Filing Tax Returns

advertisement
Why No One Is
Required to File
Tax Returns
Reforming Tax Laws Using Our
Fifth Amendment Rights
by William Conklin
Multimedia Presentation
1
Copyright © 2001 by William Conklin. Distributed by Davidson Press, Inc.
Table of Contents








2
Legal Disclaimer
Introduction
The Fifth Amendment
The IRS Form 1040
Filing is Voluntary
The Meaning of Compel
The Meaning of Liable
IRS Strategies








The Legal Issues
What You Should Do
What You Should Not Do
The $100,000 Challenge
Conclusion
Web Sites to Visit
About the Author
How to Order the Book
Copyright © 2001 by William Conklin. Distributed by Davidson Press, Inc.
Legal Disclaimer

3
The information in this presentation is not legal
or tax advice. It is for general information
purposes only and reflects the experience of the
author. Much of the information in this media
presentation is oriented to individuals and is
not applicable to corporations, partnerships, or
other legal entities. If you wish specific legal or
tax advice on the issues covered in this media
presentation or in Why No One Is Required to
File Tax Returns, you are encouraged to consult
with a competent attorney.
Copyright © 2001 by William Conklin. Distributed by Davidson Press, Inc.
Introduction
Filing a Form 1040 is a voluntary act.
 Filing a Form 1040 is not required under
any provision of Title 26 of the US Code
(the “Internal Revenue Code”).
 Filing a Form 1040 is not required under
any other Title of the US Code.
 We waive our Fifth Amendment rights when
we file a Form 1040.

4
Copyright © 2001 by William Conklin. Distributed by Davidson Press, Inc.
Introduction
We, the American people, should pay
whatever taxes we owe.
 The Fifth Amendment to our Constitution
limits all US Codes, including Title 26.
 We have a duty to change or repeal the tax
laws when they conflict with our
Constitution.

5
Copyright © 2001 by William Conklin. Distributed by Davidson Press, Inc.
Introduction
If we neglect our rights under the Fifth
Amendment, we will lose our rights by
default.
 If we neglect our duties to change tax laws
which are unclear or which violate our
Constitution, we will pay the price.
 Evil succeeds when good people do
nothing.

6
Copyright © 2001 by William Conklin. Distributed by Davidson Press, Inc.
Introduction










7
Filing is a voluntary act.
Filing is not required under the IRS Code.
Filing is not required under any other US Code.
Filing waives our Fifth Amendment rights.
We should pay whatever taxes we owe.
The Fifth Amendment limits all US Codes (IRS included).
We have a duty to change or repeal laws that conflict with
our Constitution.
If we neglect our rights, we will lose them by default
We pay the price when we neglect our duties.
Evil succeeds when good people do nothing.
Copyright © 2001 by William Conklin. Distributed by Davidson Press, Inc.
The Fifth Amendment
No person shall be held to answer for a capital, or otherwise
infamous crime, unless on the presentment or indictment of a
Grand Jury, except in cases arising in the land or naval forces,
or in the Militia, when in actual service in time of War or
public danger; nor shall any person be subject for the same
offense to be twice put in jeopardy of life or limb; nor shall be
compelled in any criminal case to be a witness against himself,
nor be deprived of life, liberty, or property, without due process
of law; nor shall private property be taken for public use
without just compensation.
8
Copyright © 2001 by William Conklin. Distributed by Davidson Press, Inc.
The Fifth Amendment
You cannot be compelled to testify against
yourself in a criminal case.
 In a civil case, you cannot be compelled to
testify if what you say can be used against
you in a criminal case.

– U.S. vs. Argomaniz, 925 F.2d 1349 (11th Cir. 1991).
9
Copyright © 2001 by William Conklin. Distributed by Davidson Press, Inc.
The Fifth Amendment

“There can exist a legitimate fear of
criminal prosecution while an IRS
investigation remains in the civil stage,
before formal transfer to the criminal
division.”
– U.S. vs. Argomaniz, 925 F.2d 1349 (11th Cir.
1991).
10
Copyright © 2001 by William Conklin. Distributed by Davidson Press, Inc.
The IRS Form 1040
A “voluntary” form
 Filed under penalty
of perjury

11
Copyright © 2001 by William Conklin. Distributed by Davidson Press, Inc.
Filing a Tax Return is Voluntary

Chapter 6200 at 6210:
– “It is the goal of the Internal Revenue Service
to encourage and achieve the highest possible
degree of voluntary compliance with the tax
laws….”

Chapter 100 at 110:
– “The primary mission of the Taxpayer Service
is to promote voluntary compliance through
education and assistance to taxpayers.”
12
Copyright © 2001 by William Conklin. Distributed by Davidson Press, Inc.
Filing a Tax Return is Voluntary

Part VI, §6810 (Taxpayer Service) at (13)
31(1)(f):
– “returns are voluntarily submitted by
taxpayers.”

