Are We Liable to Pay Federal Tax to the IRS? | Peymon Mottahedeh

Key Concepts

Voluntary Income Tax: The assertion that federal income tax is not mandatory for citizens of the 50 states.
Definition of "United States" in Tax Law: The argument that "United States" in tax code refers specifically to Washington D.C. and its territories, not the 50 states.
Freedom Law School: An organization founded by Payman Motede to educate Americans on how to legally avoid federal income and payroll taxes.
IRS Deception: The belief that the IRS uses misinformation and complex legal definitions to mislead Americans into believing they owe income taxes.
1040 Form as Confession: The interpretation that signing the 1040 form is an admission of owing taxes and a voluntary surrender of freedom.
Non-Filers: Individuals who choose not to file federal income tax returns, argued to be largely ignored by the IRS.
Founding Fathers' Intent: The idea that the original intent of the U.S. Constitution was to limit the federal government's power to tax citizens directly within the states.
Alternative Funding for Government: Proposals for funding the federal government through import taxes and fees for immigrants.
"Chicken Libertarians" vs. "Founding Father Libertarians": A distinction between those who are fearful of government action and those who actively seek to restore freedom.
Restore Freedom Plan: A program offered by Freedom Law School that provides support and legal backing for individuals who stop filing taxes.

Summary

This transcript features an interview with Payman Motede, founder of Freedom Law School, who asserts that federal income and payroll taxes are not legally required for citizens of the 50 United States. Motede, an immigrant from Iran and a libertarian, claims to have discovered this through extensive research into tax laws and court decisions.

The Core Argument: The Definition of "United States"

Motede's central argument hinges on the definition of "United States" within the U.S. tax code. He contends that while commonly understood to refer to the 50 states, in tax law, it specifically denotes Washington D.C. and its territories. This distinction, he argues, was intentionally hidden by the "deep state" towards the end of the Internal Revenue Code (IRC) to circumvent the Founding Fathers' intent to limit direct federal taxation of citizens within the states. The 16th Amendment, which authorized income tax, is presented as a mechanism to bypass constitutional restrictions.

The Voluntary Nature of Income Tax

Based on this definitional argument, Motede asserts that the income tax is voluntary for individuals residing in the 50 states. He claims that the IRS's own publications, including the 1040 form instructions, Treasury regulations, and Supreme Court decisions, support this conclusion. He states that by signing the 1040 form, individuals are essentially confessing to owing taxes and voluntarily submitting to the IRS's authority, akin to signing away their freedom.

Freedom Law School and its Methodology

Motede founded Freedom Law School in 1996 to educate Americans on this principle. He claims to have successfully avoided federal income and payroll taxes for over 30 years, despite being under IRS investigation. He emphasizes that none of his students who have followed his guidance have faced imprisonment, bank levies, or property seizure.

His methodology involves:

Independent Research: Encouraging individuals to verify the law for themselves on government websites like USCode.house.gov.
Ceasing to File: Advising individuals to stop filing 1040 forms and to inform their employers to stop withholding taxes.
"Restore Freedom Plan": For those who are hesitant, Freedom Law School offers a plan where individuals contribute 30% of their would-be tax payments to a fund. This fund provides unlimited legal support, attorney fees, and reimbursement for any losses incurred if the IRS takes action against them, effectively making it a zero-risk option.

Addressing Counterarguments and Common Misconceptions

Motede addresses common concerns and reasons why others have faced legal repercussions for tax resistance:

Misinformation in the "Freedom Movement": He dismisses various "fringe" theories like sovereign citizen arguments, UCC revocations, and straw man concepts as "garbage" that lead people into trouble.
Lack of Legal Procedure: He points to individuals like Irwin Schiff and Sher Kahn as examples of those who went to prison due to their inability to navigate the court system effectively, refusing help from those who understood the law.
Media and Professional Complicity: Motede argues that media, accountants, CPAs, and tax attorneys profit from people paying taxes and therefore have a vested interest in perpetuating the system.
Fear-Based Conditioning: He attributes the widespread compliance to decades of "brainwashing" and fear instilled by the IRS, leading to a "chicken libertarian" mentality. He contrasts this with a "founding father libertarian" approach that emphasizes education and action.
The "Safe Side" Argument: Motede refutes the idea of filing to be on the "safe side," likening it to taking a dangerous COVID-19 vaccine to be safe. He argues that signing the 1040 form is the very act that opens individuals up to audits and penalties.

The IRS's Inability to Pursue Non-Filers

Motede asserts that the IRS is overwhelmed and largely ignores non-filers. He cites IRS estimates of over 80 million Americans who do not file 1040 forms. He claims that even if employers submit W-2s or third parties submit 1099s, the IRS's outdated computer systems (running on 1960s cobalt assembly language) are incapable of effectively processing this information and pursuing non-filers. They are more likely to focus on those who file, as they provide confessions and make it easier to challenge deductions.

Alternative Funding for Government

Regarding legitimate government funding, Motede suggests returning to the principles outlined by the Founding Fathers, specifically:

Import Taxes: Taxing goods brought into the country.
Immigrant Fees: Charging foreigners a fee for the privilege of immigrating to America, with options for permanent residency. This would allow Americans to be free from internal taxes.

The Petition to Congress

Freedom Law School has drafted petitions to Congress, which are available for free download. These petitions present the legal argument that individuals do not owe income tax and challenge Congress to provide the law that mandates it. Motede states that no congressman has ever responded by proving him wrong, which he interprets as evidence of the validity of his claims.

Conclusion and Call to Action

Motede's overarching message is that freedom is attainable through education and independent verification of the law. He encourages individuals to visit freedomlawchool.org to access resources, download brochures, and understand the "seven steps to free yourself of IRS deception." He believes that if enough Americans recognize the truth and cease filing, the current tax system will collapse, similar to the Soviet Union's dissolution.

The interview also includes promotional information for Miles Franklin's weekly specials on silver and gold bullion.