Response of Chris Hansen

This information is what I send to folks who want to know more about the possibility of being legally and lawfully exempt from federal and state income taxes. Most requests for this information come from people who are being referred by their friends or after having first read a copy of one of my weekly "Tax Exempt" newsletters, which a friend passed on to them. You'll find an important edition of the newsletter as one of the four documents attached to this email.

You're going to be reading here about returning to your natural, TAX EXEMPT, "NON-TAXPAYER" status in the eyes of the IRS, and how you can be free from most, if not ALL, federal and State income taxes, without IRS confrontation and without going to court - easily, legally, and without fear of recrimination. Through this email, including the four "PDF" documents you should find attached herein, I will answer most of your questions, perhaps even some you've not yet conjured. Although I may not answer certain questions specific to your personal circumstances, what I will be providing here will most certainly give you a solid basis of understanding from which to pursue answers to any remaining specific questions you might have.

Let me introduce myself. My name is Paul Leinthall (rhymes with menthol). For 23 years prior to becoming a client of the company I'm going to be talking about here, I did not file tax returns. I was, in the eyes of the Internal Revenue Service, a "Non Filer/Tax Protester." I do not recommend that you do what I did, certainly not now that there is a much simpler, easier, and completely effective way to be income tax free without ANY resistance from the IRS; but I share part of my story, so you have some idea of the person who's writing this information.

When I stopped filing tax returns in 1976, it took the IRS almost 11 years to catch the scent of my missing tax returns, and another four years before they first contacted me, probably because I changed jobs so often and didn't make a lot of money. Once I started making more income, however, they got more interested, and finally, about 15 years after I stopped filing, they contacted me.

Even though I discarded the first letter, it did accomplish one thing: it shook me out of the complacency I'd fallen into, thinking they might never bother me. When I had first stopped filing, after having read Irwin Schiff's book, "How Anybody Can Stop Paying Income Taxes," I was understandably a little nervous (okay, maybe more than a little); but as the years wore on, and I didn't hear anything from the IRS, I got used to thinking I might never be found out. You can tell by my language, however, I wasn't quite convinced I wasn't some day going to have to defend the position I'd chosen to take. I was never totally convinced about what I was doing, and I was not looking forward to IRS confrontation.

I started moving my property into other entities. I suspected their real power was to shoot first and ask questions later. That didn't stop their letters, however; and that began a five or six year correspondence battle, a lot of sleepless nights, a lot of study, and a lot of preparation just to answer their correspondences. The problem was, they always responded as if they never even read my letters; and I thought I did a rather marvelous job of presenting my case. Since "I" didn't own any property, the only thing I feared was their actually taking me to court. They never did that, I presume because they didn't see enough value in doing so. They did, however, slap a quarter of a million dollar lien against me, after they raised the original amount of $130,000 they claimed I owed them, to the quarter million dollar range, including penalties and interest. I challenged them on their ability to do that or to even file tax returns for me, as they had done, especially given the fact they would not answer my request to show me the specific regulations and the law that made a Private Citizen like me (and you) liable for any so-called "income" tax; but they were not thwarted in the least by my challenge.

I've since found out how and why the IRS can do that. Now I understand why all the tax protester arguments hardly ever work, no matter how correct some of the arguments may be; and why the courts almost always uphold the IRS. And now, of course, I realize that almost everything I tried to do was an exercise in futility. Thankfully, things are much simpler than that - and infinitely more effective.

The real answer - the missing puzzle piece, which makes sense out of ALL the information and misinformation regarding the matter of the IRS and income taxes - is unbelievably simple, once you understand it. As I write this to you, I am now resting comfortably in a position which is not only inherent in the Internal Revenue Code, but which is in complete harmony with ALL the laws, codes, regulations and procedures of the IRS and the government of the United States, as well as the State in which I reside. I am also current with all my tax filing requirements, under the law, which includes those 23 years I did not file; all of which was accomplished for me, without ANY tax liability on my part, by the company to whom I refer. All of it was done legally, according to the IRS's own Code and regulations, using only their own procedures and forms. And that's why I say I believe you're going to like what you'll see here, and what you will hear (or may have already heard) on the conference call.

If, per chance, you have already viewed several issues of my newsletter, you will have already gathered that the company does NOT do "mass" advertising. Even though they are completely legitimate, and the process they use is 100% effective and fully legal and in harmony with IRS law, and even though they NEVER fail to bring any American Citizen (who chooses to become, and is accepted as, a client) back to his/her natural Income TAX EXEMPT status with the IRS, the company is not wanting to be painted with the same brush as "shake-fist-in-face tax protesters" or with those who believe the only way to achieving complete freedom and security, in personal and financial affairs, lies in combating, defeating and eliminating the IRS. While we do not oppose the efforts of those who take such a stance, we know there is a much easier (and absolutely effective) way to achieve the results of being free from income taxes; plus, we know how to do it WITHOUT all the confrontational bearing normally associated with an adversarial, assertive and combative stance. (Joe Lansing, on the Conference call, sometimes uses the analogy about it being one thing to look at the bear in it's cage in the zoo; but most people see great wisdom in NOT walking up to the cage and slapping the bear in the face).

