PERFECT TAX
AVOIDANCE
FOR CITIZENS
or
HOW TO
BEAT
THE IRS
or
THE IRS FRAUD EXPOSED
By: Thomas T. Scambos, Jr
Table of Contents
Introduction____________________________________________________________
Chapter 1 - IMPLEMENTATION________________________________________________
General Index - United States Code Annotated________________________________
Income Duty of 1861_____________________________________________________
The Federal Employee Kickback___________________________________________
The Judges Refuse_______________________________________________________
A Note From the Commissioner____________________________________________
The Privacy Act and Paperwork Reduction Act________________________________
Notice 609______________________________________________________________
§ 6001. Notice or regulations..._____________________________________________
§ 6011. General requirement..._____________________________________________
§ 6012. Persons required to make returns_____________________________________
Structural Organization of Title____________________________________________
§ 1. Tax Imposed_______________________________________________________
4 USC § 111...Taxation affecting Federal employees; income tax________________
OMB Document Control Numbers Under 26 CFR 602.101_____________________
Treasury Decision 2313__________________________________________________
The Constitution’s Clauses_______________________________________________
Pollock v. Farmer’s Loan and Trust Co.____________________________________
The 16th Amendment - Income Tax________________________________________
Brushaber v. Union Pacific R.R. Co._______________________________________
Stanton v. Baltic Mining_________________________________________________
Flint v. Stone Tracy_____________________________________________________
Congressional Research Service___________________________________________
Chapter 2 - APPLICATION____________________________________________________
§ 7701. Definitions______________________________________________________
Subtitle A, Foreign Income Tax___________________________________________
§ 7701(a)(14) Withholding Agent Defined___________________________________
§ 1441. Withholding of tax on nonresident aliens_____________________________
§ 1442. Withholding of tax on foreign corporations___________________________
§ 1443. Foreign tax exempt organizations___________________________________
§ 1461. Liability for withheld tax__________________________________________
§ 6654. Failure to pay...Exceptions________________________________________
26 CFR 1.1441-5 Claiming to be a person not subject to withholding_____________
Publication 515 - Withholding Exemptions...________________________________
Subtitle C, Employment Social Security Tax_________________________________
§ 3402. Income tax collected at source______________________________________
§ 3404. Return and payment by Governmental employer_______________________
§ 3401. Definitions: Employee & Employer__________________________________
§ 3121. Definitions______________________________________________________
§ 3306. Definitions______________________________________________________
§ 7806. Construction of Title_____________________________________________
Form W-2 - Withholding statement as a Substitute W-4________________________
Wages________________________________________________________________
§ 3401. Definitions______________________________________________________
§ 3406. Backup withholding______________________________________________
§ 3451. Income tax collected at source on interest & dividends__________________
§ 6041. Information at source_____________________________________________
§ 6045. Returns of brokers________________________________________________
§ 6049. Returns regarding payments of interest (banks)________________________
§ 6042. Corporate earnings_______________________________________________
§ 6044. Patronage dividends______________________________________________
Terminate your W-4 agreement____________________________________________
§ 6724. Waiver of penalties and fines_______________________________________
§ 3403 Liability for tax__________________________________________________
Botta v. Scanlon________________________________________________________
Voluntary Compliance___________________________________________________
26 CFR 1.23-5 Renewable energy resource credit_____________________________
Chapter 3 - ENFORCEMENT__________________________________________________
§ 63. Taxable income defined_____________________________________________
§ 61 Gross income defined________________________________________________
§ 22. Gross income defined_______________________________________________
§ 213. Gross income (1918)_______________________________________________
§ 931. Income from sources within possessions_______________________________
26 CFR Parallel Tables, Enabling Sections_________________________________
The Canadian tax treaty_________________________________________________
ENFORCEMENT______________________________________________________
Positive Law___________________________________________________________
1 USC § 204. Codes as evidence of the laws__________________________________
The 50 Code Titles______________________________________________________
