Anne/Patrick

Here is a blast from the past doc that was put together back in the mid 90’s and is applicable to present day events. Karl Granse assisted Jim Traficant’s people in writing HR 390. It is what eventually got Traficant in trouble with the IRS and eventually thrown out of Congress and into jail. He was accused of doing what other Congress people do to stay in office.  I recently read an article by Devvy Kidd about Tom Cryer’s truth train and have read docs by Larry Becraft. These attorneys are to be applauded for what they are doing but I am aware that a great deal of the concepts in their legal writings were researched and developed by Karl and others. I am also sure that these attorney’s have discovered on how to use their experience in making this material work effectively in court.  The material in HR 390 back then is still applicable today, including information about the “flat tax”. One’s labor is private, so long as they are not a government employee, thus not lawfully taxable. Maybe people will start asking themselves how they become government employees.

God’s rest,

GP

"FREEDOM OF SPEECH & ASSEMBLY"                    C.C.M. Est. 1988                  "THE RIGHT TO COUNSEL & PETITION"

From the National Office for: Citizens for a Constitutional Republic; representing 28 offices in Arizona, California, Colorado, Florida, Georgia, Idaho, Illinois, Indiana, Kansas, Michigan, Missouri, Minnesota, Nevada, North Carolina, Ohio, Oregon, Oklahoma, Pennsylvania, Tennessee, Texas, Virginia, Washington, and Wisconsin.  The America people thanks you!

CITIZENS

FOR A CONSTITUTIONAL REPUBLIC

                      7611 Whitney Drive, Apple Valley, Minnesota, Postal Zone 55124, Phone and Fax (612) 431-1845

    "In courage, with Divine Providence, man's civil needs ignited the creation of the Declaration of Independence which dominantly imbued the axiom reason for the United States Constitution and Bill of Rights, thus inferring that the quantum discipline socially prevailing, in Truth, Love and Freedom, premises the attainable level of physical, mental and spiritual health within a society."   K.G. 1988 

 

TO: All C.C.R. Group Leaders and Associates:  Reading time needed, 12 minutes;

 

FROM: Karl G. Granse - "We Have 273 Congressmen who have cosponsored H.R. 390"  YES! We're doing it!

 

EXTRA - EXTRA - READ ALL ABOUT IT,  H.R. 390 SMASHES I.R.S. POWER

                                             “You might as well repeal the income tax and pass the hat.”

 

            In a March 25th Associated Press article, these were the words of IRS Commissioner Margaret Milner Richardson while speaking of the “consequences” of H.R. 390, the former H.R. 3261.  The legislation, proposed by our HERO and STATESMAN, Jim Traficant (D-Ohio), in the new IRC § 7524, would put the "BURDEN OF PROOF" upon the Internal Revenue Service in both criminal and civil Court cases.  Currently, the "burden of proof" is upon the “taxpayer” in all administrative and civil and criminal court cases.

The Bill goes even further in that it requires the IRS in § 6001(a) to serve notice upon you if you are required to keep BOOKS, RECORDS, OR MAKE RETURNS, and also forces the IRS in § 6001(b) to identify, within 14 days upon written request, the statute and regulations for the type or kind of tax that the IRS is holding you liable for. The necessity for this amendment is that AT NO TIME have we the people who do regular work been informed by the IRS, as to the taxing statute which imposes a tax upon us.  Yet, we have been assessed, levied or criminally indicted and gone to jail by an insufficient indictment, because the indictment never cites the tax imposed upon us by statute, it is just generally assumed in generic language that it is an "income tax."  The term, “income tax” is used 1,920 times in the Federal Regulations, there are 110 taxing statutes, I only ask one question, which One?  The IRS will not answer, is it possible that there is no national tax upon occupations of common right?  A recent letter from a Senator said their was no such tax!  Those that followed the Lloyd Long case in Tennessee, or have studied the Internal Revenue Code and it regulations, understand that there are no implementing regulations for what most people “voluntarily” pay as “income tax.”  The 26 IRC § 6001(a) and (b) amendment to Mr. Traficant's first effort (H.R. 3261) at this legislation last year, was proposed by me and in H.R. 390, not one word of my added § 6001(a) and (b) language has been changed, that's jump up and down exciting.

Finally, the Bill, § 7433 would raise the penalties for damages as a result of unauthorized collection activities by the IRS from $100,000 to $1,000,000, and would not allow the damages to be considered as a part of “gross income.”

