS IN THE SERVICE OF THE UNITED STATES And be it further enacted, That on and after the first day of August, eighteen hundred and sixty-two, there shall be levied, collected, and paid on all salaries of officers, or payments to persons in the civil, military, naval, or other employment or service of the United States, including senators and representatives and delegates in Congress, when exceeding the rate of six hundred dollars per annum, a duty of three percent on the excess above six hundred dollars...... (37th Con Ch. 119, 12Stat. 472.  Sec 86)

2.  Be involved with the production of taxable commodities.

"Your income tax is 100 percent voluntary tax and your liquor tax is 100 percent enforced tax.  Now, the situation is as different as day and night.  Consequently, your same rules just will not apply." (Internal Revenue Investigation - Subcommittee of the Committee on Ways and Means, House of Representatives, 8 rd Congress, March, 1983.

3.  Be a corporation:

"The individual, unlike the corporation cannot be taxed for the mere privilege of existing.  The corporation is an artificial entity which owes its existence and charter powers to the state; but the individual's right to live and own property are natural rights for the enjoyment of which an EXCISE cannot be imposed." Redfield v. Fisher, 292 P. 813, at page 819. (19' )O) (Emphasis added)

4.  Volunteer to donate or pay taxes by filling out a 1040 Form.

The Mission of the Service is to encourage and achieve the highest possible degree of volume compliance with the tax laws and regulations and to maintain the highest degree of public confidence in the integrity of the Service.(Donald C. Alexander, Commissioner of Internal Revenue,1974)

The I.R. Code book does not make anybody "liable".  It only explains how The Secretary of the Treasury should react to one who is "Made Liable" by being involved with a taxable event. 

The Code does not make any individual liable for any so-called "income" tax, except the withholding agent who is liable for any tax he is required to withhold, whatever that might be. See 26 U.S.C. 7701 (a) (16)

In contrast, liability clearly appears in respect to the activities relating to distilled spirits and

tobacco products.

(a) GENERAL. -- The distiller or importer of distilled spirits shall be liable for the taxes imposed thereon by Section 5001 (a) (1). 26 U.S.C. 5005 (a).

(b) (a.3) (1) ORIGINAL LIABILITY. -- The manufacturer or importer of tobacco products and cigarette papers and tubes shall be liable for the taxes imposed thereon by Section 5701. 26 U.S.C. 5702 (A) (1).

Taxes relating to these products are also excise taxes.  Excise taxes are indirect taxes, which are taxes imposed upon the happening of an event as distinguished from its tangible fruit.  The taxable event or activity is the importing, manufacturing or distilling of these products, and the tax is measured by the amount of product involved.  Not only do these sections show who is liable, but they also show the activities which are being taxed.

Only taxpayers are liable.  The definitions in the I.R. Code only relate to taxpayers and not nontaxpayers.  The Internal Revenue Code Book its self recognizes that it has "no legal effect" without properly executed statute laws backing it up.

26 IRS, 7806.  CONSTRUCTION OF TITLE.

Arrangement and Classification.  No inference, implication, or presumption of legislative construction shall be drawn or made by reason of the location or grouping of any particular section of provision or portion of this title, nor shall any table of contents, table of cross reference, or similar outline, analysis, or descriptive matter relating to the contents of this title be given any legal effect., The preceding sentence also applies to the side notes and ancillary tables contained in the various prints of this Act before its enactment into law.

In order for a tax law to exist, the code has to be backed by a statute law passed by Congress.  There is no statute law requiring an individual to fill out a 1040 form.

After an exhaustive search of Title 26 1 have failed to locate any section which identifies me by Person, Class of Persons, or activity as a Taxpayer.  Therefore I have determined that I am in the class of persons defined by the U.S. Courts as Nontaxpayers and that I am not subject to the Internal Revenue Code nor any of its provisions.

My status as a Nontaxpayer existed from the beginning and continues even today and in the future.  Because my status is a Nontaxpayer and I am not subject to the tax code, it is impossible for me to have a "requirement to file a return", "taxable year", or a "tax liability". 