44 USC § 1505. Documents to be published in the Federal Register______________
California Bankers Assn. v. Schultz________________________________________
Published Regulations for Title 26_________________________________________
26 C.F.R. § 601.702. (Failure to Publish)___________________________________
United States v. Mersky__________________________________________________
§ 6201. Assessment Authority_____________________________________________
§ 6020. Returns prepared .... by Secretary____________________________________
Internal Revenue Manual - Assessment procedures____________________________
§ 6061 Signing of returns________________________________________________
§ 6065. Verification of returns____________________________________________
Delegation Orders - Authority to prepare and execute returns___________________
18 USC § 1030 Computer (Fraud)_________________________________________
5 U.S.C. § 556 (Burden of Proof)__________________________________________
5 U.S.C. § 558 (Imposition of sanctions)____________________________________
§ 6211. Definition of a deficiency__________________________________________
§ 6212 Notice of deficiency_______________________________________________
IMF Filing Requirement Codes___________________________________________
§ 6321. Lien for taxes____________________________________________________
§ 6331. Levy and distraint________________________________________________
Criminal Investigative Authority__________________________________________
§ 7201. Attempt to evade or defeat tax______________________________________
§ 7203. Willful failure to file______________________________________________
§ 7343. Definition of the term person______________________________________
§ 7608. Authority of officers_____________________________________________
Title 18 - Federal Crimes________________________________________________
Rule 1 - Scope_________________________________________________________
Rule 54 - Application of terms___________________________________________
State Taxation________________________________________________________
31 USC § 3121 Exemption from State Taxation_____________________________
Chapter 4 - RECOURSE______________________________________________________
§ 6406. Abatements____________________________________________________
§ 7214. Offenses by Officers_____________________________________________
28 USC § 1361. Action to Compel... Duty__________________________________
Title 18 - Criminal Statutes______________________________________________
18 USC § 241. Conspiracy Against Rights__________________________________
18 USC § 242 Deprivation of Rights______________________________________
18 USC § 912 False Personation of U.S. Officer or Employee__________________
18 USC § 913 Impersonator Making Arrest or Search________________________
18 USC § 1001 Statements (Fraud)_______________________________________
18 USC § 1018 Official Certificates_______________________________________
18 USC § 1030 Computer (Fraud)________________________________________
18 USC § 1513 Retaliating Against Witness________________________________
18 USC § 1581 Peonage________________________________________________
18 USC § 3045 Revenue Violations_______________________________________
Title 42- Civil Rights___________________________________________________
42 USC § 408 Penalties (SSN misuse)_____________________________________
42 USC § 1981 Equal Rights Under the Law_______________________________
42 USC § 1981a Damages for Intentional Discrimination_____________________
42 USC § 1982 Property Rights of Citizens_________________________________
42 USC § 1983 Civil Action for Deprivation of Rights________________________
42 USC § 1985 Conspiracy to interfere with Civil Rights______________________
42 USC § 1986 Action for Neglect to Prevent_______________________________
42 USC § 1988 Proceedings in Vindication of Civil Rights____________________
42 USC § 2000e-2 Unlawful Emplyment Practices___________________________
42 USC § 1994 Peonage Abolished________________________________________
Chapter 5 - SUPPORTING PIECES____________________________________________
The $10,000 Challenge_________________________________________________
The Best Kept Secret in America_________________________________________
EEOC v. Information Systems Consulting__________________________________
Social Security is Voluntary_____________________________________________
Welfare Enumeration & Surety Guarantees on National debt__________________
Conflict in the State and Federal courts___________________________________
Affidavit of Refusal Sample______________________________________________
Tax Protest Defined in Code_____________________________________________
The Save A Patriot Fellowship___________________________________________
IRS Insurance________________________________________________________
America is NOT a Democracy____________________________________________
The Communist Manifesto______________________________________________
National Press Release_________________________________________________
The Washington State Bar Association____________________________________
How It Happened To America, Chronology_________________________________
One Question For the Attorneys__________________________________________
SEND THESE FOIA LETTERS_________________________________________
