Detecting language using up to the first 30 seconds. Use `--language` to specify the language Detected language: English [00:00.960 --> 00:02.360] Welcome to the show. [00:02.360 --> 00:05.680] This should be one of the most fascinating presentations [00:05.680 --> 00:07.760] you have ever seen. [00:07.760 --> 00:09.880] The reason is I'm going to show you [00:09.880 --> 00:12.640] with indisputable evidence straight [00:12.640 --> 00:15.440] from the Secretary of the Treasury [00:15.440 --> 00:19.800] that Form W-4 is to be used exclusively [00:19.800 --> 00:23.700] by non-resident aliens with US source income, [00:23.700 --> 00:26.060] not American citizens. [00:26.060 --> 00:30.380] And that a Form W-9 is only to be used, again, [00:30.380 --> 00:33.380] according to the Secretary of the Treasury, [00:33.380 --> 00:37.180] by US citizens acting as an agent for a foreign person [00:37.180 --> 00:39.220] with US source income. [00:39.220 --> 00:41.340] I'm also going to show you where you can find [00:41.340 --> 00:44.300] the official document in which the Secretary says that [00:44.300 --> 00:46.740] so you can show it to others whose cognitive dissonance [00:46.740 --> 00:49.280] may have prevented them from acknowledging the truth [00:49.280 --> 00:51.620] that the income tax has never been imposed [00:51.620 --> 00:54.860] on ordinary working Americans in the states of the union [00:54.860 --> 00:56.940] earning their own domestic income. [00:56.940 --> 00:59.940] You're going to love it. [00:59.940 --> 01:07.620] The Dr. Reality Vodcast with Dave Champion. [01:16.020 --> 01:17.060] Let's start with this. [01:17.060 --> 01:19.300] I'm the author of Income Tax Shattering the Miss, [01:19.300 --> 01:21.340] the best-selling book in America that [01:21.340 --> 01:24.580] reveals the hardcore legal facts concerning [01:24.580 --> 01:27.220] upon whom Congress has imposed the income tax [01:27.220 --> 01:30.420] and upon whom it has not imposed the income tax. [01:30.420 --> 01:33.980] At the end of this presentation, you be the judge. [01:33.980 --> 01:38.140] Virtually all Americans are ignorant about tax law, [01:38.140 --> 01:39.640] pretty much the only exceptions are [01:39.640 --> 01:41.980] those who've read Income Tax Shattering the Miss. [01:41.980 --> 01:45.020] Because virtually all Americans are ignorant about tax law, [01:45.020 --> 01:47.940] I'm going to need to lay some foundation in order [01:47.940 --> 01:52.140] that the main point will hit you like a freight train, [01:52.140 --> 01:53.060] in a good way. [01:53.060 --> 01:54.140] Let's get into it. [01:54.140 --> 01:55.580] When the Secretary of the Treasury [01:55.580 --> 01:59.600] makes a formal determination on a matter of taxation, [01:59.600 --> 02:01.980] the way he announces that determination [02:01.980 --> 02:05.420] to Treasury Department employees, federal agencies [02:05.420 --> 02:07.400] that deal with the tax being addressed, [02:07.400 --> 02:10.660] private sector tax professionals, and the public [02:10.660 --> 02:12.660] is to create and publicly release [02:12.660 --> 02:16.100] an official document called a Treasury decision. [02:16.100 --> 02:17.500] That's nothing new. [02:17.500 --> 02:20.900] Treasury decisions have been around for well over 100 years. [02:20.900 --> 02:22.700] The only reason you are unaware of them [02:22.700 --> 02:24.940] or their significance in the tax arena [02:24.940 --> 02:27.020] is the intricacies of how the government [02:27.020 --> 02:29.060] administers tax matters. [02:29.060 --> 02:30.180] Isn't it your thing? [02:30.180 --> 02:31.300] Don't feel bad. [02:31.300 --> 02:34.660] It is an obscure area of study for sure. [02:34.660 --> 02:36.340] And the government likes it that way. [02:36.340 --> 02:38.940] You'll understand why in just a few minutes. [02:38.940 --> 02:43.940] Today, we're going to focus on Treasury decision 8-7-3-4, [02:44.680 --> 02:48.220] which is incredibly revealing and worded quite clearly. [02:48.220 --> 02:51.500] Before we dive in and you get your mind blown, [02:51.500 --> 02:53.780] I need to make you aware of the relationship [02:53.780 --> 02:56.820] between tax statutes passed by Congress, [02:56.820 --> 03:00.740] Treasury decisions written by the Secretary of the Treasury, [03:00.740 --> 03:03.220] and tax regulations. [03:03.220 --> 03:05.400] The Supreme Court has referred to the wording [03:05.400 --> 03:08.060] of Congress's enactments as, quote, [03:08.060 --> 03:11.780] the broad language of the statute. [03:11.780 --> 03:14.640] SCOTUS has also stated that Congress cannot be expected [03:14.640 --> 03:16.340] to be experts on every subject concerning [03:16.340 --> 03:18.780] which they may be called upon to legislate. [03:18.780 --> 03:21.460] The appropriate cabinet officer then takes [03:21.460 --> 03:25.820] that broad language and creates far more detailed [03:25.820 --> 03:27.560] specific language. [03:27.560 --> 03:30.220] That far more detailed specific language becomes [03:30.220 --> 03:33.220] the basis of federal regulations on that subject. [03:33.220 --> 03:35.360] A good way to look at the difference between statutes [03:35.360 --> 03:38.100] passed by Congress and regulations promulgated [03:38.100 --> 03:41.980] by the Secretary is that regulations put the meat [03:41.980 --> 03:42.980] on the bone. [03:42.980 --> 03:47.980] As an example, a statute may be three paragraphs, [03:48.140 --> 03:51.060] while the regulation explaining how those three paragraphs [03:51.060 --> 03:54.960] are implemented might be nine pages. [03:54.960 --> 03:59.960] It is crucial to note that a regulation can never exceed [04:00.180 --> 04:04.900] or expand Congress's intent expressed in the statute. [04:04.900 --> 04:07.500] Although statutes come first in the timeline of events [04:07.500 --> 04:09.660] for the purpose of making sense of the information [04:09.660 --> 04:12.500] you're about to hear, let's start with Treasury decisions [04:12.500 --> 04:14.120] and regulations. [04:14.120 --> 04:16.660] When it comes to taxation, Treasury decisions are [04:16.660 --> 04:19.940] the basis from which tax regulations are created. [04:19.940 --> 04:23.020] It doesn't matter whether the tax is upon alcohol [04:23.020 --> 04:25.200] or tariffs or income. [04:25.200 --> 04:27.820] In Treasury decisions, the Secretary of the Treasury [04:27.820 --> 04:30.860] details everything everyone needs to know [04:30.860 --> 04:33.720] about how that tax is going to be administrated. [04:33.720 --> 04:36.580] Treasury decisions then serve as the basis [04:36.580 --> 04:38.940] from which