The IRS Manual Repeatedly Says It’s Own Tax Code Is ‘Voluntary'?!

By Arcadia Economics

Tax Law InterpretationIRS OperationsConstitutional RightsLegal Loopholes
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Here's a comprehensive summary of the YouTube video transcript, maintaining the original language and technical precision:

Key Concepts

  • Voluntary Tax Code: The IRS's repeated assertion that the U.S. tax system relies on voluntary compliance.
  • Title 26: The section of the U.S. Code that pertains to internal revenue laws.
  • 16th Amendment: The amendment to the U.S. Constitution authorizing Congress to levy an income tax.
  • Supreme Court Decisions: Rulings by the U.S. Supreme Court that interpret laws and the Constitution.
  • Internal Revenue Code (IRC): The body of federal tax law in the United States.
  • 1040 Form: The standard U.S. individual income tax return.
  • Fifth Amendment: The amendment to the U.S. Constitution protecting against self-incrimination.
  • "Income" Definition: The alleged lack of a clear definition for "income" within the Internal Revenue Code.
  • Eisner v. Macomber: A Supreme Court case defining income as "gain or profit."
  • Bruce Shaper Case / Stanton Case (1916): Cases asserting the 16th Amendment did not grant new taxing power.
  • Peek v. Lowe: A case reiterating that the 16th Amendment did not expand Congress's taxing power.
  • Fear and Intimidation: Tactics allegedly used by the IRS to ensure compliance.
  • "Straw Man" Entity: A legal concept referring to a fictional entity created by the government, often associated with the all-caps name on official documents.
  • Public vs. Private: A distinction discussed in relation to legal standing and identification.
  • Rescinding Contracts: The concept of revoking or canceling agreements, potentially including tax filings.
  • "Cracking the Code" Course: A program offered by The Freedom People to educate individuals on tax matters.
  • The Freedom People: An organization focused on helping individuals live freer lives, particularly in financial and legal matters.

Summary

This video delves into a critical examination of the U.S. income tax system, questioning its legal basis and the IRS's enforcement methods. The central argument presented is that the IRS operates on a foundation of fear and intimidation rather than strict adherence to established law, particularly Supreme Court rulings.

The "Voluntary" Tax System and IRS Statements

The discussion highlights the IRS's frequent use of the term "voluntary compliance" in official communications. Examples cited include statements from former IRS Commissioners Shirley Peterson and Margaret Milner Richardson, who thanked Americans for complying "voluntarily" and described the system as the "most effective system of voluntary compliance in the world." Fred Goldberg is also quoted stating that government in a free country can only be financed through "voluntary compliance and the support of the public it deserves." The hosts and guest, Bradley Freedom, argue that this emphasis on "voluntary" is a euphemism and a deliberate misdirection.

Questioning the Legal Basis of Income Tax

A significant portion of the discussion revolves around the legal authority for mandatory income tax filing.

  • Lack of Explicit Law: The transcript references a case where a jury found a person not guilty for lack of filing because the IRS could not present a specific law making them liable to file a 1040. This is presented as evidence that such a law, in compliance with Supreme Court decisions, may not exist.
  • Supreme Court Precedent: The video emphasizes Supreme Court rulings that allegedly state the 16th Amendment did not grant Congress new taxing powers. Cases like Bruce Shaper and Stanton (1916) and Peek v. Lowe are mentioned, asserting that if an activity wasn't taxable before the 16th Amendment, it remained so afterward.
  • Definition of "Income": A key point raised is that the word "income" is allegedly not defined within the Internal Revenue Code itself. Sheldon Cohen, a former IRS Commissioner, is quoted acknowledging this, stating that the courts have defined it. The Eisner v. Macomber case is cited, defining income as "gain or profit" from some activity, implying that wages or labor might not fall under this definition. Bradley Freedom posits that a person's labor is their private property and an even exchange for money, not taxable "income."
  • Conflict with Supreme Court Rulings: The transcript questions how Title 26 (the IRC) can require filing if it's not in compliance with Supreme Court decisions. The idea of "superimposing" a 1920 case onto a code written later is presented as illogical.

The Aaron Russo Clip and IRS Official's Response

A pivotal segment features a clip from Aaron Russo interviewing a former IRS official (implied to be Sheldon Cohen).

  • Russo's Inquiry: Russo seeks to understand why Supreme Court decisions are not widely publicized and asks for the IRS's perspective on the law requiring tax payment.
  • Cohen's Evasion: Cohen's responses are characterized as evasive and dismissive. He uses the analogy of traffic signals to explain "voluntary compliance," which Russo and Freedom argue is a flawed comparison, as traffic laws are explicitly mandatory. Cohen also dismisses Supreme Court decisions as "inapplicable" when pressed, a statement that deeply alarms the hosts.
  • Threats and Intimidation: Following the interview, the former IRS commissioner allegedly makes a veiled threat to Russo in Yiddish, meaning "nothing will help you." This is presented as evidence of the IRS using intimidation tactics.