Limits of IRS Authority_________________________________________________
FOIA REQUEST SAMPLE_____________________________________________
Documents to Ask For Under FOIA_______________________________________
Chapter 6 - PRODUCTS______________________________________________________
Employer’s Notification Package_________________________________________
IRS Humbug__________________________________________________________
Affidavits of Refusal Offered_____________________________________________
Lawsuits For Rights___________________________________________________
Fellowship Seminar Video Tapes_________________________________________
Chapter 7 - IN THE COURTS_________________________________________________
Jury Nullification_____________________________________________________
False Information & Arguments__________________________________________
Compulsory Production of Documents_____________________________________
Supreme Court Decisions_______________________________________________
The Political Difference________________________________________________
So, you want to know the truth about America’s tax laws and income tax system. This book contains the absolute truth about the tax system. A truth that our government prays you will never learn, or even become aware of. The truth is; United States Citizens are not subject, under the letter of the law, to the payment of income taxes on domestic income, and are not required by law to file a Form 1040 for the purpose of reporting, or paying the income tax on, their own domestic income. The truth is the IRS has been a fraudulent, illegal operation for over 60 years. The truth is the IRS routinely violates the Law, the Regulations and the United States Constitution. The IRS is an operation that is more representative of the Nazi Gestapo than the American Constitution, routinely trampling the rights of innocent Citizens. The IRS is the most un-American agency in the country today and the sooner we are rid of this fraudulent lie the better off we will be as a nation.
The truth is that America’s tax filing system is based on voluntary compliance and self assessment, and that’s right from the IRS itself, which we’ll see later. But what does that actually mean, and why do they say that: "Voluntary compliance and self assessment." ?
Did you know, or did they tell you, that you "comply voluntarily", and self-assess ?
You see in America, under the law, the Citizens are free, and FREE means not taxed. If you don’t believe me, let's look and see what the tax laws actually say. Before we begin, I would just like to point out that I am not trying to tell anyone what they personally should do in the future. I’m simply going to show you what the law actually says about income taxes, how those laws are supposed to be applied, and then given what the law actually does say, what it is possible to legally do under those laws.
The Constitution of the United States of America, the Supreme Law of the Land, establishes a limited federal government in America, representative of WE THE PEOPLE. Wherein, the Federal government is forever bound as the SERVANT of the PEOPLE, never to become their master. In this context, "Limited" means "bound by law" ! The IRS has turned this relationship upside down, effectively enslaving the People to the existing political system and parties, denying the People their FREE CHOICE ,and effectively creating a political system where it is virtually impossible to object to the activities of our supposedly representative government.
In the early centuries A.D. men feared the Fire Breathing Dragon, a great mythical creature of indeterminable and undefeatable power which burned individual men to ashes with a single breath. Today, believe it or not, we live with the same MYTH, about a "creature" of great and undefeatable power. Our DRAGON, our national curse and disgrace, our BEAST, is, of course, the IRS.
Most Americans fear the IRS out of ignorance of the law. Knowledge dispels hysterical fears of the unknown and makes possible the vanquishing of our foes. This information has been assembled in an effort to help all American Citizens overcome their own unfounded, hysterical fears of the IRS by making them knowledgeable about the law imposing income taxes, and how those laws affect you, the American Citizen. Once you know the TRUTH about the tax laws; the unconstitutional and illegal reign of terror orchestrated by the IRS in America for over 50 years will finally be over.
THE CODE HAS BEEN BROKEN !
The Paperwork Reduction Act Notice of 1980 is the key to exposing and understanding the truth about America's tax laws. The truth has been in print (the code) since 1916, and reaffirmed in print again recently. In 1985, when the IRS complied with the mandates of the Paperwork Reduction Act by providing to the Office of Management and Budget (OMB) the Table shown in 26 CFR 602.101, the stage was set to effect the end of the IRS in America. The IRS cannot ask you for more information, under any given code section, than this Table shows is required by that code section. This Table is from Title 26 (the Internal Revenue Code), Code of Federal Regulations (CFR), which implement the United States Code (USC) sections providing for the legal reduction of paperwork, and the administrative costs associated with its maintenance.
