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[00:00.000 --> 00:02.000]  Welcome to the show.
[00:02.000 --> 00:07.840]  One mechanism that can be used to commit fraud is to omit information the target of the fraud
[00:07.840 --> 00:08.840]  has the right to know.
[00:08.840 --> 00:12.920]  Today, I'm going to highlight how the federal government commits fraud against American
[00:12.920 --> 00:20.800]  business owners every single day by intentionally withholding information business owners have
[00:20.800 --> 00:22.680]  every right to know.
[00:22.680 --> 00:26.120]  Even if you're not a business owner, today's presentation will be enlightening because
[00:26.120 --> 00:30.880]  it reveals how the United States government knowingly, willfully, and intentionally scams
[00:30.880 --> 00:32.520]  the American people.
[00:32.520 --> 00:37.720]  I think we can all agree a servant government should not be scamming the people it exists
[00:37.720 --> 00:38.720]  to serve.
[00:38.720 --> 00:44.920]  Let's get into it.
[00:44.920 --> 00:56.200]  The Dr. Reality Vodcast with Dave Champion.
[00:56.200 --> 00:57.200]  Let's start with this.
[00:57.200 --> 01:00.380]  I'm the author of Income Tax Shattering the Mist, the bestselling book in America that
[01:00.380 --> 01:02.660]  tells the truth about the income tax.
[01:02.660 --> 01:08.200]  If you have not read Income Tax Shattering the Mist, it may shock you to learn that IRS
[01:08.200 --> 01:14.240]  forms never reveal the true legal purpose of the form.
[01:14.240 --> 01:17.320]  If they did, virtually no one would sign them.
[01:17.320 --> 01:21.680]  I'm confident you would agree with me that every income tax form should have a completely
[01:21.680 --> 01:27.920]  transparent plain English explanation of precisely under what circumstances the form is required
[01:27.920 --> 01:30.480]  to be used and by whom.
[01:30.480 --> 01:32.960]  What we have is the exact opposite.
[01:32.960 --> 01:38.600]  The true purpose of income tax forms does not appear on the form and requires extensive
[01:38.600 --> 01:40.520]  research to uncover.
[01:41.440 --> 01:44.360]  One can simply read Income Tax Shattering the Mist.
[01:44.360 --> 01:48.400]  Before I present the facts and law on today's subject, if you're a person who demands an
[01:48.400 --> 01:53.680]  IRS form W-9 from vendors and contractors, please stay with me because I really want
[01:53.680 --> 01:58.400]  to talk to you about what you're doing and offer you something incredibly helpful that's
[01:58.400 --> 02:01.600]  absolutely free with zero strings attached.
[02:01.600 --> 02:03.480]  So stay with me for that.
[02:03.480 --> 02:07.760]  In the business community, IRS form W-9 is ubiquitous.
[02:07.760 --> 02:13.000]  There are roughly 33 million businesses in the United States and virtually all of them
[02:13.000 --> 02:18.040]  furnish multiple W-9s to requesting businesses every year.
[02:18.040 --> 02:24.120]  Of that 33 million, probably 32 million have never been under any legal obligation to furnish
[02:24.120 --> 02:33.320]  a W-9 to anyone, but do it simply because everyone knows you have to.
[02:34.280 --> 02:40.700]  If 32 million businesses filling out dozens or more of these forms each year was merely
[02:40.700 --> 02:46.920]  a benign misunderstanding with no harmful consequences, it wouldn't be an issue.
[02:46.920 --> 02:49.160]  But that is hardly the case.
[02:49.160 --> 02:55.120]  In point of legal fact, giving a business a W-9 does very real harm to the business
[02:55.120 --> 02:56.120]  that does so.
[02:56.120 --> 03:01.480]  A moment ago, I said that IRS forms never reveal the true legal purpose of the form.
[03:01.480 --> 03:05.840]  That statement is true of all IRS forms, which includes the W-9.
[03:05.840 --> 03:08.400]  Let's start with the title of W-9.
[03:08.400 --> 03:15.520]  The title is Request for Taxpayer Identification Number and Certification.
[03:15.520 --> 03:20.320]  That tells us what the government wants businesses to do with it, which is to provide a taxpayer
[03:20.320 --> 03:22.120]  identification number.
[03:22.120 --> 03:26.840]  But I'm sure you would agree it doesn't tell us who is required to fill out the form
[03:26.840 --> 03:29.040]  or under what circumstances.
[03:29.040 --> 03:35.520]  Now let's move to the part of the W-9 instructions entitled Purpose of Form.
[03:35.520 --> 03:38.320]  That should give us the answer, right?
[03:38.320 --> 03:44.320]  Let's see what it says, quote, an individual or entity, Form W-9 Requestor, who is required
[03:44.320 --> 03:49.160]  to file an information return with the IRS is giving you this form because they must
[03:49.160 --> 03:54.440]  obtain your correct taxpayer identification number to report on an information return
[03:54.440 --> 03:59.680]  the amount paid to you or other amount reportable on an information return.
[03:59.680 --> 04:02.120]  Let's break that down.
[04:02.120 --> 04:09.240]  An individual or entity who is required to file an information return with the IRS is
[04:09.240 --> 04:16.240]  giving you this form because that stanza is really all we need to consider.
[04:16.240 --> 04:21.800]  You'll note that the W-9 is being given to you by a person who is required to file an
[04:21.840 --> 04:24.440]  information return.
[04:24.440 --> 04:28.960]  Another way to look at this is if the person making the payment is not required to file
[04:28.960 --> 04:34.320]  an information return, then he, she, it has no legal basis upon which to give you a Form
[04:34.320 --> 04:35.640]  W-9.
[04:35.640 --> 04:40.120]  Remember I said IRS forms never reveal their true purpose?
[04:40.120 --> 04:42.760]  At this point, let me ask you a question.
[04:42.760 --> 04:48.720]  In what type of transaction must you and another company be engaged that would require the
[04:48.720 --> 04:53.200]  other business to be required to file an information return?