The company does not deny the legitimacy of the income tax applying to certain people, nor do they suggest that any one who is liable under law for paying income taxes should do anything other than obey the law which may apply to him. Instead, the company knows the law, and they know the IRS knows the law; and they know and utilize a "process" within the law that has been utilized effectively for almost 30 years, a process which reestablishes complete personal and financial freedom regarding state and federal income taxes.

In fact, if it were not for the fact that the IRS Code is written exactly as it is, the company couldn't be doing what they're doing. Everything they do for their clients is based on who the client already IS and what his/her natural rights have always been, both within the law and the Constitution of the United States of America. The company simply corrects a misunderstanding most of us created with the IRS (voluntarily, albeit, ignorantly), which LEGALLY told the IRS we wished to be treated differently than we would have been treated had we remained true to who we are in our natural, "Non-Taxpayer" status.

Being a tax exempt individual, ultimately declared by the IRS to be a legal "non-taxpayer", means you are exempt from income taxes, of every kind, which would normally be reported on a 1040 tax return. In other words, in addition to being exempt from taxes on your "normal" income, you will also be exempt from capital gains taxes, 401k and IRA plans taxes or early withdrawal penalties, as well as taxes on social security, retirement and pension income (including military retirement income); in fact, you will be free of ANY KIND of INCOME tax that might have to be reported on almost every IRS 1040 series Tax Form. It doesn't matter the amount of the income. When your tax exempt on $5000, your tax exempt on $50,000 or $50 Million.

Although the majority of people in this country don't have "offshore" income, more and more people these days are turning to offshore revenue streams, or they're trying to hide the money they make onshore (here, in the USA) invisible to the IRS. Already, it doesn't matter how much money a client makes "onshore" - he is tax exempt on ALL of it; and shortly, it won't even matter if any portion of a client's income is made "offshore" (in a foreign country) and then brought into this country, regardless of those amounts.

Here's all that matters. If you meet the following criteria, as I describe them here, you can be almost certain that you can truly be FREE from ALL state and federal income tax liability, once you choose to take advantage of the services of the company I represent. If you meet most of the criteria (but not all), depending on your particular circumstances, you still may be able to be "mostly" free from income tax liability; but again, that "depends" on your particular circumstances. Here are the criteria:

In other words, by law, most people not only qualify for the services of the company to which I refer, but they can truly enjoy a relationship with the IRS, where the IRS views them as TAX EXEMPT and, therefore, not liable for paying ANY federal or state income taxes, and not having to have ANY income tax money withheld from their paychecks by their employers (if they are a W-2 employees), and NOT having to file/pay quarterly taxes when they're self-employed as a sole proprietor or 1099 employee.

AND, regarding Social Security, you can still enjoy all of your social security income and benefits, without taxes or penalty (as long as you have chosen to meet the 40-quarter minimum pay-in which qualifies you to claim social security benefits). No one has to give up his social security card or or social security number for this to be effective. In fact, it makes the issue of using and providing your social security number a whole lot easier, once you realize it is a "non issue," and that using your social security number has nothing to do with whether, or not, you are liable for paying income taxes. For those folks who have paid their 40 quarters into Social Security, it's a relatively easy thing to "drop out" of social security, too, and still receive your benefits (if they're still available when you reach the qualifying age). In the not too distant future, the company will be offering a process for folks who want to be free of the whole "social [in]security" system.

As you can gather from what I've said to this point, I am someone who has gone through the process of which I speak. What I'm doing here is sharing my knowledge on the subject. This is the reason for my weekly newsletter and any other of my writings you may have read (e.g., a couple of the documents attached to this e-mail), or about which you may have heard, which attracted your attention and generated your interest and led to your reading this message. If you haven't seen my weekly newsletter, and this message is my first communication to you, you will be seeing the newsletter from this point on, since I'll be adding your email address to the newsletter list. It's free, and of course, and you can "un-subscribe" at any time. (I send the newsletter ONLY to e-mail addresses or fax numbers, not via snail mail to physical addresses).

