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Remove IRS Liens & Levies Via Redemption Strategy

Disclaimer: This newsletter exists for informational purposes only. It is authored and published independently from Eddie Kahn and American Rights Litigators. Informational content is a RESTATEMENT of verbal updates from Eddie Kahn in a more convenient written form. As such, it is possible that certain technical inaccuracies or inconsistencies may occur. The informational content of this newsletter may or may not accurately reflect the research, ideas, opinions or views of Eddie Kahn, American Rights Litigators or any other featured individual. The author/publisher must disclaim any and all claims of accuracy or validity. The purpose and intent of this newsletter is not and should not be construed as legal or tax advice. For legal or tax advice, you will need to retain the services of a licensed professional.

August 14th, 2001

ARL Seeks To Remove IRS Liens & Levies Via Redemption Strategy

Barton Buhtz, his assistant Sam Davis and Rice McCloud did a seminar in Ft. Myers, Florida on the redemption methodology recently. When Mr. Buhtz got through with the seminar, he spent a couple days at the American Rights Litigators' office. He shared his knowledge with the ARL staff on how he zeros out IRS tax liens and levies. So, ARL is now assimilating this knowledge and learning how to do it themselves for of clients who want to pursue that strategy. Mr. Buhtz will continue to work with the ARL staff to make sure they use it properly.

Eddie Kahn said he used the redemption strategy on himself recently after going through the redemption process. You have to file a UCC-1 financing statement first before you can ever accept anything for value, which is what he did. The IRS sent Eddie a letter not too long ago saying they wanted to remind him that he supposedly owed the agency $972. So, he accepted their presentment for value, and accepted two notices of liens for value on the same document while he was at it. Those two notices of lien totaled $150,000.

Mr. Buhtz told Eddie that it will take longer for him to get these things zeroed out on his tax account than it would for the average Joe. This is because the IRS has him classified as an alleged "tax protestor". However, he should have them zeroed out after about 120 days. Mr. Buhtz estimated that time frame based upon results he has observed from other people doing the same thing. Eddie filed his UCC-1 in Texas, which is his birth state. Not only that, but Texas is a relatively easy state to file in, or at least that's what people have told Eddie anyway. To date, he has not filed in Florida yet though.

Here is another thing that Eddie did. He filed a UCC-1 financing statement against his wife, so now he owns her "strawman". In turn, she filed a UCC-1 financing statement against Eddie, so now she owns his "strawman". We gather that this is a much better strategy than filing to gain control of your own "strawman". This is the cross-filing technique that we reported about in the 7/3/01 edition of TaxTruth Newsletter. As a recap, we reported on a story about a guy who was put in jail on a criminal charge. That guy's wife then went down to see the clerk and showed them her UCC-1 financing statement she had on her husband's "strawman". Then she told the clerk that she wanted her property released to her, so they did. In other words, they released her husband from jail. That made much sense to Eddie because if you own your own "strawman" and they put you in jail, then how are you going to get your property out?

Eddie is excited about this redemption process. He has personally seen paperwork shown to him by Barton Buhtz, which showed the IRS to have zeroed out people's tax accounts. Some of those tax accounts even showed large amounts of money formerly owed. About four months after those people started their redemption process, they would get paperwork showing they owed the IRS nothing. That is, after they had accepted the IRS's presentments for value and properly executed all the required UCC paperwork beforehand. Now, sometimes they had to accept the IRS's presentments for value several times because they would get different letters from different IRS offices. They would just keep accepting every one of them for value until the IRS letters stopped coming.

In a previous edition of TaxTruth Newsletter, we reported that Mr. Buhtz had no problem getting tax accounts zeroed out, which thus showed no money owed to the IRS. However, one problem that he did encounter was that the IRS would still keep their Notices of Lien active, despite the zero tax account balances. He wasn't quite sure what to do about those Notices, although Eddie contended there is a very simple remedy to that.

Eddie said if it were his own zeroed out tax account, he would personally drive to his IRS district office in Jacksonville, Florida to take care of it. He would go see the Chief of Special Procedures Functions and show that person he had a zero tax account balance with a Notice of Lien attached. Eddie would then ask that IRS official to explain to him how it is possible that the IRS can have a tax lien on him when his tax account reflects a zero balance. That is what he would do before going to turn that IRS official in to the Sheriff for fraud and extortion. Eddie bet if he did that, that guy would take immediate action to have the Notice of Lien removed. That's the nice thing about going into the IRS office in person. When you are in there you don't tell them why, you ask them why and let them try to tell you how they can do it.

Miscellaneous UCC Or Redemption Information

1). Here is a website where you can get UCC Forms: usalegalforms.com

2). Registry, Inc. in Minnesota sells a book that gives all the procedures for any particular state you want to file a UCC form in. The book sells for $20. Registry, Inc. Can be reached at 612-421-1713.

3). Rice McCloud has written a book on redemption. His book has a number of different things in there about affidavits and information on the UCC process itself. You can order Rice McCloud's book directly from him at 972 659-9608.

Current Update On Income Tax Status Determination Letters

In previous editions of TaxTruth Newsletter, we reported that American Rights Litigators (ARL) had sent in about ninety or so revised income tax status determination letters for clients. The IRS claimed ARL allegedly sent all the revised letters to the wrong place, despite being sent to the address given in the IRS's own manuals. Although the IRS said they were sending them to the proper District Directors for reply.

To date, ARL has received only one reply to the revised determination letters sent out. The response letter from the IRS claimed they could not give ARL a determination. The reasoning the IRS used was that ARL had not asked for a completed transaction. In other words, their claim was that they could only give a determination on whether a certain transaction was taxable or untaxable, etc. Although, that is not what the IRS's own manual says. The IRS manual says we have a right to a determination of tax status and that is exactly what ARL asked for.