[04:53.200 --> 04:57.800]  I imagine some of you who have a passing familiarity with bookkeeping or general accounting are
[04:57.800 --> 05:02.920]  thinking the requirement kicks in when one makes a payment of $600 or more.
[05:02.920 --> 05:06.720]  Sorry, no, that's a threshold issue.
[05:06.720 --> 05:11.320]  What activity one must be engaged in to become required to file an information return is
[05:11.320 --> 05:14.320]  completely different from a filing threshold.
[05:14.320 --> 05:19.040]  So where might we find the law that makes a person required to file an information
[05:19.040 --> 05:20.040]  return?
[05:20.040 --> 05:24.960]  I'm about to give you that answer, but because tax law has been intentionally written to
[05:24.960 --> 05:30.120]  hide the truth from the public, please follow along closely as I tie the relevant sections
[05:30.120 --> 05:31.920]  together for you.
[05:31.920 --> 05:35.920]  Let's begin with the statute that has convinced rank and file businesses across the country
[05:35.920 --> 05:40.600]  that they are required to file information returns on any payment they make to vendors.
[05:40.600 --> 05:45.520]  That statute is found at 26 U.S.C. section 6041 and reads,
[05:45.520 --> 05:50.240]  All persons engaged in a trade or business and making payment in the course of such trade
[05:50.240 --> 05:53.960]  or business to another person, blah, blah, blah.
[05:53.960 --> 05:56.440]  Sounds pretty simple, right?
[05:56.440 --> 05:58.360]  Not so fast there, Skippy.
[05:58.360 --> 06:02.760]  If you've watched any of my previous videos on income tax, you know that Congress is free
[06:02.760 --> 06:08.320]  to take words of which the public knows the meaning and redefine those words to mean something
[06:08.320 --> 06:10.760]  different than we understand the word to mean.
[06:10.760 --> 06:16.240]  It might surprise you to learn that the phrase, trade or business, has a different meaning
[06:16.240 --> 06:20.000]  in tax law than what you think those words mean.
[06:20.000 --> 06:27.040]  At 26 U.S.C. 7701A26, we find trade or business defined this way.
[06:27.040 --> 06:31.600]  The term trade or business includes the performance of the function of a public office.
[06:31.600 --> 06:35.840]  Now, before anyone launches with the idea that because the definition uses the word
[06:36.800 --> 06:42.240]  includes, it means the performance of the functions of a public office plus whatever
[06:42.240 --> 06:46.720]  you think that phrase means, the law does not work that way.
[06:46.720 --> 06:49.120]  Definitions in law must be precise.
[06:49.120 --> 06:54.760]  In the tax code, the word includes, when used in a definition, means non-enumerated things
[06:54.760 --> 07:00.200]  may be added, but only such things as reasonably fit within the category established by the
[07:00.200 --> 07:03.120]  words that appear in the definition.
[07:03.120 --> 07:07.760]  The meaning of includes entered U.S. tax law shortly after the turn of the 20th century
[07:07.760 --> 07:12.880]  in a somewhat convoluted manner, so I'm going to give you the version from another area
[07:12.880 --> 07:15.680]  of taxation that uses more modern language.
[07:15.680 --> 07:24.640]  That is 27 CFR 72.11, which reads, the terms includes and including do not exclude things
[07:24.640 --> 07:29.160]  not enumerated, which are in the same general class.
[07:29.160 --> 07:32.240]  Class is merely a legal way of saying category.
[07:32.240 --> 07:39.880]  If you'd like to read the older, more convoluted version, you can find that at 26 USC 7701C.
[07:39.880 --> 07:45.880]  Returning to trader business, the words that establish the category are, quote, the performance
[07:45.880 --> 07:48.200]  of the function of a public office.
[07:48.200 --> 07:53.560]  In other words, Congress decided not to itemize every action that might be considered the
[07:53.560 --> 07:58.480]  performance of the function of a public office, but instead chose to write the definition
[07:58.600 --> 08:03.160]  so that any activity reasonably within the description can be considered a part of the
[08:03.160 --> 08:06.960]  definition without providing a long list of those activities.
[08:06.960 --> 08:12.440]  Accordingly, the first takeaway from the law virtually every business in America uses to
[08:12.440 --> 08:17.560]  claim they are required to file information returns has zero applicability to private
[08:17.560 --> 08:20.860]  sector businesses, none, zero.
[08:20.860 --> 08:24.920]  As you just read with your own eyes, it applies exclusively to those who make payments in
[08:24.920 --> 08:29.560]  the course of the performance of the function of a public office.
[08:29.560 --> 08:34.440]  Next, I want to take you to the regulations for the statute we just deciphered.
[08:34.440 --> 08:38.600]  The purpose of this is to see if the reg says something different than the statute.
[08:38.600 --> 08:42.680]  We do that because the federal courts have held that in tax matters, the regulations
[08:42.680 --> 08:44.040]  control.
[08:44.040 --> 08:49.360]  Income tax regulations are found in part one of the regs, and the reg for 6041 is found
[08:49.360 --> 08:59.040]  at 26 CFR 1.6041, which reads every person engaged in a trade or business shall make
[08:59.040 --> 09:01.120]  an information return.
[09:01.120 --> 09:06.600]  As you can see, the reg for 6041 also says the requirement to file an information return
[09:06.600 --> 09:15.120]  is on a person performing the function of a public office, not private sector companies.
[09:15.120 --> 09:20.200]  Although we now know who is to make the request for W9, we still don't know what activity
[09:20.200 --> 09:22.840]  creates that requirement.
[09:22.840 --> 09:27.360]  Some of you may be thinking, it is enough to know that it doesn't involve private sector
[09:27.360 --> 09:29.960]  companies and I don't disagree with you.
[09:29.960 --> 09:33.840]  Nevertheless, let's go a bit further just to be thorough because there are some pretty
[09:33.840 --> 09:37.280]  astounding revelations right around the corner.
[09:37.280 --> 09:43.520]  As an aside, not long ago I did a whiteboard presentation on Form W9, so if a visual representation
[09:43.520 --> 09:46.240]  would be helpful, you'll find the link down in the notes.
