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1 Copyright 2001 by William Conklin. Distributed by Davidson Press, Inc. Why No One Is Required to File Tax Returns by William Conklin Reforming Tax Laws Using Our Fifth Amendment Rights Multimedia Presentation

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2 Copyright 2001 by William Conklin. Distributed by Davidson Press, Inc. Table of Contents n Legal Disclaimer Legal Disclaimer Legal Disclaimer n Introduction Introduction n The Fifth Amendment The Fifth Amendment The Fifth Amendment n The IRS Form 1040 The IRS Form 1040 The IRS Form 1040 n Filing is Voluntary Filing is Voluntary Filing is Voluntary n The Meaning of Compel The Meaning of Compel The Meaning of Compel n The Meaning of Liable The Meaning of Liable The Meaning of Liable n IRS Strategies IRS Strategies IRS Strategies n The Legal Issues The Legal Issues The Legal Issues n What You Should Do What You Should Do What You Should Do n What You Should Not Do What You Should Not Do What You Should Not Do n The $100,000 Challenge The $100,000 Challenge The $100,000 Challenge n Conclusion Conclusion n Web Sites to Visit Web Sites to Visit Web Sites to Visit n About the Author About the Author About the Author n How to Order the Book How to Order the Book How to Order the Book

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3 Copyright 2001 by William Conklin. Distributed by Davidson Press, Inc. Legal Disclaimer n 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.

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4 Copyright 2001 by William Conklin. Distributed by Davidson Press, Inc. Introduction n Filing a Form 1040 is a voluntary act. n Filing a Form 1040 is not required under any provision of Title 26 of the US Code (the Internal Revenue Code). n Filing a Form 1040 is not required under any other Title of the US Code. n We waive our Fifth Amendment rights when we file a Form 1040.

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5 Copyright 2001 by William Conklin. Distributed by Davidson Press, Inc. Introduction n We, the American people, should pay whatever taxes we owe. n The Fifth Amendment to our Constitution limits all US Codes, including Title 26. n We have a duty to change or repeal the tax laws when they conflict with our Constitution.

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6 Copyright 2001 by William Conklin. Distributed by Davidson Press, Inc. Introduction n If we neglect our rights under the Fifth Amendment, we will lose our rights by default. n If we neglect our duties to change tax laws which are unclear or which violate our Constitution, we will pay the price. n Evil succeeds when good people do nothing.

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7 Copyright 2001 by William Conklin. Distributed by Davidson Press, Inc. Introduction n Filing is a voluntary act. n Filing is not required under the IRS Code. n Filing is not required under any other US Code. n Filing waives our Fifth Amendment rights. n We should pay whatever taxes we owe. n The Fifth Amendment limits all US Codes (IRS included). n We have a duty to change or repeal laws that conflict with our Constitution. n If we neglect our rights, we will lose them by default n We pay the price when we neglect our duties. n Evil succeeds when good people do nothing.

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8 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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9 Copyright 2001 by William Conklin. Distributed by Davidson Press, Inc. The Fifth Amendment n You cannot be compelled to testify against yourself in a criminal case. n 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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10 Copyright 2001 by William Conklin. Distributed by Davidson Press, Inc. The Fifth Amendment n 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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11 Copyright 2001 by William Conklin. Distributed by Davidson Press, Inc. The IRS Form 1040 n A voluntary form n Filed under penalty of perjury

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12 Copyright 2001 by William Conklin. Distributed by Davidson Press, Inc. Filing a Tax Return is Voluntary n 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. n 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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13 Copyright 2001 by William Conklin. Distributed by Davidson Press, Inc. Filing a Tax Return is Voluntary n Part VI, 6810 (Taxpayer Service) at (13) 31(1)(f): returns are voluntarily submitted by taxpayers. n 6810 (Operating Techniques and Reporting) at (13) 91(1)(a): securing a valid voluntary income tax return from the taxpayer.

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14 Copyright 2001 by William Conklin. Distributed by Davidson Press, Inc. Filing a Tax Return is Voluntary n P-4-84 (IRS Policy Statements): The purpose of criminal tax investigations is to enforce the tax laws and to encourage voluntary compliance. n 4022.65(3): When a person indicates he/she will voluntarily comply but requests that he/she be served.

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15 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 ones self means to be subjected to some coercion, fear, terror, inducement, trickery or threateither 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. Blacks Law Dictionary Blacks Law Dictionary

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16 Copyright 2001 by William Conklin. Distributed by Davidson Press, Inc. The Meaning of Liable n There is no statute that makes a person liable or responsible to pay the federal income tax. n 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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17 Copyright 2001 by William Conklin. Distributed by Davidson Press, Inc. IRS Strategies n 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.The IRS may send you a Summons. Go, but take the Fifth The IRS may attempt to assess you.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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18 Copyright 2001 by William Conklin. Distributed by Davidson Press, Inc. IRS Strategies n 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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19 Copyright 2001 by William Conklin. Distributed by Davidson Press, Inc. The Legal Issues n 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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20 Copyright 2001 by William Conklin. Distributed by Davidson Press, Inc. The Legal Issues n 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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21 Copyright 2001 by William Conklin. Distributed by Davidson Press, Inc. The Legal Issues n You waive your Fifth Amendment rights if you admit to having records. United States v. Doe, 104 S. Ct., 1237 (1984). n The act of producing subpoenaed documents involves testimonial self- incrimination. United States v. Doe, 465 U.S. 605, 79 L.Ed. 2d 552, (1985).

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22 Copyright 2001 by William Conklin. Distributed by Davidson Press, Inc. The Legal Issues n 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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23 Copyright 2001 by William Conklin. Distributed by Davidson Press, Inc. The Legal Issues n 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 defendants actions subjectively, not objectively. When it can be shown that ones 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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24 Copyright 2001 by William Conklin. Distributed by Davidson Press, Inc. What You Should Do n 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. n This may not be necessary if you follow the instructions outlined below.

