Why No One Is Required to File Tax Returns Reforming Tax Laws Using Our Fifth Amendment Rights
by William Conklin
Multimedia Presentation
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Copyright © 2001 by William Conklin. Distributed by Davidson Press, Inc.
Table of Contents
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Legal Disclaimer Introduction The Fifth Amendment The IRS Form 1040 Filing is Voluntary The Meaning of Compel The Meaning of Liable IRS Strategies
The Legal Issues What You Should Do What You Should Not Do The $100,000 Challenge Conclusion Web Sites to Visit About the Author How to Order the Book
Copyright © 2001 by William Conklin. Distributed by Davidson Press, Inc.
Legal Disclaimer
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The information in this presentation is not legal or tax advice. It is for general information purposes only and reflects the experience of the author. Much of the information in this media presentation is oriented to individuals and is not applicable to corporations, partnerships, or other legal entities. If you wish specific legal or tax advice on the issues covered in this media presentation or in Why No One Is Required to File Tax Returns, you are encouraged to consult with a competent attorney. Copyright © 2001 by William Conklin. Distributed by Davidson Press, Inc.
Introduction Filing a Form 1040 is a voluntary act. Filing a Form 1040 is not required under any provision of Title 26 of the US Code (the “Internal Revenue Code”). Filing a Form 1040 is not required under any other Title of the US Code. We waive our Fifth Amendment rights when we file a Form 1040.
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Copyright © 2001 by William Conklin. Distributed by Davidson Press, Inc.
Introduction We, the American people, should pay whatever taxes we owe. The Fifth Amendment to our Constitution limits all US Codes, including Title 26. We have a duty to change or repeal the tax laws when they conflict with our Constitution.
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Copyright © 2001 by William Conklin. Distributed by Davidson Press, Inc.
Introduction If we neglect our rights under the Fifth Amendment, we will lose our rights by default. If we neglect our duties to change tax laws which are unclear or which violate our Constitution, we will pay the price. Evil succeeds when good people do nothing.
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Copyright © 2001 by William Conklin. Distributed by Davidson Press, Inc.
Introduction
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Filing is a voluntary act. Filing is not required under the IRS Code. Filing is not required under any other US Code. Filing waives our Fifth Amendment rights. We should pay whatever taxes we owe. The Fifth Amendment limits all US Codes (IRS included). We have a duty to change or repeal laws that conflict with our Constitution. If we neglect our rights, we will lose them by default We pay the price when we neglect our duties. Evil succeeds when good people do nothing. Copyright © 2001 by William Conklin. Distributed by Davidson Press, Inc.
The Fifth Amendment No person shall be held to answer for a capital, or otherwise infamous crime, unless on the presentment or indictment of a Grand Jury, except in cases arising in the land or naval forces, or in the Militia, when in actual service in time of War or public danger; nor shall any person be subject for the same offense to be twice put in jeopardy of life or limb; nor shall be compelled in any criminal case to be a witness against himself, nor be deprived of life, liberty, or property, without due process of law; nor shall private property be taken for public use without just compensation.
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Copyright © 2001 by William Conklin. Distributed by Davidson Press, Inc.
The Fifth Amendment You cannot be compelled to testify against yourself in a criminal case. In a civil case, you cannot be compelled to testify if what you say can be used against you in a criminal case.
– U.S. vs. Argomaniz, 925 F.2d 1349 (11th Cir. 1991).
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Copyright © 2001 by William Conklin. Distributed by Davidson Press, Inc.
The Fifth Amendment
“There can exist a legitimate fear of criminal prosecution while an IRS investigation remains in the civil stage, before formal transfer to the criminal division.” – U.S. vs. Argomaniz, 925 F.2d 1349 (11th Cir. 1991).
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Copyright © 2001 by William Conklin. Distributed by Davidson Press, Inc.
The IRS Form 1040 A “voluntary” form Filed under penalty of perjury
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Copyright © 2001 by William Conklin. Distributed by Davidson Press, Inc.
Filing a Tax Return is Voluntary
Chapter 6200 at 6210: – “It is the goal of the Internal Revenue Service to encourage and achieve the highest possible degree of voluntary compliance with the tax laws….”
Chapter 100 at 110: – “The primary mission of the Taxpayer Service is to promote voluntary compliance through education and assistance to taxpayers.”