The United States courts have ruled:

"The revenue laws are a code or system in regulation of tax assessment and collection.  THEY RELATE TO TAXPAYERS, AND NOT TO NONTAXPAYERS.  The latter are without their scope.  NO PROCEDURE IS PRESCRIBED FOR NONTAXPAYERS, and NO attempt is made to ANNUL any of their RIGHTS and remedies in due course of law.  With them Congress does not assume to deal, and they are neither of the SUBJECT nor of the OBJECT of the revenue laws." Long v. Rasmussen, 281 F. 236, at 238. (1922); Economy Plumbing and Heating v. U.S., 470 F. 2d 585, at 589. (1972) (Emphasis added)

Therefore, I state categorically that I have Never been a "taxpayer", and that I am not now a "taxpayer" as defined by the IRS code.  That due to the exception clause both the IRS and the Federal Courts are without power and/or authority to alter or change this status and you are barred from any future proceeding against me. (See 28 USC 2201)

"In a case of actual controversy within its jurisdiction, EXCEPT WITH RESPECT TO FEDERAL TAXES other than actions brought under section 7428 of the Internal Revenue Code of 1954 ... any court of the United States, upon the filing on an appropriate pleading, may declare the rights and other legal relations of any of any interested party seeking such declaration..." 28 USC 2201.  Emphasis added.

"Federal courts are without power to grant declaratory judgment with respect to Tax Status under the Internal Revenue Code, Title 26." St. Louis Park Medical Center v. Lethert, D.C. Minn. (1968), 286 F. Supp. 271.  Emphasis added.

CONCLUSION:

Since there is no law that requires me to fill out a 1040 form, and our Federal Tax system is voluntary, and the tax laws are only prima facie, and apply only to taxpayers involved with taxable activities, I have chosen not to volunteer any money to the Internal Revenue Service.  Therefore, I am exempt as a Federal Taxpayer, by declaration.  No criminal penalties or Liens can be applied without a positive law declaring said action to be mandatory.

Sincerely,

Summons

Department of the Treasury                                    (date)

Internal Revenue Service

(Address)

Attn

From:

Your name   Address

With regard to the piece of paper with the word "Summons" in bold print on the top, I believe you have served process illegally.  I could be wrong but, according to the Federal Rules of Civil Procedure, Rule 4. Process

(a)  Summons: Issuance.  Upon the filing of a complaint the clerk [of a court] shall forthwith issue a summons and deliver the summons to the plaintiff or the plaintiff s attorney who shall be responsible for prompt service of the summons and a copy of the complaint...

I don't believe that piece of paper you call a summons was delivered to a court and the court clerk issued it.

A "Summons" is a mandate of court and means supplied by law for assertion of jurisdiction.  Lybrand v The State Co. 184 S. E. 580 179 S. C.

What court issued the summons?  I might have missed it but, what Judge signed it?

The object of service of a "Summons" is not only to give notice to the defendant of tendency of suit against him but to bring him under jurisdiction of the court.  Coever v Cresent Lead and Zink Corp 286 W.W. 3, 10, 315 Mo. 276.

What suit?  There is no legal action that I know of

The function of the "Summons" is to bring defendant within jurisdiction of court and to give him notice of action [in court] and opportunity to appear and defend, and is the usual means of acquiring of the person of defendant.  Raines v. Posston, 38 S. E. 2d 145, 146, 208 S.C. 349

I don't mean to be telling you how to do your business but, the "Collection Summons" received from your office, this piece of paper was not requested by a judge and was not delivered by a legal summons server.  It fails to state the law that makes me, an individual, a "taxpayer" within the scope of Title 26.  So, it can have no claim on my property, nor can it require me to file or provide anything to the IRS.

The piece of paper with the word "Summons" in bold print at the top makes the statement that it is "issued under the authority of the Internal Revenue Code..." Now, you know as well as I do that the Internal Revenue Code does not have any authority.  This is confirmed by the Congressional Research Service.

Is Title 26, of the United States Code, law?

This question stems from the fact that some titles of the United States Code (U.S. C.) are "positive law" and others are not.  Title 26, Internal Revenue, has not been enacted as positive law.

The U. S.C. is divided into fifty titles.  Of the fifty titles, twenty and part of another have been enacted into positive law.  If a title has been enacted into positive law, then the text of that title constitutes legal evidence of the laws in that title.  If the title has not been enacted into positive law, then the title is q* prima facie evidence of the actual law.  The courts could require proof of the underlying statutes, which are the positive law when the title has not been so enacted.