to develop regulations. [04:38.940 --> 04:41.860] Regulations must be published in the federal register [04:41.860 --> 04:44.480] in order to be legally binding on the public. [04:44.480 --> 04:46.480] So the process works like this. [04:46.520 --> 04:49.360] The Secretary and his staff create a Treasury decision. [04:49.360 --> 04:51.960] The Treasury decision is published for all to see. [04:51.960 --> 04:53.800] The Treasury decision is then handed over [04:53.800 --> 04:55.760] to the legislative draftsman who makes sure [04:55.760 --> 04:58.520] the regulation is written in the proper legal language. [04:58.520 --> 05:02.680] Here's the critical part of that process. [05:02.680 --> 05:06.980] The legislative draftsmen are not permitted to add to [05:06.980 --> 05:11.480] or take away from the Secretary's determination. [05:11.480 --> 05:15.360] All the legislative draftsmen do is put it in legalese. [05:15.360 --> 05:18.760] In other words, what's in a Treasury decision [05:18.760 --> 05:21.680] is the official position of the Secretary [05:21.680 --> 05:25.360] concerning the administration of any particular type of tax, [05:25.360 --> 05:28.280] while the regulation carries the Secretary's [05:28.280 --> 05:30.320] official determination into effect [05:30.320 --> 05:33.720] using properly structured legal language. [05:33.720 --> 05:35.560] What about the laws Congress passes, [05:35.560 --> 05:37.800] more formally known as statutes? [05:37.800 --> 05:40.280] A moment ago I mentioned that legislative draftsmen [05:40.280 --> 05:43.320] cannot add to or take away from the Secretary's determination [05:43.320 --> 05:44.720] in a Treasury decision. [05:44.720 --> 05:48.480] Likewise, while a Treasury decision lays out the details, [05:48.480 --> 05:51.360] the particulars of how Congress's intent [05:51.360 --> 05:54.680] will be carried out, the Secretary cannot add to [05:54.680 --> 05:58.720] or take away from what Congress passed into law. [05:58.720 --> 06:01.840] To recap, the process goes like this. [06:01.840 --> 06:05.240] Congress declares what a law is by enacting a statute. [06:05.240 --> 06:07.840] The Secretary of the Treasury examines the statutes [06:07.840 --> 06:11.320] and creates an official executive branch determination, [06:11.320 --> 06:13.080] known as a Treasury decision, [06:13.080 --> 06:15.160] detailing how the law will be carried out, [06:15.160 --> 06:17.640] including the who, what, when, and where [06:17.640 --> 06:20.840] of any obligations the public may have under the law. [06:20.840 --> 06:23.480] Legislative draftsmen then take the Treasury decision [06:23.480 --> 06:24.880] and structure it in language [06:24.880 --> 06:26.920] that will be acceptable to the courts. [06:26.920 --> 06:29.880] In this process, the Secretary is not free to add to [06:29.880 --> 06:32.520] or take away from Congress's intent, [06:32.520 --> 06:35.120] and the legislative draftsmen are not free to add to [06:35.120 --> 06:37.520] or take away from the written determination of the Secretary [06:37.520 --> 06:39.960] as expressed in his Treasury decision. [06:40.960 --> 06:43.320] Not too difficult to understand, right? [06:43.320 --> 06:46.520] I should also point out that because Treasury regulations [06:46.520 --> 06:49.640] provide the details, the who, what, when, and where [06:49.640 --> 06:52.360] of any obligations the public has under the law, [06:52.360 --> 06:53.640] the federal courts have ruled it [06:53.640 --> 06:56.960] in tax law regulations control. [06:56.960 --> 07:01.960] As you can see, Treasury decisions are the critical aspect [07:02.240 --> 07:04.360] of administrating tax law. [07:04.360 --> 07:05.880] Now that you understand the mechanics, [07:05.880 --> 07:09.120] let me share what is the most important aspect [07:09.240 --> 07:11.360] of the whole process. [07:11.360 --> 07:15.400] Pay careful attention to what I'm going to say next. [07:16.560 --> 07:19.560] Because Treasury decisions are the linchpin [07:19.560 --> 07:21.520] of tax administration, [07:21.520 --> 07:26.000] particulars that do not appear in any Treasury decision [07:26.000 --> 07:29.280] are not part of the law. [07:29.280 --> 07:31.320] As a silly but easy to understand example, [07:31.320 --> 07:34.360] let's take a Treasury decision stating a tariff [07:34.360 --> 07:37.000] has been imposed upon and will be collected on, [07:37.000 --> 07:40.200] the importation of electric vehicles [07:40.200 --> 07:43.520] with an exterior color of red. [07:43.520 --> 07:47.200] The Treasury decision even contains numeric color codes [07:47.200 --> 07:50.360] that shall be considered red for the purpose of the tax. [07:50.360 --> 07:52.600] Is there any doubt in your mind [07:52.600 --> 07:56.080] as to which EVs the tariff applies? [07:56.080 --> 07:58.320] Do you imagine that because the Treasury decision [07:58.320 --> 08:01.080] makes no mention of any other color, [08:01.080 --> 08:02.760] someone can just make up in their mind [08:02.760 --> 08:04.120] without a shred of legal support [08:04.160 --> 08:07.800] that the tax also applies to EVs that are blue? [08:07.800 --> 08:11.480] I hope you understand that would be nonsense. [08:11.480 --> 08:14.240] The US Supreme Court has been clear about the point [08:14.240 --> 08:16.560] when it held the following, [08:16.560 --> 08:19.520] in the interpretation of statutes levying taxes, [08:19.520 --> 08:23.080] it is the established rule not to extend their provisions [08:23.080 --> 08:27.280] by implication beyond the clear import of the language used [08:27.280 --> 08:29.120] or to enlarge their operation [08:29.120 --> 08:32.880] so as to embrace matters not specifically pointed out. [08:32.880 --> 08:35.400] In case of doubt, they are construed most strongly [08:35.400 --> 08:38.960] against the government and in favor of the citizen. [08:38.960 --> 08:41.600] In other words, if something is not contained [08:41.600 --> 08:43.080] in a Treasury decision, [08:43.080 --> 08:45.280] then the Secretary did not determine it [08:45.280 --> 08:49.000] to be within Congress's intent as expressed in the statute. [08:49.000 --> 08:52.320] Everything the Secretary understands to be taxed by Congress [08:52.320 --> 08:55.240] will appear in the relevant Treasury decision [08:55.240 --> 08:57.960] and anything not appearing in the Treasury decision [08:57.960 --> 09:00.240] is not part of the law. [09:00.280 --> 09:03.120] All right, just a little FYI. [09:03.120 --> 09:05.760] If you turn this presentation off right now, [09:05.760 --> 09:09.720] you'd already know more about how federal