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[00:00.000 --> 00:06.360]  Welcome to the show. On June 22nd, I had the privilege of being a guest on the John Dowling
[00:06.360 --> 00:13.680]  show to discuss some fascinating aspects of the truth about the income tax. One topic
[00:13.680 --> 00:20.640]  we discussed is who is really required to withhold income tax. I say who is really required
[00:20.640 --> 00:25.640]  because it is not at all what the societal narrative would have you believe. Another
[00:25.640 --> 00:33.800]  subject we tackled is how and why every financial institution in America, including crypto exchanges,
[00:33.800 --> 00:42.080]  are requiring their customers to commit perjury as a condition of opening an account. Phrased
[00:42.080 --> 00:48.520]  another way, financial institutions across America are demanding that you declare under
[00:49.520 --> 00:57.280]  as true something that is materially false. Furthermore, after being told by a prospective
[00:57.280 --> 01:03.080]  customer that what the institutions are demanding is an act of perjury, their response is to
[01:03.080 --> 01:09.040]  threaten not to open the account unless the prospective customer agrees to commit perjury.
[01:09.040 --> 01:13.500]  In other words, financial institutions across the nation are committing a felony called
[01:13.500 --> 01:20.500]  subordination of perjury. What will really shock you is why they are compelling customers
[01:20.500 --> 01:26.940]  to commit perjury as a condition of opening an account. Perhaps unsurprisingly, the progenitor
[01:26.940 --> 01:33.200]  of these felonies is the United States government. And again, it will likely shock you to hear
[01:33.200 --> 01:40.700]  why the government wants every American to swear that a certain thing is true when in
[01:40.700 --> 01:48.260]  fact it is 100% false. Some people are terrified to learn the truth about the income tax. Others
[01:48.260 --> 01:53.380]  find the truth exhilarating. If you're the kind of person who thrives on truth, you will
[01:53.380 --> 01:59.540]  absolutely love my book Income Tax Shattering the Miss. Right now and for a limited time,
[01:59.540 --> 02:04.500]  I'm offering free shipping on anything you order from my Dr. Reality website as long
[02:04.500 --> 02:10.020]  as Income Tax Shattering the Miss is in the order. To get free shipping, make sure Income
[02:10.020 --> 02:16.820]  Tax Shattering the Miss is in your cart and use the coupon code tariffs at checkout. Now
[02:16.820 --> 02:18.820]  on to the main event.
[02:18.820 --> 02:25.180]  Hi, everyone. Welcome to the podcast. We have once back again for a reprise, Mr. Dave Champion,
[02:25.180 --> 02:30.180]  the one and only who's joining us on this segment having to do with a very popular and
[02:30.180 --> 02:35.780]  important subject vis-a-vis income taxes, how to avoid them legally and lawfully and
[02:35.780 --> 02:41.140]  be able to get yourself out of the old IRS system as well as the federal system. If you are new to
[02:41.140 --> 02:45.540]  the podcast, please do like, subscribe and share as it helps the channel grow and others to gain
[02:45.540 --> 02:50.180]  in the knowledge you're being currently afforded. As you'll recall, Dave is a multifaceted
[02:50.180 --> 02:57.620]  gentleman. He is an Army Ranger. He's an expert marksman. He worked in law enforcement for several
[02:57.620 --> 03:05.060]  years. He also is an expertly adept at martial arts as well. He had a great book that we had
[03:05.060 --> 03:10.020]  last time, Body Science. We initially worked with him last year in our archives section. You can go
[03:10.020 --> 03:15.860]  back and check on common law trusts and all the nuances within. And he's discussed this before,
[03:15.860 --> 03:20.340]  but he felt that there was some new information that has come to light that he felt pressing on
[03:20.340 --> 03:25.860]  his heart to discuss with you today in regards to some new things with respect to income tax,
[03:25.860 --> 03:31.380]  very timely with the big, beautiful bill that is coming to fruition through the administration
[03:31.380 --> 03:35.140]  shortly. And we are honored to have once again, Mr. Dave Champion. How are you today? Good, sir.
[03:36.100 --> 03:39.780]  I am awesome, John. How are you doing? I'm well. Thanks for being here and thanks for your time
[03:39.780 --> 03:45.540]  and expertise. Thanks for having me back again. Oh, it's always a pleasure. Always fun. Absolutely.
[03:45.540 --> 03:51.380]  And very informative from your end. So, Dave, to start things off, correct me if I'm wrong,
[03:51.380 --> 03:57.140]  I understand that after about 32 years of reading US income tax law, that you had a bit of a
[03:57.140 --> 04:01.460]  revelation about a particular aspect of it. Can you talk a little bit about that, please?
[04:02.660 --> 04:07.940]  Absolutely. So first of all, I need to give your audience an overview. I'm going to do this super
[04:07.940 --> 04:12.820]  quick and then we'll get into the statutes. Okay. So for the audience's perspective,
[04:13.460 --> 04:19.300]  there are only two classes of persons. Class of person is just a legal phrase, which means
[04:19.300 --> 04:25.460]  a category that can include a human and also an entity like a corporation. So class of person
[04:25.460 --> 04:29.700]  just means a category that can include those. And the category is defined by certain elements.
[04:29.700 --> 04:38.740]  So that's called class of person and loss. So the US income tax law imposes income tax on just two
[04:39.300 --> 04:43.780]  classes of persons. The first one is a non-resident alien with US source income.
[04:43.780 --> 04:49.540]  The second is a foreign corporation with US source income. So for today, we're going to
[04:49.540 --> 04:54.340]  distill those two together, just like the secretary of the treasury does in his treasury decisions.
[04:54.340 --> 04:58.580]  And we're going to call them foreign persons. Okay. So one and two are going to be under this
[04:58.580 --> 05:05.140]  one phrase, foreign person. So however, there is a third class upon whom the tax has not been
[05:05.140 --> 05:13.460]  imposed, but who has been made liable to collect and pay the tax. And that is a US citizen,
[05:13.460 --> 05:21.620]  US resident or domestic corporation known in tax law as a US person. And that's the person
[05:21.620 --> 05:31.140]  involved in the flow of US source income to its foreign owner. Okay. So somebody's in that pipeline.
[05:31.140 --> 05:36.500]  They're a US citizen, US resident or domestic corporation. They have to, before they pay the
[05:36.500 --> 05:41.380]  money to the foreign guy offshore, they have to withhold the tax. And then once they withhold it,
[05:41.380 --> 05:45.220]  of course, they have to file a return and pay it over to the government. Okay. So what I just said,
[05:45.220 --> 05:52.980]  that probably took about what a minute. That is the A to Z of income tax law. The thousands of pages
[05:52.980 --> 05:58.100]  of regulations of statutes and treasury decisions, they all rotate, they all
[05:58.900 --> 06:05.860]  administrate those three factors and nothing more. That's the important part. Okay. So today,
[06:05.860 --> 06:10.660]  we're going to focus on the withholding part. So it's withhold and pay over, but we're going to
[06:10.660 --> 06:17.140]  ignore the pay over part today. This is so US persons, they withhold the tax. All right. So
[06:18.260 --> 06:24.660]  having your audience understand that's the limited focus for this moment. Okay. Go ahead and bring
[06:24.660 --> 06:29.140]  up the graphic that we were looking at a bit earlier. Certainly. Let me just get that going
[06:29.140 --> 06:35.700]  here. It may take a minute. All right. I'm going to put my computer glasses on so I'm not blind.