This Bill was proposed on January 4, 1995, when it was referred to the Ways and Means Committee, as of this date, April 7th we have 268 cosponsors, this means that with your help we could get this passed and on its way to the Senate, thus with concerted effort upon your part we could get it passed by June or July, 1995.  This then would give you the immediate relief, past and present, which you so desperately need.  The Congressmen need to know now, from you and others, that if they do not vote YES on this Bill, you will vote no when they come up for re-election, because you will be campaigning against them and for someone who will vote yes on the Bill.  We need to get all the groups involved that we can, such as the N.R.A., John Birch, National Chamber of Commerce, N.F.I.B., Libertarian Party, Alternative Health Asso., Militia, and Patriot News Letters of all types.  Lets work it like we never have before, we can do it, yes we can, shout it from the roof top!

H.R. 390, move it or lose it!  "EXPLANATION"  A new session of Congress is upon us all, it appears to be better than the 40 past years.  It is up to us to strike while the iron is hot, Republican "Contract With America".  The former H.R. 3261 has now been changed to H.R. 390, see copy enclosed.  The new H.R. 390 has the Granse amendment in full and unchanged, in other words Traficant kept his promise to us.  The media has made no mention about the § 6001(a) and (b) amendment.  They have chosen to only attack the § 7524 "Burden of Proof Amendment," see enclosed news articles, compare the 18th and 25th articles.

There is a race to set in motion the FLAT TAX SYSTEM, I have read it, this would destroy all the work we have done, therefore we need to fight it to the end.  What has happened in the past is that every time we citizens figure out the tax system, they replace it with a more complicated system.  For example see and compare the 1917 code with the 1939 code to the 1954, and then the 1954 to the 1986.  The definitions are changed or dropped and then no one can figure it out.  That's why we must say no to this new Flat Tax System, and do it with force, therefore passing H.R. 390.  What the government is trying to do, by this new system is to stop us from forcing the IRS to tell the truth by giving us the type or kind of tax that they are holding us liable for.  They know that they have no such statute or regulations, except for federal and state employees under IRC § 3401(c) and (d), or 26 CFR 31.3401-1(c) and (d), see also IRC § 6331(a) which refers to IRC § 3401(d).  They have been able to use 5 USC 552a and 26 IRC § 7852(e) to keep us from demanding from the IRS the taxing statute which holds us liable.  With the H.R. 390 they can't do it any longer, their dead, the IRC § 6001(b) amendment is retroactive, it works on past cases as well as new cases, and it will kill them once and for all to those who know how to argue and use it!

Now I think you can understand that if the IRS was mandated by new law, to tell you the type of tax and the implementing regulation, and you know by experience that they can't, who then wins?  You do!  A tax attorney called me today and said, "if this H.R. 390 goes through, it will ruin my business", I said, Why? he said, "because then, the IRS will stop their abusive action, and I will get fewer clients because the IRS will be afraid to act with the new law in place".  Since when did the IRS ever give a rip about the law?  But with this amendment, the court's bad case law will be reversed and we can solve our problems with the IRS in a matter of days, not years!  The average citizen is not going to know this law, but we will, and therefore, we can help many more become free, because this new IRC § 6001(b) law process is far shorter.  This process will even work on criminal cases, or the filing of a W-4, if an employer asks you to file a W-4, then the IRS must be holding them and you liable for a tax, then a simple letter to the IRS District Director, asking for the type of tax and regulation suffices, and when the IRS can't answer, that will show your employer that you are not liable for any tax, therefore the employer can't withhold from your pay.

Well how about the people who are already in trouble, like some one who has a lien, or levy that's 8 years old, well a simple letter to the IRS asking them to cite the taxing statute and regulation for the type of tax which they are holding you liable for on the levy suffices, and when they can't tell you the H.R. 390, § 7524 "Burden of Proof" is upon them, then you ask them to release the levy, if they don't, you sue them for failure to release the levy under § 7432, and by use of the new H.R. 390, § 7433 "Unauthorized Collection", get your damages. This § 6001(a) and (b) amendment is retroactive without saying so.  Now who is this bill going to help?  Yes! The Citizens like us, who know about the importance of the Federal Regulations and a type tax, all others including the Tax Attorneys and CPA's will still be roving in the dust of the IRS!  Now. I think you can understand why we need to really get to work on this H.R. 390, we are not going to get another chance like this, either it is now, or its never.  I thank you and greatly appreciate all your hard work. I know it isn't easy, but your the only ones who can get this job done!