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Copyright © 2001 by William Conklin. Distributed by Davidson Press, Inc.
Filing a Tax Return is Voluntary
Part VI, §6810 (Taxpayer Service) at (13) 31(1)(f): – “returns are voluntarily submitted by taxpayers.”
§6810 (Operating Techniques and Reporting) at (13) 91(1)(a): – “securing a valid voluntary income tax return from the taxpayer….”
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Copyright © 2001 by William Conklin. Distributed by Davidson Press, Inc.
Filing a Tax Return is Voluntary
P-4-84 (IRS Policy Statements): – “The purpose of criminal tax investigations is to enforce the tax laws and to encourage voluntary compliance.”
§4022.65(3): – “When a person indicates he/she will voluntarily comply but requests that he/she be served….”
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Copyright © 2001 by William Conklin. Distributed by Davidson Press, Inc.
The Meaning of “Compel” Compel: To urge forcefully, under extreme pressure. The word “compel” as used in constitutional right to be free from being compelled in a criminal case to be a witness against one’s self means to be subjected to some coercion, fear, terror, inducement, trickery or threat—either physically or psychologically, blatantly or subtly; the hallmark of compulsion is the presence of some operative force producing an involuntary response. U.S. v. Escandar, C.A. Fla., 465 F.2d 438, 442. —Black’s Law Dictionary
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Copyright © 2001 by William Conklin. Distributed by Davidson Press, Inc.
The Meaning of “Liable” There is no statute that makes a person liable or responsible to pay the federal income tax. Individuals only become liable to pay the income tax when they voluntarily file a tax return, or when the IRS follows its assessment procedures as outlined in the Internal Revenue Code.
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Copyright © 2001 by William Conklin. Distributed by Davidson Press, Inc.
IRS Strategies
IRS Audits – No law requires you to attend an audit. – If you do not attend, the IRS has 2 choices. • The IRS may send you a Summons. – Go, but take the Fifth
• The IRS may attempt to assess you. – You can contest the assessment in Federal or tax court.
– With knowledge, you have power.
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Copyright © 2001 by William Conklin. Distributed by Davidson Press, Inc.
IRS Strategies
Summons Enforcement Hearings – You can be forced to answer the questions that the IRS asks you. – But “taking the Fifth” is a legitimate answer to any IRS question. – The IRS cannot get any information from you when you “take the Fifth.”
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Copyright © 2001 by William Conklin. Distributed by Davidson Press, Inc.
The Legal Issues
Information on a tax return is the testimony of a witness. – “The information revealed in the preparation and filing of an income tax return is, for purposes of Fifth Amendment analysis, the testimony of a ‘witness’.” —Garner vs. United States, 424 U.S. 648 (1975), p. 656.
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Copyright © 2001 by William Conklin. Distributed by Davidson Press, Inc.
The Legal Issues
Information on a tax return is compelled testimony for the purposes of the Fifth Amendment. – “Government compels the filing of a return much as it compels, for example, the appearance of a “witness” before a grand jury.” —Garner vs. United States, 424 U.S. 648 (1975), p. 652.
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Copyright © 2001 by William Conklin. Distributed by Davidson Press, Inc.
The Legal Issues
You waive your Fifth Amendment rights if you admit to having records. – United States v. Doe, 104 S. Ct., 1237 (1984).
The act of producing subpoenaed documents involves testimonial selfincrimination. – United States v. Doe, 465 U.S. 605, 79 L.Ed. 2d 552, (1985).
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Copyright © 2001 by William Conklin. Distributed by Davidson Press, Inc.
The Legal Issues
You can take the Fifth Amendment in a civil matter as well as in a criminal matter. – “There can exist a legitimate fear of criminal prosecution while an IRS investigation remains in the civil stage, before formal transfer to the criminal division.” —United States vs. Argomaniz 925 F.2d 1349 (11th Cir. 1991).
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Copyright © 2001 by William Conklin. Distributed by Davidson Press, Inc.
The Legal Issues
The “John Cheek” Case —U.S. vs. Cheek, 489 U.S. 658 (1991). – Individuals who rely on attorneys and other professionals in making their decisions about the complex tax system are entitled to inform the jury as to the extent of their reliance. – The jury must be instructed to view the defendant’s actions subjectively, not objectively. – When it can be shown that one’s actions were based on a good faith reliance on professional advice, the element of “a willful violation of the law,” essential for a conviction, is conclusively eliminated.
