XXXXXXX XXXXXX October 5, 2004
Mr. Timothy A. Towns
Mr. Thomas D. Matthews
Internal Revenue Service
Ogden, UT 84201-0030
RE: 2002 Claim for Refund ($X,XXX.00) Disallowance
Dear Mr. Towns and/or Mr. Matthews,
The purpose of this letter is to appeal your erroneous decision to disallow my claim for refund for the year 2002. While it is not my duty to point out to you laws of which you should already be aware, it is necessary to rebut the false assertions you have made in my case thus far.
In your letter dated 9/15/2004 (copy enclosed) notifying me that my refund claim for the year 2002 was disallowed, you stated the reason for this decision was that
“You based your claim on your view that wages and salary don’t constitute taxable income.”
This is a patently false statement, as this argument appears in none of the correspondences originating from my person since my claim for refund was first initiated. What I have been saying all along is the following;
1) Since my original 2002 Tax return was filed, I came to a better understanding of the Federal Income Tax laws. This understanding revealed to me the following:
a) That terms such as “wages”, “employee”, “employer”, “self-employed”, “trade or business”, etc. have very specific legal definitions in the Internal Revenue Code that do not share the understanding of those words as used in the vernacular.
b) In applying this clearer understanding to my record, I am now aware that I
1) was not an “employee”
2) received no “wages”
3) did not work for an “employer”
4) and received nothing connected with a “trade or business”
for the year 2002.
2) Based on this clearer understanding of the law, I continued to follow the law and
filed a claim for refund.
a) In case you are unfamiliar with the law, which is The Revenue Act of 1926, Section 319(b)…..compiled with other laws in 26 USC 6511(a), it states that:
All claims for refund of the tax imposed by this title alleged to have been erroneously or illegally assessed or collected must be presented to the Commissioner within three years next after the payment of such tax.
b) The law was further amended by the Revenue Act of 1932, Section 810;
(a) Section 319(b) of the Revenue Act of 1926 is amended to read as follows….(b) All claims for refunding of the tax imposed by this title alleged to have been erroneously or illegally assessed or collected must be presented to the Commissioner within three years next after the payment of such tax. The amount of the refund shall not exceed the portion of the tax paid during the three years immediately preceding the filing of the claim, or if no claim was filed, then during the three years immediately preceding the allowance of the refund.
3) In my claim for refund for the year 2002, I asserted, and continue to assert, that the taxes withheld from my earnings were done so in error, as I received no earnings that fell within the narrow legal scope of the term “wages”, as defined in Section 3401 of the IRC. Nor was I an “employee” of an “employer” as those terms are defined in Section 3401 of the IRC. The only taxable earnings for that year was the $XXX.00 gained as interest from a National Bank, which the Supreme Court acknowledges as a Federal instrumentality.
4) Since my claim for refund has been filed, I have been met with responses that are reprehensible and border on the criminal from the government agency (IRS) that is charged with protecting the rights of its citizens and dutifully following its own code.
a) I have been asked by the IRS to give up my claim for refund for the year 2002. In other words, you have asked me, by offering forms 2297 and 3363 for signature, to swear to something that I know not to be true and correct to the best of my knowledge and belief. I refuse to commit such perjury for your organization’s financial gain or political expediency.
b) I have been fined $500.00 for my refusal to give up my claim by signing forms 2297 and 3363. This fine is being contested.
c) I have had my claim disallowed by the IRS, whose only reason for doing so is the misrepresentation of the basis for my claim for refund, which has been addressed in the beginning and throughout this response.
5) According to the IRC, Section 6201, your powers of assessment are relegated only to the tax of a stated income. You do not possess the statutory authority to determine the income of a citizen, unless you have first-hand knowledge of such information. If you do possess this information in regards to my case, the burden of proof lies with you to show it (also found in Section 6201). NO SUCH PROOF HAS BEEN PRODUCED BY THE IRS AS OF THE DATE OF THIS WRITING.
6) Since no such proof has been produced, there is no reason for the IRS to dispute that my Gross Income for year 2002 stands, as amended by me, at $XXX.00
7) The IRS tax calculation tables show that the tax for a Gross Income of $XXX.00 is zero dollars.
8) This fact being well established by a lawful amended return, Form 1040X, legally filed within the statutory time limits provided for in 26 USC 6511(a), clearly shows that I am entitled a refund of $X,XXX.00, which is the total sum of money withheld from me by a private-sector company, paid over to the Federal Government to serve as a credit against any possible tax liability that might arise during the year 2002 and, if no liability be found, be refunded to me as an overpayment.
Once again, I look forward to the opportunity to have this situation resolved in a lawful and timely manner.
Under penalties of perjury, I declare that the facts present on my written appeal are, to the best of my knowledge and belief, true correct, and complete.