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25 Copyright 2001 by William Conklin. Distributed by Davidson Press, Inc. What You Should Do n 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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26 Copyright 2001 by William Conklin. Distributed by Davidson Press, Inc. What You Should Do n 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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27 Copyright 2001 by William Conklin. Distributed by Davidson Press, Inc. What You Should Do n 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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28 Copyright 2001 by William Conklin. Distributed by Davidson Press, Inc. What You Should Do n 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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29 Copyright 2001 by William Conklin. Distributed by Davidson Press, Inc. What You Should Do n Pre-pay any taxes due under 6020(b) through your employer. Take the maximum allowable deductions. Compute the tax according to your bracket. n If you are self-employed, pay your taxes quarterly. Post a bond against any assessment.

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30 Copyright 2001 by William Conklin. Distributed by Davidson Press, Inc. What You Should Do n 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.You want to eliminate any excuse that the IRS may want to use to seize any of your assets.

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31 Copyright 2001 by William Conklin. Distributed by Davidson Press, Inc. What You Should Do n 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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32 Copyright 2001 by William Conklin. Distributed by Davidson Press, Inc. What You Should Do n 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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33 Copyright 2001 by William Conklin. Distributed by Davidson Press, Inc. What You Should Do n 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. n The main issue is about not filing a return because the return can be used against you.

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34 Copyright 2001 by William Conklin. Distributed by Davidson Press, Inc. What You Should Not Do n 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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35 Copyright 2001 by William Conklin. Distributed by Davidson Press, Inc. What You Should Not Do n 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. Ninety- nine times out of a hundred, the IRS is probably correct.

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36 Copyright 2001 by William Conklin. Distributed by Davidson Press, Inc. The $100,000 Challenge n How does Mr. Conklin file a tax return without waiving his rights protected by the Fifth Amendment to the Constitution? n What statute in the Internal Revenue Code makes him liable to pay an income tax?

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37 Copyright 2001 by William Conklin. Distributed by Davidson Press, Inc. The $100,000 Challenge n Melvin Belli tried to collect. Filer provides a Power of Attorney to Mr. Belli. Filer puts taxes into attorneys trust fund. Attorney files using code number for the individual filer. Attorney/client privilege protects the filer.

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38 Copyright 2001 by William Conklin. Distributed by Davidson Press, Inc. The $100,000 Challenge n 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 filers Fifth Amendment rights.

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39 Copyright 2001 by William Conklin. Distributed by Davidson Press, Inc. The $100,000 Challenge n William Cohen tried to collect. File two returns: The first return contains only financial information.The first return contains only financial information. The second return contains the name and other identifying 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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40 Copyright 2001 by William Conklin. Distributed by Davidson Press, Inc. The $100,000 Challenge n 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 filers Fifth Amendment rights.

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41 Copyright 2001 by William Conklin. Distributed by Davidson Press, Inc. The $100,000 Challenge n 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 Conklins favor. The judge orders Ostman to pay Conklin his costs of trial.

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42 Copyright 2001 by William Conklin. Distributed by Davidson Press, Inc. The $100,000 Challenge n Whos next? ? n No one has ever come close to collecting the $100,000 Challenge. n 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. n http://www.billconklin.com.

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43 Copyright 2001 by William Conklin. Distributed by Davidson Press, Inc. Conclusion n Filing a Form 1040 is a voluntary act. n Filing a Form 1040 is not required. n Filing waves your Fifth Amendment rights. n The Fifth Amendment limits all US Codes. n Pay the taxes you owe in advance. n We have a duty and right to change tax laws. n Evil succeeds when good people do nothing.

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44 Copyright 2001 by William Conklin. Distributed by Davidson Press, Inc. Web Sites You Should Visit http://www.givemeliberty.org n We The People Foundation for Constitutional Education. n Join a campaign to place ads in newspapers across the country. n Support efforts to eliminate the federal income tax.

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45 Copyright 2001 by William Conklin. Distributed by Davidson Press, Inc. Web Sites You Should Visit http://davidsonpress.com n Publishers of the International Standard Version Bible. n On line study courses. n Free PowerPoint slide shows. n Purchase your copy of Why No One is Required to File Tax Returns on line.

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46 Copyright 2001 by William Conklin. Distributed by Davidson Press, Inc. Web Sites You Should Visit http://www.billconklin.com n Home page for author William Conklin. n Free resources and links. n Free PowerPoint slide show. n Purchase your copy of Why No One is Required to File Tax Returns on line.

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47 Copyright 2001 by William Conklin. Distributed by Davidson Press, Inc. Web Sites You Should Visit http://www.freedomabovefortune.com n Hosted by former IRS Special Agent. n Dedicated to the idea that no amount of prosperity is worth trading for your freedom. n Purchase your copy of his report on the income tax.

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48 Copyright 2001 by William Conklin. Distributed by Davidson Press, Inc. About the Author n Masters Degree in Communications from the University of Colorado. n School teacher for 15 years. n Numerous court decisions in his favor. n 25 years of experience dealing with IRS rules. n Email address: info@billconklin.com

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49 Copyright 2001 by William Conklin. Distributed by Davidson Press, Inc. How to Order n http://davidsonpress.com/companystore.htm http://davidsonpress.com/companystore.htm 24/7 SSL encrypted ordering. n Order from any bookstore. ISBN 189183391X (US$21.00) Free CD-ROM is included. n Order by phone: 1-203-744-6010 n For more information: Davidson Press, Inc. 21520 Yorba Linda Blvd., #G440 Yorba Linda, CA 92887 email: sales@davidsonpress.com sales@davidsonpress.com