People don't write to their congressmen, you have to show them how!  A group session is in order, bring paper, envelops and postage stamps.  Many times people have to be hounded again and again to get a simple letter off to their Congressman, because they have drifted so far away from the political process.  We need to bring them back into the process because numbers are the only thing House and the Senate understand.  The NEA because of its numbers is very successful and so is the NRA, these groups write their congressmen all the time why not us?  "There are not words enough to express my gratitude to all of you who worked so hard on H.R. 390"

(HOW TO WRITE YOUR CONGRESSMAN, SEE FORM LETTER:

TO:

The Honorable ___________________________ (your congressmen's first and last name)

U.S. House of Representatives

Washington, D.C.   20515

FROM:

Citizen of ________________________

(name) ___________________________

(address) _________________________

(phone) ___________________________

 

Dear Congressperson ___________________________;  SUBJECT:  H.R. 390 - "BURDEN OF PROOF"

I am writing you in regard to the much needed relief as proposed in Congressmen Traficant's H.R. 390. I have enclosed a copy of this Bill for your review.  The problems with the IRS have become so intolerable that I must demand that you vote YES on this Bill.  In my estimation, this is the most important Bill of the 104th Session of Congress.  I will not be able to excuse you if you vote NO on this Bill, it will get passed eventually, so you might as well vote YES and secure your re-election.  We will not vote for a flat tax, nor a value added tax, so forget it, we are tired of being raped by the IRS!  We have been driven beyond the virtue of forgiveness and tolerance.

                                (if you wish, tell the congressman about the problems you had with the IRS)

In a June 1994 poll (200,000), by the National Write Your Congressman Association, 93% of the American public stated that they wanted this Bill passed, what is the holdup?  The only ones who didn't want it passed were a small minority of accountants and attorneys who make tons of money on the problems created by the IRS.  Therefore, based upon the voice of the people, there can be no excuse for you to vote anything but YES for this Bill.  This Bill needs to get out of hearings UNCHANGED and moved to the floor immediately for a vote, and I expect that you will do everything possible to make that happen, same as if you were running for re-election, because in my mind, and a lot or others you are doing just that!  Actions speak louder than words!

We want a open and just tax system pursuant to the Constitution, and not just by Article I § 8, Cl 1 and the 16th Amendment, we want the tax system to be written and interpreted in the full spirit of the Bill of Rights! When we question the IRS, we want them to respond just like any other agency must under the law.  We have had it with the misrepresentations of the IRS.  Its always smoke and mirrors, in tax cases with the average citizen, in or out of court, and we want it stopped now, you can do it!  The knowledgeable and self-reliant citizens are not the cause of this countries problems, government programs which further irresponsibility of the people and other nations are the problem.  The people act like sheep because they are treated like sheep, we want it stopped now!

The Department of the Treasury nor the IRS makes the tax laws, we the people do, through our Representatives in Congress, do you understand that?  "TAXATION BY REPRESENTATION" in other words, not taxation by the IRS.  This is a Citizens bill, and not a professional tax-preparer's bill, nor is it for the U.S. Justice Dept., or the U.S. Courts, remember the Doctrine of Separation of powers!  If you vote yes on H.R. 390, contact me, with pride I will work hard on your campaign to see to it that you are re-elected so that you may continue your effort to clean up this country, you now have my name and phone number at the top of this letter.

Respectfully yours,

(name)____________________________________

Citizen of _________________________

(send Copy to Congressman Traficant:

The Honorable James Traficant

U.S. House of Representatives

Washington, D.C.   20515

* PRESS RELEASE *

 

           "FOR USE WITH ANY and ALL PRINTED MEDIA or PATRIOT NEWS LETTERS or RADIO SCRIPT"

 

HEADLINE                                            H.R. 3261 reintroduced as H.R. 390

 

HEADLINE: H.R. 390 - "Burden of Proof upon I.R.S."

On January 4th, 1995 Congressman Traficant (D-Ohio) introduced H.R.390, whose forerunner was H.R. 3261.  This could be the most important bill in the 104th session.  As of April 7th, H.R. 390 has 268 congressional cosponsors, which is enough to pass it out of the House sending it on to the Senate.  Right now the bill needs to get out of hearings, unchanged, and to the floor for a vote. Keep reading and find out why!