The following, showing the actual legal code sections that the IRS itself cites and invokes, should serve as proof beyond any reasonable doubt what-so-ever that the income tax laws are being intentionally misapplied to all American Citizens in America, in order to fund an unspoken, and un-American political agenda of socialist global control. To understand just how important the Paperwork Reduction Act is to the tax laws, keep in mind that since 1980 the IRS has been required by law to provide a notice of it (Notice 609) with every single piece of correspondence they issue to individuals. You can find a complete copy of this notice on Page 1 of any Form 1040 Tax Instruction Booklet. But, the IRS won’t tell you about the Code of Federal Regulations where you can lookup the information collection (form) requirements of any given code section. They just tell you that you’re supposed to know the law. Well, after reading this book, YOU WILL !
CHAPTER 1
IMPLEMENTATION
United States Code Annotated - General Index
Where does one begin an examination of the United States tax laws. The United States Code is voluminous and very complex. So, let us start at the beginning. Here, in the General Index for the United States Code Annotated from 1994, under the major heading Citizenship, we try to find an entry for Income Tax. But we only find:
CITIZENSHIP, cont'd.
........
Illegitimate Children 8 § 1409
Immigration, this index
Imprisonment,
Citizens by foreign governments 22 § 1732
Detention of Citizens prohibited except by
Act of Congress 18 § 4001
Indians,
Generally 8 § 1401
........
Where is income tax? There is nothing listed or shown for Income Tax in the General Index under 'Citizenship'. It would be there between 'Imprisonment' and 'Indians' if it existed. It’s not listed. There are no income tax code statutes shown here in the General Index as being applicable under 'Citizenship' because, as you will see, the income tax does not apply to a Citizen's domestic earnings and income earned by RIGHT, and the law accurately records that legal fact.
Here, in the General Index again, we see the entries for Citizens under the major heading Income Tax.
INCOME TAX, Cont'd.
.......
Citizens,
About to depart from U.S., waiver of requirements
as to termination of taxable year 26 § 6851
Living abroad, exclusion of earned income and
foreign housing costs from gross income 26 § 911
Civic Leagues,
....
How many code sections are shown here, in the General Index, as being applicable to Citizens under income tax? There are two sections, and they both have to do with what? They both have to do with foreign countries. So, here in the General Index for the Annotated Code, we immediately get our first indication that the income tax laws may be substantially different than what we have been led to believe is true by our government. Furthermore, if one looks up "Income Tax" under the major heading of "Aliens" in this General Index, one will find nine pages of code sections listed as being applicable, eight of those pages relate to income tax sections relevant to nonresident aliens.
Most people in America believe that income tax first started in America between 1913 and 1916. That is not correct. Income tax first appeared in the law at the beginning of the Civil War, in 1861. The text of the law read:
INCOME DUTY
§ SEC. 89. And be it further enacted, That for the purpose of modifying and reenacting, as hereinafter provided, so much of an act, entitled "An act to provide increased revenue from imports to pay interest on the public debt, and for other purposes," approved fifth of August, eighteen hundred and sixty-one, as relates to income tax;...
The first income tax was an income DUTY, imposed as a duty on revenue derived from foreign IMPORTS; imposed as a FOREIGN TAX DUTY. Duties are collected at the Ports of Entry to a nation, THEY ARE NOT IMPOSED ON DOMESTIC ACTIVITIES.
Also in the 1860s, in 1862, along with the Income Duty of 1861, Congress passed an Act into law that can only, and most accurately, be described as a Federal employment "Kickback" agreement. The text of the Act read:
Section 86. Salaries and Pay of Officers and Persons in the Service of the United States, and Passports.
§ SEC. 86. 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 per centum on the excess above the said six hundred dollars; and it shall be the duty of all paymasters, and all disbursing officers, under the government of the United States or in the employ thereof, when making any payments to officers and persons as aforesaid, or upon settling or adjusting the accounts of such officers and persons, to deduct and withhold the aforesaid duty of three per centum, and shall, at the same time, make a certificate stating the name of the officer or person from whom such deduction was made, and the amount thereof, which shall be transmitted to the office of the Commissioner of Internal Revenue, and entered as part of the internal duties; and the payroll, receipts, or account of officers or persons paying such duty, as aforesaid, shall be made to exhibit the fact of such payment.
