California Court rules that the IRS has no authority to tax
May 01, 2007
Here is an interesting article showing how the treasury department was challenged by subpoena to show a Statute allowing the IRS to create tax liability for the American public. The legal deadline passed without any attempt to do so. They could not do so, because they have created tax liability with REGULATIONS instead of by Statute. Only Congress can pass Statutes, and regulations are not Acts of Congress.
Since the deadline has now passed (March 27, 2007), even they were to produce such a statute today, it would be irrelevant. Of course, the law is one thing, and reality is another. Many government officials act as if they are above the law--"all for the common good of the nation," of course. Or so they say. Yet this might prove to be an interesting beginning of something. I suspect that if it becomes too well known, Congress will just pass a Statute under which the IRS can operate legally, and then make it retroactive to the beginning! Yet the article below is worth reading.
Dr. Stephen Jones