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[00:00.000 --> 00:05.880]  Welcome to the show. I'd like to ask you two questions. After I ask the first
[00:05.880 --> 00:09.960]  question, take a moment to thoughtfully consider your answer. Here's the
[00:09.960 --> 00:16.040]  question. Why do you believe many Americans are scared shitless of the IRS?
[00:16.040 --> 00:22.000]  Take a moment to get the answer clear in your head. Now, I'd like to ask you the
[00:22.000 --> 00:26.600]  second question. Why are millions of Americans not afraid of the IRS at all,
[00:26.600 --> 00:33.040]  including me? Perhaps those questions have complex answers. Perhaps not. I'd
[00:33.040 --> 00:36.720]  like to share my thoughts with you and see if we can agree there is a way to
[00:36.720 --> 00:42.360]  free Americans from fear of the IRS.
[00:44.720 --> 00:50.320]  The Dr. Reality Vodcast with Dave Champion.
[00:56.640 --> 01:02.040]  Let's start with this. As many of you know, income tax is my area of expertise. I am
[01:02.040 --> 01:05.520]  arguably the most knowledgeable person in the United States concerning upon whom
[01:05.520 --> 01:10.120]  the income tax has been imposed and by association upon whom it has not been
[01:10.120 --> 01:14.200]  imposed. I'm the author of Income Tax Shattering the Mists, the best-selling
[01:14.200 --> 01:18.600]  book in America that reveals the truth of the income tax the government does
[01:18.600 --> 01:23.640]  not want the American people to know. That truth being that when you read the
[01:23.640 --> 01:28.960]  law for yourself, rather than listening to government propaganda, you find that
[01:28.960 --> 01:34.280]  Congress has never imposed the income tax on ordinary hard-working Americans. For
[01:34.280 --> 01:41.720]  some of you, just hearing that truth caused you to feel fear. Today we're
[01:41.720 --> 01:45.960]  gonna see if we can get rid of that fear or at least ratchet it down quite a bit. I
[01:45.960 --> 01:49.680]  should probably start the discussion by telling you I haven't filed an income tax
[01:49.680 --> 01:57.200]  return or paid a penny of income tax in 32 years. So where is my level of fear?
[01:57.200 --> 02:05.880]  On a scale of one to a hundred, it's zero. Why? Because what the law really says, not
[02:05.880 --> 02:10.600]  what you've been brainwashed to believe it says, but what it really says is
[02:10.600 --> 02:16.000]  kryptonite to the federal government. What is the most common reason people
[02:16.200 --> 02:23.640]  fear the IRS? Simple. Lack of knowledge. Humans fear what they don't know or
[02:23.640 --> 02:27.480]  understand. Part of the government's approach to keeping the American people
[02:27.480 --> 02:32.520]  fearful is having structured income tax law to seem like it is an impenetrable
[02:32.520 --> 02:37.240]  labyrinth. If you're convinced you cannot understand the law, you won't bother
[02:37.240 --> 02:42.160]  looking at it. Making no attempt to look at the law is a huge win for the
[02:42.160 --> 02:46.600]  government's agenda of keeping you fearful. By not bothering to look, you
[02:46.600 --> 02:51.960]  stay ignorant, and from that ignorance, you remain fearful. As a quick side note,
[02:51.960 --> 02:56.640]  I'm offering free shipping on any order placed on my website, drreality.news.
[02:56.640 --> 03:01.960]  If the order contains a copy of income tax
[03:01.960 --> 03:07.640]  shattering the mist, use the code tariffs at checkout. More on that later. Most
[03:07.640 --> 03:13.000]  people believe the government is not operating the way it should and needs to
[03:13.000 --> 03:19.360]  be held accountable. I agree. So what might that look like? Is the government
[03:19.360 --> 03:24.600]  going to hold itself accountable? No. If the government is not going to hold
[03:24.600 --> 03:30.440]  itself accountable, who will? I think it's self-evident that the answer is, we the
[03:30.440 --> 03:34.560]  people. It's also self-evident that people who fear the government are
[03:34.560 --> 03:37.920]  incapable of holding it accountable. For that reason, what we're discussing
[03:37.920 --> 03:42.560]  today transcends the IRS and income tax. It's really about ditching the fear so
[03:42.560 --> 03:47.360]  you can do your duty as part of we the people. So far, we've determined fear
[03:47.360 --> 03:52.640]  often comes from a lack of knowledge. In terms of today's discussion, that lack of
[03:52.640 --> 03:58.040]  knowledge pertains to the income tax. More specifically, a lack of knowledge
[03:58.040 --> 04:03.640]  concerning who it has been imposed upon and who it has not been imposed upon. I'm
[04:03.640 --> 04:08.360]  going to show you a super easy way to make sense of income tax law. You're
[04:08.360 --> 04:12.000]  going to be surprised how simple it is when it is laid out properly for you.
