My dear American friends might be interested in knowing a bit more about their tax system so I found out some rather interesting info that I’d like to share with you. If this peaked your interest, I’d suggest you do some research. I bet you will be surprised at what you find.
- No section of the Internal Revenue Code establishes a liabilty for the income tax.Section 5005 establishes a tax liability for the distillation and importation of distilled spirits; Section 5703 establishes a tax liability on the manufacture and importation of tobacco products and cigarette papers; Section 4374 creates a liability for the tax on policies issued by foreign insurers; Section 4401(c) establishes a liability for the tax on accepting wagers; Section 5043 establishes a liability for the tax on wines.
- The general term “income” is not defined in the Internal Revenue Code.
U.S. v. Ballard 535 F2d 400
The Internal Revenue Code defines ‘Gross Income’ (Section 61), ‘Ordinary Income’ (Section 65), Adjusted Gross Income (Section 62), Taxable Income (Section 63), ‘Earned Income’ (Sec. 32). It does not define ‘income’.
- “Our system of taxation is based upon voluntary assessment and payment, not upon distraint.”
Flora v. United States, 362 U.S. 145, pg 176
- “The IRS’ primary task is to collect taxes under a voluntary compliance system.” (emphasis added)
Jerome Kurtz, Internal Revenue Annual Report, 1980
- “Our tax system is based on individual self-assessment and voluntary compliance.” (emphasis added)
Mortimer Caplin, Internal Revenue Audit Manual, 1975
- “Each year American taxpayers voluntarily file their tax returns and make a special efort to pay the taxes they owe.” – Johnnie M. Walters, Internal revenue 1040 Booklet, 1971
- “Your income tax is 100 percent voluntary tax, and your liquor tax is 100 percent enforced tax. Now the situation is as different as day and night.” (See footnote 1)
- “An individual taxpayer may refuse to exhibit his/her books and records for examination on the ground that compelling him to do so might violate his/her right against self-incrimination under the Fifth Amendment and constitute an illegal search and seizure under the Fourth Amendment.” (italics added) – Handbook for Special Agents
- “…warrantless entrys into the private premises of a person by the Internal revenue Service for the purpose of seizing property to satisfy a tax liability isa violation of that person’s reasonable expectation of privacy under the Fourth Amendment to teh Constitution. Before levies or seizures of property located on private premises are made, permission of the occupant of the premises on which the seizure is to take place must be obtained. If the occupant refuses to permit the entry the matter should be referred to District Counsel so that a court order authorizing the entry may be obtained.”
G.M. Leasing Corp. v. United States, 429 U.S. 338