I'll tell you the secret. Or at least what has worked for me and others.
There is nothing in the law that says you have to report anything to the IRS. They are technically a foreign entity (District of Columbia).
Most people prepay their taxes by having it withheld from their paycheck. There is nothing in the law that says it has to be done this way. You can tell your HR department that you wish to handle your taxes on your own and to not withhold from your check. They might look at you sideways but it's your right.
Where people get into hot water is when they continue to report their income and decide not to pay what they "owe".
The moment you submit that filing is the moment you become liable. If you lie about how much you made in order to pay less taxes, you are liable, because you contracted with them and did so dishonestly. If you try to argue with what they calculated based on what you reported, then you are being belligerent and a court may hold you in contempt.
I've never heard of a case where someone got their door busted down for not reporting their income.
I really wish people would understand this because if we all just demanded an end to tax withholding, the government's funds would immediately dry up. They wouldn't make it to next week, let alone next year.
Right. A concerted effort based on something as simple as protesting everything being sent to places like Ukraine and Isreal would be all it would take.
How do you not report? As 1099 everyone that writes me a check surely reports it. And all the IRS has to do is ask a bank to see my account. If I file once, have I forever waived my 5th amendment?
I was talking about tax withholding as a W-2 employee. It's different for 1099.
As 1099 there is no tax withholding, but you are expected to report according to what type of entity the payment is going to. I'm not sure if it's different for LLCs vs sole proprietors, but if you pay employees, there is a payroll tax, which is a liability for the employer. My understanding is that the payroll tax is what gets split between the employee and employer and withheld as "income tax". It's not a law, it's just employers spreading out the loss by making employees share the burden.
The only reason that is done (in my opinion) is so that when people go to file their tax report, they are asking for their money back because they overpaid. So instead of the "tax bill" being a literal bill that you have to pay, you are incentivized to file in order to get a refund. If you prepay through withholdings all year and then don't file, no problem, the government is happy to keep your money.
But why give the government an interest-free loan?
How do you not report? As 1099 everyone that writes me a check surely reports it.
I'm not a CPA so I don't want to say anything inaccurate, but what does it matter if your checks get reported? The liability doesn't exist until you file and report your full accounting to determine profits and losses. As an LLC I don't know if there are reporting requirements, there might be. I only know as a W-2 employee you can exercise your right to collect your entire check with no withholding. Whether you report it is up to you.
If I file once, have I forever waived my 5th amendment?
But if one works a full time job for an employer, doesn't that employer report your earnings to the IRS? And then when you get you W2, are you not bound to report earnings via that W2?
But if one works a full time job for an employer, doesn't that employer report your earnings to the IRS?
Yes, but so what? They report what they paid you, but that doesn't make you liable for anything. You can go ahead and file a report, but what I'm trying to say is that you can exercise your right to not have your taxes withheld upfront. The only reason that is done (in my opinion) is so that when people go to file their tax report, they are asking for their money back because they overpaid. So instead of the "tax bill" being a literal bill that comes out of your pocket, you are incentivized to file in order to get a refund. If you prepay through withholdings all year and then don't file, no problem, the government is happy to keep your money.
And then when you get you W2, are you not bound to report earnings via that W2?
Without getting too deep in the weeds, I'll just say it all stems from the use of the SSN, claiming to be a "US Citizen" which is a fiction that "lives in" DC, and claiming to be a US Citizen legally puts you in the District of Columbia and makes you a subject. So that's part of it, and to correct your status involves several steps like converting your passport to a state national so that you are officially on record as NOT being a US Citizen (as defined in case law) and not residing in the District of Columbia. Then you can correct your contracts with your employer to reflect that you are non-citizen national and being paid as a foreign entity (foreign to DC).
That's the jist of it but I know it's a lot to wrap your head around. They don't make it easy, for sure, but I have done everything above so I can confirm it is a real thing.
Yes, this is all very complicated. I am learning that much of our system is illegal, and that complexity is designed such that people cannot easily fight the system.
But all that being said, I still want to see someone who armed with this knowledge, has prevailed over that system.
The law is what the guy with the power says it is.
The law is what the guy with the power says it is.
I understand the tendency to think that way. Honestly, it was a major hurdle to get over, but it was learning about the very foundations of law and how the institution itself comes directly from the Bible, starting with the Magna Carta, Declaration of Independence, etc, and then learning about how exactly it got corrupted along the way, that I realized there is an order to the madness.
I was learning all this at the same time Trump was in office, and that's when I started to pay attention to his actions and could see what he was doing, i.e. doing everything by the book, because at the end of the day, the power is with the People, and he knows something and I think he is demonstrating how to fight corruption by exposing it publicly.
It is not the institution of law itself that is corrupt, it's the people within the institution that sell out and fail to honor their oath.
I'll tell you the secret. Or at least what has worked for me and others.