§6810 (Operating Techniques and
Reporting) at (13) 91(1)(a):
– “securing a valid voluntary income tax return
from the taxpayer….”
13
Copyright © 2001 by William Conklin. Distributed by Davidson Press, Inc.
Filing a Tax Return is Voluntary

P-4-84 (IRS Policy Statements):
– “The purpose of criminal tax investigations is
to enforce the tax laws and to encourage
voluntary compliance.”

§4022.65(3):
– “When a person indicates he/she will
voluntarily comply but requests that he/she be
served….”
14
Copyright © 2001 by William Conklin. Distributed by Davidson Press, Inc.
The Meaning of “Compel”
Compel: To urge forcefully, under extreme pressure. The
word “compel” as used in constitutional right to be free from
being compelled in a criminal case to be a witness against
one’s self means to be subjected to some coercion, fear, terror,
inducement, trickery or threat—either physically or
psychologically, blatantly or subtly; the hallmark of
compulsion is the presence of some operative force producing
an involuntary response. U.S. v. Escandar, C.A. Fla., 465
F.2d 438, 442.
—Black’s Law Dictionary
15
Copyright © 2001 by William Conklin. Distributed by Davidson Press, Inc.
The Meaning of “Liable”
There is no statute that makes a person
liable or responsible to pay the federal
income tax.
 Individuals only become liable to pay the
income tax when they voluntarily file a tax
return, or when the IRS follows its
assessment procedures as outlined in the
Internal Revenue Code.

16
Copyright © 2001 by William Conklin. Distributed by Davidson Press, Inc.
IRS Strategies

IRS Audits
– No law requires you to attend an audit.
– If you do not attend, the IRS has 2 choices.
• The IRS may send you a Summons.
– Go, but take the Fifth
• The IRS may attempt to assess you.
– You can contest the assessment in Federal or tax court.
– With knowledge, you have power.
17
Copyright © 2001 by William Conklin. Distributed by Davidson Press, Inc.
IRS Strategies

Summons Enforcement Hearings
– You can be forced to answer the questions that
the IRS asks you.
– But “taking the Fifth” is a legitimate answer to
any IRS question.
– The IRS cannot get any information from you
when you “take the Fifth.”
18
Copyright © 2001 by William Conklin. Distributed by Davidson Press, Inc.
The Legal Issues

Information on a tax return is the testimony
of a witness.
– “The information revealed in the preparation
and filing of an income tax return is, for
purposes of Fifth Amendment analysis, the
testimony of a ‘witness’.” —Garner vs. United
States, 424 U.S. 648 (1975), p. 656.
19
Copyright © 2001 by William Conklin. Distributed by Davidson Press, Inc.
The Legal Issues

Information on a tax return is compelled
testimony for the purposes of the Fifth
Amendment.
– “Government compels the filing of a return
much as it compels, for example, the
appearance of a “witness” before a grand jury.”
—Garner vs. United States, 424 U.S. 648
(1975), p. 652.
20
Copyright © 2001 by William Conklin. Distributed by Davidson Press, Inc.
The Legal Issues

You waive your Fifth Amendment rights if
you admit to having records.
– United States v. Doe, 104 S. Ct., 1237 (1984).

The act of producing subpoenaed
documents involves testimonial selfincrimination.
– United States v. Doe, 465 U.S. 605, 79 L.Ed.
2d 552, (1985).
21
Copyright © 2001 by William Conklin. Distributed by Davidson Press, Inc.
The Legal Issues

You can take the Fifth Amendment in a civil
matter as well as in a criminal matter.
– “There can exist a legitimate fear of criminal
prosecution while an IRS investigation remains
in the civil stage, before formal transfer to the
criminal division.” —United States vs.
Argomaniz 925 F.2d 1349 (11th Cir. 1991).
22
Copyright © 2001 by William Conklin. Distributed by Davidson Press, Inc.
The Legal Issues

The “John Cheek” Case —U.S. vs. Cheek,
489 U.S. 658 (1991).
– Individuals who rely on attorneys and other professionals
in making their decisions about the complex tax system
are entitled to inform the jury as to the extent of their
reliance.
– The jury must be instructed to view the defendant’s
actions subjectively, not objectively.
– When it can be shown that one’s actions were based on a
good faith reliance on professional advice, the element of
“a willful violation of the law,” essential for a conviction,
is conclusively eliminated.
23
Copyright © 2001 by William Conklin. Distributed by Davidson Press, Inc.
What You Should Do

Become judgment proof.
– Do not own a car or house in your name.
– Work as an independent contractor with
multiple contracts.
– Avoid bank accounts or stock accounts in your
name.