[09:46.240 --> 09:52.080]  We have yet to delve into how the Treasury Department classifies the Form W9, which is
[09:52.080 --> 09:53.520]  a key issue.
[09:53.520 --> 09:58.660]  The Secretary of the Treasury classifies the Form W9 as a withholding certificate.
[09:58.660 --> 10:08.800]  You can see that in the regs at 26 CFR 1.1471-1B148, which reads the term withholding certificate
[10:08.800 --> 10:15.240]  means a Form W8, Form W9, or any other certificate that under the Code of Regulations, certified
[10:15.240 --> 10:19.600]  or establishes the Chapter 4 status of a payee or beneficial honor.
[10:19.600 --> 10:24.720]  Why is knowing the W9 as a withholding certificate important?
[10:24.720 --> 10:28.920]  Because a withholding certificate is only to be provided to a withholding agent.
[10:28.920 --> 10:32.280]  We'll discuss who is the withholding agent in just a moment.
[10:32.280 --> 10:37.520]  Before we do, let's quickly detour to Treasury Decision 8734.
[10:37.520 --> 10:42.240]  The first thing you need to know about 8734 is its title and subtitle.
[10:42.240 --> 10:48.680]  Its title is Section 144-1, Withholding of Tax on Non-Resident Aliens.
[10:48.680 --> 10:56.320]  The subtitle is 26 CFR 1.1441-1, Requirement for the Deduction and Withholding of Tax on
[10:56.320 --> 10:59.000]  Payments to Foreign Persons.
[10:59.000 --> 11:03.740]  The important thing to keep in mind about Treasury Decision 8734 is that it addresses
[11:03.740 --> 11:07.440]  only the matters described in the title and subtitle, which is the withholding of income
[11:07.440 --> 11:11.400]  tax on payments made to foreign persons.
[11:11.400 --> 11:17.440]  Not a single word of 8734 has anything to do with ordinary Americans like me or you
[11:17.440 --> 11:20.280]  or American companies doing business with one another.
[11:20.280 --> 11:24.960]  Before jumping into 8734, I should mention that Treasury Decisions declare the official
[11:24.960 --> 11:29.280]  position of the Treasury Department and are the foundation from which tax regulations
[11:29.280 --> 11:30.920]  are drafted.
[11:30.920 --> 11:35.240]  Treasury Decisions are binding upon all Treasury Department employees, which includes the IRS.
[11:35.680 --> 11:38.240]  I'll put a link to 8734 down in the notes.
[11:38.240 --> 11:40.440]  Here is what 8734 tells us.
[11:40.440 --> 11:41.440]  Quote,
[11:41.440 --> 11:46.600]  Reporting to the IRS may be required under the reporting provisions of Chapter 61 of
[11:46.600 --> 11:58.360]  the Code, such as Section 6041, 6041A, 6042, 6044, 6045, 6049, 650A, or 650N, parenthesis,
[11:58.360 --> 12:03.900]  the Form 1099 Reporting Provision, close parenthesis and close quote.
[12:03.900 --> 12:08.780]  You may have noticed the sentence mentions, among several sections, 6041, which, as we
[12:08.780 --> 12:14.380]  just discussed, is cited by businesses across the country as requiring them to file information
[12:14.380 --> 12:17.060]  returns on vendors or contractors they pay.
[12:17.060 --> 12:24.380]  Again, I want to remind you that 8734 pertains exclusively to payments of U.S. source income
[12:24.380 --> 12:26.260]  to foreign persons.
[12:26.260 --> 12:31.020]  One may be thinking that a requirement to file an information return concerning U.S.
[12:31.020 --> 12:35.020]  source income belonging to a foreign person doesn't mean the same can't also be true
[12:35.020 --> 12:39.300]  of American companies doing ordinary domestic business with one another.
[12:39.300 --> 12:40.300]  And you're right.
[12:40.300 --> 12:42.780]  One does not preclude the other.
[12:42.780 --> 12:48.220]  But for the information return filing requirement to apply to American companies doing domestic
[12:48.220 --> 12:53.380]  business with one another, there would need to be a Treasury decision saying that.
[12:53.380 --> 12:59.660]  In the 111 years since the income tax was enacted, there is not a single Treasury decision
[12:59.660 --> 13:01.260]  that says that.
[13:01.260 --> 13:06.220]  In other words, the Secretary of the Treasury, writing the legally controlling official positions
[13:06.220 --> 13:12.140]  of the Treasury Department, has said 6041 imposes an information return filing requirement
[13:12.140 --> 13:17.340]  upon those who are making payments of U.S. source income belonging to a foreign person,
[13:17.340 --> 13:25.340]  but has never once, in 111 years, said 6041 imposes that requirement on American companies
[13:25.340 --> 13:28.500]  doing domestic business with one another.
[13:28.500 --> 13:38.220]  One would have to be a complete moron to believe that's just a 111 year oversight.
[13:38.220 --> 13:44.660]  So when one reads in Section 6041 that a company paying a vendor or contractor $600 or more
[13:44.660 --> 13:50.740]  must file an information return on that payment, that statute is speaking exclusively about
[13:50.740 --> 13:54.900]  payments of U.S. source income to a foreign person.
[13:54.900 --> 14:00.420]  Certifications such as 6041 are merely what I call the computational rules.
[14:00.420 --> 14:05.120]  That can be verified by the fact that they are found in subtitle F entitled Procedures
[14:05.120 --> 14:10.940]  and Administration, which lays out the procedure but is devoid of details concerning under
[14:10.940 --> 14:14.780]  which circumstances said procedures are to be followed.
[14:14.780 --> 14:20.780]  Earlier, I mentioned that withholding certificates, such as the W-9, are only to be provided to
[14:20.780 --> 14:22.540]  a withholding agent.
[14:22.540 --> 14:26.140]  So what's a withholding agent?
[14:26.140 --> 14:31.320]  Because withholding agent is in many ways the crux of the income tax, its definition
[14:31.320 --> 14:36.100]  appears again and again in the code, the regs, and the treasury decisions.
