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State Charted Corporation

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  • diggerflyer
    Just a question for any. Is the officer of a state chartered corporation subject to the IRC and is his salary subject to income taxation?
    Message 1 of 6 , Jan 3, 2006
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      Just a question for any. Is the officer of a state chartered
      corporation subject to the IRC and is his salary subject to income
      taxation?
    • paradoxmagnus@earthlink.net
      Officers of CORPORATIONS and GOVERNMENT WORKERS are the DEFINED EMPLOYEE for the INCOME TAX and are involved in a TRADE OR BUSINESS. 26 USC 3401(c) Employee
      Message 2 of 6 , Jan 3, 2006
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        Officers of CORPORATIONS and GOVERNMENT WORKERS are the DEFINED EMPLOYEE for the INCOME TAX and are involved in a TRADE OR BUSINESS.
        26 USC 3401(c) Employee
        For purposes of this chapter, the term "employee" includes an officer, employee, or elected official of the United States, a State, or any political subdivision thereof, or the District of Columbia, or any agency or instrumentality of any one or more of the foregoing. The term "employee" also includes an officer of a corporation.
        26 USC 7701(a)(26) Trade or business
        The term “trade or business” includes the performance of the functions of a public office.
         
        26 USC 1402(a) Net earnings from self-employment
        The term “net earnings from self-employment” means the gross income derived by an individual from any TRADE OR BUSINESS carried on by such individual, less the deductions allowed by this subtitle which are attributable to such TRADE OR BUSINESS, plus his distributive share (whether or not distributed) of income or loss described in section 702 (a)(8) from any TRADE OR BUSINESS carried on by a partnership of which he is a member; except that in computing such gross income and deductions and such distributive share of partnership ordinary income or loss— ...[EMPHASIS ADDED]
        And don't let the use of INCLUDES and INCLUDING in the DEFINITIONS fool you.
        27 CFR 72.11  Meaning of terms.

            As used in this part, unless the context otherwise requires, terms shall have the meanings ascribed in this section. Words in the plural form shall include the singular, and vice versa, and words importing the masculine gender shall include the feminine.
        The terms ``includes'' and ``including'' do not exclude things not enumerated which are in the same general class.
        26 CFR 31.0-2  General definitions and use of terms.

           
        (a) In general. As used in the regulations in this part, unless otherwise expressly indicated--
           
        (1) The terms defined in the provisions of law contained in the regulations in this part shall have the meanings so assigned to them.
        ...
        (8) Person includes an individual, a corporation, a partnership, a trust or estate, a joint-stock company, an association, or a syndicate, group, pool, joint venture or other unincorporated organization or group, through or by means of which any business, financial operation, or venture is carried on. It includes a guardian, committee, trustee, executor, administrator, trustee in bankruptcy, receiver, assignee for the benefit of creditors, conservator, or any person acting in a fiduciary capacity.
        ...
        (19) The cross references in the regulations in this part to other portions of the regulations, when the word ``see'' is used, are made only for convenience and shall be given no legal effect.
           
        (b) Subpart B. As used in Subpart B of this part, unless otherwise expressly indicated--
            (1) Act means the Federal Insurance Contributions Act.
            (2) Taxes means the employee tax and the employer tax, as respectively defined in this paragraph.
           
        (3) Employee tax means the tax (with respect to wages received by an employee after Dec. 31, 1965, the taxes) imposed by section 3101 of the Code.
            (4) Employer tax means the tax (with respect to wages paid by an employer after Dec. 31, 1965, the taxes) imposed by section 3111 of the Code.
           
        (c) Subpart C. As used in Subpart C of this part, unless otherwise expressly indicated--
             ...
            (5) Tax means the employee tax, the employee representative tax, or the employer tax, as respectively defined in this paragraph.
           
        (6) Employee tax means the tax imposed by section 3201 of the Code.
            (7) Employee representative tax means the tax imposed by section 3211 of the Code.
            (8) Employer tax means the tax imposed by section 3221 of the Code.
           
        (d) Subpart D. As used in Subpart D of this part, unless otherwise expressly indicated:
            (1) Act means the Federal Unemployment Tax Act.
            ...
            (3) Tax means the tax imposed by section 3301 of the Code.
           
        (e) Subpart E. As used in Subpart E of this part, unless otherwise expressly indicated, tax means the tax required to be deducted and withheld from wages under section 3402 of the Code.
        Reading the cooresponding sections of CODE OF FEDERAL REGULATIONS really helps you understand what they are really saying.
         
