Synaptic Sparks

Kluge

There are those who make their living by dealing with tax issues. I have argued with them at length on the internet while doing my due diligence examination of the tax law.

Their best answer to the question, "What law makes me liable for the income tax?" was to assert that section 1, section 6012, and section 6051 "TOGETHER" create the "liability". I will present the cited statutes and, as before, state the obvious.

The Supreme Court has stated:

In the interpretation of statutes levying taxes it is the established rule not to extend their provisions, by implication, beyond the clear import of the language used, or to enlarge their operations so as to embrace matters not specifically pointed out. In case of doubt they are construed most strongly against the government, and in favor of the citizen." GOULD v. GOULD, 245 U.S. 151 (1917).

... [T]he well-settled rule ... the citizen is exempt from taxation unless the same is imposed by clear and unequivocal language, and that where the construction of a tax law is doubtful, the doubt is to be resolved in favor of those upon whom the tax is sought to be laid... SPRECKELS SUGAR REFINING CO. v. MCCLAIN, 192 U.S. 397 (1904)

The obvious:

As you read this legal contortion that purports to create a liability, ask yourself if this looks like the imposition of a liability for the income tax in clear and unequivocal language as the Supreme Court says is required, or if this looks like a kluge.

kludge or kluge n. Slang. A system, especially a computer system, that is constituted of poorly matched elements or of elements originally intended for other applications.
Source: American Heritage Electronic Dictionary
TITLE 26 - INTERNAL REVENUE CODE
Subtitle F - Procedure and Administration
CHAPTER 62 - TIME AND PLACE FOR PAYING TAX
Subchapter A - Place and Due Date for Payment of Tax

Sec. 6151. Time and place for paying tax shown on returns

(a) General rule
Except as otherwise provided in this subchapter, when a return of tax is required under this title or regulations, the person required to make such return shall, without assessment or notice and demand from the Secretary, pay such tax to the internal revenue officer with whom the return is filed, and shall pay such tax at the time and place fixed for filing the return (determined without regard to any extension of time for filing the return).

In other words, when a tax is due and shown on a return form, the payment of that tax must accompany the form when and where required.

Because the statute says, "the person required ... shall ... pay such tax..." the "experts" claim this statute imposes a liability for the income tax.

Also:

The "Disclosure, Privacy Act, and Paperwork Reduction Act Notice" in the instructions of the Form 1040 state:

Our legal right to ask for information is Internal Revenue Code sections 6001, 6011, and 6012(a), and their regulations. They say that you must file a return or statement with us for any tax you are liable for.

It is an instruction in accordance with this law:

26 CFR 31.6011 (a)-10

§ 31.6011 (a)-10   Instructions to forms may waive filing requirement in case of no liability tax returns.

Notwithstanding provisions in this part which require that a tax return be filed, the instructions to the form on which a return of tax is otherwise required by this part to be made may waive such requirement with respect to a particular class or classes of no liability tax returns. Returns in a class for which such requirement has been so waived need not be made.

This Treasury decision is not adverse to any taxpayer. For this reason, it is found unnecessary to issue this Treasury decision with notice and public procedure under subsection (b) of section 553 of title 5 of the United States Code or subject to the effective date limitation of subsection (d) of that section.

[T.D. 8229, 53 FR 35811, Sept. 15, 1988]

This creates a catch-22 for the "expert's" claim that the section 6151 statute creates liability.

The "experts" forgot to raise this argument, not even knowing that the argument is pre-empted by the regulation shown above interpreting this statute's command.

TITLE 26 - INTERNAL REVENUE CODE
Subtitle F - Procedure and Administration
CHAPTER 61 - INFORMATION AND RETURNS
Subchapter A - Returns and Records
PART II - TAX RETURNS OR STATEMENTS
Subpart A - General Requirement

-HEAD-
Sec. 6011. General requirement of return, statement, or list

-STATUTE-
(h) Income, estate, and gift taxes
For requirement that returns of income, estate, and gift taxes be made whether or not there is tax liability, see subparts B and C.

The "experts" know section 6151 doesn't create a duty to file a form and can NOT create a tax liability UNLESS a form is filed, so they MUST invoke section 6012(a).

TITLE 26 - INTERNAL REVENUE CODE
Subtitle F - Procedure and Administration
CHAPTER 61 - INFORMATION AND RETURNS
Subchapter A - Returns and Records
PART II - TAX RETURNS OR STATEMENTS
Subpart B - Income Tax Returns

Sec. 6012. Persons required to make returns of income

(a) General rule
Returns with respect to income taxes under subtitle A shall be made by the following:
(1)(A) Every individual having for the taxable year gross income which equals or exceeds the exemption amount, except that a return shall not be required of an individual - [Exceptions omitted]

Compare the above impositions with the previously cited persons required under authority of law to submit their TIN's as shown on the W-4 Instructions Say page:

26 CFR 301.6109-1 Identifying numbers.

(b) Requirement to furnish one's own number—
(2) Foreign persons.
(i) A foreign person that has income effectively connected with the conduct of a U.S. trade or business at any time during the taxable year;
(ii) A foreign person that has a U.S. office or place of business or a U.S. fiscal or paying agent at any time during the taxable year;
(iii) A nonresident alien treated as a resident under section 6013(g) or (h);
(vi) A foreign person that furnishes a withholding certificate described in § 1.1441-1(e)(2) or (3) of this chapter or § 1.1441-5(c)(2)(iv) or (3)(iii) of this chapter to the extent required under § 1.1441-1(e)(4)(vii) of this chapter;
(vii) A foreign person whose taxpayer identifying number is required to be furnished on any return, statement, or other document as required by the income tax regulations under section 897 or 1445. This paragraph (b)(2)(vii) applies as of November 3, 2003; and
(viii) A foreign person that furnishes a withholding certificate described in § 1.1446-1(c)(2) or (3) of this chapter or whose taxpayer identification number is required to be furnished on any return, statement, or other document as required by the income tax regulations under section 1446. 