[14:36.100 --> 14:45.540]  One location is in the regs at 26 CFR 1.1441-7A and reads, for the purpose of Chapter 3 of
[14:45.540 --> 14:49.980]  the Internal Revenue Code and the regulations under such chapter, the term withholding agent
[14:49.980 --> 14:54.980]  means any person, U.S. or foreign, that has the control, receipt, custody, disposal, or
[14:54.980 --> 14:59.580]  payment of any item of income of a foreign person.
[14:59.580 --> 15:05.820]  You can also look at a statute such as 26 U.S.C. 1.441, which defines withholding agent
[15:05.820 --> 15:06.820]  as quote,
[15:19.980 --> 15:26.100]  Having the control, receipt, custody, disposal, or payment of any of the items of income specified
[15:26.100 --> 15:30.620]  in subsection B to the extent that any such items constitute gross income from sources
[15:30.620 --> 15:38.580]  within the United States of any non-resident alien individual or any foreign partnership.
[15:38.580 --> 15:43.060]  If we disregard some of the words that are superfluous, to say the least, to our purpose
[15:43.060 --> 15:46.660]  today, Section 1.441 reads like this,
[15:50.980 --> 15:56.780]  of any items of income of any non-resident alien individual or of any foreign partnership.
[15:56.780 --> 16:01.540]  Whether we're looking at statutes, regs, or treasury decisions, the circumstance that
[16:01.540 --> 16:07.660]  defines a withholding agent is that he, she, or it has control, receipt, custody, disposal,
[16:07.660 --> 16:14.020]  or payment of U.S. source income belonging to a foreign person, period, full stop, zero
[16:14.020 --> 16:15.020]  exceptions.
[16:15.020 --> 16:21.140]  Now, let's toss in another statement from Treasury Decision 8734, quote,
[16:21.140 --> 16:26.980]  The determination by a withholding agent of the U.S. or foreign status of a payee and
[16:26.980 --> 16:32.260]  of its other relevant characteristics is made on the basis of a withholding certificate
[16:32.260 --> 16:43.020]  that is a Form W-8 or a Form 8233 or a Form W-9.
[16:43.020 --> 16:46.300]  Or a Form W-9.
[16:46.300 --> 16:48.100]  Are you getting it yet?
[16:48.100 --> 16:49.460]  Let me sum it up for you.
[16:49.460 --> 16:54.300]  Form W-9, a withholding certificate, is only to be provided to a withholding agent.
[16:54.300 --> 16:58.700]  A withholding agent is a person making payment of U.S. source income belonging to a foreign
[16:58.700 --> 16:59.700]  person.
[16:59.700 --> 17:04.900]  A Form W-9 is used by the withholding agent to determine whether he is making the payment
[17:04.900 --> 17:10.860]  directly to the foreign person or to the foreigner's U.S. agent, known in tax law
[17:10.860 --> 17:13.420]  as a U.S. person.
[17:13.420 --> 17:14.620]  Let's go one step further.
[17:14.620 --> 17:20.700]  There are many statutes and regs that instruct a payor to do this or that.
[17:20.700 --> 17:26.220]  99.9% of accountants who don't know any of the things we've discussed today will
[17:26.220 --> 17:31.340]  tell a client that when an ordinary American business pays another ordinary American business,
[17:31.340 --> 17:33.860]  the entity making the payment is the payor.
[17:33.860 --> 17:37.740]  And that's total bullshit.
[17:37.740 --> 17:44.700]  Here's the definition of payor, which you can find in 26 CFR 1.1441-1C19 and reads,
[17:44.700 --> 17:45.700]  quote,
[17:45.700 --> 17:56.460]  The term payor is defined in section 31.3406A-2 of this chapter and section 1.6049-4A2 and
[17:56.460 --> 18:04.500]  generally includes a withholding agent as defined in section 1.1441-7A.
[18:04.500 --> 18:09.860]  Hopefully you caught the part about a payor generally includes a withholding agent as
[18:09.860 --> 18:14.460]  defined in section 1.1441-7A.
[18:14.460 --> 18:20.220]  Generally means that withholding agent and payor are always synonymous unless there is
[18:21.220 --> 18:27.260]  circumstance spelled out in the law in which they are not to be considered synonymous.
[18:27.260 --> 18:32.060]  I've been reading U.S. income tax law for 31 years and I've never come across any section
[18:32.060 --> 18:33.660]  that separates them.
[18:33.660 --> 18:39.180]  When the definition says payor is synonymous with withholding agent, it specifically says
[18:39.180 --> 18:46.140]  as defined in section 1.1441-7A, which we just read a moment ago, but to refresh your
[18:46.140 --> 18:49.900]  memory, 1.1441-7A reads,
[18:49.900 --> 18:55.020]  The term withholding agent means any person U.S. or foreign that has the control, receipt,
[18:55.020 --> 19:00.780]  custody, disposal or payment of any item of income of a foreign person.
[19:00.780 --> 19:08.700]  In other words, payor also means any person U.S. or foreign that has the control, receipt,
[19:08.700 --> 19:14.260]  custody, disposal of payment of an item of income of a foreign person.
[19:14.260 --> 19:18.740]  When accountants tell clients that making a payment between two ordinary domestic businesses
[19:18.740 --> 19:25.300]  makes the company cutting the check a payor, they have no idea what they're talking about.
[19:25.300 --> 19:28.860]  Before I move on, I'd like to quickly tell you about some of the subjects I'll be tackling
[19:28.860 --> 19:30.360]  in future shows.
[19:30.360 --> 19:34.820]  In terms of people who took the mRNA vaccine continuing to become infected with the SARS-CoV-2
[19:34.820 --> 19:41.620]  virus, such as Joe Biden just a few weeks ago, it is not immune escape as the establishment
[19:41.620 --> 19:43.140]  would have all of us believe.
[19:43.140 --> 19:46.300]  It is something considerably more disturbing.
[19:46.300 --> 19:51.620]  As the headlines keep saying the world is inching closer to an international war, I'm
[19:51.620 --> 19:59.220]  going to reveal some shocking and timely legal truths about America's selective service law.