[04:12.000 --> 04:16.800]  Before I jump into that, let me make sure you understand a key point of how law
[04:16.800 --> 04:23.160]  works. For illustration, let's consider Title 45 of the United States Code, which
[04:23.160 --> 04:29.600]  is entitled Railroads. If you don't own, operate, or work for a railroad, there is
[04:29.600 --> 04:36.280]  nothing in Title 45 that pertains to you. As an example, we all know what an
[04:36.280 --> 04:44.360]  employee is, right? Yet, in Title 45, employee is defined to mean only a person
[04:44.360 --> 04:50.560]  who works for a railroad. My point is that law has to be, and is, very specific
[04:50.560 --> 04:56.000]  about to whom it applies. That principle applies to all areas of law, including
[04:56.840 --> 05:01.680]  Understanding that. Let's get into how simple income tax is to understand. We
[05:01.680 --> 05:05.920]  need to begin with the understanding that every single tax law in U.S. history
[05:05.920 --> 05:11.600]  contains provisions detailing how the tax is to be collected from those who
[05:11.600 --> 05:17.120]  owe it. With that in mind, let's begin the process of easily understanding income
[05:17.120 --> 05:22.560]  tax law. The income tax is codified to Subtitle A of Title 26 of the United
[05:22.880 --> 05:27.480]  States Code, and it looks like this. You'll notice there's a red rectangle
[05:27.480 --> 05:34.880]  around Chapters 1, 2, and 3, and a blue line through Chapter 2A. You'll also note
[05:34.880 --> 05:40.760]  that Chapters 4, 5, and 6 are outside the red box. Allow me to explain why it's
[05:40.760 --> 05:45.800]  marked that way. The red rectangle is around Chapters 1, 2, and 3 for two
[05:45.800 --> 05:49.800]  reasons. Reason number one is that Chapters 1, 2, and 3 have been in Subtitle
[05:49.800 --> 05:55.680]  A since the 1939 code was reorganized into the 1954 code, which means they've
[05:55.680 --> 06:01.080]  been in Subtitle A for 71 years. The second reason is Chapters 1, 2, and 3
[06:01.080 --> 06:06.400]  are the modern codification of the original income tax law enacted by
[06:06.400 --> 06:12.560]  Congress in 1913. Down at the bottom, we see Chapter 6, which is outside the red
[06:12.560 --> 06:17.520]  rectangle. That's because it has nothing to do with the origins or imposition of
[06:17.720 --> 06:21.720]  the income tax. It simply allows corporations within an affiliated group
[06:21.720 --> 06:27.040]  to file a single return. Just above that, we see Chapter 5, which was repealed by
[06:27.040 --> 06:31.760]  Congress. Above that, we see Chapter 4, which also has nothing to do with the
[06:31.760 --> 06:36.640]  origins and imposition of the income tax because it was enacted into law in 2010.
[06:36.640 --> 06:41.680]  In summary, what is outside the red rectangle has nothing to do with the
[06:41.680 --> 06:46.840]  origins and imposition of income tax, while what is inside the red rectangle
[06:46.840 --> 06:52.680]  is the progeny of the 1913 act that imposed the income tax, with one
[06:52.680 --> 06:57.880]  exception. That exception is Chapter 2A, through which you can see I put a blue
[06:57.880 --> 07:03.880]  line because unearned income Medicare contribution obviously has nothing to do
[07:03.880 --> 07:08.840]  with the origins and imposition of the income tax. Only Chapters 1, 2, and 3
[07:08.840 --> 07:14.440]  reflect what was passed into law in 1913. I marked up the screenshot this way
[07:14.440 --> 07:18.440]  because as we look at Subtitle A, I want you to know why certain parts are
[07:18.440 --> 07:22.680]  pivotal to the understanding upon whom the tax has been imposed, while other
[07:22.680 --> 07:28.120]  parts are irrelevant to that inquiry. With that understanding, let's get you
[07:28.120 --> 07:35.000]  educated on how to view Subtitle A. Chapter 1 is entitled Normal Taxes and
[07:35.000 --> 07:40.840]  Surtaxes and contains more than 99% of the income tax law. As you can see in the
[07:40.840 --> 07:46.600]  screenshot, Chapter 1 contains sections 1 through 1400, while Chapter 2 contains
[07:46.600 --> 07:54.120]  just three sections. That's it! The entire income tax is in Chapters 1 and 2.
