|
What about filing a tax return?
The bug-man declines to file a return since he has nothing to report that is under the jurisdiction of the IRC. Since he does not work in a government owned SSA-W2 job he is out of the system and under no contractual obligation to make contributions. The corporation that wrote him a check for his service legally reports it as an internal business expense. He is legally classified as a non-participant.
If you are in the SSA-W2 system:
The purpose of an individual year-end tax-return is to settle the exact amount of contractually required contributions to the SSA-W2 system as determined by the IRC. Filing is purely voluntary. You can decline to file but doing so does not release you from your contractual obligations under the IRC. In the absence of a tax-return, the IRC permits the IRS to file a tax-return on your behalf and they are allowed to file a return that maximally favors them. And this they will do if it creates a receivable ? accounting lingo for ? "you owe them money." They will decline to file a return if it would create a payable ? accounting lingo for "they owe you money." If the IRS files a return and creates a receivable against you they will send you a notice declaring their claim. If you decline to pay, the IRC permits the IRS to file a tax-lien against you. This of course will be seen on your credit report. And the end result is your credit is damaged. The IRS computers will see to it that the lien remains on your credit report until the lien is paid. You can't beat a computer.
What if I file a return but cheat like crazy?
This is a very bad idea. The Treasury Department nailed Leona Helmsley not because she failed to pay taxes on her personal labor but because she filed a fraudulent tax return. Filing a dishonest tax return puts you at risk. The IRS is very astute at defending itself. Basically the IRS is responsible for enforcing the IRC rules. If you are in the SSA-W2 system you have to live by the IRC. If you decide to stay in the system, we recommend securing the services of a highly qualified CPA or tax attorney that can assist you in filing the most advantageous return possible without committing fraud or risking an audit.
In the end, the law does allow you to opt-out because you can't be forced to work for free. If you do opt-out there are at least 2 potential inconveniences you need to understand:
1) Difficulty with conventional loans.
You will have a far more difficult time getting loans from conventional banks, because so often these depend on verifying your income with signed tax returns you no longer have. You can hire an accountant to compose a certified financial statement that some loan institutions may accept as valid proof of income.
2) No unemployment benefits.
This benefit is part of the SSA-W2 system and since you're not in the system you can't use the benefits. If you have no contracts you only have yourself to complain to, you can't complain to the government because you can't get anyone to do business with you.
Moreover, some who have opted out have moved all their physical assets into a trust. This measure makes it almost impossible for the IRS to touch the assets. The IRS, after all, cannot simply decide to go after a person?s wealth. They have to obey IRC rules as well. If there is no income over which they have jurisdiction then they can legally do nothing.
It is worth noting, finally, that the government is in the "National Social Benefits" business. The government entered this business with the ratification of the 16th Amendment and has achieved a near perfect monopoly in this market (a violation of anti-trust laws). If you don't believe this, try finding a non-SSA-W2 job with a U.S. corporation. As such, it is in the interest of any business that has a monopoly to get the customers to believe that there is no alternative to the present business relationship. The government is not about to provide any of its customers (you and I) with any information suggesting otherwise. In obtaining such information, we are clearly on our own; no government agency will assist you in opting out of the income tax system or the social security system, with the possible exception of the U.S. Supreme Court, should the right case one day come before them.
So one?s best weapon is still the Declaration of Independence, the U.S. Constitution, the 13th Amendment, and information. Whatever the inconveniences, the reward is personal sovereignty ? otherwise known as freedom.
__________________
SIG TOO BIG
|