24
This may not be necessary if you follow the
instructions outlined below.
Copyright © 2001 by William Conklin. Distributed by Davidson Press, Inc.
What You Should Do

Consult with knowledgeable tax attorneys
and tax accountants.
– Get written opinion letters about your Fifth
Amendment rights.
– Show your actions are based on legal advice.
– Take along copies of “Sharp” and “Argomaniz”
court rulings.
25
Copyright © 2001 by William Conklin. Distributed by Davidson Press, Inc.
What You Should Do

Do not admit to keeping books and records.
– The IRS can subpoena written records, which can be
used against you.
– You cannot be compelled to admit that you have written
records.
– If you admit the existence of books and records, you
automatically waive your Fifth Amendment protections
because the Supreme Court has said that the Fifth
Amendment applies to testimony and not to books and
records. —United States vs. Doe, 465 U.S. 605 (1985)
26
Copyright © 2001 by William Conklin. Distributed by Davidson Press, Inc.
What You Should Do

Stand on your Fifth Amendment rights.
– “There can exist a legitimate fear of criminal
prosecution while an IRS investigation remains
in the civil stage, before formal transfer to the
criminal division.” —United States vs.
Argomaniz 925 F.2d 1349 (11th Cir. 1991).
27
Copyright © 2001 by William Conklin. Distributed by Davidson Press, Inc.
What You Should Do

Understand that banks, as third parties, can
be required to pass your records to the IRS.
– The Bank Secrecy Act gives the government
complete access to your banking records at any
time without your knowledge or consent.
– You are allowed to file a Motion to Quash a
third party summons, but you probably will not
win.
28
Copyright © 2001 by William Conklin. Distributed by Davidson Press, Inc.
What You Should Do
 Pre-pay
any taxes due under §6020(b)
through your employer.
– Take the maximum allowable deductions.
– Compute the tax according to your bracket.
 If
you are self-employed, pay your
taxes quarterly.
– Post a bond against any assessment.
29
Copyright © 2001 by William Conklin. Distributed by Davidson Press, Inc.
What You Should Do
 The
“No Waiver of Rights” Letter
– At year end, instead of filing a return, send a
letter with copies of your legal opinion letters.
– Ask for an extension of time to file until the
IRS can come up with a way for you to file
without waiving your Fifth Amendment rights.
– Send in any money you think you may owe.
• You want to eliminate any excuse that the IRS may
want to use to seize any of your assets.
30
Copyright © 2001 by William Conklin. Distributed by Davidson Press, Inc.
What You Should Do
 The
“No Waiver of Rights” Letter
– Point out in your letter that unless and until a
return is filed making you liable for a tax, you
understand that the money sits in a “pending”
file and cannot be used.
– State that you wish your letter to serve as an
informal Claim for Refund.
31
Copyright © 2001 by William Conklin. Distributed by Davidson Press, Inc.
What You Should Do
 The
Claim for Refund
– Under §6532(a)(1) of the Internal Revenue
Code (USC Title 26), unless the IRS can inform
you of a way you may file a return within the
next six months (without waiving your Fifth
Amendment rights, of course), you are entitled
to sue the IRS to enforce your Claim.
32
Copyright © 2001 by William Conklin. Distributed by Davidson Press, Inc.
What You Should Do
 Remember,
the main issue here is not
about paying taxes. So pay your taxes.
– Prepaying puts the IRS on the defensive.
– The % of what you pay is another issue.
 The
main issue is about not filing a
return because the return can be used
against you.
33
Copyright © 2001 by William Conklin. Distributed by Davidson Press, Inc.
What You Should Not Do

Never ignore correspondence from the IRS.
– Challenge the IRS with every procedure
available to you.
– The IRS is required to follow specific
procedures when it deals with you.
– Remember that search warrants are still
required.
– You can say “No” to entry without a warrant.
34
Copyright © 2001 by William Conklin. Distributed by Davidson Press, Inc.
What You Should Not Do

Never, never, ignore an IRS Summons.
– If you do, the IRS will immediately move for
enforcement because it thinks that you are afraid to
respond, probably because you do not understand your
position and probably do not know your rights. Ninetynine times out of a hundred, the IRS is probably correct.
35
Copyright © 2001 by William Conklin. Distributed by Davidson Press, Inc.
The $100,000 Challenge
How does Mr. Conklin file a tax
return without waiving his
rights protected by the Fifth
Amendment to the Constitution?
 What statute in the Internal Revenue Code
makes him liable to pay an income tax?