I realize that it is not very comforting to you to know that the IRS is governed by Title 26 of the United States Code, a non-positive law at best known as "prima facie" law.  Naturally, I was curious to find out what underlying positive law the IRS Code relies upon.  So I did a little research.  This might be interesting to you.  I found that all laws in all of the titles not codified as positive law receive their authority from the United States Statutes at Large which have been codified in the United States Code of Federal Regulations.  Of course, you probably already know this.  If not, please take the time to notice for yourself that Section 7602 gets its "rule making authority" from Title 27, Part 70. (No kidding.  I was surprised also.  Check it out for yourself A little trip to your local law library would be very enlightening.) Or write to the Office of the Federal Register.  Michael L. White, Attorney for the Office of the Federal Register, in a letter dated May 16, 1994, states:

The Director of the Federal Register has asked me to respond to your inquiry.  You have asked whether Internal Revenue Service provisions codified at 26 U. S. C. 6020, 6201, 6203, 6301, 6303, 6321, 6331 through 6343, 6601, 6602, 6651, 6701, 7207, and 7601-7606 have been processed or included in 26 CFR part I (Income Tax)

The Parallel Table of Authorities and Rules, a finding aids compiled and published by the office of the Federal Register (OFR) as a part of the CFR Index, indicates that implementing regulations for the sections cited above have been published in various parts of title 27 of the Code of Federal Regulations (CFR).  There are no corresponding entries for title 26.

The way you are reading Titles 26 and 27 reminds me of the way some people read the Bible.  "And he cast down the pieces of silver in the temple, and departed, and went and hanged himself " Matthew 27:5 "...Then said Jesus unto him, Go, and do thou likewise." Luke 10-.37

I am sure you know that Title 27 has nothing to do with Title 26 Part I (Income Tax).  Title 27 CFR Part 70 is involved only with Alcohol, Tobacco Products and Firearms.

Therefore, form 2039 can only be used by the Bureau of Alcohol, Tobacco and Firearms.  (Did you borrow this form from them?)

The Code of Federal Regulations is a codification of the Federal Register and "the contents of the Federal Register shall be judicially noticed and without prejudice to any other mode of citation ... " (USC 44, 1507).

Now, if we go to 27 CFR 70:

Subpart A - Scope

70.1 General

This part sets forth the procedural and administrative rules of the Bureau of Alcohol, Tobacco and Firearms for:

(a)  the issuance and enforcement of summonses, examination of books of account and witnesses, administration of oaths, entry of premises for examination of taxable objects, granting of rewards for information, canvas of regions for taxable objects and persons, and authority of ATF officers.

Are you an ATF officer, or do you work for the BATF? (I don't know.  Some of us have to work two jobs just to make ends meet.)

I can find no where in 27 CFR 70 where it refers to IRS, IRS Agent, Revenue Agent, District Director, Form 2039, or Chief, Collection Branch.  In fact, I find the following definitions:

ATF officer, to mean an officer or employee of the Bureau of Alcohol, Tobacco and Firearms (ATF) authorized to perform any function relating to the administration or enforcement of this part;

Bureau to mean The Bureau of Alcohol, Tobacco and Firearms, Department of the Treasury, Washington, D.C. 20226;

Chief, Tax Processing Center, the ATF officer principally responsible for administrating regulations in this part concerning special occupation tax and also responsible for filing tax liens and issuing third party levies, and for disbursing money due to taxpayers under the provisions 26 U. S.C. enforced and administered by the Bureau.

For the sake of discussion, let's go to Title 26, Section 7602 (a) AUTHORITY TO SUMMON.  Then let's look up the underlying positive law that gives Section 7602 its authority.  To do that we need to go to the Code of Federal Regulations, Title 27 Part 70.23.

(b)  Summonses.  For the purposes of this section the officers and employees of the Bureau [of Alcohol, Tobacco, and Firearms] designated in paragraph (c) of this section are authorized to summon the person liable for tax...

Let's go to paragraph (c) it refers to.

(c)  Persons who may issue summonses.  The following officers and employees of the Bureau are authorized to issue summonses pursuant to 26 U. S.C. 7602:

(1)  Regional director (compliance, and

(2)  Office of Inspection: Assistant Director, Deputy Assistant Director, and regional inspectors.

Are you one of the above?  Do you have the authority to issue a summons?

Title 27 Part 70.23 Service of summonses.

(a) In general.  A summons issued under 26 U.S. C. 7602 shall be served by an attested copy delivered in hand to the person to whom it is directed, or left at his last and usual place of abode.

(b)

Who can serve a summons?  Do you have the authority to serve a summons?

A "Summons" is the name of writ, commanding the Sheriff, or other authorized officer, to notify the party to appear in court to answer a complaint made against him and in said writ specified, on the day therein mentioned.  Johns v. Phoenix Nat.  Bank 56 P. 725, 726, G. Aviz 290.