taxation works [09:09.720 --> 09:12.040] than 99% of the American public, [09:12.040 --> 09:15.360] but stay with me because you're about to have [09:15.360 --> 09:17.040] your mind blown. [09:17.040 --> 09:20.440] Also, please take a moment and subscribe to the channel [09:20.440 --> 09:22.280] and hit the like button. [09:22.280 --> 09:24.480] For brevity, moving forward, [09:24.480 --> 09:26.720] I'm going to refer to the Secretary of the Treasury [09:26.720 --> 09:28.600] simply as the Secretary [09:28.600 --> 09:33.520] and Treasury decision 8743 simply as 8743. [09:33.520 --> 09:36.880] I'll put a link to 8743 down in the notes. [09:36.880 --> 09:39.720] With all that foundational knowledge under your belt, [09:39.720 --> 09:41.520] let's get into 8743. [09:41.520 --> 09:45.600] The first thing you need to know is its title and subtitle. [09:45.600 --> 09:49.720] Its title is Section 141, [09:49.720 --> 09:52.880] Withholding of Tax on Non-Resident Aliens, [09:52.880 --> 09:56.320] which is the heading from the statute [09:56.360 --> 09:59.480] the Treasury decision is addressing. [09:59.480 --> 10:04.480] The subtitle is 26 CFR 1.144.1-1, [10:05.720 --> 10:08.600] requirement for the deduction and withholding of tax [10:08.600 --> 10:11.040] on payments to foreign persons. [10:11.040 --> 10:13.240] That heading is the regulation [10:13.240 --> 10:16.640] that provides the detail behind the statute. [10:16.640 --> 10:18.720] It is imperative as we move forward [10:18.720 --> 10:23.080] that you understand 8734 addresses exclusively [10:23.080 --> 10:26.080] what is stated in the title. [10:26.080 --> 10:29.920] Withholding of Tax on Non-Resident Aliens. [10:29.920 --> 10:31.720] Not only is that just common sense, [10:31.720 --> 10:35.080] but I've read all 123 pages of 8734 [10:35.080 --> 10:38.120] and not a single word pertains to anything [10:38.120 --> 10:41.680] other than withholding on non-resident aliens. [10:41.680 --> 10:44.000] If you do not keep in mind at all times [10:44.000 --> 10:45.480] during this discussion [10:45.480 --> 10:49.280] that every word of 8734 pertains exclusively [10:49.280 --> 10:52.240] to withholding on non-resident aliens, [10:52.240 --> 10:56.520] you will miss the entire point of the presentation. [10:56.520 --> 11:00.960] On page one, we find a section entitled background, [11:00.960 --> 11:03.280] which begins with these words. [11:03.280 --> 11:05.720] This document contains final amendments [11:05.720 --> 11:10.720] to the income tax regulations CFR parts one, 31, 35A, [11:12.120 --> 11:14.160] and 301, blah, blah, blah, blah. [11:14.160 --> 11:18.280] CFR means code of federal regulations. [11:18.280 --> 11:23.280] So we have CFR parts one, 31, 35A, and 301. [11:25.320 --> 11:26.320] What are those? [11:26.320 --> 11:27.600] Part one is simple. [11:27.600 --> 11:31.160] It's all the permanent income tax regulations. [11:31.160 --> 11:34.520] Part 31 is entitled employment taxes [11:34.520 --> 11:37.600] and collection of income tax at source. [11:37.600 --> 11:39.560] That title is likely self-explanatory, [11:39.560 --> 11:43.000] but it addresses withholding from one's paycheck. [11:43.000 --> 11:47.400] Part 35A is entitled temporary employment tax regulations [11:47.400 --> 11:52.400] under the Interest and Dividend Tax Compliance Act of 1983. [11:52.760 --> 11:55.200] 35A contains just one section, [11:55.200 --> 11:57.560] and that section commands payors [11:57.560 --> 11:59.120] to conduct backup withholding [11:59.120 --> 12:01.240] on interest and dividend payments [12:01.240 --> 12:03.880] when the IRS has determined that a payee has engaged [12:03.880 --> 12:05.840] in underreporting income. [12:06.720 --> 12:09.640] Part 301 is entitled procedures and administration. [12:09.640 --> 12:11.440] The procedures and administration regs [12:11.440 --> 12:13.720] are not relevant for today's discussion, [12:13.720 --> 12:16.120] so we won't be getting into those. [12:16.160 --> 12:18.520] The background section then goes on [12:18.520 --> 12:23.520] to tell us which sections of the tax code 8734 is clarifying. [12:23.560 --> 12:25.000] Instead of reading the entire list, [12:25.000 --> 12:26.400] I'm just going to read the ones [12:26.400 --> 12:28.680] that are relevant to our discussion today. [12:28.680 --> 12:30.960] Those are as follows. [12:30.960 --> 12:35.960] Sections 1441, 1442, 1443, 1461, 1462, 1463, [12:40.960 --> 12:44.080] which address withholding on US source income [12:44.080 --> 12:45.840] belonging to a foreign person. [12:46.120 --> 12:49.280] 3401, which contains the pivotal definitions [12:49.280 --> 12:51.320] pertaining to payroll withholding. [12:51.320 --> 12:54.920] 3406, which addresses backup withholding. [12:54.920 --> 12:59.920] 6041, 6041A, 6042, 6045, 6049, [13:00.200 --> 13:03.760] 6050A, 6050N, as in Nancy, [13:03.760 --> 13:08.400] all of which are germane to someone demanding a W9 from you [13:08.400 --> 13:10.720] and then filing a 1099 against you [13:10.720 --> 13:12.680] for the amount they paid you. [13:12.680 --> 13:15.800] And 6109, which addresses the use [13:15.800 --> 13:19.320] of taxpayer identification numbers on tax forms. [13:19.320 --> 13:21.320] Further along in the background section, [13:21.320 --> 13:24.560] we find this, quote, reporting to the IRS [13:24.560 --> 13:29.240] may be required under section 6011N1461 [13:29.240 --> 13:33.040] or under the reporting provisions of chapter 61 [13:33.040 --> 13:38.040] of the code such as sections 6041, 6041A, [13:38.160 --> 13:43.160] 6042, 6044, 6045, 6049, 6050A or 6050N, [13:45.400 --> 13:50.520] the 1099 reporting provisions. [13:50.520 --> 13:53.600] We'll ignore 6011 and 1461 [13:53.600 --> 13:56.520] because they're not relevant to today's discussion. [13:56.520 --> 13:59.800] But the next part is the reporting provisions [13:59.800 --> 14:03.480] of chapter 61 of the code, such as, here we go again, [14:03.480 --> 14:07.480] section 6041, 6041A, 6042, 6044, 6045, 6049, [14:09.000 --> 14:14.000] 6050A or 6050N, the form 1099 reporting provisions. [14:14.800 --> 14:17.400] Those are the sections American businesses claim [14:17.400 --> 14:22.320] require them to file a 1099 against other Americans, [14:22.320 --> 14:23.640] against you. [14:23.640 --> 14:26.480] But 8734 has nothing to do with Americans [14:26.480 --> 14:29.440] conducting routine business affairs with other Americans. [14:29.440 --> 14:33.480] 8734 deals exclusively with American businesses [14:33.480 --> 14:36.320] withholding U.S. income tax from U.S. source income [14:36.320 --> 14:38.200] belonging