THE NONRESIDENT WHAT?
The Nonresident Alien Sovereign Citizen of the 50 states!
The potential tax liability for the Citizens of the 50 states, who are NOT federal government employees, is NOT FOUND in Subtitle A § 1 of the Internal Revenue Code, which imposes the graduated income tax for whom the 1040 Form is filed. Remember, 26 CFR 1.1-1(c) defines the citizen upon whom the graduated tax is imposed, as a "citizen subject to its jurisdiction," which is an individual born in a "territory" over which the United States is sovereign.
The 50 states are NOT such "territories" and if you were born in one of the 50 states, you are not that citizen! Any potential liability for the citizens of the 50 states is limited ONLY to § 871 (a) and (b). The majority of Americans earn NO income under this section, which imposes the graduated income tax on federal government employees, working in the 50 states, and a uniform tax on income earned from certain source WITHIN the possessions and territories "belonging to" the United States. These places DO NOT include the 50 sovereign states. The following will document who the American Citizen is in the Internal Revenue Code and define the ONLY types of "federal source" income that is TAXABLE to American Citizens living and working in the 50 states! In order to understand WHO you, a Sovereign citizen of one of the 50 states ARE in the Internal Revenue Code, you must first remember who you are NOT. For your review and in summary:
Remember the District of Columbia is not a state of the union and when the states are mentioned it only means the enclaves ceded to the United States Government.
Definition of United States, 26 CFR 1.911-2(g)
UNITED STATES. The term "United States" when used in a geographical sense includes any territory under the sovereignty of the United States. It includes the states, the District of Columbia, the possessions and territories of the United States, the territorial waters of the United States, the air space over the United States, and the seabed and subsoil of those submarine areas which are adjacent to the territorial waters of the United States and over which the United States has exclusive rights, in accordance with international law, with respect to the exploration and exploitation of natural resources.
This is the District United States which is defined and limited by Article I, § 8, CL 17 of the Constitution for the united states of America, as previously defined, in which Congress "exercises exclusive legislation in all cases whatsoever, over such District, NOT EXCEEDING ten Miles square, beyond the seat of government of the United States (the District of Columbia) and exercise like authority over all places purchased by the consent of legislature of the state [for military bases, federal buildings, etc.]…" These are the only areas which are under the sovereignty and jurisdiction of the United States.
"Within" the United States, as such 'word of art' is defined in the Internal Revenue code, means within the limits of the geographical, constitutionally restricted, boundaries of the territories "belonging to" the United States as defined above. Remember the 50 states are Sovereign and DO NOT "belong to" and are NOT "under the exclusive sovereignty of" the United States "in all cases whatsoever." The 50 states are, therefore, NOT "within" the United States, as such 'word of art' is defined in the Internal Revenue Code.
"Without the United States":
Without means: "The opposite of within, outside of; beyond the limits of."
Without the United States, in the Internal Revenue Code means outside of the boundaries of the territories which are under the sovereignty and jurisdiction of the United States as defined above. The 50 states ARE "without" the United States as defined in the Internal Revenue Code.
RESIDENT VS NONRESIDENT?
United States Resident: In the Internal Revenue Code, a 'resident' is someone who resides within the boundaries of the [District] United States, as previously defined. If you are living in or are domiciled in, one of the 50 states, you are not a United States Resident, as such 'word of art' is defined in the Internal Revenue Code. Nonresident: If you are living in one of the 50 states and NOT residing in a territory, enclave or instrumentality, over which the United States is exclusively sovereign, you are nonresident to such areas, as such 'word of art' is defined in the Internal Revenue code.
CITIZEN VS ALIEN?