It takes an immense amount of courage to introduce a bill of this nature, as the people of America know, "the IRS will get you."  Congressman Traficant has personally experienced the wrath of the IRS when he was prosecuted criminally in the mid 1980s. He was acquitted, yet he was left with a large haunting tax bill.  This is why. "Tax cases are different from all other types of prosecution in that the criminal enforcement of tax laws is a delicate carefully nurtured showpiece, whose principal function it is to use the approximate 2,000 annual tax prosecutions to maximize deterrent advantage for the more than 100,000,000 taxpayers who finance Government through the voluntary compliance system,"  Quote from IRS to The Committee on Taxation, General Accounting Office, Washington DC (January 5, 1981).

Most people in America don't understand how difficult an IRS summary proceeding can be, until it happens to them.  James Traficant learned by experience and now firmly believes that no American should have to endure such suffering at the hands of the IRS, or any other government agency.  Most people say, "Oh it can't be that bad," yet when the IRS destroys your family, reputation, and career, or leaves you to find someway to exist on 104 dollars a week, you will come to the reality that, H.R. 390 definitely needs to become the law of the land.  There have been many reported cases of people who have committed suicide, had heart attacks, and nervous break downs, over problems with the IRS, one is then forced to ask, does this tax system appear to be for the good of the people?

What changes does H.R. 390 make in the law?  Let us review some of Congressman Traficant's quotes from a press release,

"For too long, Internal Revenue Service employees have operated beyond the intent of the law to collect revenues with little or no recourse for the taxpayer.  The sad truth is, many Americans fear their own government, and that is not right.  To prevent further abuse of the law, H.R. 390 establishes three safeguards to give the taxpayer added protection.

"Once the IRS decides that a taxpayer has made an error in filing his or her return, there is little recourse.  Even if guilt is not proven, the IRS has a multitude of ways to pressure taxpayers to succumb to the agents' wishes.  To make matters more difficult, the taxpayer must follow a labyrinth of procedures to prove to the IRS that he or she is innocent of any wrongdoing.  This is due to a basic tenet of the American justice system that a defendant is guilty until proven innocent in tax disputes.  To correct this inequity in our tax system, H.R. 390 states that any time a tax case involves an alleged fraudulent act by the taxpayer, the burden of proof is on the IRS to provide evidence of wrongdoing.

"H.R. 390 also provides recourse to the taxpayers that have been treated unfairly by the IRS and its agents.  Currently, if any officer or employee of the IRS recklessly or intentionally disregards taxpayers' rights, such taxpayers may bring a civil action for damages against the United States.  The IRS is liable to the plaintiff for up to $100,000; however, my bill raises this limit to $1,000,000.  This amount represents a much greater deterrent and fairly compensates those whose lives have been unjustly ravaged.

"Just as the Internal Revenue Service is liable for any wrongdoing that disregards taxpayers' rights, IRS employees must be held to the same level of integrity and should pay a significant penalty if they break the law.  Unquestionably, IRS agents have significant powers that can ruin countless lives, and they must be held accountable for these abhorrent acts.  Therefore, my bill allows the court system to assess a monetary penalty to those agents that are found to disregard taxpayers' rights."

                             CONGRESSMAN TRAFICANT – “TIME TO TAKE OUR COUNTRY BACK”

Congressional Record, Vol. 140, No. 7, Washington, Wed. February 2, 1994:  Mr. TRAFICANT. Mr. Speaker, the IRS recently wrongfully accused over 100,000 honest taxpayers of cheating.  They said, “No big deal; it was a computer mistake.  We apologize.”  Maybe in this case I can agree.  But, ladies and gentleman, here is the law:  When the IRS points an accusatory finger at an American taxpayer, the American taxpayer is guilty and must prove themselves innocent.  Unbelievable, disgusting as it is.  And the American people keep asking Congress, “How can you allow this, Congress?”  My bill, says that when the IRS points an accusatory finger, they have the burden of proof.  I say, “Congress, it is time for Congress to give the IRS the finger for a change.  It is time to take the country back.”

