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IRS vs. KUGLIN
The Sierra Times ^ | 10 August 2003 | Carl F. Worden

Posted on 08/11/2003 12:41:21 PM PDT by CodeWeasel

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.


TOPICS: Business/Economy; Extended News; Government; News/Current Events
KEYWORDS: axixofevil; bobschulz; givemeliberty; incometax; irs; kuglin; schulz; taxes; taxevasion; taxhonesty; taxprotester; taxreform; verdict; vernicekuglin; verniekuglin; wethepeople
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1 posted on 08/11/2003 12:41:21 PM PDT by CodeWeasel
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To: CodeWeasel
Big news!
2 posted on 08/11/2003 12:45:22 PM PDT by sauropod (Graduate: Burt Gummer's Survival School)
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To: sauropod; Taxman
ping for experts
3 posted on 08/11/2003 12:49:28 PM PDT by bert (Don't Panic!)
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To: CodeWeasel
There's plenty in the tax code that requires you to pay it. I think the dispute is over whether or not the ammendment that makes income tax legal was really ratified properly. There's a guy that has been selling books on this issue for decades...
4 posted on 08/11/2003 12:50:02 PM PDT by College Repub (http://www.theskyiscrape.com)
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To: CodeWeasel
So all you have to do is not pay taxes, get pulled into court, get judged by 12 "peers" and you're home free? Sounds way too easy to me. </sarcasm>
5 posted on 08/11/2003 12:50:26 PM PDT by Pest
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To: College Repub
There's plenty in the tax code that requires you to pay it. I think the dispute is over whether or not the ammendment that makes income tax legal was really ratified properly. There's a guy that has been selling books on this issue for decades...

I've never quite understood the "no pay tax" argument, since 26 USCS Sec. 1 clearly states that "[t]here is hereby imposed upon the taxable income of [married individuals, heads of household, single individuals, etc.] a tax determined in accordance with the following table..."

6 posted on 08/11/2003 1:04:24 PM PDT by Labyrinthos
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To: Labyrinthos
I'm not familiar with this issue, but I believe it has something to do with the definition of "income" (as you would incur from operating a business, contrasted with a paycheck, which is what you get when you are employed).

In any event, I'm curious as to what the details are in this case.
7 posted on 08/11/2003 1:29:13 PM PDT by babyface00
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To: CodeWeasel
She still owes the money. The jury found her not guilty on the criminal charges of evasion, etc.
8 posted on 08/11/2003 1:46:26 PM PDT by RGSpincich
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To: RGSpincich
She still owes the money

What law states that, exactly? I'm not trying to slam you.but I've been reading the tax code and still can't find it.

9 posted on 08/11/2003 1:51:39 PM PDT by Focault's Pendulum
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To: Labyrinthos
Wages are not income...as defined by the IRS and the law you just mentioned.
10 posted on 08/11/2003 1:57:26 PM PDT by I got the rope
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To: Focault's Pendulum
Excuse me, I'll be more clear. As far as the courts and the IRS are concerned, she still owes the money. Being acquitted on the criminal charges does not cancel the debt. If she prevails in tax court, THEN it's a big deal.
11 posted on 08/11/2003 1:57:58 PM PDT by RGSpincich
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To: CodeWeasel
Already posted here. First post didn't have original title.
12 posted on 08/11/2003 1:59:37 PM PDT by TomServo ("Cinematography by Zapruder.")
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To: TomServo
I think it was here first
13 posted on 08/11/2003 2:06:20 PM PDT by I got the rope
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To: RGSpincich
s far as the courts and the IRS are concerned, she still owes the money. Being acquitted on the criminal charges does not cancel the debt. If she prevails in tax court, THEN it's a big deal.

Okay I understand that.

Allow me to play the dummy for a bit.

Why did they file criminal charges.

And where exactly is the law written that she is obligated to pay.

14 posted on 08/11/2003 2:08:22 PM PDT by Focault's Pendulum
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To: I got the rope; babyface00
Wages are not income...as defined by the IRS and the law you just mentioned.

That's why I'm confused because 26 USCS Sec. 61 broadly defines "gross income," which is the starting point in calculating the personal income tax as including "[c]ompensation for services, including fees, commissions, fringe benefits, and similar items." Seems pretty clear to me that a person has to pay income tax on compensation received for services rendered. What am I missing?

15 posted on 08/11/2003 2:09:24 PM PDT by Labyrinthos
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To: I got the rope
Totally different articles, authors and sources. But the theme and persons involved are the same.
16 posted on 08/11/2003 2:12:14 PM PDT by TomServo ("Cinematography by Zapruder.")
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To: RGSpincich
Excuse me, I'll be more clear. As far as the courts and the IRS are concerned, she still owes the money. Being acquitted on the criminal charges does not cancel the debt. If she prevails in tax court, THEN it's a big deal.

What difference does it make? She may still owe the money (in the IRS's eyes) but if they can't threaten her with incarceration or fines, how are they going to make her pay? Maybe they can attach assets, but I hope she has been smart enough to unload them.

17 posted on 08/11/2003 2:13:58 PM PDT by weaponeer
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To: *Taxreform; ancient_geezer; Taxman
http://www.freerepublic.com/perl/bump-list
18 posted on 08/11/2003 2:15:06 PM PDT by Libertarianize the GOP (Ideas have consequences)
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To: Labyrinthos
Correct, but there is always tax exempt income.
Therefore, you must determine if the "source" of the income then excludes such income from taxation. I believe you will find that in Sec. 861.
19 posted on 08/11/2003 2:28:04 PM PDT by justalurker
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To: Labyrinthos
broadly defines "gross income,"

The word "income", as it is defined in relation to a business, is pounced upon by some as not being relevant to personal wages. It's clear this particular meaning is to be used only pertaining to a business. Many individuals have tried and failed to use this strategy to avoid personal income taxes.

Individual income is determined by the statute you posted, according to all the rulings I've seen. The courts still think wages are income inspite of the best efforts of many tax protestors.

20 posted on 08/11/2003 2:35:41 PM PDT by RGSpincich
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