26 CFR § 1.1.1 (c) "Who is a citizen" Every person born or naturalized in the United States and subject to its jurisdiction is a citizen."The opposite of Citizen is alien. Therefore, if you are a citizen of one of the 50 states, you are NOT: "a citizen born in a territory over which the United States is sovereign."3A Am Jur 1420, Aliens and Citizens "A person is born subject to the jurisdiction of the United States, for purposes of acquiring citizenship at birth, if this birth occurs in a territory over which the United States is sovereign…
You are, therefore, NOT a "citizen subject to its jurisdiction". You are a citizen alien to its jurisdiction. Therefore, in relationship to the "state of the forum" of the I.R. Code, you are an alien. This does not mean you're from another planet or another country other than America. It simply means that you are "alien" to the sovereignty and jurisdiction of the (District) United States. With this knowledge, it is simple to deduce what the IRS "word of art" is for a "Citizen of the 50 states", which is:
§ 7701(b) (1) (B) NONRESIDENT ALIEN. -- An individual is a nonresident alien if such individual is neither a citizen of the United States or a resident of the United States…" [as 'word of arts', as previously defined].
Blacks Law Dictionary describes the nonresident and alien as follows:
Nonresident: "…One who is not a dweller within the jurisdiction in question; not an inhabitant of the state of the forum." [the state of the forum is the jurisdiction area applicable to a particular Code or Regulation].Alien: "In the United States one born out of the jurisdiction of the United States."
Part II of a 1957 Report entitled; Report of the Interdepartmental Committee for the Study of Jurisdiction Over Federal Areas within States: A Text of the Law of Legislation Jurisdiction, extensively documented the following fact: The legislative jurisdiction of Congress cannot extend beyond the District of Columbia and other specifically named territories. It is ONLY those individuals residing within those limits who are "residents" within the exclusive legislative jurisdiction of Congress. This Report concludes that the Sovereign states and their laws are outside the legislative and territorial jurisdiction of the United States and the federal Government.
A NonResident 'Word of Art' CANNOT be Deported! ?
Some Citizens are intimidated by the word of art, "nonresident alien," thinking this term would deprive them of American Citizenship and Constitutional protections. The opposite is true. "Nonresident Alien" is only an IRS "Word of Art," not a physical status. In the Internal Revenue Code, it means, you are an American Citizen not subject to the jurisdiction of the United States Government [as limited by our Constitution, Art. I, § 8, CL 17, alien to such jurisdiction and not a resident of a Territory over which the United States is sovereign.
In simpler terms it means: "Non Resident Alien under States Tax Laws" and "exempt foreign individuals". The term has NO MEANING outside of the "State of the Forum" of the Internal Revenue Code. Someone from a Country outside the Continental United States is an "immigrant" or a "resident alien." It is important to claim "nonresident alien status under United States Tax Laws," by virtue your Citizenship in one of the 50 sovereign states. A 'nonresident alien' can also refer to a Citizen of Mexico or Canada (without Constitutional Rights), who travels in and out of America to work. To become a truly free Citizen, it is imperative to understand the nonresident alien concept. It is a remedy and recourse out of U.S. tax laws!
To continue to work and conduct business, free from federal governmental restraint and interference, you must file a W-8 Form, with your employer, your bank, and other financial institutions. This Form is a claim of foreign status, in relationship to the State of the Forum of the Internal Revenue Code. At a recent "Citizens of the California Republic" meeting, a Citizen explained that, after many years of flawless credit, he tried to cancel his credit cards and close out his bank accounts, on the grounds that he was a Citizen of the California Republic and not a U.S. citizen. The bank immediately wrote him a letter explaining that he could keep his credit cards and his account, if he filed a W-8 Form with them (this Form is ONLY applicable to nonresident aliens). In this way, he maintained the convenience of his bank account and credit cards, without federal governmental interference. By filing W-8 Forms with the appropriate agencies, the kings are retaining the same conveniences and benefits as the slaves!
Remember, however, the current prison guards, who are benefiting from our financial bondage, do not want us to have the KEYS that will set us free. Because they CANNOT change the underlying principals of the real law of the Citizens of the 50 states, (which is our Constitution, as "the supreme law of the land"); they are trying to change our "perception" of the law. Deliberately misleading information is being funneled through the Patriot community to confuse and frighten the People. It is imperative to understand the underlying foundation of our law, so NOTHING can change your conviction of truth. One of the pieces of propaganda on this topic, currently circulating threatens that the "Immigration Agency will deport all nonresident aliens." This is humorous when you think about it. First of all, how do you deport a "word of art" that has no meaning outside Internal Revenue Code? Second, how do you deport someone who was a "not a resident" to begin with?