...[balance of section 86 applied to passports] (emphasis added)
Please note that the ONLY people who are subject to this duty, by clear statutory language, ARE FEDERAL EMPLOYEES. The EFFECT of Section 86 identifies what it really is - a KICKBACK of part of the property agreed, under employment contract, to be paid for the labor of a Federal government employee. By this Act the amount of compensation contractually agreed to was diminished by one party to the agreement (Congress), without the consent of the other party (the federal employee). A unilateral change in the employment contract of all persons already in the employ of the Federal government was, and is, not legal, and the conduct of the United States judges for the next 70 years proves it, as they REFUSED to pay this "duty" until after 1932. Thus becoming, according to the IRS, the first "tax protesters" in American history. The Judges understood thaat the result of arranging for the withholding of three percent of the compensation due to Federal government employees under existing contracts was a deprivation of property and liberty without due process of law, which is violative of the Fifth Amendment to the Constitution.
In 1863 Supreme Court Chief Justice Taney sent a letter to the Secretary of the Treasury attacking implementation of Section 86 on the compensation of Federal judges as being unconstitutional. This letter was also published as a Supreme Court decision (157 U.S. 701). In it, Justice Taney states:
"The Act in question, as you interpret it, diminishes the compensation of every judge three percent, and if it can be diminished to that extent by the name of a tax, it may in the same way be reduced from time to time at the pleasure of the legislature." (emphasis added)
Here you can see that the judges understood the effect of this law was a diminishment "by the name of a tax". They knew it was not an actual tax, BUT A FORCED DEBT OBLIGATION. In this country there exists no circumstance under which a person lawfully can be forced to accept a debt against their will. The judges chose to exercise their RIGHT to REFUSE TO ACCEPT THIS DEBT.
The facts presented above were expressed by the Supreme Court in Pollock v Farmer's Loan & Trust Co. in 1895 where they said:
"Subsequently, in 1869, .... The question arose whether the law which imposes such a tax upon them was constitutional. The opinion of the Attorney General thereon was requested by the Secretary of the Treasury. The Attorney General, in reply, gave an elaborate opinion advising the Secretary of the Treasury that no income tax could be lawfully assessed and collected upon the salaries of those officers who were in office at the time the statute imposing the tax was passed, holding on this subject the views expressed by Chief Justice Taney. His opinion is published in Volume XIII of the Opinion of the Attorney General, at page 161. I am informed that it has been followed ever since without question by the department supervising or directing the collection of the public revenue." (emphasis added)
The "kickback" program illegally forced a three percent debt obligation upon Federal government employees working under an existing employment agreement in 1862. However the "kickback" program established by Section 86 was legal when applied to the salary of persons who took employment with the Federal government after the Act was passed because they were on notice that a three percent kickback was part of their employment agreement.
This “tax” (notice that it is not even called a tax in the Act, but a “Duty”), ONLY APPLIES TO FEDERAL EMPLOYEES. It is these two acts from the 1860's, the Foreign Income Duty and the Federal employment agreement "kickback", blurred under the 16th Amendment distractions, whose provisions have been intentionally mingled with the Social Security provisions of the 1930’s, that have become today's so-called income tax, NOT BY PROPER CHANGES IN THE LAW, but by improper enforcement procedure by a renegade IRS, brutally and illegally intimidating, coercing and persecuting good American Citizens by threat, in order to force them to pay a so called "income tax" that they LEGALLY NEVER OWED in the first place, because they were never subject to it under the law because they never worked for the Federal government or earned foreign income under treaty !!!
