IRS Forms Discussion 062399
Excellent additional input on deceptions, illusions and misunderstandings attributable to various
IRS Forms. Quite technical, but fascinating -- and really illustrates the convoluted and absurd
nature of the application of current "income" and "social security" tax law.
ICE
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From: RHawks@aol.com
Date: Wed, 23 Jun 1999 10:50:13 EDT
Subject: Re: IRS Liens, in concept
In reply to Ralph
This is a "very" limited and redacted discussion of how government tax forms effect the
application and imposition of taxes under Subtitle A of Title 26 United States Code.
Forms W-2 are verified, but not for the purposes of Subtitle A of the Internal Revenue Code.
They are verified by the submission of a form W-3, and merely attaching forms W-2 for Social
Security.
First, many argue that the 26 USC Subtitle C taxes, ie. the 42 USC, Social Security taxes
(merely collected under 26 USC), are the actual nemesis for taxes under 26 USC Subtitle A. I
believe this theory is in error. There are many different taxes under Social Security which are
clearly "Separate and Distinct Taxes," and are not the same Income Taxes that are imposed
under the Internal Revenue Code, Title 26 U.S.C., Subtitle A, infra.
IRS FORMS
Tax forms ARE NOT REGULATIONS, nor are they defined or described by statute. Tax
Forms are a device created by the Secretary's regulatory authority. Tax Forms acquire statutory
or regulatory status exclusively by the Secretary's prescriptive regulation 602.101, as mandated
by Congress in the Paper Reduction Act. Thus tax forms become mandatory when linked by
regulation and statute.
Form W-2 and Form W-3 are forms for use with the Social Security Administration, and "not"
a "prescriptive form" for use for or computation of taxes under Subtitle A.
Hopefully I can explainBoth (forms W-2, & W-3) carry OMB Control No. 1545-0008.
The Form W-3, per its instructions is a "sworn/attested legal instrument" to be used exclusively
for the purposes of, and is the transmittal document (cover document) for all forms W-2 to the
Social Security Administration. Its authority arises from 26 USC 6051 and its regulations, et.al.
The form W-3 as a "sworn statement" can not be used for the purposes of 26 USC, infra.
I take particular note in the fact that IRC 6051 provides that every person required to withhold
and deduct taxes required under 3101 (Social Security) and 3402 (no tax imposed) and make a
report or a receipt to the employee which includes the following; 1. the name (employer); 2. name
of employee and SSN for 3101; 3. total amount of wages, 3401(a); 4. total amount deducted,
3402; 5. total amount 3121(a); total amount withheld as a tax, 3101; total amount paid under
3507, (credits).
26 CFR 31.6051-1(a), Statements for Employee; Pertains to provisions under Subtitle C,
3401 which includes, total amount of wages, 3401(a), total amount deducted, 3402, which in turn
would obviously relate tax form W-4, amounts to be submitted on FORM W-2. These regulations
also pertain to 3121(a); total amount withheld as a tax, 3101 to be submitted on the same tax
form tax forms W-2, in Box 3 & Box 4, and W-3 totals, and required to be reported to the Social
Security Administration by 26 CFR 31.6051-2(a).
The amount reported in Box 1, (form W-2) however, merely represents the amount used to
calculate the amount that was withheld pursuant to form W-4, in Box 2 for Subtitle C, 3401 et seq.
It does not represent any taxable profit or gain for calculation under Subtitle A, 61(a). This amount
does not subject you to tax, unless there is a statute in Subtitle A that imposes a tax on you. This
is over withholding, if no tax is imposed.
The Secretary's prescriptive regulation 602.101 omits all reference to 26 USC 6051.
Briefly, the SOCIAL SECURITY ACT, 49 Statutes at Large, Chapter 531, pp. 620-648 August
14, 1935, H.R. 7260, Pub. No. 271, consisted of Eleven (11 separable) Titles imposing several
"emergency taxes" some taxes were imposed directly employees based on employment and all
taxes were imposed on employers. They are codified in Title 42 U.S.C., as amended. I find
nothing in the original federal act that implies that this tax was voluntary for either party. The
States' acts with regard to Social Security may be for qualified employees and employers, but this
does not exclude the federal provisions, as they by themselves, can be operative independent of
state law. It was the money benefit to the States, from the federal plan, that created the States
acceptance and adoption of the federal program.
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The form W-2 is also used as an un-sworn statement (a receipt) required by 26 USC 6041, ie.
employers payments of labor, and other payments;
The question now is how does the Secretary now keep separate and distinct the ordinary
(the payment of labor) source, from the taxable gain, profit, income, the benefits, or other source
items, as amended, particularly on form W-2?, [see 26 USC 6041, 6051]. It certainly appears that
form W-2 now merges, commingle or attempts to convolute all sources with taxable sources,
benefits, and other matters which in turn appears to be contrary and in conflict with the law.
Since the States generally use form W-2 this only creates greater conflict.
Those familiar with form W-2 will recognize that there are three (3) boxes regarding total
amounts reportedly used for calculations for withholding. The amounts reported in these Boxes,
as it pertains to me, are all identical amounts.
Box 1 - wages, tips, other compensation
Box 3 - Social Security wages
Box 5 - Medicare wages and tips
Another question that has arisen is whether or not the amount in Box 1 is for an employment
tax? There are two logical reasons why it can not.
1. The IRS can not impose a deficiency on a Subtitle C tax. A deficiency arises from a tax
imposed by 26 U.S.C. Subtitles A., B., Chapters 41-45, of Subtitle D; and,
2. IRC 6041, Withholding at Source, (forms W-2, W-3, 1096, 1099) and IRC 6051 Receipts of
Employees under IRC 3101 and IRC 3402, (employers, and form W-2). This is a clear separation
only reported on the same form, Form W-2. The distinction is IRC 6041, which permits the single
item report on form 1099 and summary transmittal U.S. Information Return, OMB 1545-0108.
First, form W-2 is not reflective of any sworn or verified "legal determination" by the employer
that the amounts paid (box 1) reflect any fixed or determinable or realized "gains, profits and
income," as required by 6041, infra. Whereas, form W-3 is a sworn statement as to matters of
Social Security.
There is no reference in 26 CFR 602.101 to use any form 1545-0008 (W-2 series or W-3 series)
in conjunction with form 1545-0074 (either form 1040 or form 3439). There is no reference in 26
CFR 602.101 to use any form W-2 or W-3 in conjunction with IRC 61(a) or CFR 1.61-1, et seq. or
any tax imposed by Subtitle A., 1, CFR 1.1-1.
If the amount (W-2, Box 1) was or is sworn to by the employer, as a profit and gain paid to
you by the employer, then the cause of action is not against the [IRS], rather against the
employer for his actual determinations, justifications and proofs of fact, as to fact as to how this
was a realized profit and gain to you, and/or his perjury. If the amount is not sworn to as a fact, by
the employer, then this amount can not be stated as a FACT, prima facia, presumptively,
conclusively or otherwise as evidence, for application to any tax imposed by Title 26 Subtitle A.
Thus a matter to be reckoned with in Court when W-2's are offered as evidence. One can
stipulate to the fact that you were paid these amounts, but "not" as a boni fide "taxable" profit and
gain.
The LAW BREAKS DOWN
The [IRS], requires the employee's form W-2 to be attached to IRS tax form 1040. The [IRS],
by the instructions for form 1040, further requires the individual to transfer the un-subscribed and
un-sworn information of Box 1 of form W-2 onto form 1040, (not Box 3), in such format and in
such manner that the individual must claim that one's gross receipts, [generally the same as
Social Security Wages], are now subject to tax under 26 USC Subtitle A, 61(a), (as gross income
[profit and gain]) and/or represents one's gross or net yearly actual and realized profit.
The fact that the individual voluntarily using form 1040 must declare, (as they have no
alternative option or election to do otherwise), as a FACT his payments of labor are taxable gross
income, as a taxable gross profit and gain. Whereas for some this may be true, however for most
it is not true, and do all the above under the penalties of perjury. If find this a conflict of law, but
an abominable position for the [IRS] to place the citizen in.
Does any of this so far make sense to you ???
This is also gross error on the IRS, because; First, I do not believe that the IRS can require
the submission of form (W-2), as an internal requirement of form (1040), which was not
authorized or approved by any regulation correlated to 26 CFR 602.101. Secondly, when the
submission of the amounts on form W-2 are contrary to IRC 6041 and 26 CFR 1.6041, as
described herein. Thirdly, that form W-2 is required to be submitted to the Commissioner of Social
Security and not the Commissioner of I.R.S. Fourth, see below
First and foremost regarding IRC 6041 is its entitlement, INFORMATION AT SOURCE. IRC
6041 by its descriptions have by implication removed the source described in IRC 61(a) taking
one step backwards to create the illusion that the payer is the source and not the payment. If true
this would in effect make the labor the source, and not the gain or profit that proceeds from the
labor.
The format and procedure for tax forms W-2, W-3 returns is provided by 26 CFR 1.6041-1 et
seq., and involves tax form 1096, OMB Control No. 1545-0108; and seven (7) tax forms 1099,
OMB Control No. 1545-0110, -1112, -0115, -0117 through -0120. Forms 1096 and 1099 are not
applicable to this discussion. 26 CFR 1.6041-2, Employee forms W-2 are to be made in
conjunction with regulations 6011 and employment regulations for Social Security. Regulation
1.6011-1 does not specifically name tax form 1040, however 602.101 does list OMB form 15450074, but does not list OMB form 1545-0008. 26 USC 6011, informs me, "(a).. when by
regulations any person "made liable" for any tax imposed by this Title ..,
Regulations; 1.6041-1(2)(a) pertains to "certain" (unknown) payments; while 1.60411(2)(d)(1-4) enumerates specific payments; 1.) payments for life insurance, 2.) fees paid to
attorneys, physicians and other professions, 3.) paid as prizes, 4.) disability payments. None are
believed to apply to me.
Furthermore, an employer does not have standing to declare the applicability of law applied
to me, particularly on an un- sworn document. Particularly when the amounts reported on form
W- 2 in box 1, are not recognized by me, nor can be legally recognized or determined by the
employer as any determinable "gain, or profit" in this exchange of property, IRC 64.
What is most conspicuious is that if logic were to prevail every 1040 filing requirement [OMB
Control No. 1545-0074] in regulation 602.101 (because of the inclusion on tax 1040 of a W- 2)
would equally require NOTICE of the W-2, [OMB Control No. 1545-0008] - IT DOES NOTThe illusion of taxation is thus created merely by tax forms 1040, W-4 and W-2. This why the
[IRS] insist on form 1040, or use it for the basis of their calculations. I still find it "interesting" that
none of the IRS tax forms, ie. form 1040, form W-4, or form W-2, pertain to IRC 1 or 61(a) or any
actual tax imposed by Subtitle A., which applies to me.
This only a small part of much larger documents ... hope it Helps
Hell, the MAFIA does not have it anywhere this good. The [IRS] call me a tax-protester, ,,,,
perhaps a jury, upon reading this, may call them "..... THIEF."