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Copyright © 2001 by William Conklin. Distributed by Davidson Press, Inc.
What You Should Do
Become judgment proof. – Do not own a car or house in your name. – Work as an independent contractor with multiple contracts. – Avoid bank accounts or stock accounts in your name.
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This may not be necessary if you follow the instructions outlined below. Copyright © 2001 by William Conklin. Distributed by Davidson Press, Inc.
What You Should Do
Consult with knowledgeable tax attorneys and tax accountants. – Get written opinion letters about your Fifth Amendment rights. – Show your actions are based on legal advice. – Take along copies of “Sharp” and “Argomaniz” court rulings.
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Copyright © 2001 by William Conklin. Distributed by Davidson Press, Inc.
What You Should Do
Do not admit to keeping books and records. – The IRS can subpoena written records, which can be used against you. – You cannot be compelled to admit that you have written records. – If you admit the existence of books and records, you automatically waive your Fifth Amendment protections because the Supreme Court has said that the Fifth Amendment applies to testimony and not to books and records. —United States vs. Doe, 465 U.S. 605 (1985)
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Copyright © 2001 by William Conklin. Distributed by Davidson Press, Inc.
What You Should Do
Stand on your Fifth Amendment rights. – “There can exist a legitimate fear of criminal prosecution while an IRS investigation remains in the civil stage, before formal transfer to the criminal division.” —United States vs. Argomaniz 925 F.2d 1349 (11th Cir. 1991).
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Copyright © 2001 by William Conklin. Distributed by Davidson Press, Inc.
What You Should Do
Understand that banks, as third parties, can be required to pass your records to the IRS. – The Bank Secrecy Act gives the government complete access to your banking records at any time without your knowledge or consent. – You are allowed to file a Motion to Quash a third party summons, but you probably will not win.
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Copyright © 2001 by William Conklin. Distributed by Davidson Press, Inc.
What You Should Do Pre-pay
any taxes due under §6020(b) through your employer. – Take the maximum allowable deductions. – Compute the tax according to your bracket.
If
you are self-employed, pay your taxes quarterly. – Post a bond against any assessment.
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Copyright © 2001 by William Conklin. Distributed by Davidson Press, Inc.
What You Should Do The
“No Waiver of Rights” Letter
– At year end, instead of filing a return, send a letter with copies of your legal opinion letters. – Ask for an extension of time to file until the IRS can come up with a way for you to file without waiving your Fifth Amendment rights. – Send in any money you think you may owe. • You want to eliminate any excuse that the IRS may want to use to seize any of your assets. 30
Copyright © 2001 by William Conklin. Distributed by Davidson Press, Inc.
What You Should Do The
“No Waiver of Rights” Letter
– Point out in your letter that unless and until a return is filed making you liable for a tax, you understand that the money sits in a “pending” file and cannot be used. – State that you wish your letter to serve as an informal Claim for Refund.
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Copyright © 2001 by William Conklin. Distributed by Davidson Press, Inc.
What You Should Do The
Claim for Refund
– Under §6532(a)(1) of the Internal Revenue Code (USC Title 26), unless the IRS can inform you of a way you may file a return within the next six months (without waiving your Fifth Amendment rights, of course), you are entitled to sue the IRS to enforce your Claim.
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Copyright © 2001 by William Conklin. Distributed by Davidson Press, Inc.
What You Should Do Remember,
the main issue here is not about paying taxes. So pay your taxes. – Prepaying puts the IRS on the defensive. – The % of what you pay is another issue.
The
main issue is about not filing a return because the return can be used against you.
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Copyright © 2001 by William Conklin. Distributed by Davidson Press, Inc.
What You Should Not Do
Never ignore correspondence from the IRS. – Challenge the IRS with every procedure available to you. – The IRS is required to follow specific procedures when it deals with you. – Remember that search warrants are still required. – You can say “No” to entry without a warrant.
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Copyright © 2001 by William Conklin. Distributed by Davidson Press, Inc.
What You Should Not Do
Never, never, ignore an IRS Summons. – If you do, the IRS will immediately move for enforcement because it thinks that you are afraid to respond, probably because you do not understand your position and probably do not know your rights. Ninetynine times out of a hundred, the IRS is probably correct.