to a foreign person. [14:38.200 --> 14:41.040] Remember the title of 8734? [14:41.040 --> 14:43.240] Withholding of tax on non-resident aliens [14:43.240 --> 14:46.440] and the subtitle, requirement for deduction [14:46.440 --> 14:50.000] and withholding of tax on payments to foreign persons. [14:50.000 --> 14:52.720] What you're seeing in 8734 is the secretary [14:52.720 --> 14:55.480] instructing his employees, which includes the IRS, [14:55.480 --> 14:57.600] as well as private tax professionals [14:57.600 --> 15:02.320] and the general public, that 1099 information reporting [15:02.320 --> 15:04.200] is to be engaged in when making a payment [15:04.200 --> 15:07.840] of U.S. source income belonging to a foreign person. [15:07.840 --> 15:10.640] Shortly thereafter, we find this, quote, [15:10.640 --> 15:12.640] payments to domestic and foreign persons [15:12.640 --> 15:15.080] create a number of withholding [15:15.080 --> 15:17.080] and information reporting obligations [15:17.080 --> 15:20.080] for both the payor and the recipient of these payments [15:20.080 --> 15:22.560] under various provisions of the code. [15:22.560 --> 15:25.000] Did you catch that it mentions [15:25.000 --> 15:28.160] payments to a domestic person? [15:28.160 --> 15:33.160] A domestic person is referred to in tax law as a U.S. person. [15:34.000 --> 15:36.560] The point we need to consider here is [15:36.560 --> 15:39.840] why does a treasury decision dealing exclusively [15:39.840 --> 15:42.920] with withholding from non-resident aliens [15:42.920 --> 15:46.280] mention payments to U.S. persons? [15:46.280 --> 15:49.000] I'll give you the answer to that in just a moment. [15:49.000 --> 15:51.880] The sentence continues by saying that such payments, [15:51.880 --> 15:54.840] quote, create a number of withholding [15:54.840 --> 15:56.840] and information reporting obligations [15:56.840 --> 15:59.800] for both the payor and the recipient of these payments [15:59.800 --> 16:02.520] under various provisions of the code. [16:02.520 --> 16:05.960] In other words, payments of U.S. source income [16:05.960 --> 16:10.800] made to a U.S. person but belonging to a foreign person [16:10.800 --> 16:13.560] can create, quote, a number of withholding [16:13.560 --> 16:16.640] and information reporting obligations. [16:16.640 --> 16:21.080] A few sentences further along, we find this, quote, [16:21.080 --> 16:22.960] the withholding of tax at source [16:22.960 --> 16:25.520] and the reporting of payments to foreign persons [16:25.520 --> 16:29.200] are also important to ensure that federal persons [16:29.200 --> 16:32.560] comply with their U.S. tax obligation. [16:33.440 --> 16:38.440] The first six words are the withholding of tax at source. [16:40.240 --> 16:44.200] Hmm, where have I seen that language before? [16:44.200 --> 16:46.520] Oh yeah, that's the title of the section [16:46.520 --> 16:49.920] commanding payroll withholding that reads [16:49.920 --> 16:53.160] income tax collected at source. [16:53.160 --> 16:54.480] Fascinating. [16:54.480 --> 16:57.000] I know what some of you are thinking right now. [16:57.000 --> 17:01.480] You're thinking, Dave, you're obviously an intelligent man, [17:01.480 --> 17:04.120] but connecting withholding on non-resident aliens [17:04.120 --> 17:07.320] to ordinary payroll wage withholding, [17:07.320 --> 17:08.800] I think you're losing it. [17:10.760 --> 17:11.600] Do tell. [17:12.680 --> 17:16.720] A few paragraphs further on, we find this, quote, [17:16.720 --> 17:20.080] a payor making payments to foreign persons [17:20.080 --> 17:23.160] must also be aware of the information reporting provisions [17:23.160 --> 17:25.000] under chapter 61 of the code [17:25.000 --> 17:27.800] and other withholding regimes, [17:27.800 --> 17:31.880] such as section 3406, backup withholding, [17:31.880 --> 17:35.600] section 3402, wage withholding, [17:35.600 --> 17:38.840] and section 3405, withholding on pensions, [17:38.840 --> 17:40.600] annuities, and so forth. [17:40.600 --> 17:45.360] So you see, in a treasury decision that deals exclusively [17:45.360 --> 17:48.440] with withholding on non-resident aliens, [17:48.440 --> 17:53.400] the secretary specifically says withholding of U.S. income tax [17:53.400 --> 17:56.200] from non-resident aliens is to be affected [17:56.200 --> 18:01.200] by payroll withholding under section 3402 of the code. [18:01.760 --> 18:05.520] Now, listen carefully to me. [18:06.920 --> 18:11.920] 3402 is the section a company's HR department would cite [18:13.920 --> 18:18.040] if you asked the company for its legal authority [18:18.040 --> 18:21.400] to withhold from your paycheck. [18:22.200 --> 18:25.520] In short, we know payroll withholding is to be used [18:25.520 --> 18:28.920] to collect the income tax non-resident aliens [18:28.920 --> 18:31.280] owe on their U.S. source income. [18:31.280 --> 18:33.960] We know that because you just heard [18:33.960 --> 18:37.560] the secretary state it plainly in 8734. [18:37.560 --> 18:40.480] But what about you? [18:40.480 --> 18:43.640] If payroll withholding is required to collect tax [18:43.640 --> 18:48.640] a non-resident alien owes, how then can it be used on you? [18:49.160 --> 18:51.200] You're not a non-resident alien. [18:52.080 --> 18:54.160] The answer is coming shortly. [18:54.160 --> 18:56.480] If you've watched or heard my earlier presentations, [18:56.480 --> 19:00.640] you likely know I've said that a Form W-9 is required only [19:00.640 --> 19:03.840] from a U.S. person who is receiving U.S. source income [19:03.840 --> 19:06.800] belonging to a foreign person, [19:06.800 --> 19:11.360] and that Form 1099 filed against you tells the IRS [19:11.360 --> 19:16.280] you received U.S. source income belonging to a foreign person. [19:16.320 --> 19:20.480] Much of 8734 deals with banks and brokerage institutions [19:20.480 --> 19:24.480] moving money internationally because things like Form W-9 [19:24.480 --> 19:27.360] and Form 1099 don't have anything to do [19:27.360 --> 19:30.360] with domestic business between Americans. [19:30.360 --> 19:33.320] I'm gonna give you several sentences from 8734. [19:33.320 --> 19:37.000] Don't worry about making sense of them as I read them. [19:37.000 --> 19:39.640] Just listen and take them in. [19:39.640 --> 19:41.240] I'll explain why I'm sharing them with you [19:41.240 --> 19:42.640] after you've heard them. [19:42.640 --> 19:44.600] On page eight, we find this, quote, [19:44.600 --> 19:48.400] chapter three withholding does not apply to that payment [19:48.400 --> 19:51.800] because the payee is a