The company who accomplishes this for us, uses a process and procedures which has been effective for almost 30 years, which they call "the revocation of election process". In the past two+ years alone, this company has taken almost 1500 individuals through this process. The company uses ONLY the Internal Revenue Code, rules, regulations, procedures and forms to produce the money-back-guaranteed results on your behalf, which are that the IRS changes their internal records to reflect the fact that you actually are a "non-taxpayer" and, therefore, no longer liable for either federal OR state income taxes. This will ultimately result in the Individual Master File (IMF), available under the Freedom of Information Act in their public records, revealing that fact. The company will be procuring that "proof" for you, although you do NOT have to wait for that "proof" to carry on with your life as a "non-taxpayer". Just as when you were born, you were alive and kicking long before your parents got the "proof" of your birth (the birth certificate). What the company does is a matter of LAW and your "natural" status as a Citizen of the united States of America, and the proof, for which some clients are looking to provide them a sense of "absolute security", so they can assuage their fears of the IRS, can sometimes take six months to a year to materialize from the IRS. It does not alter the fact of law upon which the proof is based; it just means that it takes some time to get the bureaucratic machine to perform activities that are not part of its mainstream operation, even though those activities have been inherent in the Code from the beginning.

In the 30 years this process has been used, the IRS has not challenged a single person nor taken anyone to court because of it. Why? Because, as I've already indicated, it is completely in accord with their own law and their own procedures and process. In other words, what the company accomplishes is NOT BASED ON A LOOPHOLE in the law that the IRS has yet to find out about, and which, when they do, they'll take steps to close, leaving us high and dry with something to worry about. This process is inherent in their own law and code and regulations, and its foundation has been present, from the beginning the Internal Revenue Code, almost 90 years ago.

Prior to June of 2001, at the completion of the process filing for the current year plus the prior three years, the company petitioned the IRS for a refund of ALL taxes paid during that time, including interest and penalties. To date, no person has been refused a refund. (The U.S. Supreme Court had put a three-year limit on refund petitions that were based on the submission of "amended returns"). Strange thing for the IRS to do, though, don't you think - to send refunds to people, if there's not something correct about the process?

With new procedures made possible by "The Internal Revenue Service Restructuring and Reform Act of 1998" (P.L. 105-206), which procedures were instituted by the company in mid-2001, after complete research and testing, for over a year, what will be occurring from here on out, will be that the IRS will recognize that each taxpaying client will have a "credit" due of taxes paid over the LAST TEN YEARS, in which case, they will be sending a letter to the client, asking the client what he/she wants done with the money. (Like that's going to be a really tough question for someone to answer!).

If a client has not paid any taxes over that period of time, then of course, there will be no credit and no actual refund. For example, clients who have been "non-filers", as I was, will not be receiving a refund for any year(s) over the past ten years in which no return was filed. (The company still brings the client's filing status current with the IRS, and thus in harmony with the law, without incurring ANY tax liability for any of the years that no returns were filed).

Personally, I will never again have to worry about confronting the IRS or going to court over the issue of not filing tax returns or for tax evasion. As you probably know, when the IRS takes anyone to court, the charges they bring to bear almost always include "willful failure to file". Tax protesters generally don't address the legal requirement for the ANNUAL filing of returns or statements, a requirement which each protester established for himself when he VOLUNTARILY filed his FIRST tax return. Tax protesters (as I used to be) can't understand why the IRS doesn't listen to their arguments or leave them alone, and why their arguments always fail in court, including an argument you've probably heard repeated, which says that their is no law requiring an American Citizen to file a tax return. While that's a true statement "on its face," most people aren't aware of the conditions under which a person gives up the right to claim that as a truth for himself, conditions which make it a requirement of law to file a tax return.

[Hint: The moment your filed your first "Form 1040 U.S. Individual Income Tax Return," you entered into an "adhesion contract," which, among other things, obligates you to the annual filing of "returns or statements"; and you also gave up your right to plead ignorance, because you stated on that form that you had examined ALL the statements on the return - which included the "title" statement referring to you, the signer, as a "U.S. Individual" for tax purposes, and you signed it "under penalty of perjury...to the best of your...knowledge,". Even if you NEVER signed a 1040 return - which is rarely the case for anyone working in this country - you probably signed a "Form W-4" for your first employer, and the IRS uses other "signs", like the W-4 and the W-2's from employers and 1099's from various sources, as "evidence" that you "volunteered" (or intended to volunteer) into the adhesion contract. Even if NONE of what I just mentioned here were true in your case, the specific conditions I covered earlier (in the paragraphs above with the "bullets" [*] in front of them), could still have you being "liable" for income taxes.]

A good analogy to assist in understanding how signing a "contract" can void your constitutional rights is to consider the "voluntary" contract a person signs when he/she joins the military. Once the person elects to join the military, he surrenders many "rights" which most of us consider normal and natural; in other words he/she can NOT behave or act in the manner of a truly "free" Citizen. At the present time in our country, there is no law requiring a person to sign the military contract; but after a person signs that contract, any attempt to not show up for duty - even using the "truth" that no law required him to sign the contract in the first place - will only land him in the brig for going AWOL. In terms of the law regarding income taxes, deciding that you can simply stop filing tax returns because there is no law that required that of you to begin with, is going "AWOL" and the consequences can be just as severe, as many folks in our country have discovered.