Regardless of section 6012 appearing to require individuals without a tax liability to file a Form 1040 tax return, there is that little issue of the Constitution and what the Supreme Court says about the requirement to tell the State about your finances:

[W]e are of the opinion that there is a clear distinction in this particular between an individual and a corporation, and that the latter has no right to refuse to submit its books and papers for an examination at the suit of the state. The individual may stand upon his constitutional rights as a citizen. He is entitled to carry on his private business in his own way. His power to contract is unlimited. He owes no duty to the state or to his neighbors to divulge his business, or to open his doors to an investigation, so far as it may tend to criminate him. He owes no such duty to the state, since he receives nothing therefrom, beyond the protection of his life and property. His rights are such as existed by the law of the land long antecedent to the organization of the state, and can only be taken from him by due process of law, and in accordance with the Constitution. Among his rights are a refusal to incriminate himself, and the immunity of himself and his property from arrest or seizure except under a warrant of the law. He owes nothing to the public so long as he does not trespass upon their rights.

Upon the other hand, the corporation is a creature of the state. It is presumed to be incorporated for the benefit of the public. It receives certain special privileges and franchises, and holds them subject to the laws of the state and the limitations of its charter. Its powers are limited by law. It can make no contract not authorized by its charter. Its rights to act as a corporation are only preserved to it so long as it obeys the laws of its creation. There is a reserved right in the legislature to investigate its contracts and find out whether it has exceeded its powers. It would be a strange anomaly to hold that a state, having chartered a corporation to make use of certain franchises, could not, in the exercise of its sovereignty, inquire how these franchises had been employed, and whether they had been abused, and demand the production of the corporate books and papers for that purpose.
HALE v. HENKEL, 201 U.S. 43 (1906)

There is a clear distinction between a corporation and an individual. The corporation is required to open its books, the individual is not.

Also, remember from The 1040 Instructions Say... page:

Therefore, if the "income" is exempt and not taxable, then section 6012 can not trigger.

This is the third statute cited by the "experts" in order to kluge a liability and thus I must present it again.

TITLE 26 - INTERNAL REVENUE CODE
Subtitle A - Income Taxes
CHAPTER 1 - NORMAL TAXES AND SURTAXES
Subchapter A - Determination of Tax Liability
PART I - TAX ON INDIVIDUALS

-HEAD-
Sec. 1. Tax imposed

(a) Married individuals filing joint returns and surviving spouses
There is hereby imposed on the taxable income of - [...] a tax determined in accordance with the following table:

[Tables omitted]

(b) Heads of households
There is hereby imposed on the taxable income of [...]
a tax determined in accordance with the following table:
(c) Unmarried individuals
There is hereby imposed on the taxable income of [...]
a tax determined in accordance with the following table:
(d) Married individuals filing separate returns
There is hereby imposed on the taxable income of [...]
a tax determined in accordance with the following table:
(e) Estates and trusts
There is hereby imposed on the taxable income of [...]
a tax determined in accordance with the following table:

In all five subsections, "There is hereby imposed on the taxable income" - "a tax determined in accordance with the following table:". 

Five classes of taxable items; five tables; five different tax rates imposed using clear and unequivocal language. 

Zero impositions of liability using clear and unequivocal language.

The clear import of the language used does NOT impose a liability to pay the tax imposed. Liability for the tax imposed is a matter not specifically pointed out in this statute. It is specifically pointed out in the statutes listed on The Income Tax page.

On The Income Tax page, I presented who is required to pay the income tax because the liability (legal obligation) for that tax was imposed by clear and unequivocal language as required by the Supreme Court. I did the same for the distilled spirits tax on the page before that. 

Now that you know what to look for, do you see an income tax liability imposed in clear and unequivocal language in section 1? In section 6012? In section 6151? Or do you see an implied income tax liability that takes advantage of your previous ignorance?

Section 1, where the "income" tax is imposed, is the very first code section you would find if you were to thumb through a printed Internal Revenue Code book.

In this author's opinion the words were carefully chosen to imply that section one is defining 5 classes of domestic Citizens and imposing a liability upon them. If you already "believe" - "There must be a law somewhere that says everybody has to pay the income tax", then you will "believe" section 1 is that law when you read it.

"What law makes me liable for the income tax?"

You've read the answer of the "experts". 

I find their answer unconvincing in view of what I have presented.

When this stuff was originally written (more accurately - rearranged) in 1954, printed books were the method of promulgating the law. The writers had no clue that computers, the Internet, and search engines were coming to blow the lid off of their attempt to hide the true application of the tax law.

Here is something to think about: