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by Frederick
Mann For most people -- including you,
the reader -- there may be a huge potential payoff if you can legally and relatively
safely reduce your taxes to the absolute minimum. Achieving Fiscal Freedom -- or coming as
close to it as possible and prudent -- may bring about a dramatic expansion of your level
of freedom, not to speak of your financial well-being.
Most of what follows applies to the US. Some of the
strategy and tactics suggested may also apply to Canada -- see Detax Canada -- and Australia (being researched).
Elsewhere, your best strategy is probably to earn income
outside "high-tax jurisdictions" -- see the Freedom Technology Resource
Directory, Live Free and Offshore
sections, as well as the the Offshore Pages on this
website.
For many people, the first decision is probably to decide
whether it's worth it to explore this area. For most people there may be a huge potential
payoff if you can legally and relatively safely reduce your taxes to the absolute minimum.
Achieving Fiscal Freedom -- or coming as close to it as possible and prudent -- may bring
about a dramatic expansion of your level of freedom, not to speak of your financial
well-being.
I believe that you can take a "brief preliminary
tour" of a number of web pages, and based on this brief exploration, make a decision
whether or not to study the area of fiscal freedom in more depth. I suggest you don't
spend too much time at any particular website; the main idea is to find out what
information, options, resources, and support might be available to you, whether anyone is
actually "beating the taxman," and how easy or difficult it might be.
Don't be deterred by "IRS terror stories" from
the media. They tend to create a very slanted picture in that they don't highlight the
millions who successfully "beat the IRS" every year. Anyway, here are the
websites to explore:
- American
Contracting Services. If you work for a company that automatically deducts some of
your pay, you may be able to arrange that they lease you through AMC, much as they would
lease someone from ManPower.
- Henry
Newman's Tax Freedom Network. Have a quick look at this page.
- LAW and DEFENSE - Attorney
Joe Izen. You can use the Fifth Amendment to refuse to provide the IRS with
information.
- Ferris Magnuson,
Jr. Dedicated to any person who wants to learn about his rights, as guaranteed by the
5th Amendment, particularly relating to the IRS. Important information on opinion letters.
- Enrolled
Agent John J. Schlabach. You can get an official opinion letter from an IRS-recognized
authority that tells you about your obligations, if any, to the IRS.
- Curtis and
Curtis - Attorney at Law. You can get an official opinion letter from an Officer of
the Court and legal authority that tells you about your obligations, if any, to the IRS.
- Bill Conklin - Paralegal
and Tax Consultant. Note the cases he has won. He also provides professional opinion
letters.
- Former
Judge John Rizzo. Besides providing general assistance in dealing with the IRS, he
also provides professional opinion letters.
- IRS
Defense. A substantial list of experts to provide opinion letters concerning your
obligations, if any, to the IRS.
- Freedom Technology Core
Concept #3. Here you can get some idea of the potential risk involved in attempting to
"beat the IRS."
- 'Is the
Federal Income Tax Mandatory or Voluntary?' by Larry Becraft, Attorney at Law,
Huntsville, Alabama
- 'Unvolunteering From the IRS
(An Actual Case History)'. A Comprehensive example of how to handle IRS
correspondence.
- Tax
Tactics. Dawn Miller's expertise on decoding IRS letters and the IMF (Individual
Master File). Probably the most comprehensive information available on how to respond to
IRS letters and demands.
- Tenessee
Man Freed on Tax Charges.
- Maryland
Man Beats IRS.
- 'Case Dismissed upon
Demand for Bill of Particulars' by Robert Wangrud.
The purpose of the above is to provide you with information
to enable you to make a rational decision as to whether further study is worth your time.
Note that I'm not yet suggesting that you decide whether or not to exit the tax system. I
believe that decision may require further study first.
Suppose it's going to take 50 hours of further study to
determine whether or not you should exit the tax system. Suppose that you value your time
at $50 per hour. That would mean that the price of preparing to make the decision will
$2,500 in invested time.
Suppose that, from taxes you would otherwise pay, you would
save $25,000 per year if you exited the tax system -- a conservative estimate for someone
who earns $50 per hour or $100,000 per year.
Suppose that you can now "guesstimate" that after
having spent a further 50 hours studying, there will be a 10% chance of you deciding to
actually exit the tax system. This calculates to a potential benefit gained from your 50
hours of study of $25,000 divided by 10, equaling $2,500. This would make it a break-even
proposition -- except that the $2,500 price for studying doesn't represent out-of-pocket
expenses, while the $2,500 projected gain represents potentially extra cash in your
pocket.
Many individuals and businesses who "toe the
line," file "their returns," and pay "their taxes" have been
ruined by the IRS. If you meekly obey them, there's a risk they'll ruin you. By obeying
them, you also provide them with information they can use against you.
If you decide to exit their system, you stop providing them
with information they can use against you. On the one hand, it's now more difficult for
them to ruin you; on the other hand, because you're defying them (from their perspective),
they may decide to attempt to ruin you.
I suggest that after 50 hours of study you may be in a
position to legally exit the tax system with no more risk than driving your car. But the
decision whether or not to exit the tax system should be taken after the 50 hours of
study.
Here's what you may want to study:
A final very important point to appreciate is that if you
handle correspondence from the IRS appropriately and competently -- and all the examples
you need for doing this are available to you at the links I've provided -- you can reduce
the risk of having to defend yourself in court so it's far below your risk of dying in a
car accident.
Here's wishing you Fiscal Freedom!
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