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Copyright © 2001 by William Conklin. Distributed by Davidson Press, Inc.
The $100,000 Challenge How does Mr. Conklin file a tax return without waiving his rights protected by the Fifth Amendment to the Constitution? What statute in the Internal Revenue Code makes him liable to pay an income tax?
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Copyright © 2001 by William Conklin. Distributed by Davidson Press, Inc.
The $100,000 Challenge
Melvin Belli tried to collect. – Filer provides a Power of Attorney to Mr. Belli. – Filer puts taxes into attorney’s trust fund. – Attorney files using code number for the individual filer. – Attorney/client privilege protects the filer.
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Copyright © 2001 by William Conklin. Distributed by Davidson Press, Inc.
The $100,000 Challenge
Melvin Belli tried to collect. – An IRS §7203 procedure under the IRS Code or an IRS civil action would require the attorney as a witness. – The testimony would violate the filer’s Fifth Amendment rights.
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Copyright © 2001 by William Conklin. Distributed by Davidson Press, Inc.
The $100,000 Challenge
William Cohen tried to collect. – File two returns: • The first return contains only financial information. • The second return contains the name and other identifying information. – Indicate Fifth Amendment objections on specific questions about income and deductions.
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Copyright © 2001 by William Conklin. Distributed by Davidson Press, Inc.
The $100,000 Challenge
William Cohen tried to collect. – An IRS §7203 procedure under the IRS Code or an IRS civil action would require a disclosure of the fact that the filer filed two returns containing all the information required. – The filer would have to identify the returns, thereby violating the filer’s Fifth Amendment rights.
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Copyright © 2001 by William Conklin. Distributed by Davidson Press, Inc.
The $100,000 Challenge
Charles Ostman tried to collect. – Ostman sues Conklin in Seattle Ostman vs. Conklin, Civ. #C92-1371C; USDC Seattle, 1992). – Citing contract law, the judge rules in Conklin’s favor. – The judge orders Ostman to pay Conklin his costs of trial.
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Copyright © 2001 by William Conklin. Distributed by Davidson Press, Inc.
The $100,000 Challenge Who’s next? No one has ever come close to collecting the $100,000 Challenge. Another $100,000 will be added to the Challenge every time a new edition of Why No One Is Required to File Tax Returns is printed. http://www.billconklin.com.
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Copyright © 2001 by William Conklin. Distributed by Davidson Press, Inc.
Conclusion Filing a Form 1040 is a voluntary act. Filing a Form 1040 is not required. Filing waves your Fifth Amendment rights. The Fifth Amendment limits all US Codes. Pay the taxes you owe in advance. We have a duty and right to change tax laws. Evil succeeds when good people do nothing.
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Copyright © 2001 by William Conklin. Distributed by Davidson Press, Inc.
Web Sites You Should Visit http://www.givemeliberty.org
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We The People Foundation for Constitutional Education. Join a campaign to place ads in newspapers across the country. Support efforts to eliminate the federal income tax. Copyright © 2001 by William Conklin. Distributed by Davidson Press, Inc.
Web Sites You Should Visit http://davidsonpress.com
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Publishers of the International Standard Version Bible. On line study courses. Free PowerPoint™ slide shows. Purchase your copy of Why No One is Required to File Tax Returns on line. Copyright © 2001 by William Conklin. Distributed by Davidson Press, Inc.
Web Sites You Should Visit http://www.billconklin.com
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Home page for author William Conklin. Free resources and links. Free PowerPoint™ slide show. Purchase your copy of Why No One is Required to File Tax Returns on line.
Copyright © 2001 by William Conklin. Distributed by Davidson Press, Inc.
Web Sites You Should Visit http://www.freedomabovefortune.com
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Hosted by former IRS Special Agent. Dedicated to the idea that no amount of prosperity is worth trading for your freedom. Purchase your copy of his report on the income tax. Copyright © 2001 by William Conklin. Distributed by Davidson Press, Inc.
About the Author
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Masters Degree in Communications from the University of Colorado. School teacher for 15 years. Numerous court decisions in his favor. 25 years of experience dealing with IRS rules. Email address:
[email protected]
Copyright © 2001 by William Conklin. Distributed by Davidson Press, Inc.
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Copyright © 2001 by William Conklin. Distributed by Davidson Press, Inc.