U.S. person. [19:51.800 --> 19:53.720] On page nine, we find, quote, [19:53.720 --> 19:55.400] if the customer is a U.S. person, [19:55.400 --> 19:58.600] the bank must report the payment on a Form 1099, [19:58.600 --> 20:02.600] and if the customer has not provided a Form W-9 [20:02.600 --> 20:05.600] as required under section 3406, [20:05.600 --> 20:07.480] backup withholding is required. [20:08.360 --> 20:10.480] On page 10, quote, [20:10.480 --> 20:12.240] a U.S. person making a payment [20:12.240 --> 20:15.680] to a U.S. financial institution is not required to withhold [20:15.680 --> 20:19.360] even if it knows that the payee is collecting the payment [20:19.360 --> 20:21.480] for a foreign person. [20:21.480 --> 20:24.160] If the U.S. person has no reason to believe [20:24.160 --> 20:26.200] that the financial institution will not comply [20:26.200 --> 20:28.640] with its obligation to withhold [20:28.640 --> 20:32.080] when it makes the payment to the foreign person. [20:32.080 --> 20:36.920] And on page 14, addressing qualified intermediaries, quote, [20:36.920 --> 20:39.920] reportable amounts paid are not subject to withholding [20:39.920 --> 20:42.400] or reporting under chapter three of the code. [20:42.400 --> 20:47.480] However, the payor must report the payment on a Form 1099 [20:47.480 --> 20:50.040] by treating the payment of a reportable amount [20:50.040 --> 20:53.440] as made directly to any U.S. person [20:53.440 --> 20:56.680] for whom it receives a Form W-9. [20:56.680 --> 20:58.880] And on page 17, quote, [20:58.880 --> 21:02.160] if a U.S. source dividend is paid to a foreign intermediary [21:02.160 --> 21:05.280] that furnishes a Form W-9 for another person, [21:05.280 --> 21:08.440] and such U.S. person is not an exempt recipient, [21:08.440 --> 21:11.280] the payor must treat the U.S. person as the payee [21:11.280 --> 21:14.920] for the purposes of Form W-9 reporting provisions. [21:14.920 --> 21:16.960] On page 30, quote, [21:16.960 --> 21:20.760] paragraph B-5 is added to allow a U.S. taxpayer [21:20.760 --> 21:25.760] to claim benefits under an income tax treaty on Form W-9. [21:26.720 --> 21:28.400] On page 46, quote, [21:28.400 --> 21:31.560] generally the determination by a withholding agent [21:31.560 --> 21:34.640] of the U.S. or foreign status of a payee [21:34.640 --> 21:37.320] and of its other relevant characteristics [21:37.320 --> 21:40.760] is made on the basis of a withholding certificate [21:40.760 --> 21:45.760] that is a Form W-8 or a Form 2833 or a Form W-9. [21:47.440 --> 21:50.640] And finally, on page 57, quote, [21:50.640 --> 21:53.680] a withholding agent may treat as a U.S. person a payee [21:53.680 --> 21:56.200] who is required to furnish a Form W-9 [21:56.200 --> 21:57.960] and who furnishes it in accordance [21:57.960 --> 22:00.960] with the procedures prescribed in blah, blah, blah. [22:00.960 --> 22:05.640] Now, I know these snippets lack broader context, [22:05.640 --> 22:08.720] so it wasn't my expectation that you'd make sense of them. [22:08.720 --> 22:11.000] So why did I share them with you? [22:11.000 --> 22:15.640] I shared them with you because they discuss U.S. persons [22:15.640 --> 22:20.640] withholding Form W-9 and Form 1099. [22:20.680 --> 22:23.720] All of those titles and forms are applicable [22:23.720 --> 22:28.720] exclusively to the topic of 8734, [22:28.800 --> 22:32.800] which is, as stated in the subtitle, quote, [22:32.800 --> 22:36.320] requirement for the deduction and withholding of tax [22:36.320 --> 22:40.200] on payments to a foreign person. [22:40.200 --> 22:42.320] You may have initially thought some of those snippets [22:42.320 --> 22:44.720] supported the false establishment narrative [22:44.720 --> 22:49.000] on the use of Forms W-9 and 1099 and backup withholding [22:49.000 --> 22:53.680] until you recall that every single word of 8734 [22:53.680 --> 22:56.120] addresses withholding of U.S. income tax [22:56.120 --> 22:59.000] from non-resident aliens. [22:59.000 --> 23:01.360] Here are some key points you should take away. [23:01.360 --> 23:04.840] One, for an American citizen or American company [23:04.840 --> 23:07.360] to be considered a U.S. person, [23:07.360 --> 23:09.360] the citizen or company must be receiving [23:09.360 --> 23:12.480] U.S. source income belonging to a foreign person. [23:12.480 --> 23:16.400] Two, Form W-9 was created by the Treasury Department [23:16.400 --> 23:18.720] as a means by which a person making a payment [23:18.720 --> 23:22.200] of U.S. source income belonging to a foreign person [23:22.200 --> 23:25.320] could determine whether U.S. income tax [23:25.320 --> 23:29.240] needs to be withheld before making the payment, [23:29.240 --> 23:32.440] or whether the requirement to withhold the tax [23:32.440 --> 23:36.360] would fall on the U.S. person receiving the payment. [23:36.360 --> 23:40.720] Three, Form 1099 was created as a reporting system [23:40.720 --> 23:42.760] so that the IRS could track the payment [23:42.760 --> 23:47.760] of U.S. source income from the original payor to a U.S. person [23:47.840 --> 23:49.400] so the IRS could determine [23:49.400 --> 23:54.280] if the last domestic guy with it fulfilled his legal duty [23:54.280 --> 23:56.440] to withhold the U.S. income tax [23:56.480 --> 24:00.520] before the money was sent offshore to the foreign owner. [24:00.520 --> 24:03.520] There is no statute, regulation, [24:03.520 --> 24:05.880] or Treasury decision in existence [24:05.880 --> 24:09.760] that requires Americans doing business with other Americans [24:09.760 --> 24:11.680] within the states of the union, [24:11.680 --> 24:14.040] without foreign persons involved, [24:14.040 --> 24:17.520] to seek or furnish a Form W-9, [24:17.520 --> 24:20.840] or to file a Form 1099 concerning payments made [24:20.840 --> 24:22.960] between the two domestic parties. [24:22.960 --> 24:25.320] A claim that such a requirement exists [24:25.320 --> 24:28.040] is a gross misunderstanding [24:28.040 --> 24:31.480] and a gross perversion of what the law actually says. [24:31.480 --> 24:33.360] We've been talking about withholding income tax [24:33.360 --> 24:34.760] from U.S. source income [24:34.760 --> 24:38.560] before it moves offshore to its foreign owner. [24:38.560 --> 24:41.000] As we've seen in 8734, [24:41.000 --> 24:45.600] withholding is performed by a withholding agent. [24:45.600 --> 24:47.400] Forms submitted to a withholding agent [24:47.400 --> 24:51.720] so the withholding agent can verify the status of a payee [24:51.760 --> 24:55.360] are referred to as withholding certificates. [24:55.360 --> 