[07:54.120 --> 07:58.280]  With that reality under your belt, do you recall a moment ago when I said
[07:58.280 --> 08:02.920]  every single tax law in history specifies how it is to be collected from
[08:02.920 --> 08:12.120]  those who owe it? Well, there is nothing in Chapters 1 and 2 about collecting the
[08:12.120 --> 08:17.400]  tax. That means the collection provisions have to be somewhere else.
[08:17.400 --> 08:21.560]  But since all income tax law is contained in Subtitle A, and Subtitle A
[08:21.560 --> 08:25.960]  only has three relevant chapters, you've probably already figured out that the
[08:25.960 --> 08:30.680]  collection of the tax from those who owe it is found in Chapter 3. And right you
[08:31.640 --> 08:38.120]  are. So what is the title of Chapter 3? The title is, Withholding of Tax on
[08:38.120 --> 08:44.280]  Non-Resident Aliens and Foreign Corporations. Wait, that can't be right. If the
[08:44.280 --> 08:49.880]  collection of a tax is only upon those who owe it, that would mean that the
[08:49.880 --> 08:53.160]  income tax is only owed by non-resident aliens and foreign corporations with
[08:53.160 --> 09:00.040]  U.S. source income. And again, right you are. Chapters 1 and 2 are what I call
[09:00.040 --> 09:04.680]  the rules of computation. They don't tell you who owes the tax. They simply
[09:04.680 --> 09:09.880]  provide the rules that are to be applied in determining how much is owed by those
[09:09.880 --> 09:15.720]  upon whom the tax has been imposed. Here's an analogy. Imagine you're reading
[09:15.720 --> 09:20.120]  a paper that details all the different protocols available for treating cancer.
[09:20.680 --> 09:25.320]  It's extensive. It covers existing protocols, new protocols that are under
[09:25.320 --> 09:28.760]  development, and protocols that the allopathic community sees as
[09:28.760 --> 09:34.200]  unconventional. Implicit in that document is that these protocols only
[09:34.200 --> 09:38.520]  apply to people with cancer and do not apply to people who do not have cancer.
[09:39.400 --> 09:45.800]  Similarly, Chapters 1 and 2 detail the rules of computation in the same way the
[09:45.800 --> 09:52.280]  cancer paper details the cancer protocols. Also, just as the cancer paper doesn't tell
[09:52.280 --> 09:57.880]  the reader who has cancer, Chapters 1 and 2 don't tell you who owes the tax.
[09:58.600 --> 10:04.600]  Now I'd like to give you a clear example of how Chapter 1 is connected to withholding the
[10:04.600 --> 10:13.400]  tax from foreign persons who owe it. In Chapter 1, we find Section 61, which defines gross
[10:13.400 --> 10:17.240]  income. I'm not going to share the entire list, but here are the relevant items.
[10:17.240 --> 10:22.920]  Compensation for services, gross income derived from business, gains derived from
[10:22.920 --> 10:30.760]  dealing in property, interest, rents, royalties, dividends, annuities, pensions, income from life
[10:30.760 --> 10:38.040]  and insurance, and endowment contracts. So that's in Chapter 1, the rules of computation.
[10:38.040 --> 10:44.040]  Now let's go to Chapter 3, which is withholding of U.S. income tax from non-resident aliens.