[06:36.660 --> 06:46.020]  So I want the audience to take note that 3406 is entitled backup withholding.
[06:47.700 --> 06:55.620]  So John, if you could scroll up a little bit and click on where it says subtitle C in blue.
[06:55.700 --> 06:59.060]  Beautiful. Okay. So the point I want to make to your audience here
[06:59.780 --> 07:10.900]  is that subtitle C, entitled employment taxes, has one thing in common. Every single thing listed
[07:10.900 --> 07:21.620]  there is addressing, is commanding or instructing an entity that is under the exclusive list of
[07:21.940 --> 07:28.180]  an entity that is under the exclusive legislative jurisdiction of Congress
[07:29.220 --> 07:33.860]  to do this and such. And we'll talk about that in a minute. So what does it need to be under
[07:33.860 --> 07:39.860]  the exclusive legislative jurisdiction of Congress? Well, that's Washington DC, the possessions,
[07:40.660 --> 07:47.140]  the territories, any other federal places, and of course, government entities within
[07:47.780 --> 07:51.540]  the federal government or the governments of the possessions and territories.
[07:51.540 --> 07:56.180]  So what you're seeing here in chapters 21 through 24, we don't need to pay attention to 25,
[07:56.180 --> 08:02.980]  just general provisions. 21 through 24 are instructions to these various government entities.
[08:03.540 --> 08:10.740]  That is the totality of subtitle C. Subtitle C does not address anything other than Congress's
[08:10.740 --> 08:15.380]  instructions to various government entities. Now, with that said, let's run down this list
[08:15.380 --> 08:20.340]  real quickly. Federal Insurance Contribution Act, FICA, everybody's probably familiar with that.
[08:20.340 --> 08:25.700]  They see FICA taken out of their paychecks. I've got a video on that. You can go to my
[08:26.580 --> 08:33.620]  Rumble page and you'll see that FICA is actually what people call social security tax.
[08:33.620 --> 08:38.660]  And you'll see that the Social Security Act, including its taxes, are all territorial in
[08:38.660 --> 08:44.580]  nature and have no applicability within the 50 states. Okay. Next one, Railroad Retirement Act.
[08:44.580 --> 08:49.700]  Most Americans run aware that because of the origins of the railroad, they were almost
[08:49.700 --> 08:55.060]  exclusively built on federal lands. And the United States government was major shareholders with the
[08:55.060 --> 08:59.780]  early railroad companies. To this very day in American jurisprudence, the railroads are
[08:59.780 --> 09:05.780]  considered to be under the exclusive legislative jurisdiction of Congress. CEUDA, Federal
[09:05.780 --> 09:10.580]  Unemployment Tax, that's really just a subset of social security, which I just shared with you,
[09:10.580 --> 09:14.020]  is only applicable in the possessions and territories. It is not applicable in the
[09:14.020 --> 09:17.860]  states of the union, no matter what people may have led you to believe over the years.
[09:17.860 --> 09:22.500]  Railroad, again, there we go, under the exclusive legislative jurisdiction of Congress.
[09:22.500 --> 09:26.820]  So go ahead and click chapter 24 again for me, if you'd be so kind, John.
[09:29.460 --> 09:36.980]  All right. So here we are again. And this is the chapter, if you were to ask an accountant,
[09:36.980 --> 09:41.300]  where is the authority to engage in wage withholding from a paycheck, this is the
[09:41.300 --> 09:45.860]  place they would take you. Now, again, I want to be clear, these are instructions from Congress
[09:45.860 --> 09:48.900]  to various government entities under the exclusive legislative jurisdiction of
[09:48.900 --> 09:55.460]  Congress and have absolutely nothing to do with the private sector. So you'll see 3406
[09:56.740 --> 10:05.620]  is entitled backup withholding. So that has always seemed odd to me that it was out of place
[10:06.500 --> 10:15.060]  because this particular section is income tax. You'll see that in the subtitle up there,
[10:15.060 --> 10:21.780]  chapter 24, collection of income tax as source on wages. But backup withholding is not part
[10:21.780 --> 10:30.100]  of wage withholding. So why did NARA, the attorneys at NARA, stick backup withholding
[10:30.660 --> 10:36.420]  within subtitle C that is exclusively instructions to various government entities?
[10:37.860 --> 10:44.020]  Well, they stuck it there because that's exactly what it is. Now, the important thing about backup
[10:44.020 --> 10:52.100]  withholding is that it is merely a subset of the broader withholding. So here we see it when
[10:52.100 --> 11:00.020]  they're talking about wages. So, John, if you can click where it says title 26 at the very top in
[11:00.020 --> 11:15.060]  blue. And then if you would scroll down and click on subtitle A, top one, and then click on chapter
[11:15.060 --> 11:27.620]  three for me. Okay, fantastic. So here's, remember I said backup withholding is merely a subset of
[11:27.620 --> 11:33.060]  withholding. So there's only two kinds of withholding. If you read the treasury decisions
[11:33.060 --> 11:38.660]  written by the secretary of the treasury, who is the highest executive branch authority over taxation
[11:38.660 --> 11:44.020]  in the entire nation, there are only, he talks about that there are only two forms of withholding
[11:44.020 --> 11:49.540]  of the income tax. One is chapter 24 withholding, which we just looked at a moment ago,
[11:50.180 --> 11:56.980]  and that's wage withholding. The other form of withholding U.S. income tax is chapter three,
[11:56.980 --> 12:02.340]  which is what we're looking at now. And the title of that is withholding of tax on non-resident
[12:02.340 --> 12:12.420]  aliens and foreign corporations. So backup withholding is merely a subset of this withholding.
[12:13.220 --> 12:17.860]  So let me explain the particulars of backup withholding. Let me start with the particulars
[12:17.860 --> 12:24.260]  of this kind of withholding. When a person provides, somebody being paid, provides the
[12:24.260 --> 12:31.220]  person making the payment with a form W-8 or a form W-9, which means very different things.
[12:32.740 --> 12:38.580]  That controls how the payment of U.S. source income to non-resident aliens and foreign
[12:38.580 --> 12:50.100]  corporations is treated. So that is the three second description of the large issue of this
[12:50.100 --> 12:55.860]  chapter three withholding of tax on non-resident aliens and foreign corporations. So backup
[12:55.860 --> 13:02.980]  withholding is a subset of this. Let me explain backup withholding. Backup withholding, if the
[13:02.980 --> 13:12.500]  person being paid refuses to submit a W-8 or a W-9 or any of these other statements that declare
[13:12.500 --> 13:20.020]  status, in that event, when the person receiving payment refuses to furnish those documents,
[13:21.140 --> 13:26.340]  then backup withholding is to be done. It is generally, there are exceptions for tax
[13:26.340 --> 13:32.100]  treaties and so forth, but generally it's 24%. So what happens is the person making the payment
[13:32.180 --> 13:39.460]  of U.S. source income to the non-resident alien or foreign corporation, if he is not provided with
[13:39.460 --> 13:45.620]  the necessary status documentation, the default position is, well, if we're not going to get any
[13:45.620 --> 13:51.940]  paperwork from you, then we have to withhold 24%. So that's backup withholding. But backup
[13:51.940 --> 13:57.140]  withholding, as I said, is a subset of what we're looking at right now, which is chapter three.
