IRS vs. KUGLIN (IRS Loses in Memphis: Is Income Tax History?)

Sierra Times ^ | August 10, 2003 | Carl Worden

[ninenot]

Forget the war in Iraq, Afghanistan and our excellent adventure in Liberia. Forget about Kobe, Arnold, Arriana, Scott and Laci. The biggest news of the entire week is that on August 8, 2003, the IRS was unable to convince a jury in Memphis, Tennessee that the Federal Tax Code requires the citizens to pay individual income taxes. I kid you not.

I watched as many Sunday news programs as I could possibly stand, and I didn't hear a single mention of the IRS' debacle in Memphis. If you ever had doubts about the mainstream media being controlled by the federal government, doubt no more.

For those not already aware, FedEx Pilot Vernice Kuglin began studying the IRS Code some years ago, and was simply unable to find anywhere in the code that she was required to pay federal income taxes.

And here's the most remarkable part: Back in 1995, Kuglin wrote letters in good faith to the IRS, asking them to show her where the Tax Code requires individual citizens to pay federal income taxes. Incredibly, the IRS never answered a single one of her letters!

As she studied the facts, laws and related documents more, Kuglin became convinced that, regardless of the IRS' failure to respond one way or the other, she was exempt from paying federal income taxes. So, Kuglin filled out W-4 forms showing 99 exemptions, and turned them in to her employer. Doing that meant Kuglin got to take home almost all of her paycheck each payday, instead of what was left after the feds ravaged it.

The IRS went after Kuglin for six counts of tax evasion on $920,000.00 income, and for filing "false" W-4 forms, charges that could have put the 58 year-old Kuglin in federal prison for up to 30 years and cost her 1.5 million in fines.

Apparently, things didn't go quite the slam-dunk way federal prosecutor Joe Murphy thought they would. My money says the IRS wishes they had never gone after Kuglin at all. In fact, after the jury returned not guilty verdicts on all counts, Murphy is reported to have demanded that the judge order Kuglin to file her forms, pay her taxes and "obey the law". The judge reportedly replied, "Sir, I don't work for the IRS."

Now pinch yourself and review this astonishing turn of events: A highly trained and educated federal prosecutor in Memphis was unable to convince 12 American citizens that Vernice Kuglin was required to pay federal income taxes. He was clearly unable to produce a single section of the Tax Code to that end, and the jury was unanimous in clearing Kuglin of all charges against her. If the foregoing was not so, Kuglin would have been convicted.

Jurors tend not to be very sympathetic with tax scofflaws, since each one of them is also a taxpayer and they understandably feel resentment towards anyone not paying "their fair share". So in order for this federal jury to completely vindicate Kuglin, the government's failure to prove their case against her had to have been clear and unequivocal!

I haven't read the trial transcript yet, but I must assume the federal prosecutor at least tried to twist some vague and ambiguous section of the Tax Code to make it look like it applied to Kuglin. I don't know that, but I'll bet he tried. What else could he use to prosecute her with?

Thanks to the IRS' arrogance and stupidity, and Kuglin's refusal to plead to lesser charges, Kuglin accomplished what Bob Schultz and the other "tax protesters" had been denied all along: To force the IRS into a public debate and to answer the question of whether or not the Tax Code requires an individual to pay personal income taxes. Kuglin and her two attorneys, Larry Becraft and Robert Bernhoft, have unequivocally forced the IRS to show its hand, and 12 judges hearing that debate ruled the answer to be "NO".

I think it's time for everyone reading this to send a very polite letter to the IRS, telling them they read about the case in Memphis, and is it true that there is no section in the U.S. Tax Code that requires an individual citizen to pay federal income taxes?

Don't be threatening in any way, or announce that you plan to stop paying federal income taxes. This request is for your personal edification, and you just simply want to know the truth.

Like Kuglin, you probably won't get an answer back, but just to prove you sent the letter and that they received it, be certain to send the letter via certified U.S. Mail, with a return receipt requested. When you get that receipt back, staple it to a copy of the letter you sent the IRS, and put it somewhere real secure, like a personal safe or bank deposit box.

I don't have to explain why, now do I?

Now, how many calls to FOX' Bill O'Reilly will it take to convince him we know he's doing a spin in the No-Spin Zone by sitting on this story? Start e-mailing O'Reilly at oreilly@foxnews.com, and be sure to give him your city and state. He's gonna love me.

Carl F. Worden

[TEXOKIE]

bump for later

[Centurion2000]

The chinese would love to show us their brand of 'freedom' after they roll through our non-existant military.

Not even the Chinese are ready to put an Army onto a continent with 70 million riflemen. Hitler, Hirohito and The Russians wouldn't do it ... what makes you think that the Chinese will?

[Jack Black]

"By the author's logic, the jury which returned a not guilty verdict in the O. J. Simpson murder case intended to signal that murder should be legal."

They didn't? I sure took it that way. Especially if certain racial pre-requisites are met. It looked to me like Regenald Denny and about 100,000 minority youth took it that way too. When they were done there were 43 more murders in La La Land. Off hand was anyone convicted for any of them. On of them most horrible, the infamous "brick to the head" was prosecuted and only got the creep who did it a few months in jail. (He's back now on another murder).

Anyway, I get your point and your right. But I'm not sure the OJ case is a very good example. It's the counter-example.

[Centurion2000]

The chinese would love to show us their brand of 'freedom' after they roll through our non-existant military.

Not even the Chinese are ready to put an Army onto a continent with 70 million riflemen. Hitler, Hirohito and The Russians wouldn't do it ... what makes you think that the Chinese will?

[mattdono]

That anecdote about Nigeria is pretty damned nutty.

Well, I hope you didn't get the (incorrect) impression that I was providing the Nigerian reference. That was a quote attributed to the woman involved in this case. Also, though I agree that it isn't the best reference she could have made, it seems that she was only pointing to the lack of government intrusion being a good thing, not that this was the model that we should look to.

The rest of your post isn't in conflict with almost everything else I have said. Read the rest of my post and if we still disagree, post to me again.

I totally agree that personal property is the essential for a stong society. It can also be (correctly) said that our tax system is totally out of whack and needs to be seriously addressed. You may have already, but I would encourage you to read Frederic Bastiat's "The Law" (you can read The Law online here or you can buy a paperback copy for $3.50 here). After you read that, you will be scared to see how perverse our government tax scheme has become.

P.S. The paperback is sold by The Foundation for Economic Education which four main goals are: individual freedom, private property, limited government, and free trade. These goals are entirely consistent with your expressed views and are consistent with the absolute reality that our tax structure is killing our freedom.

[Jack Black]

Not every state has an income tax. Oregon, for one, is not.

[churchillbuff]

why is everybody so focused on the IRS? They're just the designated bagmen for Congress and the President. It's Congress and the President who are responsible for the IRS Code.

[AFreeBird]

Not every state has an income tax. Oregon, for one, is not.

Sales Tax, I was speaking of the Sales Tax.

[Jack Black]

Jury acquits pilot, who questioned IRS, of tax-evasion counts
By Shirley Downing
downing@gomemphis.com
August 9, 2003

A federal jury Friday found FedEx pilot Vernice Kuglin not guilty of evading income taxes on $920,000.

The question of tax payment was unresolved at the end of the five-day trial.





"I think it is safe to assume the IRS will attempt civil collection, but she is not guilty of tax evasion," said defense attorney Robert Bernhoft of Milwaukee.

"I feel justified," a grinning Kuglin said after the verdict was returned at midafternoon. She stood outside the federal building, chatting with supporters and jurors.

Federal prosecutor Joe Murphy was not available for comment.

Kuglin, 58, was charged with six counts of tax evasion that could have meant up to 30 years in prison and $1.5 million in fines.

The government accused Kuglin of filing false W4 forms for the period from 1996 to 2001.

Kuglin, a pilot for FedEx since 1985, said she had paid taxes like anyone else for most of her life. But about 10 or 11 years ago, she began to question the federal tax system. She began to read court documents, legal opinions and the federal tax code.

She said she found what she felt were contradictions. She wanted to know where in the federal tax code it said she was liable for taxes.

Kuglin wrote the Internal Revenue Service twice in 1995 with questions but said she didn't get a response.

Murphy, in closing arguments on Thursday, said Kuglin did have an opportunity to discuss her situation with the IRS, to learn what she owed and what documents she was required to file "and she didn't."

Defense attorney Larry Becraft of Huntsville, Ala., said Kuglin decided mandatory payment of income taxes "did not apply to her."

After the verdict Friday, Becraft said the federal tax code is a confusing conglomeration that "at best is a walking due process violation."

He said the average American simply doesn't understand the tax code.

Juror Barbara Snodgras of Memphis said the jury did not convict because "we all felt that the prosecution didn't prove its case."

When asked if she planned to start paying federal income taxes again, Kuglin replied: "I will pay all the taxes for which I am liable."

[Tribune7]

ping

[Jack Black]

The question is: Is the tax code legally binding on individuals. She chose to make herself an example. For this she deserves some respect. I sure would not do that. It's like riding in the front of the bus in Memphis in 1965. Helping determine what part of the IRS code is legal and binding will certainly not lead to the end of civilization as we know it.

[Samizdat]

Income taxes aren't the only way to fund government. This might speed up a national retail sales tax or flat tax implementation.

[Tribune7]

My issue was with some of these posts here that appeared to be from people that didn't seem to think that they should pay ANY taxes.

I don't know that there is anybody like that here. It seems most of the conservative objections concern the byzantine existing tax structure, the lack of accountability as to for what the money is used, and, mostly, the enforcement tactics of the IRS.

Go Vernie!

[Jack Black]

Thanks. Not to mention my grammer. Need more coffee. Argh!

[carenot]

Agreed, although I don't like the idea of every merchant becoming an agent of the government either

They would at least be paid to do so. Unlike the way it is now.

I like the no IRS thing the most. :)

[WhiteGuy]

I think it's time for everyone reading this to send a very polite letter to the IRS, telling them they read about the case in Memphis, and is it true that there is no section in the U.S. Tax Code that requires an individual citizen to pay federal income taxes?

Don't be threatening in any way, or announce that you plan to stop paying federal income taxes. This request is for your personal edification, and you just simply want to know the truth.

Like Kuglin, you probably won't get an answer back, but just to prove you sent the letter and that they received it, be certain to send the letter via certified U.S. Mail, with a return receipt requested. When you get that receipt back, staple it to a copy of the letter you sent the IRS, and put it somewhere real secure, like a personal safe or bank deposit box.

---

I think I'll do just that.

I might suggest finding your nearest local IRS office and send your letter there.

Better yet call the local number and actually get an agent's name.

Couldn't hurt?

[agitator]

The original FR posting on this event is here:

http://www.freerepublic.com/focus/f-news/961134/posts

[Elliott Jackalope]

Another fan of Peruvian economist Hernando de Soto. Good to meet you. Reading the works of former Marxist economists is a truly eye-opening experience, isn't it?

[ninenot]

Agreed.

Generally in my dealings w/IRS I have found the people to be a pretty good lot. No question, Congress and the President are the pigs.

[Squantos]

"To the press alone, checkered as it is with abuses, the world is indebted for all the triumphs which have been gained by reason and humanity over error and oppression." --James Madison

James clearly wasn't exposed to our current form of socialist presstitution ..........:o)

Stay Safe !