[10:44.680 --> 10:52.440]  In Section 1441A, we find that a person who has control, receipt, custody, disposal,
[10:52.440 --> 11:00.120]  or payment of any of the items of income specified in Subsection B of any non-resident alien
[11:00.120 --> 11:10.360]  individual. So what's in Subsection B? Answer. Dividends, rent, salary, wages, premiums,
[11:10.360 --> 11:16.600]  annuities, compensations, remunerations, emollients. Almost identical language to
[11:16.600 --> 11:23.640]  the definition of gross income in Section 61. Why is there a slight difference in the listed
[11:23.640 --> 11:29.480]  items of gross income? Because in the opening sentence of Section 61, it says,
[11:30.520 --> 11:38.200]  including but not limited to the following items. In other words, because the Section 61's list of
[11:38.200 --> 11:43.480]  items is not exhaustive, it makes sense that elsewhere in the code, the listed items would
[11:43.480 --> 11:50.760]  be similar but not identical. 1441A also says withholding is to be done on, quote,
[11:50.760 --> 12:00.680]  amounts subject to tax under Section 871. So where is Section 871 found? In Chapter 1, of course,
[12:00.680 --> 12:07.560]  which is the rules of computation. In other words, in Section 871 you find out what is being taxed,
[12:07.560 --> 12:11.720]  but then you have to go to Chapter 3 to find out from whom that tax is to be collected.
[12:12.440 --> 12:19.320]  Now, let's shift to Treasury Decision 8734, which is entitled, Section 1441,
[12:19.320 --> 12:28.840]  withholding of tax on non-resident aliens. In the portion discussing the regulations at 26 CFR 1.1441-2,
[12:28.840 --> 12:36.360]  in paragraph A, it states, for the purpose of regulations under Chapter 3 of the Internal
[12:36.360 --> 12:42.760]  Revenue Code, the term amounts subject to withholding means amounts from sources within
[12:42.760 --> 12:49.720]  the United States that constitutes either fixed or determinable annual or periodic income described
[12:49.720 --> 13:00.120]  in paragraph B. So what does paragraph B say? It says, for the purposes of Chapter 3 of the code
[13:00.200 --> 13:03.640]  and the regulations that are under, fixed or determinable annual or
[13:03.640 --> 13:10.440]  periodical gain income is all income included in gross income under Section 61.
[13:11.400 --> 13:17.720]  In other words, the income tax to be collected from foreign persons with U.S. source income
[13:18.280 --> 13:26.360]  is the items of gross income listed in Section 61. Of course, Section 61 is in Chapter 1,
[13:26.360 --> 13:30.200]  which as I've been telling you is merely the rules of computation.
[13:31.240 --> 13:39.400]  Let's now turn to Treasury Decision 8881. You can see here that Treasury Decision 8881
[13:39.400 --> 13:45.400]  is described by the Treasury Department as, revisions to regulations relating to withholding
[13:45.400 --> 13:51.800]  of tax on certain U.S. source income paid to foreign persons. Now let's read the summary
[13:51.800 --> 13:57.000]  section together. This document contains amendments to the final regulations relating
[13:57.000 --> 14:04.440]  to the withholding of income tax under Section 141, 1441, 1442, 1443 on certain U.S. source
[14:04.440 --> 14:11.000]  income paid to foreign persons and related requirements governing collection, deposits,
[14:11.000 --> 14:18.600]  refund and credit of withheld amounts under Sections 1461 through 1463. To make sure we're
[14:18.600 --> 14:25.160]  all tracking together, all the sections just mentioned are in Chapter 3, withholding of
[14:25.160 --> 14:31.480]  income tax from foreign persons. I hope everyone is clear the Treasury Decision 8881 deals
[14:31.480 --> 14:37.720]  exclusively with U.S. income tax being collected from foreign persons. Now let's jump back up to
[14:37.720 --> 14:48.760]  the top where it says that 8881 pertains to 26 CFR Parts 1 and 31. That's important
[14:48.760 --> 14:55.800]  because it's the Treasury Department telling us that 8881 addresses withholding relevant to
[14:55.800 --> 15:06.680]  Parts 1 and 31 of income tax regulations. So what are Parts 1 and 31? As you can see right here,
[15:06.680 --> 15:13.640]  Part 1 is the regulations pertaining to the income tax. In fact, Part 1 is the regs for
[15:13.640 --> 15:18.440]  Chapter 1 of the code which, as we've already discussed, are the rules of computation.
[15:19.320 --> 15:26.840]  Treasury Decision 8881 ties the Chapter 1 rules of computation to the collection of the tax from
[15:26.840 --> 15:33.720]  those who owe it, which is foreign persons with U.S. source income. Here you see that Part 31
[15:34.280 --> 15:39.880]  is the regulations pertaining to employment taxes, which means payroll withholding.