[13:57.140 --> 14:08.900]  So follow me. If the command to backup withhold is within subtitle C, which deals exclusively
[14:09.780 --> 14:14.900]  with Congress's instructions to various entities under the exclusive legislative
[14:14.900 --> 14:22.740]  jurisdiction of Congress, if the subset of backup withholding is only for the government,
[14:22.740 --> 14:31.380]  then chapter three, withholding, would also be for the government. Now, with that said,
[14:33.140 --> 14:42.020]  there is the issue of what do you know? So we're in this very strange place in America right now,
[14:43.060 --> 14:46.500]  where all the industries, the banking industries, we're going to talk about that,
[14:46.500 --> 14:51.460]  I believe, in a few minutes, the real estate industry, the real estate industry, the
[14:51.540 --> 14:57.620]  real estate industry, what they're all doing is they're taking the perspective
[14:58.740 --> 15:07.300]  that everybody is a nonresident alien or a foreign corporation until they say otherwise,
[15:08.100 --> 15:15.140]  until they testify, until they swear on a document that they're not. A friend of mine is a real estate
[15:15.140 --> 15:21.940]  agent, a very successful real estate agent, and he went to, what do they call that? They have to
[15:21.940 --> 15:28.260]  go to the annual training so they can keep their lives current. I forget the name for that. And so
[15:28.260 --> 15:34.900]  there was somebody there speaking from one of the largest real estate firms in America, and somebody
[15:34.900 --> 15:43.780]  said, why do we make customers sign this facta form? And that's where the person has to sign
[15:43.780 --> 15:49.460]  that they're not a foreign entity. And this guy, again, from one of the major,
[15:49.460 --> 15:57.300]  the largest real estate firms in the country, said that came to be for us, for our industry,
[15:58.340 --> 16:04.660]  because the federal government told us that everybody is to be treated as an alien until
[16:04.660 --> 16:17.140]  they attest otherwise. How insane is that in America that in order to, from the government's
[16:17.140 --> 16:25.300]  perspective, in order to properly administrate the income tax, they have to presume that everybody
[16:26.340 --> 16:31.380]  is a foreign person or acting as the agent of a foreign person, which we're going to get into
[16:31.380 --> 16:43.380]  in a minute, rather than their true status? John, did I describe that clearly, do you think?
[16:43.380 --> 16:49.140]  I think so. It makes sense. All right. Do you have a question at this point?
[16:50.260 --> 16:54.740]  No, I was looking it up. I think it's DRE, the DRE seminar that you have to go to.
[16:55.940 --> 16:59.860]  I think here in California, it's every four years your license has to be renewed. I don't know what
[16:59.860 --> 17:03.380]  it is from your friends, but that's the event I think you're referring to, to which you're referring.
[17:04.580 --> 17:07.140]  I think generically, they call it continuing education.
[17:07.780 --> 17:13.380]  Yeah, yeah, that makes sense. Yeah, that sounds about right. But either way. Yeah, so Dave,
[17:13.380 --> 17:19.140]  let's stay on this for a moment. Thank you for the articulation, by the way. So with this new
[17:19.140 --> 17:23.860]  understanding that backup withholding is only mandated for entities, if I heard you correctly,
[17:23.940 --> 17:28.020]  under the exclusive legislational jurisdiction of Congress,
[17:28.580 --> 17:31.620]  are there broader implications that would flow from that?
[17:33.220 --> 17:41.700]  Absolutely. And we've touched upon some of those today than the broader context of Chapter 3
[17:41.700 --> 17:50.020]  withholding, which we're looking at on screen right now. If backup withholding is Congress
[17:50.020 --> 17:54.420]  instructing entities under the exclusive legislative jurisdiction of Congress to do that,
[17:55.220 --> 18:01.220]  then this full-throated withholding, as opposed to just backup, this full-throated withholding
[18:01.220 --> 18:11.060]  has to be the same kind of instruction. Now, with that said, the Income Tax Act back in 1913 was
[18:11.060 --> 18:17.780]  passed as part of a tariffs act. And I've always expressed to people that because it's a cross
[18:17.780 --> 18:25.220]  border tax, it's a tax on foreigners deriving U.S. source income. And then the payment of the
[18:25.220 --> 18:30.820]  money, the U.S. income tax has to be collected before the U.S. source income crosses the border
[18:30.820 --> 18:38.740]  and leaves the country and goes to its foreign owner. I've always expressed it as it is not
[18:38.740 --> 18:43.540]  identical to a tariff, but it's much like a tariff. And it certainly is an international
[18:43.540 --> 18:49.300]  financial matter. The income tax, while the public thinks it pertains to them and themselves
[18:49.300 --> 18:54.420]  and their workers and their company, that's not what it applies to at all. It is an international
[18:54.420 --> 19:00.260]  tax. So the federal government, I'm sorry, the states of the union granted in the Constitution
[19:00.260 --> 19:06.420]  to the federal government the ability to regulate foreign commerce. And the government has the
[19:06.420 --> 19:13.460]  ability again in the Constitution to impose an excise tax. So what the government did is
[19:13.780 --> 19:22.260]  in 1913, it took its right to regulate foreign commerce and its right to impose an excise and
[19:22.260 --> 19:27.460]  merged them together and created what we today call the income tax. And then they spent the
[19:27.460 --> 19:33.300]  last 112 years misleading the American people about what the income tax really is. I should
[19:33.300 --> 19:38.740]  probably say for people who've not heard me speak before and they're guffawing at this and they're
[19:38.740 --> 19:43.220]  thinking, oh, this is just insane. This guy doesn't know what he's talking about.
[19:43.860 --> 19:49.140]  I encourage them to read my book, Income Tax Shattering the Mists. It's been out for 15 years
[19:49.140 --> 19:52.660]  and pretty much everybody who reads it closes the final page and says,
[19:53.700 --> 19:59.620]  holy cow, champion was right. I didn't know. I bought into the false government narrative.
[19:59.620 --> 20:05.940]  So that's a resource that will give you all of the details beyond the little bit we're touching
[20:05.940 --> 20:14.980]  upon today. So one of the big implications is that this is primarily instructions to the
[20:14.980 --> 20:20.980]  federal government. However, what if somebody comes and wants to invest in your business
[20:22.180 --> 20:29.140]  and the person says to you, I am Russian. So I'm bringing my Russian money and I'm
[20:29.140 --> 20:33.860]  investing it in your American company and I want to see some profits from your American company.
[20:33.940 --> 20:39.940]  I sound more like an Indian than a Russian. I suck at accents. Okay. So in that case,
[20:39.940 --> 20:50.740]  because the government does have the authority to impose a regulatory scheme on U.S. source income,
[20:52.100 --> 20:56.420]  belonging to a foreign person, as would be the example that I just gave.
[20:57.380 --> 21:03.140]  If the person tells you that, well, then yeah, you have to act as a U.S. withholding agent.
[21:03.780 --> 21:06.660]  You have to withhold the tax before the money goes offshore to the foreign guy.
[21:07.460 --> 21:12.180]  And then you have to file a return and pay that money over to the United States government.
[21:13.300 --> 21:17.540]  Now, the fascinating thing is when I say after you withhold the money,
[21:17.540 --> 21:23.220]  you would have to pay the tax and pay it over to the government. People be like, well,
[21:23.220 --> 21:29.940]  what tax returns should I use? I think people should know that in the 112 year history of the
[21:29.940 --> 21:35.300]  income tax, there are 11 treasury decisions in which the secretary of the treasury says
[21:36.100 --> 21:47.060]  form 1040 is to be used by a non-resident alien or the non-resident alien's domestic agent,
[21:47.060 --> 21:52.500]  which you would be in the scenario I just described. Now, by the way, I should say there
[21:52.500 --> 21:57.140]  are no treasury decisions that say anything other than that. That's the important part.
[21:57.300 --> 22:03.300]  That's the sole direction for a 1040 from the secretary of the treasury. Now, over the years
[22:03.300 --> 22:09.860]  to try and make that less discernible, they've now created more versions of 1040, but the basic
[22:09.860 --> 22:16.100]  framework remains the same. The 1040 and all of its variants back then and the new variants that
[22:16.100 --> 22:24.180]  have come out over the last several decades, all of that is contained within the topic or the subject
[22:24.180 --> 22:30.100]  matter of US source income belonging to non-resident aliens or foreign corporations.
[22:30.100 --> 22:35.300]  That is the purpose of the 1040, no matter what letters appear after those numerals.
[22:38.500 --> 22:44.980]  Gotcha. Thank you for that, Dave. Appreciate it. Did you want to stay on this page or do you feel
[22:44.980 --> 22:49.380]  like you satisfied the majority of what you want to share? I think we're good on this. I think we
[22:49.380 --> 22:57.940]  can go. Okay. I just want to make sure before I switch off here. Let's touch base or redress
[22:58.580 --> 23:04.260]  what you touched on initially in your thesis with regards to the banking industry. Let's touch on
[23:04.260 --> 23:08.100]  that. I know you recently did a video or I understand you did a video about how crypto
[23:08.100 --> 23:12.420]  exchanges are. We've got a lot going on with respect to, as I said earlier, the big beautiful
[23:12.420 --> 23:18.020]  bill. ISO 20022 takes effect July 14th, which is less than three weeks from the time this broadcast.
[23:18.980 --> 23:24.580]  We've got SEC and XRP or Ripple. We know that thing is being scripted, but that's coming into
[23:24.580 --> 23:29.620]  focus. The timing of this is perfect, Dave, because of I think the training that's going to help
[23:29.620 --> 23:37.860]  for people with these inherent events happening. With all that being said, how crypto exchanges are
[23:37.860 --> 23:42.260]  on behalf of the government attempting to trap Americans with that legal presumption that their
[23:42.260 --> 23:46.020]  crypto gains are subject to an income tax. Can you explain what they're trying to do?
[23:46.020 --> 23:56.180]  Oh, yes. That's a great question. All right. Most Americans are completely ignorant of the fact
[23:56.180 --> 24:02.580]  that when they open an account in a financial institution, such as a bank, such as a stock
[24:02.580 --> 24:07.620]  trading account, Forex, whatever, I'm using financial institutions broadly here. Whenever
[24:07.620 --> 24:17.300]  they open an account, that's in quotes, the institution demands, not asks, demands
[24:17.300 --> 24:24.420]  that they sign a Form W-9. What is the legal meaning and purpose of a Form W-9? This goes
[24:24.420 --> 24:30.020]  back to what we were talking about with all this withholding and everything. A Form W-9 in law
[24:30.660 --> 24:40.260]  is the signer testifying under penalty of perjury that he, she, it is the money they are receiving
[24:41.300 --> 24:45.220]  or that is in the case of a financial institution that's flowing into the account
[24:46.020 --> 24:50.180]  does not belong to the person who's signing the W-9 and opening the account,
[24:51.300 --> 24:57.780]  but belongs to the foreign person for whom the signer is acting as the domestic agent.
[24:58.500 --> 25:03.380]  Okay. The, the withholding agent, the U S person, there's all these terms that describe the same
[25:03.380 --> 25:09.540]  guy doing the same thing. Okay. So imagine this, imagine somebody just goes to B of A and says,
[25:09.540 --> 25:13.460]  Hey man, you know, I just moved into town. I want to open a checking account.
[25:15.220 --> 25:18.740]  And, and the guy's like, yeah, I'm going to have, you know, auto deposit from my,
[25:18.740 --> 25:23.220]  from the company I work for. They're going to put the money in there and I'm going to pay my bills.
[25:23.220 --> 25:28.660]  And the bank says here, man, sign this W-9. I don't know what that is. Okay.
[25:30.740 --> 25:35.380]  What he just testified to under penalty of perjury is every penny in that account does not belong to
[25:35.380 --> 25:40.100]  him, but belongs to the foreign person for whom he's acting as the domestic agent.
[25:40.100 --> 25:45.060]  Then he opened that account for that purpose. Now bringing it back to crypto.
[25:46.020 --> 25:52.900]  When crypto first started to become a thing, most of the exchanges were like the, the wild west.
[25:54.100 --> 25:59.060]  There was not a lot of regulation. So that's changed. Here's, we're talking in 2025,
[25:59.940 --> 26:08.900]  virtually all of the exchanges now are doing this exact same thing. They are demanding when you
[26:08.900 --> 26:15.300]  open a crypto trading account that you commit perjury. And I think that's the really important
[26:15.300 --> 26:22.580]  thing. So if somebody is, is opening a crypto account and that it's such that they can actually
[26:22.580 --> 26:26.900]  get somebody on the phone, which normally is not the case because you know, everything these days,
[26:26.900 --> 26:30.580]  right. But let's say they can get, they can get somebody from the exchange on the phone
[26:31.300 --> 26:34.980]  and they say, you know, Hey guys, I'm really looking forward to trading on your exchange.
[26:35.700 --> 26:42.260]  Loving it. But there's a problem here in the signup process that you're requesting me to fill out a
[26:42.260 --> 26:47.540]  form W-9 and that's not applicable to me. Well, what do you mean it's not applicable to you?
[26:48.260 --> 26:53.300]  Well, the sole legal purpose as specified by the secretary of the treasury. So the W-9 is a
[26:53.300 --> 27:00.820]  withholding certificate only to be given to a withholding agent. And it means that I am a
[27:00.820 --> 27:06.660]  U S citizen, U S resident or domestic corporation that is receiving from you, the exchange
[27:07.860 --> 27:14.820]  U S or income that belongs to the foreign guy I'm representing. But I, as I open this account with
[27:14.820 --> 27:21.140]  you, sir, I'm not representing any foreign guys, just me. Yeah. So what you're asked,
[27:22.100 --> 27:30.180]  this form requires me to sign it under penalty of perjury. And so I would be committing perjury
[27:30.180 --> 27:35.940]  to say that I'm doing this on behalf of the foreign guy represent when that's not factual.