What Sheriff or other authorized officer delivered this piece of paper?

A "Summons" may be served by any person who is at least 18 years of age and not a party to the action." Caldwell v. Coppola 219 Cal.  App.3rd,859 "prohibiting personal service of process by parties..." "discouraging fraudulent service by persons with an adversarial interest in a legal action."

I really don't think you would be foolish enough to serve the summons yourself because that would put you in jeopardy, So, please, may I have the name of the legal server. (If somebody else told you it was alright to serve this summons this way, please share this letter with them, then both of you should take a trip to the law library.)

Title 27 Part 70.23 (b) Persons who may serve summonses.  The following officers and employees of the Bureau are authorized to serve a summons issued under 26 U.S. C. 7602:

(1)  The officers and employees designated in paragraph (c) of paragraph 70.22 and

(2) Chiefs, field operations, area supervisors, inspectors, regional audit managers and auditors, Compliance Operations; special agents, Internal Affairs; and all special agents.  Law Enforcement.  The authority to serve a summons may be redeligated only by the Assistant Director, Office of Inspection, and regional directors (compliance), to officers and employees under their jurisdiction.

Which one of the positions in the Bureau of Alcohol, Tobacco, and Firearms described above identifies you?

A "Summons" is a process, a means of bringing a defendant into court so that court acquires jurisdiction of his person, and is wholly stationery matter, and unless defendant is served in a manner provided by law, court is without authority to proceed.  State ex rel Ballew v. Hawkins, Mo. app., '361 S.W. 2nd 852, 857

Was this piece of paper served in a manner provided by law?  Check it out.

Also, as you are obviously not informed of my Nontaxpayer status, or you would not be involved in this action.  So I have included a declaration of my position.

DECLARATION OF BELIEF

I am not a taxpayer as defined in the Internal Revenue Code.  Due to fraud on the part of the Internal Revenue Service, I have previously revoked all signatures with your organization.  This revocation and rescission is based upon my rights in respect to constructive fraud as established in, but not limited to the cases of Tyler v. Secretary of State, 184 A.2d 101 (1962), and also El Paso Natural Gas Co. v. Kysar Insurance Co., 605 Pacific 2d. 240 (1979) which stated, "Constructive fraud as well as actual fraud may be the basis of cancellation of an instrument."

Now, while you are at the library, please look up Title 28 sec. 2201.  Because neither the courts nor the IRS has the authority to change my status from "NONTAXPAYER" to "taxpayer".  I am now and continue to be outside of your jurisdiction and decline your invitation to submit to your jurisdiction.

The United States courts have ruled:

"The revenue laws are a code or system in regulation of tax assessment and collection.  THEY RELATE TO TAXPAYERS, AND NOT TO NONTAXPAYERS.  The latter are without their scope.  NO PROCEDURE IS PRESCRIBED FOR NONTAXPAYERS, and NO attempt is made to ANNUL any of their RIGHTS and remedies in due course of law.  With them Congress does not assume to deal, and they are neither of the SLJBJECT nor of the OBJECT of the revenue laws." Long v. Rasmussen,  281 F. 236, at 238. (1922); Economy Plumbing and Heating, v. U.S., 470 F. 2d 585, at 589. (1972) (Emphasis added)

To prove jurisdiction before the scheduled meeting you must

1)  provide the law and/or the factual basis which the IRS is relying on to determine that I am a "taxpayer" within the scope of Title 26, and positive laws backing said Title.

2)  provide the law and/or the factual basis which the IRS is relying on to determine that I am a "person required" to file a tax return with the IRS.

3)  produce a copy of the Delegation of Authority that you relied upon to determine that I am a "person subject to" or a "person liable for" an Internal Revenue Tax."

4)  produce proof that the above requested Delegation of Authority has been published in the Federal Register as required by 44 USC 1507.

Your failure to answer these Demands for Documents within the time limit prescribed is an admission, by automatic operation of law upon these presents, that I am not within the scope of Title 26 and have no requirement to file anything with the IRS and that your claim is straight fraud.  That's fair enough, isn't it?

Therefore, and until you can prove otherwise, I am not a "taxpayer" as defined by your code.  I have no debt with your organization and I have no obligation to submit to an audit or collection summons.  Nor do you have the authority to conduct an audit on me.  Naturally, if you continue in this illegal action I will not hesitate to take legal action against you.

Sincerely,   (Your signature)   (Your name and address)

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