1) The United States (i.e. Federal Government) has limited jurisdiction. As stated in Article 1, Section 8, Clause 17 of the Constitution for the United States of America:
"To exercise exclusive Legislation in all Cases whatsoever, over such District (not exceeding ten Miles square) as may, byCession of particular States, and the Acceptance of Congress, become the Seat of the Government of the United States, and to exercise like Authority over all Places purchased by the Consent of the Legislature of the State in which the Same shall be, for the Erection of Forts, Magazines, Arsenals, dock-Yards, and other needful Buildings;"
In other words the United States Congress can only pass laws that apply within the above defined areas. Since Schiff is big on case law here's one that he missed:
"The power of the United States to tax is limited to persons, property, and business within their jurisdiction, as much as that of a state is limited to the same subjects within its jurisdiction."
- United States v. Erie Ry. Co., 106 U.S. 327, 333, 1 S.Ct. 223 (1882)
26 USC § 7701(9) defines the "United States" as the District of Columbia and the several states. At § 7701(10) the term "State" is defined as the "District of Columbia". Did you get that or did you miss it? The 50 union states aren't included in those definitions. See 26 USC §§ 5272(b), 5362(c)(9), 6103(b)(5), and 7462 for code sections that include the union states.
Jurisdiction should have been his MAIN argument.
The "Dixieland Law Journal" some excellent information on the subject of federal jurisdiction. Do a web search with those key words.
2) The Internal Revenue Service is NOT a agency on the United States! Look at 31 USC §§ 301 thru 310. Every agency of the Department of the Treasury is listed therein. Notice that the IRS, BATF, and Secret Service are NOT listed!!!
For the most detailed information about the origin of the IRS search the web for the document "THE BIGGEST HEIST IN HISTORY" by William Cooper.
3) ON the subject of wage withholding he never informs the reader about the following points:
a) 26 USC § 3402(p) which clearly states that the W-4 form is voluntary. Read it for yourself. If it's voluntary why does he advise you to fill it out and claim "exempt"?
b) He never informs the reader of the legal definition of employee as defined in 26 USC § 3401(c). He never discusses the legal meaning of the word "includes" as used in the code. It is meant to be used in a restrictive manner. In other words "employee" includes only the definitions in that code section! If it's not included it's not a part of the definition! Are you an "employee"? If you're not why does he advise you to claim "exempt" on a W-4?
c) He missed the definition of "Withholding Agent" at § 7701(16). That is very important. That definition contains the withholding requirements in the IRC. Look them up and see if you are subject to it.
4) He never researched the Code of Federal Regulations (CFR's). The CFR's have more detailed information than the IRC. If you carefully study the sections that apply to Subtitle A, you'll notice that the sections that define "United States" don't include the 50 union states!
I could go on but I won't. Irwin Schiff has done a great deal of research on this subject and I thank him for it. Because of him I've saved a lot of cash. However, If you think that by reading this book (or any of his other books) that you'll know every thing about the US income tax, you are mistaken. There is a lot of valuable information out there that Schiff has NEVER covered. Get on your favorite search engine and start looking for it! I've found it and so can you!
Here's a list of some documents that will help you figure out this complex subject. Search the web for them.
1) "PUBLIC JUDICIAL NOTICE" by William Cooper. There are 3 parts of this document. Read them all! Very good information in these!
2) "AN INVESTIGATION INTO THE MEANING OF THE TERM UNITED STATES", by unknown. This is a long and detailed document that is a must read!
I would also suggest that you purchase the book "GOOD-BYE APRIL 15TH!", BY Boston T. Party. I would recommend this book over any of Schiff's books. Read it!
Good luck.
The law says you don't have to pay....so stop paying now!!
Buy this book and Irwin's other books (ESPECIALLY The Federal Mafia) to find out how.....I've followed Irwin's procedures for 3 years now...He's the best...forget the rest....I've researched this for over 5 years now....more people use Irwin's method's than any other and that's for good reason....