[27:36.900 --> 27:43.540]  So how do we get this account open on the exchange without me having to do that? And the person on
[27:43.540 --> 27:50.660]  the other end of the phone will say, that's not how it works. You either sign the W-9 and we don't
[27:50.660 --> 27:59.540]  open the account. What? So what this means is, and I think this is really important for your audience
[27:59.540 --> 28:09.300]  to take stock of every bank account called checking account, every savings account, every 401k,
[28:09.300 --> 28:17.620]  every Iowa, every stock trading account, every Forex account, every crypto exchange account,
[28:19.300 --> 28:29.940]  every single one of them requires you to commit perjury to open an account. And
[28:30.900 --> 28:36.500]  I think more importantly, commits the felony of suborning perjury
[28:38.340 --> 28:43.940]  by demanding that you commit perjury as a condition of opening the account. Okay.
[28:45.860 --> 28:52.180]  Yeah. Because the act of suborning perjury is when you pressure somebody into,
[28:52.180 --> 28:57.380]  after they've informed you, this would be perjurious, you pressure them into doing it
[28:57.380 --> 29:03.140]  anyway. That's suborning perjury. That is a felony in every state of the union and in the
[29:03.140 --> 29:12.580]  federal government. Yet every single financial institution in America suborns perjury and demands
[29:12.580 --> 29:16.340]  that the American people commit perjury as a condition of opening an account.
[29:18.740 --> 29:23.620]  David, that's not extortion and entrapment. I don't know what is.
[29:24.580 --> 29:34.980]  Exactly. And let me explain the consequences of this. Okay. So sometimes people get in trouble
[29:34.980 --> 29:44.020]  with the IRS because they don't know anything about tax law, right? And so if it comes to shove
[29:44.020 --> 29:51.620]  and it goes on long enough, sometimes the IRS will levy their bank account. Okay. So the American
[29:51.780 --> 29:57.860]  may know his constitutionally protected rights, though he rushes to federal court and he says,
[29:57.860 --> 30:02.980]  your honor, here's my petition. Stop the IRS from doing that because you can't seize
[30:02.980 --> 30:06.980]  my property in America without a pre-seizure judicial hearing.
[30:09.780 --> 30:14.580]  And the government comes in and says, here's our motion to dismiss, your honor.
[30:15.300 --> 30:24.420]  And the judge says, he's dismissed. And the guy says, and everybody watching the case says,
[30:24.420 --> 30:29.540]  oh my God, the courts are in on it. Everybody's corrupt. This is the whole system. Because you
[30:29.540 --> 30:37.300]  can't seize property without a judicial. Okay. The reason it gets dismissed is because the
[30:37.380 --> 30:48.740]  American is saying the IRS is about to seize my property. And the W-9 that was signed by the
[30:48.740 --> 30:55.300]  account holder when he or she opened the account testifies that not a penny of the money in that
[30:55.300 --> 31:00.180]  account belongs to the account holder, but belongs to the foreign guy from whom the account holder
[31:00.180 --> 31:06.740]  is acting as a domestic agent. So the legal reality is the government didn't seize a penny
[31:06.740 --> 31:13.540]  of the account holder's money. Every penny they seized was the foreign guy's money.
[31:13.540 --> 31:18.660]  So the petition that the American filed with the court stopped the government. They're trying to
[31:18.660 --> 31:24.980]  do a seizure without pre-seizure judicial hearing. The court and the government are snickering.
[31:24.980 --> 31:30.420]  They're like, dude, they don't even know what the hell's going on here. Okay. So case dismissed.
[31:31.460 --> 31:34.660]  Your facts are an error and the law that you're presenting is an error.
[31:35.300 --> 31:44.340]  Case dismissed. And it's not the judge's job to teach the petitioner the law. Like, hey, dude,
[31:44.340 --> 31:49.140]  you got this totally wrong. It's the public's responsibility to know the law. And of course,
[31:49.140 --> 31:56.020]  as you well know, John, 99 plus percent of the American public is remiss in that responsibility.
[31:56.020 --> 31:59.780]  They completely shirk it. They don't know anything about the law, such as I'm sure many
[31:59.780 --> 32:03.780]  people are stunned with what they're hearing today because they've never looked at the law.
[32:03.940 --> 32:08.180]  And where would they find it? Other than perhaps my Rumble channel or Income Tax Shattering the
[32:08.180 --> 32:14.980]  Mist or here on your show, where would they hear it? Yeah. I mean, you'd have to really know where
[32:14.980 --> 32:22.660]  to look to do it. When we were prepping for this podcast, we talked a little bit offline about,
[32:22.660 --> 32:29.300]  with respect to the W-9 and encapsulating that discussion, it's in a very simple syntax is
[32:29.380 --> 32:37.300]  don't ask, don't tell. You know, it's kind of one of those exactly. Yes. And that gets back to
[32:37.300 --> 32:45.300]  whether the ordinary American would be required to deduct and withhold the income tax and pay it
[32:45.300 --> 32:49.380]  over to the government. If the guy who comes and invest doesn't tell you he's a foreigner,
[32:50.500 --> 32:56.340]  there's no obligation on you to ask them. Yeah. Yeah. So the rules can go both ways. They can use
[32:56.340 --> 32:59.860]  it against us, but we can also counter it with them as well is what I'm hearing you say. So
[32:59.860 --> 33:04.980]  there's some encouragement there. Correct. And I'm going to follow up a little bit on the
[33:06.100 --> 33:11.540]  crypto side with respect to capital gains towards the end. As I have a couple other questions I
[33:11.540 --> 33:17.540]  want to address that tie in nicely to your narrative. If you're able to share, you were
[33:17.540 --> 33:22.980]  telling me offline this weekend about a very interesting story concerning a, you don't have
[33:22.980 --> 33:27.460]  to use names or anything like that, but a former prominent tax attorney in New York City and that
[33:27.460 --> 33:31.300]  you were able to go toe to toe with this person and even educate them on some of the notions that
[33:31.300 --> 33:36.740]  they had concerning client advisement on various filings. If you're able to share, can you touch
[33:36.740 --> 33:45.140]  on that story a little bit? Sure. This took place many years ago. And my client was the CEO of a
[33:45.140 --> 33:51.940]  startup. The startup was being funded by three of the wealthiest men in America. And the CEO
[33:53.300 --> 33:58.260]  knew that a form W four is only to be signed by a non-resident alien receiving U.S. source income
[33:58.260 --> 34:06.340]  in the form of wages. So when the, when he was presented with a W four, he said that form isn't
[34:06.340 --> 34:12.820]  for me. Well, this shocked the three investors, three of the wealthiest men in America that their
[34:12.820 --> 34:17.940]  guy who they had handpicked the CEO was saying, I'm not going to sign that it's not for me.
[34:18.820 --> 34:24.260]  So instead of getting into a fight with their CEO, they said, well, you know, let's do a conference
[34:24.260 --> 34:32.340]  call. And so on the call was me, my client, the business manager for the three men.
[34:34.100 --> 34:38.740]  There was a couple of attorneys that worked for the three guys, but then they had paid
[34:38.740 --> 34:44.340]  specifically the woman who had the reputation as the top tax attorney in New York City to
[34:44.340 --> 34:48.420]  participate in the call. And I think it's fair to say that somebody who's considered the top
[34:48.980 --> 34:52.820]  tax attorney in New York City would also be considered one of the top tax attorneys in the
[34:52.820 --> 34:57.620]  country. So here we are all in the call and the call begins to go back and forth a little bit.
[34:57.620 --> 35:01.220]  And the couple of just attorneys are not tax attorneys. They weren't specials.
[35:02.020 --> 35:07.780]  They bowed out pretty quickly. They realized they were way, way in over their head. So then it
[35:07.860 --> 35:13.860]  ended up that it was me and the tax attorney talking back and forth.
[35:16.500 --> 35:21.940]  She had no idea what the hell she was talking about. And I don't say that to pat myself on
[35:21.940 --> 35:28.660]  the back. She had never read most of the laws that we were talking about. He would say, well,
[35:28.660 --> 35:34.420]  the law requires this. And I would say, it does really. Can you give me that section number?
[35:34.420 --> 35:40.020]  Well, I don't know that. And I would say, well, the lucky thing is I do. So let's go there.
[35:40.900 --> 35:46.260]  And we would go there. And I would say, let's read this together. And I would read this. And I'm like,
[35:46.260 --> 35:52.580]  how in any world in the universe does this apply to my client, the CEO?
[35:53.620 --> 35:58.260]  And then she would say, well, the principle of law is this. And I said, no, that's not what
[35:58.260 --> 36:02.740]  the Supreme Court has said. The Supreme Court has said just the opposite. And I would read her
[36:02.740 --> 36:08.100]  from the Supreme Court what it said. And this went on for probably about 20, 25 minutes with
[36:08.100 --> 36:16.100]  her, she and I back and forth. And she got her ass handed to it. And the business manager
[36:16.900 --> 36:21.780]  for these three gentlemen went back to them and said, much to his surprise,
[36:21.780 --> 36:29.140]  that I had cleaned her clock. And it appeared that the CEO was right. He wasn't required
[36:29.140 --> 36:39.300]  to sign a W-4. But I think the important part of that story is most Americans believe that
[36:39.300 --> 36:46.420]  attorneys know the law. I'm here to tell you, after 32 years in this space, there are a few
[36:46.420 --> 36:52.900]  people who know less about the law than attorneys. They are great court proceduralists in many cases.
[36:53.860 --> 36:59.220]  But as far as like, what does it say in this section? What are the words? Like,
[36:59.860 --> 37:05.300]  I don't know, I've never read it. Which is shocking in my book, right? And so,
[37:07.140 --> 37:10.500]  yeah, so, because I think a lot of people, when they hear me speak, John,
[37:11.060 --> 37:16.020]  their point of view is a couple of things. If this was true, my accountant would know it.
[37:16.020 --> 37:24.500]  If this was true, my attorney would know it. If this was true, the media would be telling me,
[37:24.500 --> 37:30.420]  okay? The same people who, the same people who say they don't trust a word out of the media's
[37:30.420 --> 37:38.180]  mouth will look me in the eye and say, if that was true, the media would be telling us. And again,
[37:38.180 --> 37:44.500]  in 32 years, and this is not an exaggeration, what I'm saying about say is literal. In 32 years,
[37:44.500 --> 37:51.540]  I have never met an attorney who, with whom I engaged in a discussion about tax law,
[37:52.100 --> 38:00.020]  who had ever read the law, not one in 32 years. So if people think I'm out of my mind,
[38:00.020 --> 38:03.380]  because attorneys would know, how would they know if they don't read the law?
[38:04.740 --> 38:13.620]  Well, absolutely, David. And I can tell you, like, you know, as a former law enforcement officer,
[38:13.620 --> 38:19.060]  as a former military man, and now in this capacity, it all comes down to training,
[38:19.060 --> 38:23.940]  right? Where did they get the training? You are a protector policy enforcer for the state
[38:23.940 --> 38:29.380]  as an officer. You swore an oath to protect. Well, I'm just saying, you know, in parlance,
[38:29.380 --> 38:34.180]  in, you know, when you were serving the military in the country, and again, we thank you for your
[38:34.180 --> 38:39.620]  service supremely, you swore an oath to protect, you know, the people constitutionally and whatnot.
[38:39.620 --> 38:48.100]  And so similarly, attorneys are, you know, trying to find a nice word for it.
[38:51.540 --> 38:56.900]  Well, yeah, I know. I'm trying to be diplomatic here. But they're basically slaves to the
[38:57.540 --> 39:04.260]  foreign corporation, right? And the British American registry that acts as a liaison,
[39:04.260 --> 39:10.820]  quote unquote, to America. So accountants, they're accountable to the corporation.
[39:10.820 --> 39:15.620]  So they're only as good as they're training. And basically, they're trained,
[39:15.620 --> 39:20.260]  know this, don't worry about this other stuff. Nothing to see here is what I was getting at.
[39:20.900 --> 39:27.220]  And let me validate that point, please. I live about an hour outside of Las Vegas. And UNLV
[39:28.020 --> 39:36.660]  has an accounting program. If UNLV hired me to lecture to the students in the accounting program,
[39:38.420 --> 39:45.220]  that would probably last two or three weeks before a government entity reached out to them and said,
[39:45.220 --> 39:50.100]  if this continues, we're going to pull your accreditation for your accounting program.
[39:50.420 --> 39:58.020]  Hmm. That's how they control this. Any of these institutions where you're saying where they get
[39:58.020 --> 40:06.180]  trained, if they wanted to train them in the truth, they'd lose their accreditation.
[40:06.900 --> 40:13.060]  Yeah. The word I was trying to find, I'm sorry, with Esquire, you know, which is the guise of
[40:13.060 --> 40:18.260]  British, you know, it's the illusion of serving we the people, but it's really serving the
[40:18.340 --> 40:22.820]  corporation. That's, you know, double meaning. Many attorneys still sign their letter like
[40:22.820 --> 40:27.940]  Bob Smith, Esquire. Yeah, yeah, yeah, they do, because they've been trained to do so, to your
[40:27.940 --> 40:32.580]  point. Yeah. A couple other key questions, Dave, with the time that we have, that's precious here.
[40:33.460 --> 40:39.380]  Reading your book, Income Tax, Shattering the Met, there was a very, you had mentioned in there
[40:40.340 --> 40:44.420]  about utilizing your techniques and practices and those who have purchased the book,
[40:44.980 --> 40:49.140]  thus far, and those who will, because you were talking about before that, they came with a
[40:49.140 --> 40:54.260]  precept that you were wrong, and then they wanted to read the book to either, you know, confirm that
[40:54.260 --> 41:00.420]  you were wrong or be shattering the myth that they thought they knew. That ipso facto, by reading the
[41:00.420 --> 41:06.100]  book and studying it copiously, you have claimed that you have virtually 100% success rate as a
[41:06.100 --> 41:14.020]  result. To what do you attribute such a high success rate? It's been a long time coming.
[41:14.020 --> 41:20.020]  Let me say that. I've been at this 32 years. But it comes down to, first of all, understanding the
[41:20.020 --> 41:25.300]  law. That's number one. Then you have to be able to articulate the law clearly. And then it is the
[41:25.300 --> 41:30.820]  right of due process. Now, of course, we've heard more in the last three months about due process,
[41:30.820 --> 41:36.260]  you know, when we look at the headlines, than we probably heard in our entire lifetimes up
[41:36.260 --> 41:41.860]  until the last three months, right? But due process is crucial to this subject, because
[41:41.860 --> 41:46.580]  every single thing the government does concerning income tax is based on
[41:47.220 --> 41:52.740]  presumptions, okay? So for instance, at the bank, we use that example, when they say,
[41:52.740 --> 41:57.700]  well, sorry, if you don't sign the W-9, we can't open the account. So the person signs the W-9.
[41:58.500 --> 42:05.860]  Right then and there, at that instant, they created a legal presumption upon which the IRS
[42:05.860 --> 42:12.100]  will operate and does operate that they are acting as the domestic agent for a foreign person,
[42:12.100 --> 42:16.900]  okay? When a person will say works for, I'm not trying to be critical of GM, I'm just using them
[42:16.900 --> 42:23.620]  because it popped up in my head. If somebody signs a W-4 for a GM, okay? They just certified
[42:23.620 --> 42:28.180]  under penalty perjury that they are non-resident alien receiving US source income in the form of
[42:28.180 --> 42:38.500]  wages, okay? And then GM sends in a W-2 every January against that person. And the W-2 tells
[42:38.500 --> 42:46.580]  the IRS, hey, this guy signed a W-4. So he said under penalty of perjury, he's a US person, I'm
[42:46.580 --> 42:53.220]  sorry, he's receiving US source income in the form of wages as a non-resident alien. And then we go
[42:53.220 --> 42:59.700]  back to the 1040. Who's to sign the 1040? Non-resident alien. So all of this actually
[42:59.700 --> 43:04.580]  flows perfectly. Sign the W-4 where you attest under penalty of perjury that you're a non-resident
[43:04.580 --> 43:10.580]  alien. The W-2 tells the IRS that you did that. Then the IRS demands your 1040, which is to be
[43:10.580 --> 43:16.260]  used by non-resident aliens. And on the W-9 side, right, when you sign a W-9 declaring this isn't
[43:16.260 --> 43:20.580]  my money, it's the foreign guy's money for whom I'm acting as the agent, then you get a 1099
[43:21.140 --> 43:26.820]  that tells the IRS that you certified under penalty of perjury, it's not your money,
[43:26.820 --> 43:35.460]  the foreign guy's. Then the IRS says, where's our money? Where's the return? And remember,
[43:35.460 --> 43:42.180]  those 11 treasury decisions, 1040s to be used by non-resident alien with US source income or the
[43:42.180 --> 43:49.380]  domestic agent who's also the withholding agent, okay? So it all just flows perfectly once you
[43:49.380 --> 43:53.380]  know what you're looking at. But of course, Americanists think the 1040 is for them. They
[43:53.380 --> 43:59.540]  have no idea. It has nothing to do with them. Right. Well, again, Dave, we go back to what we
[43:59.540 --> 44:05.780]  talked about before, entrapment. They basically entrapped you to do business with the corporation,
[44:05.780 --> 44:10.900]  the foreign corporation, to do contracted business, right? It's supposed to do it without
[44:10.900 --> 44:19.220]  prejudice, but it's, yeah. It is literally so easy to destroy the IRS's presumptions using due
[44:19.220 --> 44:29.140]  process. I get that the average Joe is saying, wait, wait, wait, it's so easy against the IRS?
[44:30.260 --> 44:33.700]  Yeah. When you know what the law says- Once you understand it.
[44:33.700 --> 44:34.820]  Yeah. What's that?
[44:34.820 --> 44:38.900]  Once you understand it, once you know how to hack it. Go ahead, I'm sorry.
[44:39.780 --> 44:44.340]  It's like knowing a safe combination, right? So in the movies, the guy's always got a zero
[44:44.340 --> 44:49.860]  up against that and he's spinning the thing. Well, once you know what the combination is,
[44:49.860 --> 44:54.500]  you don't have to crack the safe a second time. From then on out, you just enter the combination.
[44:55.700 --> 45:03.220]  So that's analogous to working your way through until you know enough to just laugh and
[45:03.220 --> 45:06.580]  use due process and they go away for the rest of your life.
[45:07.380 --> 45:12.660]  Yeah. It's kind of like what we did last month with body science. Once you know how to hack
[45:13.540 --> 45:21.060]  your genetic code of eating, you can crack how to have protein gain and weight loss and
[45:21.620 --> 45:25.140]  work your body symmetrically in the right way. This is the same thing, financially speaking.
[45:25.140 --> 45:27.700]  And I see presented- Go ahead, I'm sorry.
[45:27.700 --> 45:31.940]  No, I was going to say, in looking at you here today, you've obviously leaned out.
[45:31.940 --> 45:33.540]  Yeah, I have. It feels good.
[45:33.540 --> 45:36.100]  You are leaner than when I first met you.
[45:36.740 --> 45:41.140]  Oh, yeah. Thank you. I appreciate you saying that because I took your book
[45:41.700 --> 45:47.860]  to the letter and it took me about, like you said, three-ish months to kind of get it
[45:48.980 --> 45:53.540]  in the pocket. But once you figure it out, it starts to do its own thing. When you said
[45:53.540 --> 45:58.100]  presumption, I always think assumption. To me, they kind of go hand in hand.
[45:58.980 --> 45:59.940]  They do. Yeah.
[45:59.940 --> 46:00.500]  Presumptive.
[46:00.500 --> 46:05.540]  Yeah. I think I should look up the difference between presumption and assumption. I don't
[46:05.540 --> 46:08.820]  know if I've ever done that. Yeah. It seems like they're close cousins,
[46:08.820 --> 46:14.020]  you know, but just saying. Last question for the day, Dave, and this goes back to what I
[46:14.020 --> 46:18.340]  promised about talking about with cryptos. I wanted to wait to tie it into the end. So just,
[46:18.340 --> 46:22.980]  you know, bear with me a moment. There's a lot going on with this new administration that we're
[46:22.980 --> 46:27.220]  pretty encouraged about with initiatives, particularly with the IRS, the discussion of
[46:27.220 --> 46:32.260]  ERS and collecting tariffs to take that away from the people and all of that.
[46:32.260 --> 46:36.500]  But what was interesting to me is you probably already know this, but we're seeing a decoupling
[46:36.500 --> 46:43.220]  of the states away from the Fed, DC specifically. For example, Governor Abbott of Texas, a couple
[46:43.220 --> 46:49.060]  weeks ago, I don't know if you're aware, signed a bill into law that is going to allow them to
[46:49.060 --> 46:54.580]  remove capital gains. That has specific implications with respect to foreign currencies and cryptos.
[46:55.140 --> 47:00.500]  So it'll be interesting to see if a lot of states adopt that. And again, for example,
[47:00.500 --> 47:06.260]  interesting little factoid I learned from one of our team members is Texas and Tennessee have a
[47:06.260 --> 47:11.700]  very close symbiotic relationship in business in that since 1801, they have been accepting
[47:11.700 --> 47:18.980]  gold and silver as a legal form of payment. And so as Texas goes, Tennessee tends to fall. So it'll
[47:18.980 --> 47:24.740]  be interesting to see in particular the red states if they follow this pattern.
[47:24.740 --> 47:31.460]  So I ask you, with respect to cryptos in this new discovery of capital gains removal by Texas and
[47:31.460 --> 47:35.380]  hopefully other states, which I believe will happen, how does that effectuate the banking
[47:35.380 --> 47:39.780]  system in your mind to allow Americans to get a loophole around what they're trying to do?
