Alert Congress: Labor taxes are illegal May 1, 2008
Dear (Senator/Representative) _______________
In accordance with U.S. Code, Title 26, Section 7701 (a) (16) taxes are for foreigners not U.S. citizens.
The Internal Revenue Manual, Part 20. Chapter 1. Section 3, states:2. No estimated tax penalty will be imposed on taxpayers if for any tax year: ...2. They were a citizen or resident of the United States throughout the preceding tax year, and 3. The preceding tax year was a 12-month year.3. The exception in (2) above is available for individuals, estates, and trusts even if the prior year return shows a liability for tax. http://www.irs.gov/irm/part20/ch01s04.html 20.1.3.2.1 (09-12-2006) Determining the Required Annual Payment Under, 6654 (e) (2), the Internal Revenue Manual, Part 20. Penalty and Interest Chapter 1. Penalty Handbook Section 3. Estimated Tax PenaltiesEmployers, not employees are required to pay taxes. In 1916, the Supreme Court decision, delivered by Chief Justice White states, "co llecting the tax at the source...makes it the duty of corporations, etc. to retain and pay the sum of the tax...". in reference "...,with the income tax provisions of the tariff act of October 3, 1913." Brushaber v. Union Pacific R.R. Co, 240 U.S. 1, 9 (1916)
Title 26, Section 7701 (a) (16)
Withholding agent. The term ''withholding agent'' means any person required to deduct and withhold any tax under the provisions of sections 1441, 1442, 1443, or 1461. § 1441. Withholding of tax on nonresident aliens U.S. Tax Code Foreign Tax only§ 1442. Withholding of tax on foreign corporations§ 1443. Foreign tax-exempt organizations§ 1461. Liability for withheld taxThe IRS clearly makes a distinction between U.S. Citizens, Resident Aliens, and "Individuals."
For example: IRS Form 2555 says "for use by U.S. Citizens and Resident Aliens only: click here size="3"> IRS Form 1040 says, "U.5. Individual Income Tax Return." The use of the word, "Individual," means this form is not meant for U.S. Citizens and Resident Aliens.http://www.irs.gov/pub/irs-pdf/f1040.pdf
Therefore, please alert your constituents that they do not have to pay income taxes if they lived in the U.S. during the proceeding year.Sincerely,Susan F. Allen, M.Ed.
