17560Re: [tips_and_tricks] Re: Taxpayer is not a CITIZEN of the United States??
- Mar 3, 2010I was very interested in the term taxpayer and what that really
means. I did some research and this is what I came up with:
The description of the Individual Master File in the IRM says:
“IRM 188.8.131.52.1.3 (01-30-2001)
(2)The returns filed include Income Tax Forms 1040, 1040A, 1040NR,
1040 C, 1040SS, 1040PR and Estimated Tax Returns 1040ES. Each
taxpayer account has an entity module and one or more tax modules.
The entity module contains data which describes that taxpayer as an
entity and which applies to all records of the taxpayer.”
When the IRS is referring to a Taxpayer the are referring to an "entity".
The entity classification rules are published in the regulations for
26 USC Section 7701. 26 CFR 602.101 shows OMB 1545-1486
is the collection of information authorized for 26 CFR 301.7701-3
The collections of information under OMB 1545-1486, published at
61 FR 66584, December 18, 1996 is titled “Simplification of Entity
Classification Rules”. Stated by the regulations,
“Summary: This document contains final regulations that classify
certain business organizations under an elective regime. These
regulations replace the existing classification rules.”
“(a) Organizations for federal tax purposes-(1) In general. The
Code prescribes the classification of various organizations for
federal tax purposes....
(4) Single Owner organizations. Under §§ 301-7701-2 and 301-7701-3, certain
organizations that have a single owner can choose to be recognized or
as entities separate from their owners.” OMB 1545-1486, 61 FR 65588 &
26 CFR §301-7701-1
69 FR 43317 July 20, 2004
Section 301.7701-3(a) provides that an eligible entity with two or
more owners may
elect to be classified as an association (and thus a corporation under
§ 301.7701-2(b)(2)) or a partnership, and a eligible entity with a single
owner may elect to be classified as an association or to be disregarded
as an entity separate from its owner. Section 301.7701-3(b) provides
that unless the entity elects otherwise, a domestic eligible entity is a
partnership if it has two or more owners or is disregarded as an entity
separate from its owner if it has a single owner.”
69 FR 43318, July 20, 2004
“If the late or invalid election is not perfected, the default rules will
maintain passthrough taxation treatment by classifying the entity
as a partnership or a disregarded entity.”
Default classification of an entity falls to a partnership or a disregarded
Now we have
Taxpayer defined as an entity, defaulting to a partnership or a
disregarded entity (AKA a entity, disregarded as being separate
from its owner), unless an election is in place.
This applies to all records of the taxpayer. So anytime they are addressing
the taxpayer -
JOHN DOE, a disregarded entity
JOHN DOE, a partnership entity
JOHN DOE, a corporation entity
JOHN DOE, a trust entity
No other classifications are specified in their regulations.
> I believe that if you review 26 USC section 871, titled " Tax on
> nonresident alien individuals" it will be found the privilege of
> residing within the U.S. is the grounds for "a tax of 30 percent of the
> amount received fromn sources within the United States by a nonresident
> alien individual..."
> It is readily apparent that this section does not apply to citizens of
> the United States. Neither is it cited within typical indictments as a
> statute that authorizes a tax upon citizens.
> What statutes imposes a tax upon citizens of the United States ??? Well,
> it that statute exists, it is not alleged and put into contestation in
> any IRS prosecutions. Of course, it would be an ESSENTIAL ELEMENT of any
> valid indictment. An indictment that does not allege EVERY ESSENTIAL
> ELEMENT of a crime is invalid. Almendarez v United States, 523 U.S. 224,
> 228 (1998).
> A casual reading of any income tax indictment reveals they always refer
> to the defendant as a "taxpayer." That is a conclusion of law that has
> NO standing in a valid indictment and should be challenged. The
> statutory imposition of "taxpayer" is another essential element that
> must be alleged in a valid indictment.
> --- In email@example.com
> <mailto:tips_and_tricks%40yahoogroups.com>, "Barry" <bear@...> wrote:
> > I just posted extensive comments on my blog relative to the argument,
> > "Taxpayer is not a CITIZEN of the United States??" here:
> > http://bit.ly/98ncDC <http://bit.ly/98ncDC> <http://bit.ly/98ncDC
> <http://bit.ly/98ncDC>> I'm interested in what
> > you think about my comments. I think they are well thought out and
> > reality based. Maybe you have time to comment yourself as well. Bear
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