Wage Earners Should Consider Possibility of Suing IRS for Tax Refunds Rather Than Filing Exempt W-4 Forms by Bill Conklin The Correspondent Columnist Many individuals who are employed are having a great deal of difficulty with the Freedom Movement. They were used to filing an exempt W-4 and then taking their funds home during the year. At the end of the year, they would not file tax returns. Of course, the government was caught off guard, but after several years, the $500 penalty was instituted. The government has repeatedly used this penalty to punish individuals who have filed exempt W-4 forms. Furthermore, the exempt W-4 is routinely used as an element of willfulness in criminal trials; and juries are routinely convicting. To top it all off, individuals who are employed are not judgment proof because the IRS can garnish their wages. Although some individuals are aware that it is not reasonable to not file a tax return except upon the advice of counsel; there are thousands of individuals who persist in not filing and not seeking professional advice regarding their position, in spite of the fact that such a stand creates unnecessary civil and criminal liability. People obviously learn very slowly. To make the situation worse, there are individuals who are considered Gurus in the Freedom Movement who continue to advise their followers to do things that will cause them to lose their property. Unfortunately, it seems that many Freedom Movement gurus are simply unrealistic in their approach with the wage-earning public. These gurus are judgment proof, they earn their living from the followers in the movement; but the followers don't enjoy the same standards of protection. Hence, many followers are unwittingly led toward the slaughter at the hands of the IRS: homes are destroyed, marriages are destroyed, and the IRS is making thousands of dollars confiscating property of the unwary. If you are a wage earner, you are not judgment proof. You will have to quit your job or capitulate if the IRS garnishes your wages. Although there is the possibility of injunctive relief, it is no sure winner; and the injunctive relief suit would be better filed as a refund suit which has clear jurisdiction in the Internal Revenue Code. It is for the above reasons that I believe the use of an exempt W-4 for wage earners is obsolete and a new creative approach must be taken. Whereas the self-employed individual may truly be judgment proof because his source of income comes from many sources, the poor wage earner can be controlled with a mere letter from the IRS. It is the rare employer that will not capitulate to an IRS demand, and furthermore, the IRS may simply take funds from an employer if he refuses to honor a levy. With these ideas in mind, you might consider a new approach. It is unlikely that the IRS will be able to damage you either civilly or criminally if your employer has sent the tax to them. Now, remember that the Freedom Movement is not about saving money. It is about freedom, therefore it won't bother you if the employer sends in the funds; you will then be in a position to sue to get your money back. If your employer requires you to fill out a W-4 as a condition of your employment, then sign the W-4 with a statement attached attesting to the fact that you are signing under duress as a condition of employment and that you don't consider yourself to be liable for the income tax. (or whatever other Patriot argument you wish to make). Put an amount of allowances that will allow you a refund of a couple of hundred dollars (even using the IRS' interpretation of the law). Now if you have opinion letters from attorneys and other professionals, you know that you cannot be required to file a tax return; you don't have to file. However, if you want to get your money back (that the employer has sent to the IRS), then you should file a claim for a refund. Of course, you should use your own form if you object to the use of government forms); after six months, or after a refusal of the IRS to refund your money, you can sue in the District Court for a refund. Now there are many arguments that are currently popular in the movement. There is the argument that there is no jurisdiction for the income tax, there is the argument that the assessment is not proper, there is the argument that there is no statute that makes you liable, etc. Don't you think it would be more fun to fight the IRS from an offensive standpoint than from a defensive standpoint? And all you have to do to create this situation is let your employer send the money to the IRS and then sue. There are those of you in the movement who will still insist on the use of an Exempt W-4 or on trying to eliminate withholding some other way; but I ask you to consider this thought: If you need the job now, how do you know that you won't need the job when the IRS garnishes your wages? Can you live on $75.00 a week? If not, then let the IRS have the money; don't file a return, if you have been advised by counsel that you are not required to file; file a claim for a refund using your own format and sue in the federal district court for a refund. Then sit back and fantasize: "What would happen if only 10,000 individuals out of the 250 million in this country would file refund claims from an offensive posture each year instead of filing tax returns? Have fun with your fantasy and please, for your own sake, learn to fight smart. There is no need to break up your marriage, have a nervous breakdown or lose your livelihood over this battle. If you must be employed, deal with the reality of your situation, and plan accordingly. Good Luck. Remember fighting the IRS is a blast and enjoy yourselves. *** .Posted to Freedom Fighters BBS 406-295-5611 .