[19:59.220 --> 20:03.180]  No matter what you've been told and have come to believe and perhaps accepted as an
[20:03.180 --> 20:08.220]  article of faith, you have never paid a penny into Social Security and because of that the
[20:08.220 --> 20:14.140]  government is not under a continuing obligation to pay you anything.
[20:14.140 --> 20:18.460]  If you're interested in learning realities the establishment won't tell you, subscribe
[20:18.460 --> 20:19.460]  to the channel.
[20:19.460 --> 20:22.960]  Also, please take a moment and hit the like button so the algorithms will show this video
[20:22.960 --> 20:23.960]  to more people.
[20:23.960 --> 20:24.960]  Thank you.
[20:24.960 --> 20:27.420]  Now, back to the subject at hand.
[20:27.420 --> 20:33.260]  With today's evidence laid out for you, I now come to the main point of this presentation.
[20:33.260 --> 20:39.740]  When you sign a W-9 under penalty of perjury, to what are you swearing?
[20:39.740 --> 20:43.420]  Above the signature line, it says this.
[20:43.420 --> 20:49.500]  Under penalties of perjury, I certify that, number one, the number shown on this form
[20:49.500 --> 20:54.460]  is my correct taxpayer identification number or I am waiting for a number to be issued
[20:54.460 --> 20:55.460]  to me.
[20:55.460 --> 21:01.980]  And number two, I am not subject to backup withholding because A, I am exempt from backup
[21:01.980 --> 21:06.020]  withholding or B, I have not been notified by the Internal Revenue Service that I am
[21:06.020 --> 21:11.180]  subject to backup withholding as a result of a failure to report all interest or evidence
[21:11.180 --> 21:17.580]  or C, the IRS has notified me that I am no longer subject to backup withholding.
[21:17.580 --> 21:23.420]  And three, I am a U.S. citizen or other U.S. person defined below.
[21:23.420 --> 21:29.580]  And number four, the FACTA codes entered on this form, if any, indicating that I am exempt
[21:29.580 --> 21:32.740]  from FACTA reporting is correct.
[21:32.740 --> 21:37.340]  I hope you noticed that it does not state you are swearing that you are receiving payments
[21:37.340 --> 21:40.340]  of U.S. source income belonging to a foreign person.
[21:40.340 --> 21:41.880]  It doesn't say that for two reasons.
[21:41.880 --> 21:46.140]  The first and most obvious is that if it said that on the form, virtually no American would
[21:46.140 --> 21:47.180]  sign it.
[21:47.180 --> 21:52.140]  The second reason is the government takes the position that if you sign any tax form
[21:52.140 --> 21:58.380]  under penalty of perjury, you did your research and you know who is to use it and under what
[21:58.500 --> 22:04.700]  circumstances, and after educating yourself, you chose to sign it, thus certifying under
[22:04.700 --> 22:09.940]  penalty of perjury that the money you're receiving belongs to a foreign person.
[22:09.940 --> 22:14.700]  Now compare that to police having to tell suspects about their Miranda rights before
[22:14.700 --> 22:16.420]  questioning them.
[22:16.420 --> 22:21.420]  When it comes to something as simple as keeping your mouth shut when questioned, the government
[22:21.420 --> 22:24.140]  is required to make sure you're aware you have that option.
[22:24.140 --> 22:30.140]  But when it comes to getting money from you, the government takes the position that it
[22:30.140 --> 22:36.140]  matters as complex as what we've discussed today, it has zero obligation to make sure
[22:36.140 --> 22:39.300]  you know what you're really swearing to.
[22:39.300 --> 22:43.740]  That the government knowingly, willfully, and intentionally is keeping Americans in
[22:43.740 --> 22:48.060]  the dark about the true meaning of virtually all income tax forms is why I refer to the
[22:48.060 --> 22:52.540]  income tax as the largest financial crime in history.
[22:52.540 --> 22:56.540]  The sections we've examined have stated that the purpose of a withholding certificate is
[22:56.540 --> 23:00.580]  so the withholding agent can determine your status.
[23:00.580 --> 23:04.900]  When an American businessperson signs a W-9 in the course of conducting ordinary business
[23:04.900 --> 23:10.300]  with another American company, he or she is attesting under penalty of perjury to the
[23:10.300 --> 23:13.820]  following falsehoods.
[23:13.820 --> 23:17.980]  Number one, a falsehood about who the W-9 requester is.
[23:17.980 --> 23:20.340]  The requester is not a withholding agent.
[23:20.340 --> 23:24.020]  Number two, a falsehood about who owns the income.
[23:24.020 --> 23:26.540]  It does not belong to a foreign person.
[23:26.540 --> 23:29.620]  Number three, a falsehood about your role.
[23:29.620 --> 23:32.780]  You are not acting as the agent of a foreign person.
[23:32.780 --> 23:39.100]  When you sign a W-9, you are implicitly saying those things are true.
[23:39.100 --> 23:42.860]  Understanding that most Americans would be and are committing perjury when they sign
[23:42.860 --> 23:48.100]  a W-9, we've come to the moment when I'd like to speak to those of you who request a W-9
[23:48.100 --> 23:49.100]  from others.
[23:49.420 --> 23:53.380]  I'm sure this is the first time you've seen the law, and so this is also the first time
[23:53.380 --> 23:58.260]  you realize you're not the person to whom a W-9 should be given because you're not a
[23:58.260 --> 24:03.380]  withholding agent, and the people from whom you have obtained W-9s are not receiving income
[24:03.380 --> 24:05.500]  belonging to a foreign person.
[24:05.500 --> 24:10.580]  In short, you now know W-9s should not have been furnished.
[24:10.580 --> 24:13.340]  With that said, I know what you're thinking.
[24:13.340 --> 24:18.220]  You're thinking that this is how it's always been done, so how can you just stop doing it?
[24:18.220 --> 24:20.900]  You're wondering what your accountant would say.
[24:20.900 --> 24:25.740]  You're wondering how you would write off the expenses without filing a 1099.
[24:25.740 --> 24:29.500]  And you're wondering if following the law would land you in trouble.