24:59.800] So what forms are withholding certificates? [24:59.800 --> 25:02.000] Let's see what the regulations say. [25:02.000 --> 25:07.000] 26 CFR 1.1471-1B148 reads as follows, quote, [25:08.800 --> 25:12.920] the term withholding certificate means a Form W-8, [25:12.920 --> 25:16.240] Form W-9, or any other certificate [25:16.240 --> 25:18.120] that under the code or regulations [25:18.120 --> 25:20.760] certified or establishes the Chapter 4 status [25:20.760 --> 25:23.760] of a payee of beneficial owner. [25:23.760 --> 25:24.840] Close quote. [25:24.840 --> 25:27.320] Chapter 4 addresses withholding from and reporting [25:27.320 --> 25:30.200] about U.S. source income moved offshore to a foreign owner. [25:30.200 --> 25:35.200] So if Form W-9 is a withholding certificate, which it is, [25:36.760 --> 25:41.680] used to show U.S. person status to a withholding agent [25:41.680 --> 25:43.800] so the withholding agent knows whether or not [25:43.800 --> 25:47.600] to withhold a foreign person's U.S. income tax, [25:47.600 --> 25:50.960] why the hell is a domestic company asking you for a W-9 [25:50.960 --> 25:53.600] when you provide a product or service to them? [25:53.600 --> 25:55.200] We've covered a lot of ground, [25:55.200 --> 25:57.680] and I know what some of you critical thinkers [25:57.680 --> 25:59.200] are thinking right now. [25:59.200 --> 26:01.560] You're thinking essentially this, [26:01.560 --> 26:05.760] Dave, just because all these things apply to foreign persons [26:05.760 --> 26:10.400] with U.S. source income doesn't mean they don't also apply [26:10.400 --> 26:13.120] to Americans engaged in domestic business [26:13.120 --> 26:14.600] with other Americans. [26:14.600 --> 26:17.560] In other words, you're thinking that applicability [26:17.560 --> 26:20.440] of the rules to group A doesn't automatically lead [26:20.440 --> 26:24.240] to the conclusion those rules don't also apply to group B. [26:24.240 --> 26:25.920] With the knowledge you possess at this moment, [26:25.920 --> 26:28.520] that's a reasonable thought. [26:28.520 --> 26:30.880] An intelligent person will alter his or her position [26:30.880 --> 26:32.440] when new information comes along [26:32.440 --> 26:35.920] showing the earlier position wasn't correct, right? [26:35.920 --> 26:38.480] I'm now going to give you that additional information, [26:38.480 --> 26:42.200] the information that destroys that reasonable thought [26:42.200 --> 26:43.840] you had just a moment ago. [26:43.840 --> 26:45.000] In Income Tax Shattering the Mist, [26:45.000 --> 26:48.200] I talk about the difference between general language [26:48.200 --> 26:50.400] and specific language. [26:50.400 --> 26:53.440] An example of general language is when a statute says [26:53.440 --> 26:56.520] something like, every person required. [26:56.520 --> 26:59.040] That's general because every person is qualified [26:59.040 --> 27:03.160] by the word required without any discussion [27:03.160 --> 27:05.160] of who's required. [27:05.160 --> 27:08.000] Another example would be a section that talks about [27:08.000 --> 27:11.800] the taxpayer being required to do this or such [27:11.800 --> 27:16.800] without any explanation of how a person becomes a taxpayer. [27:17.480 --> 27:19.600] Specific language is the opposite, [27:19.600 --> 27:22.440] telling us precisely what we need to know, [27:22.440 --> 27:24.520] clearly and in detail. [27:24.520 --> 27:28.200] When attempting to determine to whom the income tax applies [27:28.200 --> 27:32.320] and in what circumstances, general language is worthless. [27:32.320 --> 27:36.120] Your answers will come only from specific language. [27:36.120 --> 27:39.200] Treasury decisions employ specific language. [27:39.200 --> 27:41.720] As an example, I think you'd agree that 8734 [27:41.720 --> 27:43.880] is pretty damn specific. [27:43.880 --> 27:47.120] All treasury decisions of necessity [27:47.120 --> 27:50.600] provide that needed specificity. [27:50.600 --> 27:54.400] And that brings us to the point, to the big reveal. [27:54.400 --> 27:59.360] In the 110 years since the income tax was enacted, [27:59.360 --> 28:03.760] there is not a single treasury decision [28:03.760 --> 28:07.280] that talks about American citizens living and working [28:07.280 --> 28:09.200] in the states of the union, [28:09.200 --> 28:12.120] earning their own domestic source income, [28:12.120 --> 28:16.680] being required to fill out a Form W-4, Form W-9, [28:16.680 --> 28:21.680] or file any form whatsoever with the IRS. [28:22.200 --> 28:27.200] Not one, nada, zero, nothing in 110 years. [28:30.560 --> 28:33.480] Earlier, you heard the US Supreme Court make this statement, [28:33.480 --> 28:37.000] quote, in the interpretation of statutes levying taxes, [28:37.000 --> 28:39.760] that it is the established rule not to extend their provisions [28:39.760 --> 28:43.080] by implication beyond the clear import of the language used [28:43.080 --> 28:44.840] or to enlarge their operations [28:44.840 --> 28:47.600] so as to embrace matters not specifically pointed out. [28:47.600 --> 28:50.080] In case of doubt, they are construed most strongly [28:50.080 --> 28:53.280] against the government and in favor of the citizen. [28:53.280 --> 28:57.880] So if the Supreme Court has ruled that provisions of tax law [28:57.880 --> 29:00.800] cannot be extended beyond what is clearly stated, [29:01.720 --> 29:04.720] how can someone claim tax law extends to things [29:04.720 --> 29:09.120] that don't appear anywhere in the law? [29:09.120 --> 29:12.200] When we talk about things that don't appear anywhere in the law, [29:12.200 --> 29:13.920] such as an ordinary working American [29:13.920 --> 29:16.600] having to fill out a W-4 or a W-9, [29:16.600 --> 29:19.600] does that also apply to Form 1040? [29:19.600 --> 29:20.960] You bet. [29:20.960 --> 29:24.880] There are 10 treasury decisions in which the Secretary [29:24.880 --> 29:27.600] tells the public that a 1040 is to be used [29:27.600 --> 29:30.480] by a nonresident alien or his domestic agent [29:30.480 --> 29:32.960] to report the amount of US income tax [29:32.960 --> 29:36.240] due on the nonresident alien's US source income. [29:36.240 --> 29:40.720] Those treasury decisions are 1928, 1953, 2013, [29:40.720 --> 29:49.840] 2190, 2313, 2401, 2402, 2815, 2988, and 6500. [29:49.840 --> 29:53.560] In contrast to those 10 treasury decisions, [29:53.560 --> 29:57.480] how many say that anyone other than a nonresident alien [29:57.480 --> 30:00.800] or his domestic agent is to file a 1040? [30:00.800 --> 30:02.880] You likely already