36
Copyright © 2001 by William Conklin. Distributed by Davidson Press, Inc.
The $100,000 Challenge

Melvin Belli tried to collect.
– Filer provides a Power of
Attorney to Mr. Belli.
– Filer puts taxes into attorney’s
trust fund.
– Attorney files using code number
for the individual filer.
– Attorney/client privilege protects the filer.
37
Copyright © 2001 by William Conklin. Distributed by Davidson Press, Inc.
The $100,000 Challenge

Melvin Belli tried to collect.
– An IRS §7203 procedure under
the IRS Code or an IRS civil action
would require the attorney as a
witness.
– The testimony would violate the
filer’s Fifth Amendment rights.
38
Copyright © 2001 by William Conklin. Distributed by Davidson Press, Inc.
The $100,000 Challenge

William Cohen tried to collect.
– File two returns:
• The first return contains only financial
information.
• The second return contains the name and
other identifying information.
– Indicate Fifth Amendment objections on
specific questions about income and
deductions.
39
Copyright © 2001 by William Conklin. Distributed by Davidson Press, Inc.
The $100,000 Challenge

William Cohen tried to collect.
– An IRS §7203 procedure under
the IRS Code or an IRS civil action
would require a disclosure of the fact that the
filer filed two returns containing all the
information required.
– The filer would have to identify the returns,
thereby violating the filer’s Fifth Amendment
rights.
40
Copyright © 2001 by William Conklin. Distributed by Davidson Press, Inc.
The $100,000 Challenge

Charles Ostman tried to collect.
– Ostman sues Conklin in Seattle
Ostman vs. Conklin,
Civ. #C92-1371C; USDC Seattle, 1992).
– Citing contract law, the judge rules in Conklin’s
favor.
– The judge orders Ostman to pay Conklin his
costs of trial.
41
Copyright © 2001 by William Conklin. Distributed by Davidson Press, Inc.
The $100,000 Challenge
Who’s next?
 No one has ever come close to
collecting the $100,000 Challenge.
 Another $100,000 will be added
to the Challenge every time a new
edition of Why No One Is Required
to File Tax Returns is printed.
 http://www.billconklin.com.

42
Copyright © 2001 by William Conklin. Distributed by Davidson Press, Inc.
Conclusion
Filing a Form 1040 is a voluntary act.
 Filing a Form 1040 is not required.
 Filing waves your Fifth Amendment rights.
 The Fifth Amendment limits all US Codes.
 Pay the taxes you owe in advance.
 We have a duty and right to change tax laws.
 Evil succeeds when good people do nothing.

43
Copyright © 2001 by William Conklin. Distributed by Davidson Press, Inc.
Web Sites You Should Visit
http://www.givemeliberty.org



44
We The People
Foundation for
Constitutional Education.
Join a campaign to place
ads in newspapers across
the country.
Support efforts to
eliminate the federal
income tax.
Copyright © 2001 by William Conklin. Distributed by Davidson Press, Inc.
Web Sites You Should Visit
http://davidsonpress.com




45
Publishers of the
International Standard
Version Bible.
On line study courses.
Free PowerPoint™ slide
shows.
Purchase your copy of
Why No One is Required
to File Tax Returns on
line.
Copyright © 2001 by William Conklin. Distributed by Davidson Press, Inc.
Web Sites You Should Visit
http://www.billconklin.com




46
Home page for author
William Conklin.
Free resources and links.
Free PowerPoint™ slide
show.
Purchase your copy of
Why No One is Required
to File Tax Returns on
line.
Copyright © 2001 by William Conklin. Distributed by Davidson Press, Inc.
Web Sites You Should Visit
http://www.freedomabovefortune.com



47
Hosted by former IRS
Special Agent.
Dedicated to the idea
that no amount of
prosperity is worth
trading for your
freedom.
Purchase your copy of
his report on the income
tax.
Copyright © 2001 by William Conklin. Distributed by Davidson Press, Inc.
About the Author





48
Masters Degree in
Communications from the
University of Colorado.
School teacher for 15
years.
Numerous court decisions
in his favor.
25 years of experience
dealing with IRS rules.
Email address:
[email protected]
Copyright © 2001 by William Conklin. Distributed by Davidson Press, Inc.
How to Order

http://davidsonpress.com/companystore.htm
– 24/7 SSL encrypted ordering.
–

Order from any bookstore.
– ISBN 189183391X (US$21.00)
– Free CD-ROM is included.


Order by phone: 1-203-744-6010
For more information:
Davidson Press, Inc.
21520 Yorba Linda Blvd., #G440
Yorba Linda, CA 92887
email: [email protected]
49
Copyright © 2001 by William Conklin. Distributed by Davidson Press, Inc.
Download
Related flashcards

Constitutional law

37 cards

Constitutions

14 cards

Create Flashcards