        Patrick in California
         
        "Those who are SLAVES to DEFINITIONS, are SUBJECT to REGULATION."--PKM
         
        --- In tips_and_tricks@yahoogroups.com, "diggerflyer" <riverway@h...> wrote:
        >
        > Just a question for any. Is the officer of a state chartered
        > corporation subject to the IRC and is his salary subject to income
        > taxation?
      • Michael Neil
        Nope. Nobody s wages or salary are subject to taxation. That s not what s taxed anyway. BYH Michael Neil; of the House Schluterbusch ... From:
        Message 3 of 6 , Jan 3, 2006
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          Nope. Nobody's wages or salary are subject to taxation. That's not what's
          taxed anyway. BYH

          Michael Neil; of the House Schluterbusch
          ----- Original Message -----
          From: "diggerflyer" <riverway@...>
          To: <tips_and_tricks@yahoogroups.com>
          Sent: Tuesday, January 03, 2006 9:15 AM
          Subject: [tips_and_tricks] State Charted Corporation


          > Just a question for any. Is the officer of a state chartered
          > corporation subject to the IRC and is his salary subject to income
          > taxation?
          >
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          > Yahoo! Groups Links
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        • Ed Siceloff
          Wouldn t that officer of a corporation be defined as an officer of a US formed corporation? A private corporation s officers would be excluded from the list
          Message 4 of 6 , Jan 3, 2006
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            Wouldn’t that “officer of a corporation” be defined as an officer of a US formed corporation?  A private corporation’s officers would be excluded from the list because of grammatical construction of the previous inclusions to the list, all having a direct nexus to the US corporation, or its subsidiaries.  Most corporations, even though possibly public, remain in the private sector in terms of their commerce, unless developing a nexus with the U.S.   That would be my interpretation of the particular code.

              Then if one drops down, to your second quote:  “The term “net earnings from self-employment” means the gross income…”  How would anybody possibly be able to interpret the terms “net” means “gross”?  Wouldn’t the law of non-contradiction apply here.  If “A” is “A” then it can not be “B”.  That defies the idea that a law needs to be intelligible.

             


            From: tips_and_tricks@yahoogroups.com [mailto:tips_and_tricks@yahoogroups.com] On Behalf Of paradoxmagnus@...
            Sent: Tuesday, January 03, 2006 12:47 PM
            To: tips_and_tricks@yahoogroups.com
            Subject: [tips_and_tricks] Re: State Charted Corporation

             

            Officers of CORPORATIONS and GOVERNMENT WORKERS are the DEFINED EMPLOYEE for the INCOME TAX and are involved in a TRADE OR BUSINESS.

            26 USC 3401(c) Employee
            For purposes of this chapter, the term "employee" includes an officer, employee, or elected official of the United States , a State, or any political subdivision thereof, or the District of Columbia , or any agency or instrumentality of any one or more of the foregoing. The term "employee" also includes an officer of a corporation.

            26 USC 7701(a)(26) Trade or business

            The term “trade or business” includes the performance of the functions of a public office.

             


          • paradoxmagnus@earthlink.net
            Did you forget the COMMERCE CLAUSE? We are talking about the OFFICER of a COMMERCIAL ENTITY created under STATE LAW. Can the government always TAX & REGULATE
            Message 5 of 6 , Jan 4, 2006
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              Did you forget the COMMERCE CLAUSE?
               
              We are talking about the OFFICER of a COMMERCIAL ENTITY created under STATE LAW.
               
              Can'the government always TAX & REGULATE that which it CREATES?
              "The sovereignty of a state extends to everything which exists by its own authority, or is introduced by its permission...Consequently, the people of a single state cannot confer a sovereignty which will extend over them...All subjects over which the sovereign power of a state extends, are objects of taxation; but those over which it does not extend, are, upon the soundest principles, exempt from taxation. This proposition may almost be pronounced self-evident." McCULLOCH v. STATE, 17 U.S. 316 (1819)
              http://laws.findlaw.com/us/17/316.html
              If you want something INTELLIGIBLE, you have to refer to the CODE OF FEDERAL REGULATIONS.
              26 CFR 31.0-2  General definitions and use of terms.

                 
              (a) In general. As used in the regulations in this part, unless otherwise expressly indicated--
                 
              (1) The terms defined in the provisions of law contained in the regulations in this part shall have the meanings so assigned to them.
              ...
              (8) Person includes an individual, a corporation, a partnership, a trust or estate, a joint-stock company, an association, or a syndicate, group, pool, joint venture or other unincorporated organization or group, through or by means of which any business, financial operation, or venture is carried on. It includes a guardian, committee, trustee, executor, administrator, trustee in bankruptcy, receiver, assignee for the benefit of creditors, conservator, or any person acting in a fiduciary capacity.
              ...
              (19) The cross references in the regulations in this part to other portions of the regulations, when the word ``see'' is used, are made only for convenience and shall be given no legal effect.
                 