Another argument taken out of context is that, inumerous courts have ruled that the 'jurisdictional argument' that federal jurisdiction is limited ONLY to the District of Columbia is frivolous." We agree, federal jurisdiction extends, only to the District of Columbia but ALSO to many other places, as previously documented. However, "federal jurisdiction DOES NOT extend to the Citizens of the 50 sovereign states, in matters NOT specifically delegated to Congress, in our Constitution", and that's not frivolous!
Compensation Earned, in the 50 states by Nonresident Alien Individuals Who are NOT Federal Government Employees, is Exempt from the Subtitle A, § 1 Graduated Income Tax. The nonresident alien who is not a federal government employee and does not earn income "within" the [District] United States is not "subject to" or "liable for" Subtitle A §1 graduated income taxes!
CFR §1.871-7 Taxation of nonresident alien individuals not engaged in trade or U.S. business.— (a) Imposition of tax. (1) "… a nonresident alien individual … is NOT subject to the tax imposed by section 1 [Subtitle A] …"The determination of the tax liability for the nonresident alien can be found in 26 IRC § 2(d):The Internal Revenue Code, Subtitle A, §1 graduated individual income tax is mandatory ONLY for:
- the residents of the [District] United States, living within the boundaries of the areas "belonging to" and "under the sovereignty and jurisdiction of" the United States
- the citizens born in any of these territories [regardless of where they live]
- naturalized United States citizens, and
- Federal government employees (with some exceptions).
DETERMINATION OF TAX LIABILITY - Tax on Individuals 26 CFR § 1.1-1 Income Tax on individuals.— (a) General Rule.—
- Section 1 of the Code imposes an income tax on the income of every individual who is a citizen or resident of the United States…"
(c) "Who is a citizen: Every person born or naturalized in the United States and subject to its jurisdiction is a citizen."
§ 2(d) NONRESIDENT ALIENS — In the case of a nonresident alien individual, the taxes imposed by § 1 [graduated income tax] and § 55 [alternative minimum tax] shall apply only as provided by § 871 or § 877.Note: [§ 877 is for nonresident alien individuals who obtained their status through expatriation].
§ 871(a) imposes a flat 30% tax on nonresident aliens for amounts received only from sources within the [District] United States. § 871(b) imposes a "graduated" tax only on income which is effectively connected with trade or business [as federal government employee] within the [District] United States.
The ONLY definition of GROSS INCOME for the nonresident alien is found in 26 IRC § 872:
(a) GENERAL RULE.—In the case of a nonresident alien individual, …
Gross Income includes ONLY
- gross income which is derived from sources WITHIN the [District] United States.
- gross income which is effectively connected with the conduct of a trade orbusiness WITHIN the [District] United States.
A NONRESIDENT ALIEN WHO HAS NO INCOME FROM SOURCES WITHIN THE [DISTRICT] UNITED STATES HAS NO TAX LIABILITY UNDER IRC Subtitle A, § 871(a).
Following is a list of TAXABLE sources of income earned from WITHIN the United States and received WITHOUT the United States. Remember the term "United States" or "Domestic" in the Internal Revenue Code means the [District] United States, which is ONLY the territories over which the United States is Sovereign! Foreign means the 50 states or another international country. If all of your income and compensation is earned WITHOUT the [District] United States [i.e. earned in the 50 states], you can go to the next section.
§ 861 INCOME FROM SOURCES WITHIN THE UNITED STATES [subject to § 871(a) which is a 30% flat tax for nonresident alien Americans]
(a) GROSS INCOME FROM SOURCES WITHIN THE UNITED STATES. —The following items of gross income shall be treated as income from sources within the United States:
(1) INTEREST. -- Interest from the United States, or the District of Columbia, and interest on bonds [i.e. US Treasury Bonds], notes or other interest bearing obligations of noncorporate residents or domestic corporations, Not Including- (A) interest from a resident alien individual or domestic corporation if such individual or corporation meets the 80 percent foreign business requirements of subsection (c) (1) and (B) interest—(i) on deposits with a foreign branch of a domestic corporation or a domestic partnership if such branch is engaged in the commercial banking business, [interest earned on a bank account in one of the 50 states]. (ii) on amounts satisfying the requirements of subparagraph (B) of section 871(i)(3) [a savings and loanbank account in one of the 50 states which are paid by a foreign branch of a domestic corporation or a domestic partnership.
(2) Dividends. - The amount received as dividends—(A) from a domestic [District United States] corporation other than a corporation which has an election in effect under Section 936 [Puerto Rico Tax Credit], or
(B) from a foreign corporation unless less than 25 percent of the gross income from all sources of such foreign corporation for the 3-year period ending with the close of its taxable year preceding the declaration of such dividends (or for such part of such period as the corporation has been in existence) was effectively connected … with the conduct of a trade or business within the United States …(government sources]
(C) from a foreign corporation to the extent that such amount is required by section 243(e) [dividends earned from domestic corporations by a foreign corporation] to be treated as dividends from a domestic corporation which is subject to taxation under this chapter and to such extent subparagraph (B) shall not apply to such amount, or (D) from a DISC (described in 993(a)(1)) [ a Domestic International Sales Corporation in which 95% of the gross receipts consist of exports] or former DISC…(3) PERSONAL SERVICES. - Compensation for labor or services performed in the [District] United States except that compensation for labor or services within the United States SHALL NOT be deemed to be income from sources within the United States if --
(A) the labor or services are performed by a nonresident alien individual temporarily present in the United States a for period or periods not exceeding a total of 90 days during the taxable year,
(B) such compensation does not exceed $3,000 in the aggregate, and
(C) the compensation is for labor or services performed as an employee of or under a contract with—(i) a nonresident alien, foreign partnership, or foreign corporation, not engaged in trade or business within the United States. (ii) an individual who is a citizen or resident of the United States a domestic corporation, if such labor or services are performed for an office or place of business maintained in a foreign country or in a possession of the United States by such individual, partnership, or corporation.
(4) RENTALS AND ROYALTIES. —Rentals and royalties from property located In the [District] United States or from any interest in such property, including rentals or royalties for the use of or for the privilege of using in the United States patents, copyrights. secret processes and formulas, good will, trade-marks, trade brands, franchises, and other like property.
(5) DISPOSITION [SALE] OF UNITED STATES REAL PROPERTY INTEREST. —Gains, and income from the sale of [District] United States real property (as defined in section 897(c)) [real property, located in the including natural deposits and the sale of interest in a domestic corporation].
(6) SALE OR EXCHANGE OF INVENTORY PROPERTY.-- Gains, profits, and income derived from the purchase of inventory property (within the meaning of 865 (i)(l)) [personal property]) for detailed list of exclusions, see § 1221(1) without the United States (other than within a possession of the United States) and its sale within the United States. [This deals with property from without the District United States that's sold within the [District] United States]
(7) AMOUNTS RECEIVED AS UNDERWRITING INCOME (as defined in 832(b)(3) [insurance premiums]) (A) in connection with property in, liability arising out of, activity in, or in connection with the lives or health of residents of the [District] United States,
(8) SOCIAL SECURITY BENEFITS. —Any Social Security benefit (as defined in section 86 (d) [a monthly benefit under Title II of the social security act or a tier 1 railroad Retirement benefit).§861 (b) TAXABLE INCOME FROM SOURCES WITHIN THE UNITED STATES From the items of gross income specified in subsection (a) as being income from sources within the [District] United States there shall be deducted the expenses, losses, and other deductions properly apportioned or allocated thereto and a ratable part of any expenses, losses, or other deductions which cannot be allocated to some item or class of gross income. The remainder [profits and gains], if any, shall be included in full as income from sources within the United States.
