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Subject: Employee wants WISD to stop withholding taxes


Author:
Joey Dauben
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Date Posted: 19:47:23 04/10/05 Sun

Employee wants WISD to stop withholding

Fmr. fire chief works as bus driver

JOEY DAUBEN
The Ellis County Press

WAXAHACHIE - Jimmy Turner is honest about taxes: if the Internal Revenue Service laws don't require him to pay income taxes, why pay them?

That's the message he sent Monday to the Waxahachie Independent School District, Turner's employer, when he filed an IRS statement of citizenship, an affidavit requesting the WISD to not withhold his payroll taxes.

Publication 515: Withholding of Tax on Non-Resident Aliens & Foreign Entities, which the citizenship statement cites, states: "the amount that must be withheld from the disposition of a U.S. real property interest can be adjusted by a withholding certificate issued by the IRS."

The transferee, in this case Turner, and the transferee's agent, or employer, "may request a withholding certificate [see chart accompanying this story]. The IRS will generally act on these requests within 90 days after receipt of a complete application including the TINs of all the parties to the transaction. A transferor that applies for a withholding certificate must notify the transferee in writing that the certificate has been applied for on the day of or the day prior to the transfer."

Though risky, Turner said what he is doing is fully legal, and his motives are to educate others to do the same thing.

"If an employee files the statement of citizenship, according to IRS Publication 515, the employer must contact the IRS international office in Philadelphia," said Turner, a former Waxahachie fire chief and Ellis County coordinator for We The People, a tax honesty organization. "They must contact [the office] and by law, they are supposed to withhold."

The statement of citizenship, Turner said, is an affidavit citizens can obtain from various organizations declaring their non-resident status.

In other words, Turner claims himself as an American national, not a "corporate citizen" bound by the laws of commercial law, which he said the IRS codes apply to.

Turner said he bought his tax materials, along with the statement of citizenship, from the Save-A-Patriot Foundation, a Constitutionally-based legal organization, for $1,000.

He said the efforts are laying the groundwork to fully withhold payroll taxes and reporting to the IRS in the future.

"They're [IRS] convinced without a shadow of a doubt that they're right, but when you show them their own law, they're silent," Turner said. "It's their own laws [that say you don't have to withhold]."

The IRS laws and codes, according to Turner and other tax honesty advocates, apply only to a person's foreign-derived income, not domestic income.

"We've petitioned for a request of grievances to demand that the IRS show us where in their law it says domestic income [is taxable], and we have yet to hear from them," Turner said, who noted there are former IRS agents behind the tax honesty movement, some of which have already been, or are waiting to go, to trial. "It's all about educating the public on what our rights are, and what the laws really say."

IRS officials have not returned numerous e-mails and phone calls seeking comment for this story.



Chart-Publication515

IRS Publication 515 - Withholding Certificates
A withholding certificate may be issued due to:

- A determination by the IRS that reduced withholding is appropriate because either:

- The amount that must be withheld would be more than the transferor's maximum tax liability, or

- Withholding of the reduced amount would not jeopardize collection of the tax,

- The exemption from U.S. tax of all gain realized by the transferor, or

- An agreement for the payment of tax providing security for the tax liability, entered into by the transferee or transferor.

Applications for withholding certificates are divided into six basic categories. This categorizing provides for specific information that is needed to process the applications. The six categories are:

- Applications based on a claim that the transfer is entitled to nonrecognition treatment or is exempt from tax,

- Applications based solely on a calculation of the transferor's maximum tax liability,

- Applications under special installment sale rules,

- Applications based on an agreement for the payment of tax with conforming security,

- Applications for blanket withholding certificates, and

- Applications on any other basis.

Source: IRS.gov Web site

http://www.irs.gov

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