[15:39.880 --> 15:45.800]  To be clear, what you're seeing in 8881 is the Treasury Department saying that payroll
[15:45.800 --> 15:52.760]  withholding is to take place on the U.S. source income being paid to foreign persons who are
[15:52.760 --> 16:01.560]  working as employees. In other words, Treasury Decision 8881 details how U.S. income tax on
[16:01.560 --> 16:10.040]  foreign persons is to be withheld generally as well as being withheld via payroll withholding
[16:10.040 --> 16:15.800]  when the foreigner is working as an employee. You may have noticed that the non-payroll form
[16:15.800 --> 16:22.360]  of withholding is repeatedly referred to as Chapter 3 withholding. Why is that? That's
[16:22.360 --> 16:29.720]  done to distinguish that manner of withholding from Chapter 24 withholding, which is payroll
[16:29.720 --> 16:36.040]  withholding. Let me illustrate that for you by bringing up a previous screenshot. But before I
[16:36.040 --> 16:44.040]  do, I need to tell you that the command for payroll withholding is found in Section 3402,
[16:44.680 --> 16:51.880]  which is within Chapter 24. Remember that Section 3402 because you're about to hear it mentioned.
[16:51.880 --> 16:57.000]  Let's read this text from Treasury Decision 8734 again.
[17:21.880 --> 17:30.760]  3405 withholding on pensions, annuities, etc. and 3406 backup withholding. As you can see,
[17:31.400 --> 17:38.680]  there are only two forms of withholding, Chapter 3 withholding and Chapter 24 withholding known
[17:38.680 --> 17:43.960]  as wage withholding. There are two critical points about those methods of withholding.
[17:43.960 --> 17:48.600]  First, there are only two methods of withholding U.S. source income from foreign persons.
[17:49.400 --> 17:53.880]  Chapter 24 withholding is used when the foreign person is working as an employee,
[17:54.760 --> 18:02.520]  and Chapter 3 is used in all other circumstances. Second, and by far more importantly, there is no
[18:02.520 --> 18:08.520]  statute, regulation, or Treasury decision in existence stating that a U.S. citizen earning
[18:08.520 --> 18:16.520]  his or her own domestic income is to have income tax withheld from him or her. Ever. That statement
[18:16.520 --> 18:22.920]  includes payroll withholding. Payroll withholding is to be conducted exclusively upon foreign
[18:22.920 --> 18:29.880]  persons receiving U.S. source income when working as an employee. Let me make the following statement
[18:29.880 --> 18:37.800]  very clearly. There is zero authority in the tax code for a company to withhold income tax from
[18:37.800 --> 18:45.640]  the pay of American citizens period full stop. Before I continue, if you value this sort of
[18:45.640 --> 18:50.920]  information, which you won't get anywhere else, please take a moment to subscribe to the channel
[18:50.920 --> 18:56.360]  and hit the like button so the algorithms show this content to more people. Also, at the end,
[18:56.360 --> 19:02.360]  I have a special offer for you so please stay with me for that. I imagine there are some people
[19:02.360 --> 19:09.400]  watching who just can't wrap their heads around the truth. I get it. I'm 65 years old and the
[19:09.400 --> 19:14.520]  government's disinformation, that the income tax applies to everyone, has been around since I was
[19:14.520 --> 19:21.080]  a boy. My point is I understand how someone whose mind is saturated with government propaganda
[19:21.080 --> 19:26.520]  could struggle to accept the truth. For that reason, I'm going to give you some further confirming
[19:26.520 --> 19:32.920]  facts. Let's do a brief recap to ensure you understand the context in which the additional
[19:32.920 --> 19:40.120]  information fits. Here are the salient points we've covered thus far. Subtitle A of Title 26,
[19:40.120 --> 19:45.800]  United States Code, is the law people refer to as income tax. Subtitle A contains three
[19:45.800 --> 19:51.160]  chapters that reflect the origin and imposition of the income tax. Those are chapters one, two,
[19:51.160 --> 19:59.320]  and three. Chapters one and two are merely the rules of computation. Every tax law in existence
[19:59.320 --> 20:05.880]  contains provisions by which to collect the tax from those who owe it. Chapter three, entitled
[20:05.880 --> 20:11.160]  withholding of tax on non-resident aliens and foreign corporations, is the collection mechanism
[20:11.160 --> 20:17.480]  for the income tax detailed in chapters one and two. There are only two forms of withholding in