There is nothing in the law that says you have to report anything to the IRS. They are technically a foreign entity (District of Columbia).
Most people prepay their taxes by having it withheld from their paycheck. There is nothing in the law that says it has to be done this way. You can tell your HR department that you wish to handle your taxes on your own and to not withhold from your check. They might look at you sideways but it's your right.
Where people get into hot water is when they continue to report their income and decide not to pay what they "owe".
The moment you submit that filing is the moment you become liable. If you lie about how much you made in order to pay less taxes, you are liable, because you contracted with them and did so dishonestly. If you try to argue with what they calculated based on what you reported, then you are being belligerent and a court may hold you in contempt.
I've never heard of a case where someone got their door busted down for not reporting their income.
I really wish people would understand this because if we all just demanded an end to tax withholding, the government's funds would immediately dry up. They wouldn't make it to next week, let alone next year.
Disclaimer: Not a lawyer, not tax advice, YMMV.
I would expect you to get into trouble if you don't pay.
I have always wondered what would happen if you pled the fifth on your tax forms. What would happen if we all did?
The only reason they need these documents is so that they can be used against you in court.
Right. A concerted effort based on something as simple as protesting everything being sent to places like Ukraine and Isreal would be all it would take.
How do you not report? As 1099 everyone that writes me a check surely reports it. And all the IRS has to do is ask a bank to see my account. If I file once, have I forever waived my 5th amendment?
I was talking about tax withholding as a W-2 employee. It's different for 1099.
As 1099 there is no tax withholding, but you are expected to report according to what type of entity the payment is going to. I'm not sure if it's different for LLCs vs sole proprietors, but if you pay employees, there is a payroll tax, which is a liability for the employer. My understanding is that the payroll tax is what gets split between the employee and employer and withheld as "income tax". It's not a law, it's just employers spreading out the loss by making employees share the burden.
The only reason that is done (in my opinion) is so that when people go to file their tax report, they are asking for their money back because they overpaid. So instead of the "tax bill" being a literal bill that you have to pay, you are incentivized to file in order to get a refund. If you prepay through withholdings all year and then don't file, no problem, the government is happy to keep your money.
But why give the government an interest-free loan?
I'm not a CPA so I don't want to say anything inaccurate, but what does it matter if your checks get reported? The liability doesn't exist until you file and report your full accounting to determine profits and losses. As an LLC I don't know if there are reporting requirements, there might be. I only know as a W-2 employee you can exercise your right to collect your entire check with no withholding. Whether you report it is up to you.
It's by year, so no, every year is a new leaf.
But if one works a full time job for an employer, doesn't that employer report your earnings to the IRS? And then when you get you W2, are you not bound to report earnings via that W2?
Yes, but so what? They report what they paid you, but that doesn't make you liable for anything. You can go ahead and file a report, but what I'm trying to say is that you can exercise your right to not have your taxes withheld upfront. The only reason that is done (in my opinion) is so that when people go to file their tax report, they are asking for their money back because they overpaid. So instead of the "tax bill" being a literal bill that comes out of your pocket, you are incentivized to file in order to get a refund. If you prepay through withholdings all year and then don't file, no problem, the government is happy to keep your money.
Without getting too deep in the weeds, I'll just say it all stems from the use of the SSN, claiming to be a "US Citizen" which is a fiction that "lives in" DC, and claiming to be a US Citizen legally puts you in the District of Columbia and makes you a subject. So that's part of it, and to correct your status involves several steps like converting your passport to a state national so that you are officially on record as NOT being a US Citizen (as defined in case law) and not residing in the District of Columbia. Then you can correct your contracts with your employer to reflect that you are non-citizen national and being paid as a foreign entity (foreign to DC).
That's the jist of it but I know it's a lot to wrap your head around. They don't make it easy, for sure, but I have done everything above so I can confirm it is a real thing.
Yes, this is all very complicated. I am learning that much of our system is illegal, and that complexity is designed such that people cannot easily fight the system.
But all that being said, I still want to see someone who armed with this knowledge, has prevailed over that system.
The law is what the guy with the power says it is.
I understand the tendency to think that way. Honestly, it was a major hurdle to get over, but it was learning about the very foundations of law and how the institution itself comes directly from the Bible, starting with the Magna Carta, Declaration of Independence, etc, and then learning about how exactly it got corrupted along the way, that I realized there is an order to the madness.
I was learning all this at the same time Trump was in office, and that's when I started to pay attention to his actions and could see what he was doing, i.e. doing everything by the book, because at the end of the day, the power is with the People, and he knows something and I think he is demonstrating how to fight corruption by exposing it publicly.
It is not the institution of law itself that is corrupt, it's the people within the institution that sell out and fail to honor their oath.
Use legal name, play the legal game.
And you are either doing it, or not doing it. No half pregnant.