Another analogy of how a person voluntarily brings himself under "servitude" to a contract is when a person "signs" for a credit card. If that person doesn't pay what he owes, and finds himself standing before a judge, he would be completely stupid to try to use the "argument" that no law required him to have a credit card, even though that statement, on it's face, is completely true.

Typically, tax protesters and "patriots" keep beating their heads against a wall, constantly having to be ready to defend themselves and always having to be looking over their shoulder, wondering when the IRS will pounce. You'll discover that none of that is necessary in what I share with you; AND you can still be completely income tax free. because the company handles this "at the contract level".

Perhaps some of the best evidence of IRS recognition about what the company does is that they never pursue the company's clients to court and, to date, they've never refused a client a refund for taxes paid, although they tend to be more slow about their paying the refunds done in this manner than with the typical "tax return". And, because the refund "checkbook" is not in the company's hands, they can't "guarantee" the refunds.

Some folks who haven't filed tax returns for some time, can begin to feel smug in the fact the IRS hasn't seemingly come on to them, yet. Just because a non-filer has never been confronted by the IRS doesn't mean he never will be, any more than the perpetual speed law violator can guarantee he will never get a ticket. My experience is a good example. Once the cat has the scent of the money (and the more money involved, the bigger the scent to attract the cat), it's only a matter of time before the cat pounces. These days, the cat is catching the scent, even THROUGH the cover of other entities which people are using to attempt to hide their money and avoid/evade taxes (like trusts, foundations, IBC's, tax havens, etc.). But the advantage I talk about and which the company offers, is that, when the individual using the entity is tax exempt, the cat looses interest, because there's nothing in it for the cat (the IRS).

I'm sure you understand by now, that I'm NOT saying the IRS reveals this "revocation process" openly. It's not something you find listed in the "table of contents" or the "index" to the Internal Revenue Code. Even most employees in the IRS are not aware of it; and, while I'm not speaking ill-will against attorneys and CPA's, I can assure you, most attorneys and CPA's are not aware of it, either. While SOME attorneys and CPAs are aware - a few are clients, having themselves gone through the revocation of election process - what you will be learning here goes contrary to the inherent profit interests of many of these professionals with their clients, as well as contrary to the rules and guidelines under which they are compelled to operate in their professional relationship with the IRS in representing their clients. The bottom line: they, like most of us, only "know" what they were taught.

If you haven't been hearing from the IRS about something "wrong" in your relationship with them BEFORE you become a client, you will probably not be hearing a peep from the IRS AFTER you become a client. No client has EVER seen his problems get worse with the IRS as a result of what the company does. And no client will incur a problem with the IRS, which he did not already have, as a result of any actions by the company on his/her behalf.

The first thing that arises for most people, after their initial feeling of excitement at the possibility of being truly free from the burden of income tax liability, is skepticism, mixed with the thought, "this sounds too good to be true." I assure you it is not too good to be true; and you'll probably come to realize this, as you read the information I'm sharing here and in the attachments, and as you get on the conference call, which I'll address next.

During the live conference call, every Wednesday night, at 9 PM EASTERN time, at: 1-305-503-1874, Pin # 940, the presenter answers direct and specific questions about the process, after explaining how it works and the fees involved. Some folks hesitate to get on the conference call, thinking it's going to be a lot of hype and some form of urgent sales pitch. But, it's nothing like that. This is NOT MLM, nor any kind of money-making opportunity (except for the savings you realize from not having to pay federal and state income taxes). It is primarily a conference call that teaches by answering questions; and only your being on the call will convince you of how valuable and "different" the call is. (You do not have to talk or ask questions, of course; if you choose, you can simply listen to others ask their questions).

I attach copyright notices for two reasons: First, to make it absolutely clear that I am responsible for what I write. I am clear within my own being that I speak from the integrity of my own heart, from my own experience, and from my own knowledge. I am not trying to force you to agree with anything I say. (I do want to influence your thinking to consider these things, however; but even that is something you are completely at liberty to do, or not). In my writing this way, I figure that if anyone gives you any flack, because of what you may pass on for them to read, you can pass the buck back to me; and certainly, if you choose to pass on this material in copied or "forwarded" form, it's pretty clear who's responsible for what's written here.

The second reason I attach copyright notices is to preserve my (and your) freedom under existing copyright law to say and distribute this material in it's copyrighted form. If I don't copyright it, theoretically someone else could, and then under law, prevent me (and you) from using this material. Now, this truly is only a secondary reason for me, and hardly a reason at all, because I would just generate new and fresh material in the event of such a happening. Primarily, therefore, it is to shoulder the responsibility for what I say.