[20:17.480 --> 20:25.640]  law. Chapter three withholding and chapter 24 withholding. Chapter 24 withholding is wage
[20:25.640 --> 20:33.080]  withholding. Withholding under both chapters three and 24 is to withhold the tax on U.S. source income
[20:33.080 --> 20:38.760]  owned by a foreign person. There is no law that authorizes withholding of income tax from an
[20:38.760 --> 20:47.400]  American citizen on his or her own domestic income. In other words, U.S. income tax has been imposed
[20:47.400 --> 20:54.200]  only on foreign persons with U.S. source income and chapters three and 24 are the exclusive means
[20:54.200 --> 21:00.360]  of collecting the tax from those upon whom it has been imposed. With that summation as context,
[21:01.160 --> 21:07.560]  here is the additional information. I believe it's accurate to say that other than those
[21:07.560 --> 21:12.360]  who've read Income Tax Shattering the Mist, everyone believes the tax form they are required
[21:12.360 --> 21:20.040]  to file before April 15th each year is the form 1040. Because that is a universally held belief,
[21:20.040 --> 21:28.040]  the facts I'm about to share will likely blow your mind. First, a bit of background. Statutes
[21:28.040 --> 21:35.240]  passed by Congress are what we refer to in common speech as laws. However, the U.S. Supreme Court
[21:35.240 --> 21:42.120]  has said Congress passes, quote, the broad language of the statute. In other words,
[21:42.120 --> 21:47.560]  the statutes Congress passes often lack the specificity needed to implement them.
[21:48.680 --> 21:54.280]  That brings us to regulations, which are created by the federal department tasked with implementing
[21:54.280 --> 22:01.080]  a statute. The purpose of regulations is to provide the specificity that's missing from the
[22:01.080 --> 22:06.920]  statute and is needed to implement the law. For that reason, the federal courts have ruled that
[22:06.920 --> 22:14.840]  in matters of taxation, regulations control. Understanding that, in income tax statutes,
[22:15.800 --> 22:24.520]  where does one find who is to use a form 1040? Answer. Nowhere. In the thousands of pages of
[22:24.520 --> 22:30.600]  income tax statutes, there is no mention of who is to use a form 1040. Perhaps we can attribute
[22:30.600 --> 22:37.560]  that to the statute speaking broadly without the specificity the regulations are expected to provide.
[22:38.520 --> 22:45.640]  So then, in the income tax regulations, where does one find who is to use a form 1040?
[22:46.840 --> 22:53.400]  Answer. Nowhere. In the tens of thousands of pages of income tax regulations,
[22:54.040 --> 22:58.520]  never once does the Treasury Department tell the American people who is to use form 1040.
[22:59.080 --> 23:05.320]  Now, that's more than a little odd because the very purpose of regulations is to provide
[23:05.400 --> 23:11.960]  sufficient specificity to allow a person who may have a duty under the law to comply with that duty.
[23:13.240 --> 23:22.280]  Yet, the regs don't inform us who is to use a 1040. At this point, allow me to ask you a question.
[23:23.560 --> 23:29.880]  Who told you form 1040 was the correct form for you to file? Was it your parents?
[23:30.680 --> 23:36.840]  Your peers? Perhaps an accountant? I ask because the one thing we know for certain
[23:37.560 --> 23:42.200]  is it was not the Treasury Department. In other words, and please, don't take offense to this,
[23:43.240 --> 23:51.400]  you've been filing form 1040 simply because somebody told you to. Of course, the very existence
[23:51.400 --> 23:58.440]  of form 1040 tells us someone is required to file it, right? And if someone is required to file it,
[23:59.000 --> 24:06.040]  we know the government has to tell us who that is in some writing somewhere. Ordinarily, the
[24:06.040 --> 24:11.880]  first place we'd look for that is in the statutes, but we know it's not there. The next logical place
[24:11.880 --> 24:18.520]  to look is in the regs, but it's not there either. That leaves us with just one other
[24:18.520 --> 24:25.800]  authoritative resource for this kind of information. Treasury decisions. Treasury decisions are
[24:26.360 --> 24:31.560]  official and binding pronouncements by the Secretary of the Treasury on whatever issue
[24:31.560 --> 24:37.480]  is being addressed. All officers and employees of the Treasury Department, which includes the IRS,
[24:37.480 --> 24:43.000]  are legally required to adhere to what the Secretary says in his Treasury decisions.