[24:29.500 --> 24:31.380]  Let's look at those one by one.
[24:31.380 --> 24:35.180]  I get that if you've been requesting a W-9 from vendors and contractors for years, the
[24:35.180 --> 24:41.620]  idea of no longer doing so might be disconcerting, but I hope you also understand you can't keep
[24:41.620 --> 24:46.660]  doing something that's outside the law simply because you've always done it that way.
[24:46.660 --> 24:52.980]  The good news is I'm going to provide you with a solution so you can be 100% comfortable
[24:52.980 --> 24:56.460]  following the law and doing what's right.
[24:56.460 --> 24:58.540]  What will your accountant say?
[24:58.540 --> 25:02.420]  I don't mean to be harsh, but who cares?
[25:02.420 --> 25:07.340]  You can't act in an unlawful manner simply because a poorly informed guy tells you to.
[25:07.340 --> 25:09.540]  Show your accountant this video.
[25:09.540 --> 25:15.020]  Ask him to show you the statute, reg, or treasury decision that states one domestic company
[25:15.020 --> 25:20.140]  doing business with another domestic company without a foreigner owning the income is required
[25:20.140 --> 25:22.500]  to furnish a W-9.
[25:22.500 --> 25:28.500]  If you review this video a couple of times, you should be well positioned to realize your
[25:28.500 --> 25:32.020]  accountant really has no clue what the law says.
[25:32.020 --> 25:36.580]  He or she is merely regurgitating falsehoods they were taught.
[25:36.580 --> 25:40.220]  I hope it's self-evident you should not follow the directions of someone who doesn't know
[25:40.220 --> 25:42.980]  what they're talking about.
[25:42.980 --> 25:48.860]  You're wondering how to write off the type of expenses for which you used to file 1099s.
[25:48.860 --> 25:49.860]  This is an easy one.
[25:49.860 --> 25:54.460]  There is not a single statute or regulation in existence in the 111-year history of the
[25:54.460 --> 25:58.740]  income tax that requires a business to file an information return in order to write off
[25:58.740 --> 26:00.020]  an expense.
[26:00.020 --> 26:03.320]  If you think about it for a couple of minutes, you'll be able to come up with any number
[26:03.320 --> 26:07.060]  of products and services you've written off in the past without having filed information
[26:07.060 --> 26:08.380]  returns.
[26:08.380 --> 26:14.180]  The only standard for taking a write-off is, and always has been, that if the deduction
[26:14.180 --> 26:18.940]  is ever questioned, you can show the amount deducted was an expense made in the course
[26:18.940 --> 26:21.500]  of operating the enterprise.
[26:21.500 --> 26:25.700]  Nothing more is or ever has been required to take a deduction.
[26:25.700 --> 26:29.000]  And finally, will you get in trouble for following the law?
[26:29.000 --> 26:34.420]  You will not, but it is always good to be able to show that you followed the law.
[26:34.420 --> 26:35.660]  How do you do that?
[26:35.660 --> 26:39.980]  To answer that question, we have to consider how the IRS looks at things.
[26:39.980 --> 26:46.620]  As backward-ass as it is, the IRS presumes every payment made by every business in the
[26:46.620 --> 26:51.260]  U.S. is to a foreign person or the foreign person's domestic agent.
[26:51.260 --> 26:52.260]  Why is that?
[26:52.260 --> 26:55.980]  It is their presumption because the income tax has been imposed on U.S. source income
[26:55.980 --> 26:58.380]  belonging to foreign persons.
[26:58.380 --> 27:00.340]  Follow me in the IRS's thinking.
[27:00.340 --> 27:05.180]  Because virtually no Americans, damn few American businesses, are acting as domestic
[27:05.180 --> 27:10.060]  agents for foreign persons, how would the IRS be notified when an American or an American
[27:10.060 --> 27:15.260]  company was indeed acting as an agent for a foreign person with U.S. source income?
[27:15.260 --> 27:21.580]  The answer is the IRS would not know about those exceedingly rare occasions unless the
[27:21.580 --> 27:27.540]  government took the position that every domestic business making a payment to anyone has to
[27:27.540 --> 27:30.380]  ask for the payee's status.
[27:30.380 --> 27:35.820]  And that is exactly the position the government has taken.
[27:35.820 --> 27:41.220]  Phrased another way, the government's position is that if 5,000 requests for certification
[27:41.220 --> 27:46.540]  of status result in only a handful of payees stating they are foreigners or the domestic
[27:46.540 --> 27:50.300]  agent of foreigners, then in those couple of cases the government can enforce U.S. income
[27:50.300 --> 27:55.020]  tax law on the foreigner or the foreigner's domestic agent because information returns
[27:55.020 --> 28:00.100]  will be filed on those payments, allowing the government to track the U.S. source income
[28:00.100 --> 28:03.940]  to the withholding agent and collect the tax.
[28:03.940 --> 28:06.780]  The problem with the government's approach is twofold.
[28:06.780 --> 28:10.860]  The first is that the government is all too happy to spread propaganda that businesses
[28:10.860 --> 28:14.900]  must file information returns on payments associated with ordinary domestic business
[28:14.900 --> 28:20.980]  relationships when, as you've seen today, that's complete horseshit.
[28:20.980 --> 28:25.140]  That's why I refer to what the government is doing as the largest financial crime in
[28:25.140 --> 28:26.140]  history.
[28:26.140 --> 28:29.860]  The second problem is also driven by government propaganda.
[28:29.860 --> 28:35.860]  Businesses believe that when they ask someone for a W-9, there are only two possible responses,
[28:35.860 --> 28:40.780]  one being to provide a W-9 and the other being to not provide one, in which case the business
[28:40.780 --> 28:45.300]  will threaten to not pay you at all or to illegally engage in something called backup
[28:45.300 --> 28:47.180]  withholding.
[28:47.180 --> 28:52.180]  Because of 60 years of government disinformation, with the accounting industry being the number
[28:52.180 --> 28:58.540]  one spreader of that disinformation, the business never stops to consider there is a third appropriate
[28:58.540 --> 29:03.580]  response, which is to communicate to the requester that the payee is not a person required to
[29:03.580 --> 29:05.360]  furnish a W-9.