predicted the answer. [30:02.880 --> 30:07.920] There are no treasury decisions that instruct anyone [30:07.920 --> 30:11.520] other than a nonresident alien with US source income [30:11.520 --> 30:15.200] or his domestic agent to file a 1040, [30:15.200 --> 30:20.960] zero, zip, zilch, nada in 110 years. [30:20.960 --> 30:24.000] In fact, if the numerical designation of return [30:24.000 --> 30:27.600] begins with 104 followed by any fourth number, [30:28.240 --> 30:31.280] such as 1041, 1042, 1044, and so on, [30:31.280 --> 30:34.960] that return pertains exclusively to nonresident aliens [30:34.960 --> 30:36.880] with US source income. [30:36.880 --> 30:40.960] Do you know the title of Form 1040? [30:40.960 --> 30:47.280] The title is US Individual Income Tax Return. [30:47.280 --> 30:49.680] I'd guess most people believe the word individual [30:49.680 --> 30:52.400] is meant to distinguish it from a corporate return, [30:52.400 --> 30:55.120] and certainly the 1040 is to be used by a person [30:55.120 --> 30:57.120] rather than a nonresident alien. [30:57.280 --> 31:00.160] The definition of individual is to be used by a person [31:00.160 --> 31:01.440] rather than an entity, [31:01.440 --> 31:05.760] but that's not what individual means on the 1040. [31:05.760 --> 31:09.520] Treasury decision 1928 says that a Form 1040 [31:09.520 --> 31:13.600] is to be used by an individual. [31:13.600 --> 31:18.560] The regulation at 1.144.1-1c3 contains the definition [31:18.560 --> 31:22.560] of individual for the purpose of the income tax. [31:22.560 --> 31:25.440] The definition is split into two parts. [31:25.440 --> 31:30.080] It says an individual is an alien individual. [31:30.720 --> 31:35.120] The second part, subsection II, states an individual [31:35.120 --> 31:39.120] is a nonresident alien individual. [31:39.760 --> 31:43.600] In other words, 10 Treasury decisions say Form 1040 [31:43.600 --> 31:46.880] is to be used by a nonresident alien or as domestic agent [31:46.880 --> 31:48.640] with one of those Treasury decisions [31:48.640 --> 31:51.040] specifically using the word individual, [31:51.040 --> 31:52.640] and then that portion of the regs [31:52.640 --> 31:54.320] addressing withholding of the tax [31:54.320 --> 31:56.640] tells us individual means a nonresident alien. [31:57.440 --> 31:59.440] In other words, if the Treasury Department [31:59.440 --> 32:00.720] wanted to be transparent, [32:00.720 --> 32:02.640] which it does not when it comes to the income tax, [32:03.440 --> 32:07.600] rather than being named U.S. individual income tax return, [32:07.600 --> 32:09.040] the 1040 would be named [32:09.600 --> 32:12.560] U.S. nonresident alien income tax return. [32:13.280 --> 32:15.280] Both titles mean the exact same thing, [32:15.920 --> 32:18.960] but one is misleading while the other is accurately descriptive. [32:19.520 --> 32:22.240] Given the meaning of individual in U.S. income tax law, [32:22.240 --> 32:25.200] I might also point out that the very first income tax regulation [32:25.200 --> 32:27.360] in the Code of Federal Regulations, [32:27.360 --> 32:33.360] which is 1.1-1, is entitled Income Tax on Individuals. [32:34.160 --> 32:36.320] Let's put what you learned today to the test [32:36.320 --> 32:38.240] by checking your ability to understand [32:38.240 --> 32:42.080] how general language must be viewed now that you know [32:42.080 --> 32:45.040] the specific persons and circumstances [32:45.040 --> 32:48.720] to which that general language must apply. [32:48.720 --> 32:50.640] Though we didn't get into it today, [32:50.640 --> 32:54.560] 8734 has a lot to say about backup withholding. [32:54.560 --> 32:57.520] It's mentioned consistently throughout 8734. [32:58.240 --> 33:01.680] We must remember that every word of 8734 [33:01.680 --> 33:05.280] pertains to withholding from nonresident aliens. [33:05.280 --> 33:09.360] And just like W-4s, W-9s, W-2s, and 1099s, [33:09.360 --> 33:13.280] there is no Treasury decision in existence [33:13.280 --> 33:15.440] that applies backup withholding to Americans [33:15.440 --> 33:18.240] doing business with other Americans within the 50 states [33:18.240 --> 33:20.240] without a foreign person involved. [33:20.240 --> 33:23.680] So let's look at 3406, the backup withholding section, [33:24.240 --> 33:28.000] and see if you can make sense of it knowing what you know now. [33:28.640 --> 33:33.680] Subsection A is entitled Requirement to Deduct and Withhold [33:33.680 --> 33:36.320] and begins with paragraph 1 that says, [33:37.440 --> 33:41.680] In general, in the case of any reportable payment, if A, [33:41.680 --> 33:45.840] the payee fails to furnish his tin to the payor [33:45.840 --> 33:48.240] in the manner required, or B, [33:48.320 --> 33:51.040] the secretary notifies the payor that the tin [33:51.040 --> 33:53.040] furnished by the payee is incorrect, [33:53.040 --> 33:56.000] then the payor shall deduct and withhold from such payment [33:56.000 --> 33:58.480] a tax equal to blah, blah, blah, blah. [33:58.480 --> 34:01.440] Knowing what you know now, can you describe [34:01.440 --> 34:04.880] the practical meaning of payor in 3406? [34:05.920 --> 34:09.120] Think about it in light of 8734. [34:11.520 --> 34:13.040] For the purpose of the income tax, [34:13.040 --> 34:15.840] payor means a person or entity making a payment [34:15.840 --> 34:19.600] of U.S. source income owned by a foreign person. [34:19.600 --> 34:22.400] Since the statute is requiring a tin, [34:22.400 --> 34:24.480] a taxpayer identification number, [34:24.480 --> 34:28.160] we know that the payment is being made to a U.S. person [34:28.160 --> 34:31.680] acting as an agent of the income's foreign owner. [34:32.240 --> 34:35.920] 3406 is saying the presumptive U.S. person [34:35.920 --> 34:38.960] must provide a tin on a form W-9 [34:38.960 --> 34:43.280] in order to verify U.S. person status to the payor, [34:43.280 --> 34:47.440] and if the presumptive U.S. person does not provide a tin [34:47.440 --> 34:51.360] on a W-9 or provides an inaccurate tin, [34:51.360 --> 34:54.960] then the payor must also take on the role of a withholding agent [34:54.960 --> 34:57.760] and withhold the income tax the foreign person owes [34:57.760 --> 34:59.040] on his U.S. income. [35:00.000 --> 35:04.320] The transition of a payor to a withholding agent [35:04.320 --> 35:05.040] is quite common. [35:05.040 --> 35:08.400] In fact, it is so common that in the definition of payor [35:08.400 --> 35:12.960] in the regulations at 1.1441-1C19, [35:13.840 --> 35:16.160] specifically states that the payor [35:17.360 --> 35:20.640] generally includes a withholding agent. [35:21.200 --> 35:23.680] Let me also point out that the definition of payor [35:23.680 --> 35:25.120] is in the section entitled [35:25.760 --> 35:28.720] requirement for the deduction and withholding of tax [35:28.720 --> 35:30.480] on payments to a foreign person. [35:31.200 --> 35:34.320] I also want to bring to your attention the fact that 3406 [35:34.320 --> 35:36.320] is within chapter 24 of the code, [35:36.320 --> 35:41.760] which is entitled collection of income tax at source on wages. [35:41.760 --> 35:46.640] Whenever you see the phrase collection of income tax at source, [35:47.600 --> 35:54.240] it always means the withholding of U.S. income tax owed by a foreign person. [35:54.240 --> 35:57.280] Whether it's the phrase collection of income tax at source [35:57.280 --> 35:59.520] or U.S. source income, [36:00.400 --> 36:06.560] source means the U.S. origin of the foreign person's U.S. income. [36:07.200 --> 36:08.480] We've covered a lot of ground today, [36:08.480 --> 36:11.280] and despite my best efforts to streamline the material [36:11.280 --> 36:12.480] and make it easy to understand, [36:13.600 --> 36:15.920] you're probably feeling a bit overloaded right now. [36:16.640 --> 36:18.160] Given how much we've covered today, [36:18.160 --> 36:22.240] it may surprise you to learn it is just the tip of the iceberg. [36:23.200 --> 36:28.080] In these presentations, I usually tackle one evidentiary issue. [36:28.720 --> 36:30.960] Today was Treasury decision 8734. [36:31.680 --> 36:33.680] But there is so much more, [36:33.680 --> 36:36.800] and it is all laid out in a crystal clear [36:36.800 --> 36:40.080] and easy to understand manner in income tax shattering the miss. [36:40.800 --> 36:44.000] Income tax shattering the miss gives you all the evidence you need [36:44.000 --> 36:50.160] to be 100% certain that Congress has never imposed the income tax [36:50.160 --> 36:52.640] on ordinary working Americans earning their own domestic income [36:52.640 --> 36:53.840] within the states of the union. [36:54.640 --> 36:56.400] You can get income tax shattering the miss at [36:57.200 --> 36:59.120] drreality.news. [37:02.240 --> 37:06.560] If you want the same kind of evidence-based breakdown as you've seen today [37:06.560 --> 37:09.920] but focused on how your body's physiology actually works, [37:10.560 --> 37:12.400] rather than the false establishment narrative [37:12.400 --> 37:14.720] that Americans have been fed for 60 years, [37:15.520 --> 37:17.520] while you're purchasing income tax shattering this, [37:17.520 --> 37:19.520] also grab a copy of Body Science. [37:20.640 --> 37:23.360] You may have noticed that the health of the American people [37:23.360 --> 37:25.360] is sinking like the Titanic. [37:26.240 --> 37:29.360] 70% of our population is overweight or obese. [37:29.360 --> 37:33.520] Diseases such as diabetes and Alzheimer's are exploding. [37:34.160 --> 37:38.560] Obesity in children, which was almost unknown a few decades ago, [37:38.560 --> 37:39.760] is now commonplace. [37:40.320 --> 37:43.840] Due to trillion-dollar industries pouring money into bogus research, [37:44.480 --> 37:47.360] fake science is everywhere these days. [37:47.360 --> 37:49.840] Corrupt studies are making absurd claims [37:49.840 --> 37:53.200] such as that things like salt or eating red meat [37:53.920 --> 37:55.440] causes type 2 diabetes. [37:56.160 --> 38:00.880] In short, America's health is in the shitter and getting worse every day [38:00.880 --> 38:04.160] because certain industries and the U.S. government [38:04.160 --> 38:07.200] have engaged in massive disinformation. [38:08.160 --> 38:10.320] Body Science shows you that process, [38:10.320 --> 38:12.480] shows you the disinformation. [38:13.440 --> 38:16.240] What will likely shock you is that most everything [38:16.240 --> 38:19.920] you now believe about health and physiology is inaccurate. [38:19.920 --> 38:20.800] It's not your fault. [38:21.440 --> 38:24.720] If you and everyone you know had been told since birth [38:24.720 --> 38:27.040] that the human body does not make use of oxygen, [38:27.040 --> 38:29.920] and every medical professional you'd ever met confirmed that, [38:29.920 --> 38:32.960] and thousands of scientists were quoted in the media saying it, [38:34.160 --> 38:35.120] you might well believe it. [38:36.400 --> 38:39.760] That's analogous to the disinformation about human physiology [38:39.760 --> 38:42.160] that has led the people of the wealthiest [38:42.160 --> 38:44.640] and most technologically advanced nation on Earth [38:45.440 --> 38:48.400] to be the sickest people in all of human history [38:48.400 --> 38:50.080] and getting sicker every day. [38:50.160 --> 38:51.840] I know I'm being a bit cryptic, [38:51.840 --> 38:53.840] but this has already been a long presentation [38:53.840 --> 38:56.720] and I'm trying to give you a sense of what Body Science is about [38:56.720 --> 38:59.520] without making this lengthy presentation even longer. [39:00.240 --> 39:02.880] Suffice to say that if you read Body Science [39:02.880 --> 39:05.040] and put into action what you find there, [39:05.040 --> 39:07.920] you will leave the ranks of the misled and sick [39:07.920 --> 39:10.320] and become astoundingly healthy. [39:11.360 --> 39:13.440] I practice what I preach. [39:14.000 --> 39:15.360] I haven't filed an income tax return [39:15.360 --> 39:17.680] or paid a penny of income tax in 30 years. [39:17.680 --> 39:20.880] I also adhere to everything in Body Science, [39:20.880 --> 39:24.480] and at 64, I'm as healthy as an 18-year-old. [39:24.480 --> 39:28.080] Body Science has never gotten anything less than a five-star rating, [39:28.080 --> 39:31.440] and readers rave about the fact that they look and feel [39:31.440 --> 39:35.520] decades younger after putting into action what they learn in Body Science. [39:35.520 --> 39:40.000] So go to DrReality.News and pick up a copy of Income Tax Shattering the Mess [39:40.000 --> 39:40.960] and Body Science. [39:41.600 --> 39:45.520] They will be two of the most fascinating books you have ever read. [39:46.160 --> 39:47.920] My word to you on that. [39:47.920 --> 39:51.920] Also, by purchasing Income Tax Shattering the Mess and or Body Science, [39:51.920 --> 39:54.400] you help me to continue to be here for you [39:54.400 --> 39:57.840] with these revealing and thought-provoking presentations. [39:57.840 --> 40:00.640] Please share this presentation everywhere, [40:00.640 --> 40:01.600] and thank you for being here. [40:01.600 --> 40:09.360] Take care.