I'm not trying to wave a flag in front of the bull (IRS), and everything I say is, to the best of my knowledge, at the time of writing, in full accord with the IRS's own code. Certainly the company, to whom I refer you, takes their stand on ONLY being in accord with existing IRS law, which is the reason for their money-back guarantee of success in your case, should you decide to become a client.

You'll notice that these attached files are "PDF" documents. This means, they can only be opened by the "Program" (or for Mac Users, the "Application") called "Acrobat Reader". Most folks today already have the Acrobat Reader Program on their computers, but for those who do not, later in this document, I will provide a couple of links where you can go on the Internet to get it FREE via download, with complete instructions on how to do it.

Take your time reading them. Think about them. Write down your questions. If you haven't been on the conference call, I can not say enough about it as a positive forum for a solid presentation of this material and as an excellent place to get your questions answered. Of course, I always encourage you to call me or e-mail me. Call me at 661-822-7889, Noon to 8pm, EASTERN time, Mon.-Fri.

The attached document, labeled "EXEMPT.PDF", is a letter I originally wrote and sent to fifteen or twenty friends, simply to get their attention. Within a couple of days, they had passed it on to others, and then someone whom I don't know, posted it on an "e-group/yahoo" mailing list to which we both belonged. The day after that (July 4, 2000, a holiday, no less), my phone started ringing off the hook.

I send a weekly "newsletter" to all the folks who have requested information about this subject of being "tax exempt", as long as they have either an email address or fax machine, and if via fax, as long as they have, either a dedicated fax line or their fax machine is capable of "automatically" transferring the call to their fax machine, when their phone rings and all that can be heard is a "fax tone". I do NOT distribute the newsletter by "snail" mail.

This edition I've enclosed here is my newsletter from Tuesday, July 31, 2001, in which I introduced to all the folks on my newsletter list and most of the people in my client database, the positive procedural changes and improvements which the Company began instituting in mid-2001. This will give you a "sample" of what the newsletter looks like, the "format" of which you can be expecting to receive in your email box (or fax machine) every Tuesday (except the weeks, where I occasionally don't put out an edition of the newsletter).

Even with the addition of twenty "Frequently Asked Questions" and some re-writing, this August 2001 revised edition ends up being four pages shorter than the version we distributed prior to July 2000, when we stopped sending it out for a short time as it was being revised. The revised version comes because [THE FOUNDER] decided it advisable to remove a couple of the "red-flag" words used in several portions of the former edition. (The truth remains, nonetheless. [THE COMPANY] simply does not want to "color" our presence by the use of any IRS "red-flag" words, which convey less than a law-abiding and respectful attitude when not properly understood). This booklet gives the "foundation in LAW" for the service [THE COMPANY] performs; and if you tend to be "technically" minded - meaning you enjoy dabbling in some of the intricacies of the Internal Revenue Code and law dictionary definitions (which the last 27 pages do), then you'll really enjoy this. The first 24 pages provide a really good presentation, mostly in layman's terms, as the basis for what [THE COMPANY] does.

Should you desire to become a client, and after you apply and are accepted, here's what will be occurring. The company will, on your behalf, revoke your election to pay income taxes with both federal and state taxing agencies, so you will no longer be liable for doing so. As you've gathered, this is a "process" which the company calls "the revocation of election process". It generally takes between four and eight weeks from the time the company first receives your application to complete the first filing process, sometimes several weeks longer, depending on time of year and the current "work load".

The reason I talk about "being accepted" as a client by the company is because the company is not interested in clients who can not benefit from the revocation process, or who are so far over the waterfalls in serious "doo-doo" with the IRS, so-to-speak, that it may be "too late" to be effective for them in THAT particular situation, or at THIS particular time. The company will NOT take a person's money unless they can "guarantee" success (which makes sense, because they'd just be giving you back your money if they didn't succeed anyway).

At the same time, to ease your mind about being accepted, it may help to understand that, except for rare circumstances, about the only individual the company can NOT immediately help, is one who may still be operating under an already adjudicated COURT order. If you have any questions about this, in your particular situation, we need to talk.

Once you've submitted your application, and upon acceptance by the company, the first thing you will receive, two to three weeks later, will be what we call "the second pack". This package contains a copy of your application, signed by the Master Representative, along with the limited power of attorney form and both the ORIGINAL set and your copies of the actual Revocation paperwork. Also, if you requested it when you applied, you'll be receiving a new "W-4" package for your employer(s). (I'll talk more about this in a moment). You will have to sign, notarize and return the originals to the company [minus your copies, and the W-4 pack, which you'll give to your employer(s)]. Once you have sent that revocation paperwork back to the office, you can proceed with your affairs as a tax exempt individual - a "non-taxpayer".