Since they got this one letter back, Eddie assumes that they will get more back just like it. That is normally the way the IRS does things. Although, if ARL gets ten or so more such letters back, Eddie said he would take this matter to the Liberty Caucus in Congress. For reference, Congressman Ron Paul and several other Congresspersons have formed this association called the Liberty Caucus. This group has decided to not vote along party lines, but instead along Constitutional lines. Thus, their name, Liberty Caucus.

Evidently, they have been effective so far in getting things done. Anyway, these people will be the ones whom Eddie will contact to show them that the IRS is denying people a remedy. You see, the government must provide a remedy for anything that they do to us. There is no remedy if ARL cannot get the determinations of status. Eddie commented how ARL would give the Liberty Caucus Power of Attorney to look into their files. Then have them ask the IRS why ARL clients cannot get a determination of status.

ARL Gets Refunds From "Form 1040 - Not Liable" Returns

American Rights Litigators (ARL) has an accountant working with them who processes "Form 1040 - Not Liable" tax returns for clients. They have filed this type of return for about 30-40 people to date. So far, they have received two responses back from the IRS. Both responses were refund checks where one of them amounted to approximately $12,000. For reference, the "Form 1040 - Not Liable" type tax return stems from IRS Letter 112C. IRS Letter 112C tells us how to claim an income tax refund when we are not required to file a return. It simply says to write the phrase "Not Liable" across the face of a Form 1040, then sign it, date it and send it in. That requests a refund. A person can file this simple return themselves or they can have the ARL accountant do it for them. The accountant, Doug Rosile, charges $100 per tax year to file these "Form 1040 - Not Liable" returns for clients. A person has to be an ARL member to have him do it though.

Eddie Kahn really likes the idea of filing this "Form 1040 - Not Liable" return to get a refund better than filing for a refund based upon the Section 861 argument. The Section 861 argument involves saying that you didn't have any taxable sources of income, which is more involved. If the IRS came back to contest your Section 861 return, then the IRS's challenge would not deal with whether you were liable or not. Their challenge would mean they were asserting that you did have income from a taxable source. Whereas, if you filed a "Form 1040 - Not Liable" return, then you would be saying that you simply were not liable for the income tax. If the IRS came back to contest that type of return, then that would mean they would be claiming that you were liable. That puts the IRS in a position to prove that you are liable for the tax, which will likely be much harder for them.

Update On Bob Schultz Hunger Strike

In prior editions of TaxTruth Newsletter, we reported that Bob Schultz had gone on a hunger strike to force the IRS into answering questions. We got word that his hunger strike has now officially ended after twenty days of fasting. The IRS finally agreed to meet with him. Rumor has it that the government is trying to back out of having the IRS there at that meeting with Bob Schultz. They just want the attorneys for the Justice Department to be there. The meeting is supposed to take place September 25 & 26, 2001. We hear that the meeting organizers are working to have a live streaming feed of the assembly on the internet. Although that is yet to be seen.

David Bosset IRS Lawsuit

Attention: David Bosset needs your help! Mr. David Bosset, friend of Eddie Kahn and pioneer of the 861 argument, is being sued by the Internal Revenue Service. Mr. Bosset could use some help in covering the legal costs of this lawsuit. If you would like to help Mr. Bosset by sending $10.00 or $20.00, it would be most appreciated. Eddie feels this could be a landmark case. If Mr. Bosset wins it would be devastating to the IRS and could have a direct positive effect on your life. Following below is an open letter written by Mr. Bosset explaining the situation.

David Bosset's Open Letter Requesting Assistance

August 9, 2001

Request for assistance with legal fees.

As many of you know the IRS has brought suit in Federal District Court in Tampa, Florida to recover the amounts refunded to Bosset Partners Marketing Inc. in 1999 due to the company's claim under Title 26 (Internal Revenue Code) Section 861 "Source" argument. The lawsuit calls it an "erroneous refund".

As background, the company made the claim that they withheld in error from the employees. The W-2's and 1099's were corrected to zero and IRS refunded the money paid in on behalf of the employees and also abated the money not yet paid in. I made the information public and other employers have followed in the company's footsteps.

We The People Foundation in New York state published full page ads in the USA Today newspaper. One of the ads (March 2, 2001, page 11A) featured myself, Nick Jesson, Dick Simkanin, Al Thompson and Leonard Roberto. Each of us are being attacked in different ways. In Dick's case, a summons to meet with the "Grand Jury" was issued. Nick was raided by the California FTB. Al and Roberto have received "peculiar" phone calls. It appears that IRS is "testing" to see which approach is going to put a stop to the "861" and related arguments.

It is my opinion that they will not be able to for a variety of reasons being articulated by the attorneys involved in representing the company.

I am committed to fight this suit to the end and so are the attorneys. However, the next phase of the suit that includes discovery, with depositions, will be more expensive than I can currently afford personally. The US Attorney has placed this lawsuit on a "slow" track and therefore it is in the best interest of the company and each of the other employers and our fellow citizens that we press the discovery. I am estimating that the cost of the next phase including the depositions along with the attorney fees and travel cost will exceed $20,000.00.

Your help is welcomed and is sincerely appreciated.

If you will be so kind as to supply an e-mail address with your donation, I will supply a periodic update and fund accounting to each of you. Make any checks payable to David Bosset (memo "defense fund") or request the attorney information and checks can be mailed directly.

Thank you in advance.

Cordially,

David Bosset
3241 Commercial Way
Spring Hill, Florida 34606
352-683-2874
352-683-2542 Fax