The NonResident Alien who is NOT a Federal government employee and does not have a corporate ofice WITHIN the [District] UNITED STATES has no taxable income and no tax liability under 26 IRC §871(b).
Defining Income which is Effectively Connected to a Trade or Business Within the United States
In order for a nonresident alien to have a tax liability under 871(b) he or she must have gross income which is effectively connected with trade or business WITHIN the [District] United States.
26 IRC §7701(2C) TRADE OR BUSINESS. —The term "trade or business" includes [only] the performance of the functions of public [governmental] office.26 IRC §864 DEFINITIONS AND SPECIAL RULES(b) TRADE OR BUSINESS WITHIN THE UNITED STATES. —"…The term trade or business within the United States includes the performance of personal services, within the [District] United States at any time within the taxable year, but DOES NOT INCLUDE—
(1) The performance of personal services—(A) for a nonresident alien individual. foreign partnership. or foreign corporation.
Note26 IRC §864 DEFINITIONS AND SPECIAL RULES… (c) EFFECTIVELY CONNECTED INCOME.—
(4) INCOME FROM SOURCES WITHOUT* THE UNITED STATES.
(A) "Except as provided in subparagraphs (B) or (C)*…no income, gain, or loss from sources without the United States [in the 50 states] shall be treated as effectively connected with the conduct of a trade or business within the United States" *Subparagraph B and C defines the income liabilities of nonresident aliens and foreign corporations who have a offices WITHIN the [District] United States [for example in the District of Columbia]. Certain income received from "without" the United States is taxable if received "within" the United States.26 CFR §1.8717 (4) "…a nonresident alien individual not engaged in trade or business in the [District] United States during the taxable year has no income gain or loss… which is effectively connected with the conduct of a trade or business in the United States."
IRC § 871 (b) (2) DETERMINATION OF TAXABLE INCOME.— In determining taxable income … gross income includes ONLY gross income which is effectively connected with the conduct of a TRADE OR BUSINESS WITHIN the United States.
Nonresident Alien Americans are Exempt from Withholding
26 IRC § 3401 (a) WAGES. -(a) For the purposes of this chapter, the term wages means all remuneration (other than fees paid to a public official) for services performed by an employee* to his employer… except that such term shall not include remuneration for;
(6) for such services, performed by a nonresident alien individual…"*26 CFR §31. 3401(c) Employee: "…the term [employee] includes officers and employees, whether elected or appointed, of the United States, a [federal] State, Territory, Puerto Rico or any political subdivision. thereof, or the District of Columbia, or any agency or instrumentality of any one or more of the foregoing. The term "employee" also includes an officer of a corporation."
Therefore, in the Internal Revenue Code, the word, WAGES is a 'word of art' for earnings paid to federal government employees. The nonresident alien earns COMPENSATION FOR LABOR but NOT wages.
26 CFR §31.3401 (a) (6) -1 (b)(b) Remuneration paid to a nonresident alien individual… for services performed outside the United States is excepted from wages and hence is not subject to withholding.
26 CFR §1.1441-3 (a) Exceptions and rules of special application.(a) Income from sources without the United States.-- "to the extent that items of income constitute gross income from sources without the United States, they are not subject to withholding."
Nonresident Alien Americans are Exempt from Filing Tax Returns for Income Earned in the 50 states
IRC 26 § 6012 (54 Code) (a) GENERAL RULE —Returns with respect to income taxes under subtitle A …(5)… nonresident alien individuals not subject to the tax imposed by § 871…may be exempted from the requirement of making returns…"
According to CFR 26 §1.6012-1(b):
Nonresident Aliens who ARE engaged in the conduit of trade or [as nonresident alien, federal government employees or who have a business within the (District) United States] must file a U.S. 1040 NR Form, even if (a) he or she received no income from such effectively connected trade or business or (b) he or she had no source income from the [District] United States, or (c) if he or she had income which was exempt. The nonresident alien who receives .U.S. Source income from "within" the [District] United States must also file a U.S. 1040 NR Form.