When the company the revocation paperwork back from you, they will check it for accuracy, then forward your documents to the founder of the company, for the completion of the first (of many) filings on your behalf, which will then be forwarded to the Internal Revenue Service's International Headquarters in Washington, D.C. Also, during this procedure, the company may be requesting a copy of your IMF (Individual Master File), which the IRS keeps on "each" taxpayer. Among numerous things contained in the IMF, this file reveals both how the IRS has you currently classified, as well as the amount of tax money they have collected from you for each of the past ten years.

As the company completes and submits each filing for you (beyond the first one), they send the documents to you for your signature. After you sign them where indicated, you will take them to your local post office to go the IRS. (The company pays ALL the postage). You will always receives copies of all filings, including copies of any correspondence the company makes, on your behalf, which does not first require your signature. Providing copies is required by law.

There is a lot more the company will be doing on your behalf. First, both to complete clearing up your "filing record" with the IRS (necessary for previous "non-filers"), and as the proper basis for a refund of the taxes you've paid over the past ten years, the company prepares what they call "the letter of request for determination of tax status". This "determination request" lays the foundation for the actual determination letter from the IRS, which, for some clients, may actually come back on IRS letterhead, stating that the client is (and was) a "non-taxpayer".

Please don't get impatient with this process. Although some clients have received a "letter of determination" coming back from the IRS, we do NOT expect that every client will, simply because it would sooner "let the cat out of the bag," so-to-speak. If "I" were the IRS, I certainly would NOT send out such a letter. So, if you actually receive one, I'm sure you'll be quite excited.

The point is, the IRS is bound by law to make the determination and credit any money they collected from you "in error"; and the law says they must maintain accurate records, so we know they will eventually change your records accordingly, BUT the effectiveness of what the company does is NOT dependent on "when" the IRS completes their work. The Law itself is what determines the effectiveness; and, regarding the timing of the effectiveness, the law states that what the Company does is effective from the POSTMARK of any filing. The Company's processes, however, can take up to six months from the time a person applies, depending on the particular client and his circumstances, as well as other factors (like the time of year, how many other clients are being processed, etc.).

Coincident with this whole process, should be some communication from the IRS advising you that you have a certain dollar amount of tax credit (for part or all of the prior ten years). The communication will most likely ask if you want the refund sent to you, or if you would rather apply the credit to future tax years. (Dah!) Of course, for people like myself, who were "non-filers" for all those years, there will be neither a "credit" nor a "refund".

It's possible that a client might have a year (or more), during the past years, for which this process would not be effective for generating a refund. For example, if a client were a federal employee or had federally sourced income ("active" military, for example), or if he had years in which he was classified as a "green card, resident alien" - those cases where people fit into a true and lawful status as "taxpayer" - he would not expect to see a refund of taxes paid and legitimately owed. (But ONLY for those years, or for the income generated from federal sources).

The company doesn't guarantee refunds because it's not in the company's power to write government refund checks; AND, if you do get refunds, the company receives the standard one-third "collection" fee. Most folks are only too happy to give the company one dollar out of every three they never would have otherwise received. (This "collection fee" does NOT apply in the event the company must petition for an annual refund when clients have an employer who WILL NOT honor their "exempt" W-4; the company will, however, charge a 10% collection fee for W-2 employee clients who simply don't want to "rock the boat" with their employer and never submit the new "exempt" W-4, in the first place. With some new procedures the company is currently researching and testing, we expect even this occasional "employer" problem will be eliminated).

As long as you're a client of the company, if you receive ANY form of communication from the IRS, you will IMMEDIATELY fax or send the company a copy, and call the company office to verify that they have received it. Under the limited power of attorney, the company "should" be receiving the originals, while the client receives a "copy", but like many other things which the IRS "should" do, they're not always as efficient as we would like. You, however, will NOT respond to ANYTHING the IRS sends you. In other words, to make my point: if they send you a pencil, you won't even write with it! If an IRS agent should ever call you, you will simply tell the person that he/she needs to talk with the company, since the company is acting under your power of attorney.

Now, let's talk about the new W-4 form (W-4 "kit") the company will have prepared for those W-2 employed clients who have requested it. If you request it on the application, a new W-4 package for your employer will be in your "second pack". You can submit this new W-4 to your employer AFTER you have sent the notarized "second pack" back to the company. The W-4 package will request your employer to immediately cease withholding both State and federal income taxes from your paycheck beginning on the next immediate pay period. (Notice: I said income taxes, NOT social security, F.I.C.A. or disability taxes). Ninety-nine percent of employers never raise a question about it, especially if it's a large firm, because their legal department knows the law about honoring your W-4 form in harmony with the United States labor relations laws. Sometimes, however, an employer needs the whole package, because it suggests that he might want to become familiar with the consequences connected with not honoring your W-4 under the law. In other words, if an employer does not honor your "new" W-4, he is breaking the law.