The Role of Fear, Intimidation, and Confusion

Bradley Freedom elaborates on how the IRS allegedly perpetuates its system through fear, intimidation, and confusion.

  • Complexity of the Tax Code: The tax code is described as massive and intentionally confusing, designed to push individuals towards seeking help from IRS-trained professionals (CPAs).
  • The "Game" of Compliance: The system is framed as a "game" where individuals are led to believe they need external help to comply, while the IRS aims to extract maximum money.
  • Licensed Professionals: CPAs and other tax professionals are seen as part of this system, bound by their licenses to follow specific IRS-dictated procedures. Their education, even from prestigious institutions, is presented as limited to what they are "trained" to know, not necessarily the full truth.
  • "Weapons of Mass Destruction" Analogy: The IRS's alleged tactics are compared to the justification for the Iraq War, suggesting a pattern of government deception.

Fifth Amendment and Self-Incrimination

The discussion touches upon the Fifth Amendment's protection against self-incrimination.

  • The Paradox: If one can be prosecuted for information provided on a 1040 form, and the Fifth Amendment protects against self-incrimination, then being forced to fill out such a form, especially a "voluntary" one, creates a conflict. Aaron Russo's questioning of this paradox is highlighted.
  • Non-Filers: Bradley Freedom mentions being a "non-filer" for many years, suggesting that not filing can be a strategy, though it carries its own risks if not handled correctly.

The 16th Amendment and Ratification Concerns

The validity of the 16th Amendment is questioned.

  • No New Powers: As mentioned earlier, the argument is that the 16th Amendment did not grant new taxing powers.
  • Fundamental Rights: The discussion shifts to fundamental principles, asserting that one cannot steal from people, and labor is a person's energy and property. The idea that governments and agencies like the IRS are created by society, and thus serve the people, is emphasized. The pecking order is presented as God > Man > Society > Government > IRS, implying the IRS does not have ultimate authority over individuals.

Why People Get into Trouble

Bradley Freedom outlines the primary reasons individuals face issues with the IRS:

  1. Ignoring Correspondence: The most common reason is ignoring letters or communications from the IRS. This is seen as the worst possible action, as it escalates the situation.
  2. Filing and Not Paying: Filling out the 1040 form and acknowledging a debt creates a "confession form" and a legally binding contract. Failure to pay after this voluntary act leads to greater risk.

Solutions and Strategies

The Freedom People organization offers solutions and guidance:

  • Communication and Assertion: The key is to communicate properly with the IRS and learn to assert oneself.
  • "Cracking the Code" Course: This course aims to educate individuals on tax law and proper filing procedures, including "rescending" previous filings if done unknowingly.
  • "Rescending" Contracts: The concept of rescinding past agreements (tax filings) is presented as a right in contract law, allowing individuals to correct past actions made without full knowledge.
  • "Straw Man" Concept: The idea of a "straw man" entity (created by birth certificate, social security number, etc.) is discussed as a mechanism the government uses to exert control and enforce statutes and regulations that are not true laws. Identifying as the "living man" rather than the fictional entity is suggested as a defense, particularly in court.
  • Recovering Past Payments: In some cases, individuals have been able to recover taxes paid in previous years, particularly if fraud is involved, as there is no statute of limitations on fraud. The organization helps members attempt to recover up to three years of past payments.
  • Trusts and Contract Rescission: Setting up trusts and rescinding contracts from the age of 18 onwards are mentioned as potential strategies for reclaiming past payments, though the effort involved is acknowledged.

The IRS as a Collection Agency and Control Grid

The discussion touches on the IRS's relationship with the Federal Reserve and broader control systems.

  • IRS as Collection Agency: The IRS is analogized to the "Gestapo" for the Federal Reserve, acting as a collection agency.
  • Control Grid: The IRS is seen as part of a larger "control grid system" that includes Washington D.C., the City of London, and the Vatican. The argument is that true control lies beyond visible agencies and political figures.
  • Opting Out: The emphasis is on opting out of this system, with the "pen" (the means of enslavement) also being the means of freedom. Voting is dismissed as ineffective, as both left and right wings are seen as part of the same system.

Conclusion and Call to Action

The video concludes by reiterating that the IRS thrives on fear and intimidation, not necessarily law. Individuals are encouraged to educate themselves and seek proper guidance. The Freedom People offer free consultations and a platform with free courses and resources. The core message is that individuals possess the power and can reclaim it by understanding the law and communicating effectively. The importance of standing up to perceived bullies and reclaiming personal sovereignty is a recurring theme.

Contact Information: The Freedom People: thefreedom.org (Offers free consultations and a platform with free courses.)

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