If we look at what the IRS tells us today about income taxes on the first page of the Form 1040 Tax Instruction Booklet from 1994, we find a "Note From the Commissioner", which is usually one of the first things in the booklet. This one is from Margaret Richardson, the current Commissioner of the IRS. It states in part:
Dear Taxpayer,
Thank you for making this nation's tax system the most effective system of voluntary compliance in the world. The key to maintaining that system is ensuring that you are treated fairly and equitably, that your privacy is protected, and that our tax system is as simple and understandable as possible....
Margaret Milner Richardson
The first sentence here is:
“Thank you for making this nation’s tax system the most effective system of voluntary compliance in the world.”
There it is! Voluntary Compliance. Why does she say that ? What does that mean ? Does that seem strange to you, given their known position in court ? And how does it effect you, a sovereign American Citizen, if compliance really is voluntary ? We will come back to those questions in a bit, but I would point out here that this opening statement is not unusual. Nearly every instruction booklet from past years has opened with some variation of this statement from the Commissioner.
The next thing we’re going to take a look at is the Privacy Act & Paperwork Reduction Act, Notice 609, which is required by law to be supplied to you by the IRS with any correspondence you receive from the IRS. It states in pertinent part:
Privacy Act and Paperwork Reduction Act
The Privacy Act of 1974 and Paperwork Reduction Act of 1980 say that when we ask you for information, we must first tell you our legal right to ask for the information, why we are asking for it, and how it will be used. We must also tell you what could happen if we do not receive it and whether your response is voluntary, required to obtain a benefit, or mandatory under the law.
This notice applies to all papers you file with us, including this tax return. It also applies to any questions we need to ask you so we can complete, correct, or process your return; figure your tax; and collect tax, interest, or penalties.
Our legal right to ask for information is Internal Revenue Code sections 6001, 6011, and 6012(a) and their regulations. They say that you must file a return or statement with us for any tax you are liable for. Your response is mandatory under these sections.........
We ask for tax return information to carry out the tax laws of the United States. We need it to figure and collect the right amount of tax............
If you do not file a return , do not provide the information we ask for, or provide fraudulent information, the law says that you may be charged penalties and, in certain cases, you may be subject to criminal prosecution..........
Please keep this notice with your records. It may help you if we ask for other information. If you have questions about the rules for filing and giving information, please call or visit any Internal Revenue Service office.
In the third paragraph it states:
"Our legal right to ask for information is Internal Revenue Code Sections 6001, 6011 & 6012(a) and their regulations. They say that you must file a return or statement with us for any tax you are liable for."
Now does that say you have to file a return for taxes that you are not liable for ? No! Does it state who is liable ? No! Does it even state what liability is ? No ! And that raises the legal questions, what is liability, and who is liable?
Now keep in mind that this does not actually say that this is their right to ask you (the Citizen) for information. It doesn't actually specifically say from whom information may be requested, it just establishes that a legal right to request information does exist. But from whom may information actually be requested under these laws ? Well, they cite three code sections in this notice, what do they say ?
§ 6001. Notice or regulations requiring records, statements, and special returns.
Every person liable for any tax imposed by this title or for the collection thereof, shall keep such records, render such statements, make such returns, and comply with such rules and regulations as the Secretary may from time to time prescribe. Whenever in the judgment of the Secretary it is necessary, he may require any person, by notice served upon such person or by regulations, to make such returns, render such statements or keep such records as the Secretary deems sufficient to show whether or not such person is liable for tax. The only records which an employer shall be required to keep under this section in connection with charged tips shall be charge receipts, records necessary to comply with section 6053(c), and copies of statements furnished by employees under section 6053(a).
(emphasis added)
Notice that the first three words in this code section are: “Every person liable”. Does this code section actually establish liability ? Or, does it simply list the consequences of being liable, leaving the reader to assume that he or she is in fact made liable elsewhere in the Code. Indeed it does not establish liability, it merely lists the consequences of being liable. It is interesting to note, that the second sentence here says:
"Whenever in the judgment of the Secretary it is necessary, he may require any person, by notice served upon such person or by regulations, to make such returns, render such statements or keep such records as the Secretary deems sufficient to show whether or not such person is liable for tax."
Have you ever received notice from the Commissioner ? Are you sure that you’re required to make such returns, render such statements or keep such records ? Which records, which statements, and which returns are required ?