Occasionally, an employer has his own "belief" in everyone "paying his fair share", and the employer will not "allow" an employee, who wants to file and "exempt W-4", to work for him; in which case, the employee may be faced with less than the most desirable choices [e.g., finding a new job, or continuing to work for an employer who insists on withholding his money, regardless of the law, in which event, the company will petition for a refund of ALL the money withheld, at the end of each year, which refunds, in those cases, tend to be slower in coming than the "normal" taxpayer refunds, where a person gets back only "part" of the money his employer withheld during the year].

Obviously, if you are self-employed or have your own company, the W-4 won't be an issue for you. In that case, you will probably be able to stop filing quarterly returns and reports (particularly if you do NOT have separate reporting and filing requirements for your COMPANY or BUSINESS, apart from you as an individual). You will, however, be providing the company with information regarding your business (it's part of the application) and perhaps consulting with the company about it, so they know best how to proceed on your personal behalf with the IRS, and so that you have some idea what may still be required to fulfill your business tax-reporting requirements. If you desire, the Company will also (for an additional fee) fulfill your tax filing requirements for your business, although most people find it more convenient to continue working with their local CPA or tax attorney for their business taxes, since business structures or entities cannot become income tax exempt. You can call me if the matter of the company filing your business tax returns holds any interest for you. I will then send you the additional business application.

Other groups, who say nothing about the "revocation process," (and who generally know nothing about it) sometimes advise you that all you have to do to get out of the tax system is to file an "exempt" W-4 with your employer and stop filing tax returns. This may appear to work for a while. But the IRS instructs the employer to notify them every quarter when any employee submits such an illegal "exempt" W-4. If a person IS not legally exempt from taxes, he can not LEGALLY write "exempt" on the W-4 withholding form; because, according to the law, he is still under the terms of the adhesion contract, wherein he volunteered to be treated by the IRS as a "taxpayer", in distinction to being a tax exempt, "non-taxpayer". Therefore, until he revokes his voluntary election to have been treated differently from his true status, he can not again claim those true status rights. This fact also explains why people receive $500 "frivolous filing penalties" when they claim their fifth amendment rights while refusing to provide information on their tax returns, or when they file "zero" returns. (And even, sometimes, when they submit an exempt W-4 form). The fifth amendment right to not testify against yourself, or to not have to provide information for tax purposes, is a good example of one of your true status (Constitutional) rights you surrendered in your relationship with the IRS when you "volunteered" to sign your FIRST 1040 Form "contract".

When you become a client of the company, on the other hand, and once the revocation of election process is handled, you will have legal standing under the law to claim your exempt status, because you will be exempt in the eyes of the IRS. When you have taken responsibility for having freely volunteered to enter the adhesion contract with them, THEN you can lawfully declare yourself exempt on a newly submitted W-4 to your employer, and you can "expect" your employer (and the IRS) to accept it, although, as I've already indicated, occasionally an employer balks at this. (Employers are "people", too; and some of them have learned to "fear" the angry bear).

REGARDING FEES: You will find all the fees listed on page 6 of the application. There are more variations than the ones I will indicate here, but primarily, THE FIRST YEAR'S FEE for a single person is $2500; the first year's fee for a heterosexual married or cohabiting couple is $3100. (Same-sex married or cohabiting couples may only apply as singles).

The SECOND YEAR'S FEE, paid in the second year, but calculated when you make the application, so you know what ALL fees are in your case, is based on a calculation, which is the same for everyone, single or couple. The fee is six and a quarter PERCENT of the AVERAGE of the PRIOR THREE YEARS' income (calculation based on "tax years"). If both applicants in a couple are working, it's the average of the two incomes added together. If you have been faithfully filing tax returns all along, you will find the figures you need for this calculation on LINE 22 ("Total Income") of each of the last three year's 1040 tax returns. Add the figures together, divide by three, and multiply by .0625 (6.25%) - that result is your second year's fee. The company established the fee structure based on the logic that the IRS says the "average" individual taxpayer pays 28% each year in income taxes. The company moved the figure of 28% down to 25%, and divided it by 4, to get the 6.25%. Most people find that their fees for BOTH the first and second years' fees are LESS (by far) than the taxes they would have paid the IRS in just ONE year.

The THIRD YEAR'S FEE, AND BEYOND, is $450 per year for either a couple or a single (i.e. "per application"). If you've had serious tax problems, which are still occurring, your fees may be higher by $750 in the first year, and your third year's fee, in that case, will be the same as your second year's fee. You'll see this reflected on pages 6 - 8 of the application. If you have any questions about this, we need to talk.

When you're filling out the application, the ONLY spaces you will leave blank, will be the lines where the Master Representative will sign your application before returning a copy to you (the copy will be included in "the second pack"). All other spaces in the application must be filled in, either with the appropriate information requested, or with "N/A" if it does not apply. Also, you will be signing your name, wherever it's required, as "client" (or "spouse," where appropriate). With a couple, "client #1" is always the husband, even though it may have been the "spouse" who first got interested and who did most of the "work" in securing the information and filling out the application. The company established this "rule" for uniformity, because it helps them to avoid any errors on your behalf.