[29:05.360 --> 29:10.420]  But instead of saying, oh, okay, I understand, here's your payment, the requester responds
[29:10.420 --> 29:15.380]  by threatening to deprive you of some or all of your earnings that they are contractually
[29:15.380 --> 29:16.780]  obligated to pay.
[29:16.780 --> 29:19.540]  In short, they commit extortion.
[29:19.540 --> 29:23.660]  Not only that, but because they are threatening to commit an illegal act against you unless
[29:23.660 --> 29:28.740]  you commit perjury, that's another crime called subordination of perjury.
[29:28.740 --> 29:30.360]  And it's a felony.
[29:30.360 --> 29:34.380]  Is there a better way for businesses to address the certification issue before making a payment
[29:34.380 --> 29:35.880]  to a vendor or contractor?
[29:35.880 --> 29:36.880]  Of course.
[29:36.880 --> 29:38.380]  And it's so simple.
[29:38.380 --> 29:44.820]  All the company needs to do is instead of demanding a W-9, ask the payee to sign a document,
[29:44.820 --> 29:51.060]  I will send, free of charge, to any business that asks.
[29:51.060 --> 29:54.980]  It will come to you in a template form so you can quickly change the payee info and
[29:54.980 --> 29:56.540]  send it off.
[29:56.540 --> 30:01.500]  The document opens with a statement that the company is asking for status certification.
[30:01.500 --> 30:06.620]  It explains that one box must be checked in each of the three sections, sections A, B,
[30:06.620 --> 30:07.620]  and C.
[30:07.620 --> 30:12.580]  Here are the statements the payee can check using the appropriate box.
[30:12.580 --> 30:20.740]  In Section A, this business is owned or controlled by a foreign person, or this business is not
[30:20.740 --> 30:24.140]  owned or controlled by a foreign person.
[30:24.140 --> 30:28.860]  Section B, this business is acting as the U.S. agent for a nonresident alien or foreign
[30:28.860 --> 30:36.140]  corporation, or this business is not acting as a U.S. agent for a nonresident alien or
[30:36.140 --> 30:37.420]  foreign corporation.
[30:37.420 --> 30:42.480]  And Section C, payments made to this business constitute U.S. source income belonging to
[30:42.480 --> 30:48.160]  a foreign person, or payments made to this business do not constitute U.S. source income
[30:48.160 --> 30:50.400]  belonging to a foreign person.
[30:50.400 --> 30:55.000]  If the payee checks the first box in any of these sections, the company follows up with
[30:55.000 --> 30:59.040]  the appropriate request for a W-9, as required by law.
[30:59.040 --> 31:03.400]  If the second box is checked in all three sections, the company simply places that document
[31:03.400 --> 31:07.120]  in the vendor or contractor's file and cuts the check.
[31:07.120 --> 31:11.760]  No demand for a government form that has nothing to do with the payee.
[31:11.760 --> 31:14.600]  No extortionate tactics.
[31:14.600 --> 31:16.680]  No threats.
[31:16.680 --> 31:18.320]  No strong-arming.
[31:18.320 --> 31:20.440]  No subordination to perjury.
[31:20.440 --> 31:25.560]  And the company has the necessary document in its files if anyone ever asks.
[31:25.560 --> 31:30.800]  All a company needs to do to get that document is to email me at dave at drreality.news.
[31:30.800 --> 31:34.440]  I'm not going to put you on a mailing list or anything shady like that.
[31:34.440 --> 31:40.000]  All I'm going to do is hit reply, attach the document in PDF, and hit send.
[31:40.000 --> 31:41.160]  That's it.
[31:41.160 --> 31:44.680]  Let's recap the fundamental realities you learned today.
[31:44.680 --> 31:51.280]  You learned that W-9s are only to be requested by and given to withholding agents.
[31:51.280 --> 31:52.560]  And you're not one.
[31:52.560 --> 31:57.360]  You learned that only domestic agents of foreign persons with U.S. source income are permitted
[31:57.360 --> 32:00.240]  to give a W-9 to a withholding agent.
[32:00.240 --> 32:02.400]  And again, you're not one.
[32:02.400 --> 32:07.100]  You learned that the person receiving a W-9, the withholding agent, is a person who has
[32:07.220 --> 32:11.500]  custody, control, and payment of U.S. source income belonging to a foreign person.
[32:11.500 --> 32:17.380]  And you learned that Form 1099 is only to be filed by a withholding agent on U.S. source
[32:17.380 --> 32:24.180]  income paid to the domestic agent of a foreign person, something you've likely never done
[32:24.180 --> 32:27.780]  in your entire business existence.
[32:27.780 --> 32:32.420]  Having gotten that under your belt, you may be wondering why what you thought was true
[32:32.420 --> 32:36.260]  for years or perhaps decades isn't.
[32:36.260 --> 32:39.900]  I hope what I'm about to say doesn't shock you too badly.
[32:39.900 --> 32:44.060]  But the disconnect you're experiencing is because not only is the societal narrative
[32:44.060 --> 32:50.860]  concerning the W-9 completely wrong, but the societal narrative about who owes income tax
[32:50.860 --> 32:53.180]  is 100% wrong.
[32:53.180 --> 32:57.420]  The reason that everything you learned today has been about foreign persons with U.S. source
[32:57.420 --> 33:03.940]  income is that Congress has imposed the income tax on just three classes of persons.
[33:03.940 --> 33:10.900]  Those three classes are non-resident aliens with U.S. source income, foreign corporations
[33:10.900 --> 33:17.020]  with U.S. source income, and U.S. citizens residing abroad with foreign earned income.
[33:17.020 --> 33:19.220]  That's it.
[33:19.220 --> 33:24.180]  Nowhere on that list are Americans earning their own domestic income, and that's precisely
[33:24.180 --> 33:30.900]  why W-9s and 1099s only apply to foreign persons with U.S. source income.