Do you see in the third sentence where it refers to "employers". Does this code section apply to employers ? Are employers liable for tax ? (see Section 3403 - Liability for Tax)
Section 6011 was the next section cited in Notice 609 by the IRS as their right to request information, and it says:
§ 6011. General requirement of return, statement, or list.
(a) General rule.
When required by regulations prescribed by the Secretary any person made liable for any tax imposed by this title, or with respect to the collection thereof, shall make a return or statement according to the forms and regulations prescribed by the Secretary. Every person required to make a return or statement shall include therein the information required by such forms or regulations...........
(emphasis added)
The first sentence states in pertinent part:
"... any person made liable...”
Does this code section actually make anyone liable, or again, does it just list the consequences of being made liable, leaving the reader to assume or presume, again, that liability exists, or is actually established elsewhere in the code ? Neither of these code sections, 6001 nor 6011, actually establish liability. They simply establish the consequences of being liable, or being made liable. So, we’re going to look for Code sections that do state some person is liable, or is made liable for the payment of "income" tax, that would trigger the filing requirements established by these sections.
The last section referenced by the IRS in Notice 609, as their right to ask for information, Section 6012, states in pertinent part:
§ 6012. Persons required to make returns of income.
(a) General rule. Returns with respect to income taxes under subtitle A shall be made by the following:
(1)(A) Every individual having for the taxable year gross income which equals or exceeds the exemption amount, except that a return shall not be required of an individual -
(i) who is not married, is not a surviving spouse, is not a head of a household and for the taxable year has gross income of less than the sum of the exemption amount plus the basic standard deduction applicable to such an individual.
(ii) who is a household and for the taxable year has gross income of less than the sum of the exemption amount plus the basic standard deduction applicable to such an individual.
(iii) who is a surviving spouse and for the taxable year has gross income of less than the sum of the exemption amount plus the basic standard deduction applicable to such an individual.
(iv) who is entitled to make a joint return and whose gross income, when combined with the gross income of his spouse, is, for the taxable year, less than the sum of twice the exemption amount plus the basic standard deduction applicable to such a joint return, but only if such individual and his spouse, at the close of the taxable year, had the same household as their home.
This section states
“Returns with respect to income taxes under Subtitle A ...”
and Subsection (1)(A) says, “every individual having for the taxable year...”
So, the requirement identified here is being established for individuals under Subtitle A. Where is the tax imposed on individuals that would correspond to this filing requirement, and what is the exact legal nature of the specific requirement that is established by this section (6012), under the imposing statute? This Code section (6012) may appear to be related to individuals and their corresponding filing requirement (for Returns), but what are its legal limitations, as recorded in the law, and who are the individuals subject under subtitle A ?
Structural Organization of Title
First, a short explanation regarding the organization of the Tax laws in the United States Code. The tax law of the United States of America is in Title 26 of the United States Code (Internal Revenue Code). Title 26 is broken into a number of Subtitles, each Subtitle being a distinct and separate section of the law as the table below shows:
Tax or Topic Subtitle Chapters Sections
--------------------- ------- --------- ----------
Income Taxes A 1 to 6 1
Estate & Gift Taxes B 11 to 13 2001
Employment Taxes C 21 to 25 3101
Miscellaneous Excises D 31 to 47 4041
Alcohol, Tobacco and
Certain Other Excises E 51 to 54 5001
Procedure and
Administration F 61 to 80 6001
Joint Committee on
Taxation G 91 to 92 8001
Financing Presidential
Election Campaigns H 95 to 96 9001
Trust Fund Code I 98 9500
This book examines the laws under Subtitle A - Income taxes, Subtitle C - Employment taxes, and Subtitle F - Procedure and Administration, which applies and implements the other Subtitles under the law. The code sections we just looked at 6001, 6011 and 6012 are all from Subtitle F. Income taxes are in Subtitle A, consisting of chapters 1 - 6 of Title 26, Employment taxes are in Subtitle C, consisting of chapters 21 - 25.