[24:43.800 --> 24:50.040]  While Treasury decisions are not law, the federal courts have held that Treasury decisions can be
[24:50.040 --> 24:55.560]  used to clarify regulations that do not provide the necessary specificity,
[24:56.280 --> 25:02.520]  because who is to use form 1040 is never mentioned in any regulation.
[25:03.800 --> 25:11.240]  If Treasury decisions reveal who is to use form 1040, those Treasury decisions are
[25:11.240 --> 25:19.320]  legally controlling on the subject. As it turns out, there are 11 Treasury decisions that speak
[25:19.320 --> 25:25.320]  to the question of who is to use a form 1040. In those 11 Treasury decisions, the Secretary is
[25:25.320 --> 25:32.440]  crystal clear about who is to use form 1040. Today I'll give you a few examples so you can
[25:32.440 --> 25:38.120]  see for yourself what the Secretary has said. Here is Treasury decision 2815, in which the
[25:38.120 --> 25:46.280]  Secretary says, non-resident alien individuals or their authorized agents should use form 1040.
[25:46.360 --> 25:54.840]  Treasury decision 2090, in the section entitled non-resident alien agent of, says this,
[25:55.400 --> 26:00.040]  the responsible heads, agents, or representatives of non-resident aliens who are in charge of the
[26:00.040 --> 26:05.400]  property owned or business carried on within the United States by non-resident aliens shall make
[26:05.400 --> 26:10.440]  full and complete returns of the income therefrom on form 1040 revised and shall pay any and all
[26:10.440 --> 26:15.400]  and shall pay any and all taxes normal and additional assessed upon said income of such
[26:15.400 --> 26:22.360]  non-resident aliens. The other nine Treasury decisions also say non-resident aliens with
[26:22.360 --> 26:28.680]  U.S. source income or the non-resident alien's domestic agent are to file form 1040 and they
[26:28.680 --> 26:34.520]  say it just as clearly as the two you just saw. But here's the most important thing about those
[26:34.600 --> 26:40.920]  Treasury decisions. While there are 11 Treasury decisions saying form 1040 is to be used by a
[26:40.920 --> 26:49.240]  non-resident alien or his domestic agent, there are zero Treasury decisions saying anyone other
[26:49.240 --> 26:55.720]  than a non-resident alien or his domestic agent is to file a 1040. In other words, there is not a
[26:55.720 --> 27:02.920]  single government document in existence in the entire 112-year history of the income tax.
[27:03.560 --> 27:08.920]  It says American citizens earning their own domestic income are to file a 1040 or any other
[27:08.920 --> 27:16.040]  tax form for that matter. I'd like to return to the words of Treasury decision 2815 for a moment
[27:16.040 --> 27:24.600]  because it lays out the process in a simple, easy to understand way. Here it is. Non-resident alien
[27:24.600 --> 27:31.880]  individuals or their authorized agents should use form 1040 revised or form 1040a revised
[27:31.880 --> 27:37.400]  in making returns of income derived from sources within the United States regardless of amount
[27:37.960 --> 27:45.080]  unless the tax on such income has been fully paid at the source. If a non-resident alien individual
[27:45.080 --> 27:50.920]  is not liable for any tax which has been withheld at the source, no refund of such tax will be
[27:50.920 --> 27:56.440]  permitted unless such a return is filed and a statement is attached thereto indicating the
[27:56.440 --> 28:02.200]  amounts of tax withheld and the names and post office addresses of all withholding agents.
[28:02.200 --> 28:07.640]  Unless a non-resident alien individual shall render a return of income, the tax will be collected on
[28:07.640 --> 28:13.960]  the basis of his gross income, not his net income, from sources within the United States.
[28:14.840 --> 28:21.960]  That paragraph is a great description of how withholding works. I want to draw your attention
[28:22.040 --> 28:28.920]  to two particular parts. The first is where it says, unless the tax on such income has been
[28:28.920 --> 28:35.720]  fully paid at the source, I draw your attention to the words at the source. And this part,
[28:36.520 --> 28:42.200]  a non-resident alien individual is not liable for any tax which has been withheld at the source.
