Tax Freedom: Businesses NOT Required to Be Withholding Agents

Businesses NOT Required to Be Withholding Agents

Memo To American Companies

· Under U.S. tax law your workers are not subject to withholding.

· Under U.S tax law you are not a "withholding agent" as legally defined by the Internal Revenue Code.

· The Individual Income Tax is deceptive in its application and enforced without legal authority on most Americans and American companies.

· Under U.S tax law you can legally stop withholding income AND employment taxes from your workers and legally stop issuing W-2 and 1099 forms to your workers and independent contractors.

How Your Company Benefits:

· Immediately increase your bottom line by approximately 30%.

· Eliminate payment of "matching" employment taxes (FICA, etc.)
(Approximately 7.5% of your current direct labor costs)

· Enjoy a significant competitive cost advantage over your competitors in direct labor & overhead costs (i.e., compete effectively on RFP bids, market pricing, etc.)

· Substantially reduce your payroll/tax administration and accounting labor personnel/service costs

· Minimize company income tax reporting requirements to almost nothing.

· Instantly increase all of your workers' take home pay without affecting cash flow or profits.

· Eliminate risk of lawsuits for unlawful conversion of worker's property.

· Eliminate risk of lawsuits for unauthorized withholding of earnings.

· Eliminate risk of lawsuits for violation of civil liberties and Rights guaranteed by the Constitution and the Privacy Act.

· Legally protect, uphold and defend the Constitutional and full legal rights of your workers, independent contractors and sole proprietors against unlawful federal and state tax liens, levies, judgments and garnishments.

For Existing Workers:

To legally terminate withholding for your existing workers, a company must have the worker formally request to terminate their existing W-4 agreement and the company must keep on file a sworn statement indicating that they concur that under the laws and applicable regulations the worker is not subject to withholding. No W-4 is required.

Step 1: Obtain from the worker and place in his/her file a Form #1, "Worker's Verified Statement and Notice To Terminate W-4 Agreement"

Step 2: Company completes and places in worker's file a Form #2, "Company's Verified Affidavit with Letter of Transmittal Regarding Worker's Form W-4, Disclosure, Withholding and Non-Covered Status"

For New Hires:

New workers can legally avoid all withholding by declaring their status as a "protected individual" in conjunction with filing the federal employment eligibility verification form and completing an affidavit declaring that they are not subject to withholding. The company concurs via affidavit that the new hire is not subject to withholding. No W-4 is required.

Step 1: Obtain from the worker and place in his/her file a completed Form #3, "Declaration of Protected Individual and Worker Eligibility Verification" and a Form #4, "Worker's Verified Affidavit, Letter of Transmittal of 'Protected Individual' Regarding Form W-4, Disclosure, Withholding and Non-Covered Status"

Step 2: Company completes and places in the worker's file a Form #2, "Company's Verified Affidavit with Letter of Transmittal Regarding Worker's Form W-4, Disclosure, Withholding and Non-Covered Status"

For Independent Contractors:

Independent contractors can legally opt out of backup withholding by submitting an affidavit attesting to their status as a "Protected Individual" who is not subject to withholding, and by filing a "substitute" W-9 that conforms to IRS regulations which satisfies only that information required by the IRS. The company likewise concurs, via affidavit, that it is in compliance with US law and that it therefore is not required to withhold taxes from the independent contractor.

Step 1: Obtain from the contractor and place in his/her file a Form #5, "Independent Contractor's Verified Affidavit with Letter of Transmittal Regarding Form W-9, Disclosure and Back-up Withholding" and a Form #6, "Substitute W-9."

Step 2: Company completes and places in contractor's file a Form #7, "Company's Verified Affidavit with Letter of Transmittal Regarding Form W-9, Disclosure and Back-up Withholding."

For Quarterly & Year End Reporting:

After terminating withholding, various IRS forms will still need to be completed by the company to account for withholding amounts that were previously withheld during the current quarter or fiscal year. Once the government has been properly notified and termination of withholding has been procedurally put into effect, the company has no further reporting requirements under U.S. law.

· Quarterly IRS Form 941 (Employer's Quarterly Federal Tax Return) should be filled out completed, indicating what amounts were withheld from workers during the last quarter of withholding. Indicate as required on the form, that there will be NO further returns.

· Year-end IRS Form 940 (Employer's Annual Federal Unemployment -FUTA - Tax Return) should be completed, summarizing what amounts were withheld from workers during the last year of withholding. Indicate as required on the form, that there will be NO future return.

· Year-end IRS Form W-3 (Transmittal of Wage and Tax Statements) should be completed to transmit the company's final batch of W-2s for its workers.

· Year-end IRS Form 1096 (Annual Summary and Transmittal of U.S. Information Returns) should be completed to transmit the company's final batch of 1099's for independent contractors.

File your UCC-1 claim on the CORPORATION that carries your name in their ledgers and take control of your Treasury Direct Account. You are considered a citizen of a Federal territory because of Fourteenth Amendment citizenship. Since you have not objected to your status as a subject of the Federal jurisdiction, you may be presumed to be content with your Federal citizenship. However, to establish non-Federal citizenship requires an experienced advisor to guide you through the legal brambles to freedom. Depending on your unique needs we can refer you to one of several advisors who have shepherded many others through these brambles. You can extend your knowledge, answer many of your questions, or contact our debt elimination professionals. Get rid of debt! Debt Elimination is Real Freedom!Internal Revenue Code Section 6654(e)(2)(c) states:...no tax liability...if....the individual was a citizen or resident of the United States throughout the preceding taxable year. IRS contends the success of the SELF-ASSESSMENT system depends on VOLUNTARY COMPLIANCE All human rights are natural and cannot be taken away by any legitimate means.  This is the premise of the Declaration of Independence.  The United States Government can only exercise powers given to it by "We the People" through the U.S. Constitution. The "income tax" is an INDIRECT TAX. There is no section of law in the Internal Revenue Code (Title 26 USC) making a CITIZEN or a RESIDENT working and living WITHIN A STATE OF THE UNION, LIABLE to pay the INCOME (indirect/excise/duty) TAX.

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