[33:30.900 --> 33:37.500]  Respectfully, you were mistaken about W-9s and 1099s because you've been mistaken about
[33:37.500 --> 33:39.780]  the income tax in general.
[33:39.780 --> 33:44.700]  You never imagined W-9s and 1099s were limited to foreign persons with U.S. source income
[33:44.700 --> 33:48.740]  because you never imagined the income tax is limited to foreign persons with U.S. source
[33:48.740 --> 33:49.740]  income.
[33:49.740 --> 33:52.220]  Yet, that is the truth of it.
[33:52.220 --> 33:56.180]  But please, do not believe me.
[33:56.180 --> 33:59.340]  I want you to see the law for yourself.
[33:59.340 --> 34:04.060]  It may surprise you to hear that as much material as we've covered today, we've only scratched
[34:04.060 --> 34:08.300]  the surface of what you'll find in income tax shattering the mess.
[34:08.300 --> 34:12.820]  Tens of thousands of readers have had their lives changed by what they discovered in income
[34:12.820 --> 34:14.880]  tax shattering the mess.
[34:14.880 --> 34:20.540]  On this topic, there are basically two kinds of people, those who want to know the truth
[34:20.540 --> 34:22.540]  and those who fear the truth.
[34:22.540 --> 34:28.660]  I'll likely never be able to reach the fearful folks because facts, no matter how voluminous,
[34:28.660 --> 34:30.720]  might overcome an emotion like fear.
[34:30.720 --> 34:33.860]  If you're the kind of person who wants to know the truth about what the government has
[34:33.860 --> 34:39.540]  done and is doing, then you absolutely want to read income tax shattering the mess.
[34:39.540 --> 34:43.380]  I should mention that it is not dry or boring.
[34:43.380 --> 34:45.280]  It's actually pretty exciting.
[34:45.280 --> 34:48.500]  Many readers have said they could not put it down.
[34:48.500 --> 34:51.940]  Others have shared that they've read it again and again over the years, not because they
[34:51.940 --> 34:54.980]  had to, but because it's that enjoyable.
[34:54.980 --> 34:59.740]  Did I mention that I have not filed or paid in 31 years?
[34:59.740 --> 35:02.540]  Because I know what the law actually says?
[35:02.540 --> 35:08.620]  You can get income tax shattering the mess at drreality.news, drreality.news, I'll put
[35:08.620 --> 35:10.300]  the link down in the notes.
[35:10.300 --> 35:13.580]  While you're there, please take a look at body science.
[35:13.580 --> 35:17.280]  If you want the same kind of evidence-based breakdown as you've seen today, but focused
[35:17.280 --> 35:22.400]  on how your body's physiology actually works, rather than the false narrative Americans
[35:22.400 --> 35:26.680]  have been fed for 60 years, pick up a copy of body science.
[35:26.680 --> 35:31.000]  70% of our population is overweight or obese.
[35:31.000 --> 35:34.840]  Diseases like diabetes and Alzheimer's are exploding.
[35:34.840 --> 35:39.560]  Obesity in children, which was almost unknown a few decades ago, is now commonplace.
[35:39.560 --> 35:45.080]  Trillion-dollar industries pour money into bogus research that produces contrived results,
[35:45.080 --> 35:49.440]  which generates massive profits for those industries at the expense of your health and
[35:49.440 --> 35:51.140]  the health of your loved ones.
[35:51.140 --> 35:55.720]  With the help of their conspirators in the media, they tell you they have proof that
[35:55.720 --> 36:00.840]  everything that is, in fact, healthy for you will make you sick, while at the same time
[36:00.840 --> 36:05.900]  encouraging you to consume the very things that will make you sick.
[36:05.900 --> 36:09.860]  Government agencies such as the National Institutes of Health, the FDA, and the Department of
[36:09.860 --> 36:14.740]  Agriculture are partners with Big Med, Big Pharma, and Big Food in putting out billions
[36:14.740 --> 36:19.100]  of dollars in health disinformation every year.
[36:19.100 --> 36:23.540]  Because of that disinformation, what may shock you the most is that much of what you
[36:23.540 --> 36:27.280]  now believe about health and physiology is inaccurate.
[36:27.280 --> 36:28.620]  But it's not your fault.
[36:28.620 --> 36:33.660]  The disinformation started in the early 1960s, so it's likely you've been inundated with
[36:33.660 --> 36:37.020]  their disinformation your entire life.
[36:37.020 --> 36:40.700]  That disinformation has led the people of the wealthiest and most technologically advanced
[36:40.700 --> 36:45.900]  nation on earth to be the sickest people in all of human history.
[36:45.900 --> 36:47.500]  Here's the bottom line.
[36:47.500 --> 36:52.240]  If you read Body Science and put into action what you find there, you will leave the ranks
[36:52.240 --> 36:56.700]  of the misled and sick and become astoundingly healthy.
[36:56.700 --> 36:58.860]  I practice what I preach.
[36:58.860 --> 37:03.740]  As I'm recording this, I'm just a few weeks from turning 65, I adhere to everything you
[37:03.740 --> 37:08.420]  will find in Body Science, and I'm as healthy as when I was a teenager.
[37:08.420 --> 37:13.120]  Body Science has never gotten anything less than a five-star rating, and readers rave
[37:13.120 --> 37:16.900]  about the fact that they look and feel decades younger after putting into action what they
[37:16.900 --> 37:18.820]  learn in Body Science.
[37:18.820 --> 37:23.900]  So go to DrReality.News, DrReality.News, and pick up a copy of Income Tax Shattering the
[37:23.900 --> 37:25.140]  Mist and Body Science.
[37:25.140 --> 37:29.740]  They'll be two of the most fascinating books you've ever read, and you have my word on
[37:29.740 --> 37:30.740]  that.
[37:30.740 --> 37:34.700]  Also, by purchasing Income Tax Shattering the Mist and or Body Science, you help me
[37:34.700 --> 37:39.940]  to continue to be here for you with these revealing and thought-provoking presentations.
[37:39.940 --> 37:44.860]  Please share this presentation with others, and thank you for being here.
[37:44.860 --> 37:45.220]  Take care.