[28:42.920 --> 28:49.000]  Again, I draw your attention to the words at the source. I draw your attention to those words
[28:49.000 --> 28:55.720]  because at the source is merely a contraction of what is said in the opening sentence which reads,
[28:56.440 --> 29:03.320]  non-resident alien individuals or their authorized agents should use Form 1040 revised or 1040a
[29:03.320 --> 29:09.880]  revised in making returns of income derived from sources within the United States.
[29:10.840 --> 29:16.120]  In other words, in many cases the withholding of the tax on US source income of a foreign person
[29:16.120 --> 29:26.440]  takes place at the source. Source meaning the point of origin of the foreign person's US income.
[29:27.480 --> 29:35.800]  You may recall that section 3402 in chapter 24 is the payroll withholding statute. Allow me
[29:35.800 --> 29:44.520]  to draw your attention to its title which is income tax collected at source. When it says
[29:44.520 --> 29:51.480]  collected at source, it means the tax on US source income belonging to a non-resident alien
[29:52.040 --> 29:57.720]  being collected at the point of origin, in this case via wage withholding.
[29:58.840 --> 30:05.960]  Every time collection at source is used in income tax law, it means the tax on US source income
[30:05.960 --> 30:13.640]  belonging to a foreign person being collected at the point of origin. I know I've covered a lot of
[30:13.640 --> 30:18.680]  ground today. While the US government has gone out of its way to make income tax law appear
[30:18.680 --> 30:24.200]  inscrutable, I hope I've shown you an easy way to understand it. Of course, what I covered with you
[30:24.200 --> 30:28.600]  today is only a fraction of the evidence you'll find in income tax shadowing the mist. I hope
[30:28.600 --> 30:36.920]  today's presentation has been clear and concise enough to ratchet down fear of the IRS. Understanding
[30:36.920 --> 30:42.760]  the subject isn't all that tough. It just has to be laid out in the right way which is exactly what
[30:42.760 --> 30:47.720]  you'll find in income tax shadowing the mist. Earlier, I mentioned that you get free shipping
[30:47.720 --> 30:55.320]  on any order that contains income tax shadowing the mist when you use the code tariffs. Why tariffs?
[30:55.960 --> 31:00.680]  I initiated that offer of free shipping in a presentation a few months ago in which I
[31:00.680 --> 31:05.640]  discussed Donald Trump's plan to impose tariffs and repeal the income tax. In that presentation,
[31:05.640 --> 31:11.480]  I said Congress will never repeal the income tax, so Americans will end up paying far more in taxes
[31:11.480 --> 31:17.320]  because they'll be paying tariffs and income tax. As I'm sitting here today, the Trump White House
[31:17.320 --> 31:22.760]  has already submitted its tax priorities to Congress and repealing the income tax was not
[31:22.760 --> 31:28.520]  part of the package. In other words, I was correct that repeal is not on the table.
[31:29.320 --> 31:35.720]  Accordingly, if you don't want to pay both income tax and tariffs, this might be a fantastic time
[31:35.800 --> 31:42.440]  to learn the truth and if you're so inclined, walk away from the income tax which never applied to
[31:42.440 --> 31:48.760]  you in the first place. I'm going to suggest you purchase the four-pack which contains income tax
[31:48.760 --> 31:56.440]  shadowing the mist, the business guide to payroll withholding, the business handbook for Form W-9,
[31:56.440 --> 32:03.800]  $10.99 in U.S. Person, and body science. The first reason to get the four-pack is the price is already
[32:03.800 --> 32:09.320]  deeply discounted from purchasing the four items individually. The second reason is that in addition
[32:09.320 --> 32:16.520]  to it being deeply discounted, you get free shipping with the code tariffs. So go to DrReality.News,
[32:16.520 --> 32:23.640]  DrReality.News and get free shipping on any order containing income tax shadowing the mist by using
[32:23.640 --> 32:30.600]  the code tariffs at checkout. Also, purchasing my writings helps me to continue to be here for you
[32:30.600 --> 32:33.400]  with these revealing and thought-provoking presentations.
[32:33.400 --> 32:36.840]  Thank you for spending your time with me. I hope you found it of value.