              (b) Subpart B. As used in Subpart B of this part, unless otherwise expressly indicated--
                  (1) Act means the Federal Insurance Contributions Act.
                  (2) Taxes means the employee tax and the employer tax, as respectively defined in this paragraph.
                 
              (3) Employee tax means the tax (with respect to wages received by an employee after Dec. 31, 1965, the taxes) imposed by section 3101 of the Code.
                  (4) Employer tax means the tax (with respect to wages paid by an employer after Dec. 31, 1965, the taxes) imposed by section 3111 of the Code.
                 
              (c) Subpart C. As used in Subpart C of this part, unless otherwise expressly indicated--
                   ...
                  (5) Tax means the employee tax, the employee representative tax, or the employer tax, as respectively defined in this paragraph.
                 
              (6) Employee tax means the tax imposed by section 3201 of the Code.
                  (7) Employee representative tax means the tax imposed by section 3211 of the Code.
                  (8) Employer tax means the tax imposed by section 3221 of the Code.
                 
              (d) Subpart D. As used in Subpart D of this part, unless otherwise expressly indicated:
                  (1) Act means the Federal Unemployment Tax Act.
                  ...
                  (3) Tax means the tax imposed by section 3301 of the Code.
                 
              (e) Subpart E. As used in Subpart E of this part, unless otherwise expressly indicated, tax means the tax required to be deducted and withheld from wages under section 3402 of the Code.
              27 CFR 72.11  Meaning of terms.

                  As used in this part, unless the context otherwise requires, terms shall have the meanings ascribed in this section. Words in the plural form shall include the singular, and vice versa, and words importing the masculine gender shall include the feminine.
              The terms ``includes'' and ``including'' do not exclude things not enumerated which are in the same general class.
              Of course, then you might just get DISGUSTED when it becomes blatantly apparent how MISAPPLIED the IRC is.
               
              Patrick in California
               
              "Machiavelli would be PROUD, Houdini would be AMAZED and Mark Twain would say "I told you so."--PKM
               
              --- In tips_and_tricks@yahoogroups.com, "Ed Siceloff" <siceloff@e...> wrote:
              >
              > Wouldn't that "officer of a corporation" be defined as an officer of a US
              > formed corporation?  A private corporation's officers would be excluded from
              > the list because of grammatical construction of the previous inclusions to
              > the list, all having a direct nexus to the US corporation, or its
              > subsidiaries.  Most corporations, even though possibly public, remain in the
              > private sector in terms of their commerce, unless developing a nexus with
              > the U.S.  That would be my interpretation of the particular code.
              >
              >   Then if one drops down, to your second quote:  "The term "net earnings
              > from self-employment" means the gross income."  How would anybody possibly
              > be able to interpret the terms "net" means "gross"?  Wouldn't the law of
              > non-contradiction apply here.  If "A" is "A" then it can not be "B".  That
              > defies the idea that a law needs to be intelligible.
            • diggerflyer
              Patrick, thank you for your very detailed analsys of my question. I have no doubt as to the liability of a corporation itself for the federal exise taxes as
              Message 6 of 6 , Jan 5, 2006
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                Patrick, thank you for your very detailed analsys of my question.
                I have no doubt as to the liability of a corporation itself for the
                federal exise taxes as the holding in McCulloch states, but my
                question relates to the liability of the officer. I know you have
                quoted various statutes, thank you for those quotes, is there any
                case law you know of as it relates to this very specific inquiry?
                Are you implying that because the state (of the Union) created the
                corporation, it by implication also created the officer, and by that
                act he also falls under the same statutory scope as the corporation?




                --- In tips_and_tricks@yahoogroups.com, <paradoxmagnus@e...> wrote:
                >
                > Did you forget the COMMERCE CLAUSE?
                >
                > We are talking about the OFFICER of a COMMERCIAL ENTITY created
                under STATE LAW.
                >
                > Can'the government always TAX & REGULATE that which it CREATES?
                > "The sovereignty of a state extends to everything which exists by
                its own authority, or is introduced by its permission...Consequently,
                the people of a single state cannot confer a sovereignty which will
                extend over them...All subjects over which the sovereign power of a
                state extends, are objects of taxation; but those over which it does
                not extend, are, upon the soundest principles, exempt from taxation.
                This proposition may almost be pronounced self-evident." McCULLOCH v.
                STATE, 17 U.S. 316 (1819)
                > http://laws.findlaw.com/us/17/316.html
                > Patrick in California
                >
                > "Machiavelli would be PROUD, Houdini would be AMAZED and Mark Twain
                would say "I told you so."--PKM
                >
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