[47:41.620 --> 47:46.820]  So I'm going to use real estate as an example, but this applies 100% to crypto.
[47:47.140 --> 47:53.300]  Okay. So a guy goes out and he buys a property for $400,000. He sits on it for a couple of years and
[47:53.300 --> 48:00.180]  it doubles in value. So he decides who he wants to profit take. So he sells that property. If he's
[48:00.180 --> 48:05.460]  like 99% of the public who doesn't know a thing about tax law, he goes to his accountant and he
[48:05.460 --> 48:11.540]  says, okay, so I have $400,000 in capital gains. So I guess I have to pay capital gains tax. The
[48:11.540 --> 48:20.340]  accountant is going to say, ah, you sure do, buddy. Okay. Now, myself, readers of income tax
[48:20.340 --> 48:24.900]  shadowing the myths, people who know the truth about the income tax, here's how it works for them.
[48:24.900 --> 48:30.980]  They go out and they buy a property for $400,000. It doubles in value. They decide they profit take.
[48:30.980 --> 48:37.940]  They sell the property for $800,000 and they have $800,000. Not a penny of capital gains
[48:38.500 --> 48:45.220]  because capital gains only applies to us source income belonging to foreign persons.
[48:45.220 --> 48:51.300]  It has nothing to do with you or me. The income tax has nothing to do with you or me. And of
[48:51.300 --> 48:56.980]  course, capital gains tax is a part of subtitle a in what people call income tax. Okay. There's
[48:56.980 --> 49:03.060]  nothing in subtitle a, including capital gains that has anything to do with ordinary Americans
[49:03.060 --> 49:09.460]  in America earning their own money. Okay. So, you know, in my case, I would have $400,000
[49:10.340 --> 49:16.100]  in original investment capital back and I would have $400,000 in profit because I made a wise
[49:16.100 --> 49:22.580]  investment. Okay. I would have zero capital gains now to crypto. Same exact thing. You know,
[49:22.580 --> 49:29.060]  people who bought Bitcoin way back in the day, right? What's a single Bitcoin worth now?
[49:30.020 --> 49:34.820]  Uh, let's take a look. Let me take a look real quick. I'll be able to tell you on my,
[49:34.820 --> 49:40.660]  one of my apps, uh, as of this moment, a hundred, just about 105 and a half thousand.
[49:42.020 --> 49:48.020]  Okay. So what did the person pay in originally like back in the first day, just as an example,
[49:48.020 --> 49:50.820]  what did the person pay for a Bitcoin back on day one?
[49:52.340 --> 49:56.900]  I mean, when you got in it anywhere from, uh, pennies to up to $40.
[49:56.900 --> 50:01.540]  Okay. So, and you said it's, it's basically a hundred thousand dollars now.
[50:02.340 --> 50:04.020]  105 and a half thousand.
[50:04.020 --> 50:15.300]  Okay. So let's say for the sake of this discussion that he paid $1. Okay. So that Bitcoin now is
[50:17.140 --> 50:23.700]  to people who don't understand tax law, they would imagine he has $105,000 in capital gains
[50:23.700 --> 50:28.740]  minus $1 for his initial investment. That's how they would see it. In reality,
[50:28.740 --> 50:36.020]  they have $105,000 of gain that is a personal property and not subject to income tax at all.
[50:36.660 --> 50:43.380]  Okay. And then we come back around to the W nine where the exchange tricked the person
[50:43.380 --> 50:49.620]  into declaring that that $105,000 isn't really theirs. It belongs to the foreign person for
[50:49.620 --> 50:55.300]  whom the account holder is acting as a domestic agent. And then the IRS comes to calling and
[50:55.300 --> 51:04.980]  says, where's our money buddy? David, Dr. reality.news. I was throwing that out there.
[51:06.100 --> 51:09.380]  Well, I was good. I was about to get to that actually. So you said, wait, well,
[51:10.580 --> 51:13.780]  other than the fact that I like you and like working with you and you have brilliant
[51:14.340 --> 51:18.820]  ideologies that are time tested and proven in all these areas. Otherwise you wouldn't do it
[51:18.820 --> 51:24.100]  or put your name on it. As you said, 32 years is pretty right. They resume. The timing couldn't
[51:24.100 --> 51:29.940]  be more serendipitous with these financial changes that are happening in our country
[51:29.940 --> 51:33.860]  and throughout the whole of the world. So the timing is ideal. It's one of the things I love
[51:33.860 --> 51:40.820]  to do as an artist is timing. So that's why I felt like this was the perfect time to wait a month and
[51:40.820 --> 51:44.340]  have these things kind of ginned up front of scenes. So you're helping a lot of people
[51:44.340 --> 51:50.580]  with respect to taking advantage of their real rights against what I'm going to call a foreign
[51:50.580 --> 51:56.900]  corporation in the IRS. And also with respect to cryptos and other investments, it really empowers
[51:56.900 --> 52:02.820]  them at a critical time was my point. So Dave, as we wrap things up, you kind of segwayed into it.
[52:02.820 --> 52:06.500]  If people want to hire you for consulting for this, where they want to get the book,
[52:06.500 --> 52:10.180]  can you kind of tell people to get a good buy on that?
[52:11.140 --> 52:21.860]  They can grab the book at the website, which is drreality.news. My email address is dave
[52:21.860 --> 52:26.260]  at drreality.news. Simple as that. I try to keep it simple.
[52:27.060 --> 52:27.540]  Oh, you have.
[52:27.540 --> 52:30.820]  By the way, I'm still trying to recover from serendipitous.
[52:31.860 --> 52:32.340]  You like that?
[52:32.340 --> 52:34.900]  I haven't heard that word in like 30 years.
[52:36.180 --> 52:37.940]  Well, I mean, some words, some words.
[52:38.900 --> 52:42.100]  Yeah, that's awesome. I love the great vocabulary.
[52:42.100 --> 52:45.940]  Well, we got it. We got to do something to bring something to the table for all that you bring.
[52:46.740 --> 52:50.580]  But no, I will. I will leave that link as we always summarily do in the description of this
[52:50.580 --> 52:55.300]  video. And I really pray that this empowers people the way I believe it has and it will.
[52:55.300 --> 52:58.820]  So any final thoughts you have, Dave, for the audience before we part?
[53:00.020 --> 53:03.700]  No, I think we have done a fabulous job. You and I today of getting all this
[53:03.700 --> 53:06.980]  information out to your audience. Thank you for allowing me to do that.
[53:07.060 --> 53:10.020]  Oh, believe me, it's a privilege. So I did a day champion.
[53:10.020 --> 53:12.820]  Thank you for joining the podcast. Once again, very timely.
[53:12.820 --> 53:15.860]  We appreciate all of your efforts and hard work.
[53:15.860 --> 53:19.940]  And it's obviously coming back and paying off well for you and well-deserved.
[53:19.940 --> 53:21.460]  Thank you for your service to the country.
[53:21.460 --> 53:25.860]  And we want to wish you preemptively a very safe and happy fourth holiday.
[53:25.860 --> 53:27.620]  And we'll look forward to seeing you again shortly.
[53:28.420 --> 53:29.780]  Thanks, John. Take care.
[53:29.780 --> 53:30.420]  Take care.