Those who have experienced the IRS wrath can be very proud of Congressman Traficant.  At a time when he could have just ignored us and our problems with the Internal Revenue Service, he did not, Traficant is a true Statesman!  Then to top it off, he made extra good on his May 1994 promise and has given us renewed hope by the reintroduction of H.R. 390, with the Burden of Proof and IRC 6001 Amendment.  This indeed is extremely well received by the Citizens of America, considering the IRS burden of proof consequence and the constant refusal by the IRS to supply the needed information on the statutes and regulations.  Under agency law, IRS § 7801(a) and § 7802(a) gives the IRS primary jurisdiction for information and rulings, which imposes the taxes upon us, only they can answer questions, yet they refuse, leaving the citizens to guess at the law.  If we work together, we can solve these past and present IRS problems by the passage of this bill, time is running out!

I reviewed the H.R. 390 March 27th hearings.  Testimony was given by attorneys and accountants, who were not in favor of H.R. 390, why?  Because it makes less work for them!  H.R. 390 is a Citizens bill, which will annually save us millions of dollars in legal fees.  If you wish to support this bill, write your Congressman now! 

* End of News Release *

104th CONGRESS     1st SESSION

H.R. 390

 

 

To amend the Internal Revenue code of 1986 to provide that the burden

of proof shall be on the secretary of the Treasury in all tax cases,

and for other purposes.

 

   IN THE HOUSE OF REPRESENTATIVES

 

                       January 4, 1995

Mr. TRAFICANT introduced the following bill; which was referred to the

                 Committee on Ways and Means

       A BILL

To amend the Internal Revenue code of 1986 to provide that the burden of proof shall be on the Secretary of the treasury in all tax cases, and for other purposes.

     Be it enacted by the Senate and House of Representa-

tives of the United States of America in congress assembled,

SECTION 1. BURDEN OF PROOF.

      (a) GENERAL RULE.—Chapter 77 of the Internal

Revenue Code of 1986 (relating to miscellaneous provi-

sions) is amended by adding at the end thereof the follow-

ing new section:

class=Section3>

"SEC. 7524. BURDEN OF PROOF.

      "Notwithstanding any other provision of this title, in

the case of any court proceeding, the burden of proof with

respect to all issues shall be upon the Secretary."

      (b) CLERICAL AMENDMENT.—The table of sections

for chapter 77 of such Code is amended by adding at the

end thereof the following new item:

       "Sec. 7524. Burden of Proof."

      (c)  EFFECTIVE DATE.—The amendments made by

this section shall take effect on the date of the enactment

of this Act.

SEC. 2.  SECRETARY OF THE TREASURY REQUIRED TO

            SPECIFY, ON REQUEST, REGULATIONS IMPLE-         MENTING SPECIFIC TAXES.

      (a) IN GENERAL.—Section 6001 of the Internal Rev-

enue Code of 1986 (relating to notice or regulations re-

quiring records, statements, and specific returns) is

amended by inserting "(a) IN GENERAL.—" at the begin-

ning of the first sentence and by adding at the end the

following new subsection:

      "(b) REQUESTS FOR IDENTIFICATION OF IMPLE-MENTING REGULATIONS.—The Secretary shall identify in

writing the specific kind or type of tax, and its specific

implementing regulations within 14 days, upon the written

request from any person made liable for the payment of

any tax under this title."

      (b) CONFORMING AMENDMENT.—Subsection (a) of

section 6001 of such Code, as redesignated by subsection

(a), is amended—

      (1) by striking "any tax" in the first sentence

and inserting "any kind or type of tax", and

      (2) by striking "he may require" in the second

sentence and inserting "he shall require".

SEC. 3. INCREASE IN LIMIT ON RECOVERY OF CIVIL DAM-

            AGES FOR UNAUTHORIZED COLLECTION AC-

            TIONS; EXCLUSION OF SUCH DAMAGES FROM

            INCOME.

      (a) INCREASE IN LIMIT.—Subsection (b) of section

7433 of the Internal Revenue Code of 1986 (relating to

damages) is amended by striking "$100,000" and insert-

ing "$1,000,000".

      (b) EXCLUSION FROM INCOME.—Section 7433 of

such Code is amended by adding at the end the following

new subsection:

      "(e) EXCLUSION OF DAMAGES FROM INCOME.—

Damages awarded under this section shall be excluded

from gross income under this title."

      (c) EFFECTIVE DATE.—The amendments made by

this section shall apply to actions by officers or employees

of the Internal Revenue Service after the date of the en-

actment of this Act.