Sovereign: At least Death only comes Once in a Lifetime…

Bob Bauman (February 24, 2010)

There is a degree of irony in that one of the most famous quotations concerning American taxes was written by Benjamin Franklin as an expression of his concern about the permanence of the United States Constitution. That is especially so, since some Americans still doubt the constitutionality of these taxes.

In a letter from America’s famous Founding Father to Jean-Baptiste Leroy (13 November 1789), Franklin wrote, “Our new Constitution is now established, and has an appearance that promises permanency; but in this world nothing can be said to be certain, except death and taxes.”

I’m fond of quoting the late distinguished Judge Learned Hand (below) of the U.S. Court of Appeals in New York.

In a memorable tax case dissent, Judge Hand offered these timeless remarks: “There is nothing sinister in arranging one’s affairs so as to keep taxes as low as possible… nobody owes any public duty to pay more than the law demands. Taxes are enforced exactions, not voluntary contributions.” Commissioner v. Newman, 159 F2d 848, 851 (2nd Cir 1947).

My colleague, Mark Nestmann, recently shared with me an article about the expanded IRS informant program.

In December 2006, the IRS was given a much-improved tool in their ongoing efforts to collect taxes from taxpayers. The new IRS “Whistle Blower Program” provides that by statute individuals who report substantial tax violations (at least $2 million in tax owed) have a legal right to receive rewards of 15% to 30% of the amount of tax that the government collects from a non-compliant US taxpayer.

Put that together with the 800 IRS agent expansion of offshore auditing and investigations and Mark’s recent observations about the IRS offshore crack down, and it would seem that only the certifiably insane would try to evade taxes due.

A great deal of time and effort on our part goes into exploring and explaining legal ways by which you can avoid, minimize, and defer taxes – I repeat – legal ways.

In the first pages of each of our book publications the following text appears:

The Sovereign Society advocates full compliance with applicable tax and financial reporting laws. U.S. law requires income taxes to be paid on all worldwide income wherever a U.S. person (citizen or resident alien) may live or have a residence. Each U.S. person who has a financial interest in, or signature authority over, bank, securities, or other financial accounts in a foreign country that exceeds $10,000 in aggregate value, must report that fact on his or her federal income tax return. An additional report must be filed by June 30th of each year on an information return (Form TDF 9022.1) with the U.S. Treasury. Willful noncompliance may result in criminal prosecution. You should consult a qualified attorney or accountant to insure that you know, understand and comply with these and any other reporting requirements.

The Biblical admonition of Jesus to “Render unto Caesar” does not mean we have to surrender unto Caesar, and we shouldn’t. But it does mean that no one should intentionally evade taxes due. The price of that sort of deliberate act is painfully high.

Tags: assetprotection