May. 1996 - The National Educator


Legal doubts exist about Fed's legality
By LARRY BECRAFT Attorney at law 

If someone from a third world country were to Visit ours and watch seven 
movies about time travel such as 'Back to the Future,' that individual most 
likely would be convinced that our science had conquered the dimension of 
time. But we all know that what is depicted in the movies often is not true 
and based on fact thus our visitor would have reached a false conclusion. 
Signilarly, in the freedom movement there are lots of publications expressing 
positions and opinions about the law, but the natural question to ask is 
whether such arguments are truly based on law and fact. But besides the 
necessity of being legally correct, these arguments must further be tested as 
to judicial acceptability.

Back in about 1983 a contention was made that the Internal Revenue Service 
was an old Delaware corporation first formed in 1933. If the IRS was really 
that defunct private cotporation, then why was Congress apporpriating funds 
for the internal Revenue Service more than ten years before? In those days, 
at least one pro Sc litigated this issue and lost; sce Young v. IRS, 596 
FSupp. 141, 147 (N.D. Ind. 1984). But regardless of the complete lack of 
merit for this position, it is a very prevalent, although false belief today. 
The real question concerning the status of the IRS is whether it was legally 
created by an act of Congress. Can anyone find the enabling act for the IRS 
in the tax code or any other statute? 
How about the popular argument that we are really non-resident aliens in 
reference to the federal income tax? Regardless of the merits ofthe argument, 
sevearal parties have already raised this issue which has been rejected by 
the courts; see U.S. V. Sloan, 939 F.2d 499, 501 (7th Cir. 1991); United 
States v. Jagim, 978 F.2d 1032, 1036 (8th Cir. 1992); and U.S. v. Hilgeford, 
7 F.3d 1340, 1342 (7th Cir. 1993). If you wish to see the fate of the 
argument that wages are not income, you should perhaps read Jeff Dickstein's 
excellent book, Judidal Tyranny.
The popular argument that the Treasury Department as well as the IRS area 
part of the International Monetary Fund has been rejected by the courts; See 
U.S. v. Rosnow, 977 F.2d 399,413(8th Cir. 1992); U.S. v. Jagim,978 F.2d 1032, 
1036 (8th Cir. 1992); and United States V. Higgins, 987 F.2d 543,545(8th Cir. 
1993). Many people think that the UCC controls our relationship with 
government, but this issue too has failed judicial review; see Richey v. Ind. 
Dept. of State Revenue, 634 N.E. Zd 1375 (Ind. 1994), which raiscd this and 
other issues. People who have filed liens against government agents have been 
sent to jail; see U.S V. Dykstra,991 F.2d450(8th Cir.)     

The National Educator is a California based publication.