The nonresident alien American who earns NO federal government wages and has NO income from sources WITHIN the [District] United States, is NOT required to file any type of Tax Form!
Nonresident Aliens are Excluded from the Requirement of a Social Security Number
26 CFR § 301.6109-1 (g) [cross referenced from 1.6109-1] Identifying Numbers. [Social Security Numbers] nonresident alien exclusion. This section shall not apply to nonresident alien, foreign corporations, foreign partnerships, or foreign private foundations that do not have income "effectively connected with the conduct of a trade or business within the United States" and do not have an office or place of business… in the [District] United States."
The publishers We the People have a separate publication available that explains how to amend your original Social Security application to reflect your proper status as a Citizen of these united States of America or as a state Citizen. It also explains, in detail, how to properly revoke your SS# and apply for a refund of all moneys previously paid into your account.
The W-8 and Not the W-4 is the Proper Form for the Nonresident Alien American!
The W-8 Form is a Certificate of Foreign Status (in relationship to the [District] United States). On this Form, it states: "Use Form W-8 or a substitute form containing a substantially similar statement to tell the payer… that you are a nonresident alien individual, foreign entity, or exempt foreign person not subject to certain U.S. information return reporting or backup withholding rules."
The W-8 is used to provide an Exclusion from withholding for Citizens of the 50 states for foreign earned [earned in the 50 states] compensation for labor as well as foreign earned interest, dividends, royalties and barter exchanges, earned within the 50 states. Note: The W-8 does not, however, create a backup withholding exemption for the 30% nonresident withholding tax for United states Source Income earned for sources within the [District] United states, imposed under § 871(a) as previously documented. This is a tax that the federal government may legitimately withhold.
A W-8 Form should also be used to open a bank account. If you have a W-8 bank account, no taxes can ever be withheld and, without a Social Security Numbered account, the IRS and other arms of the federal government, have NO AUTHORITY to ever seize any of your funds.
Nonresident Alien Americans are Exempt from Self-Employment Income
26 IRC §1402 (b) SELF-EMPLOYMENT INCOME —The term "self-employment income" means the earnings from self-employment derived by an individual, other than a nonresident individual…"
26 CFR §1.1402 (b)-1 (a) Nonresident aliens. A nonresident alien individual never has self-employment income"…
Stopping Withholding and UnVolunteering from the Graduated Income Tax
The Federal Register can be found at any Law Library. All laws which have general applicability to Citizens of the 50 states must be published in the Federal Register. That is how Citizens learn what new laws are applicable to them. On Tuesday, September 7, 1943, the Federal Register had two public announcements concerning the Withholding of Compensation as follows: [8F.R Pg. 12264 § 404.102] was applicable to withholding on government employees, as follows:
"…salaries paid officials by the government. or government agency or instrumentality are subject to withholding."[8 Federal Register Pg. 12266 § 404.102 (g)] was applicable to withholding on nonresident aliens.
"Except in the case of certain nonresident alien individuals who are residents of Canada and Mexico, remuneration for services, performed by nonresident alien individuals does not constitute wages subject to withholding under § 1622 [of the 1939 Code, now § 3402 Income Tax Collected at Source]. In order for the nonresident alien individuals from withholding on wages, the nonresident alien employee must file with his employer a certificate containing the following: The employee's name and address and a statement that he is not a citizen of the United States, and that he is a resident of the named contiguous country [one of the 50 states] and the approximate period of time during which he has occupied such status. Such certificate shall contain, or be verified by a written declaration that it is made under the penalties of perjury. Although the form is not prescribed, the certificate must contain all the information required by this paragraph."
This is also further proof that the Citizens of the 50 states are "nonresident aliens" in the Internal Revenue Code. Remember, ONLY laws that have "general applicability to the Citizens of the 50 states" can be published in the federal Register.
Are you a "Taxpayer"? (a quiz…)