Depending on your situation, should you choose to apply, you will only be needing to submit 8 to 10 pages of the application (pages 2 through 10, and possibly page 13, should you choose to fax your application and check, in distinction to sending it via courier or US mail). Paying the fees can be done simply with a personal or business check, unless you prefer some other form. (The company does NOT accept credit cards or bank wires at this time). When you FAX your application and check, your only choice is personal or business check.

As I've already indicated, YOU WILL RECEIVE A COPY OF ALL FORMS AND COMMUNICATION the Company submits to the IRS on your behalf. I'm here to answer any questions or assist in any way I can; in fact, as my client, and given the way it's currently set up in the company, I will be your first line of communication regarding ANY questions you may have, even after you become a client.

Should you choose to apply, you will need to be able to access and print AT LEAST the attached application ("APPLY808.PDF"). Consequently, you'll either have to be able to access it via "Acrobat Reader", or I'll have to fax it to you. While most computer users today have Acrobat Reader, WebTV users, on the other hand, do not have, and cannot get, the Acrobat Reader program - and they won't be able to access the attached files. If you have ONLY WebTV, OR if you have a computer and do not have "Acrobat Reader" on your computer, and you are unable to follow the instructions I'll be providing (below) to download it free, you can skip the next fourteen paragraphs, or so, which talk about Acrobat Reader, and go further below, to the paragraph that starts with the "four-dot" indication that looks like this: ****.

More and more today, documents available via the Internet and email are using the "PDF" (Portable Document Format) for several reasons, primary of which are that it both provides various options for easy access and on-screen reading, as well as for uniform printing, regardless of your choice of computer platform or system. When you go to the "download" web site and select the version providing the special "search" feature, which is available free as a check box option, you have easy access to words, phrases or passages which may be difficult to find, especially in longer documents. The primary advantage of Acrobat Reader, however, from my viewpoint, is the option for "easy" on-screen reading of any document, in any "size" that makes it enjoyable for you to read, regardless of the original size of the document and regardless of the "type" or "font" used to create it. This is particularly nice in the event you want to "save paper" and don't want to have to print the "PDF" document to be able to read it.

If you do not already have Acrobat Reader, you'll have to download it. The nice thing about it is that it's FREE. I would suggest you get it, even if the subject of being income tax free is not of interest to you, because you will inevitably find a need for it, especially if you do ANY serious browsing on the Internet or receive "PDF" documents via e-mail, such as the ones attached to this e-mail you're reading. Even the IRS makes ALL their forms and publication available in this format (not that you're going to be needing any of their forms, of course). Also, I send out my weekly newsletter in this "PDF" format, so having "Acrobat Reader" will serve you well. I will provide TWO separate places to download "Acrobat Reader".

Perhaps the best place from which to download the latest version of "Acrobat Reader" is directly from Adobe's download web page, so I'll list that first. It's quick and easy, all handled on one download page. During a busy time (especially during tax season), and you may get an error message (meaning their servers are busy) and you won't be able to download it at that time. You can always go back at another (less busy) time; but I'll give you another option to which to go to download. But first, try going DIRECTLY to Adobe's download page entering the following web address in your "web browser":

Step 1: From the pull-down menus, you'll select the language you speak/read, and your type of computer platform, and the location nearest you (USA or Japan - USA is already selected). It also offers a small box to click if you want to add "SEARCH" features. (Checking this box will add about 1 MB to the download, but I highly recommend it). If you're using a Macintosh Computer, selecting the format with the ".bin" after it will provide a smaller and quicker download than the ".hqx" variety. (Smaller by nearly 2 MB)

Step 3: Automatically tells you the version of "Acrobat Reader" you will be downloading and how much space it will take, depending on what you have selected in the two menus and the check box in Step 1. All you do at this point is to click the RED "Download" button, once you're sure the download size fits your parameters of the space available on your computer. The download will happen automatically, the speed of which will be determined by your Internet connection and the speed of your modem and access.

1. On the page of the address I just gave you, don't select the button/link where it says "Register to Download the Reader Now" link until AFTER you have read all the different versions of Acrobat Reader and the computers and systems for which each version is designed. It's not difficult, but you have to select IN YOUR MIND the version that will work for you and your computer and system, and remember it for the next page. You select the next page by clicking on "Register to Download the Reader Now" - (AFTER you've decided what version you will want).

2. When you get to this PDFzone page, you must "register" by providing the necessary information (indicated by BLUE print), which includes selecting, from a list, the version you "remember" from the first page. In addition, you need to read all the optional boxes and circles, and select OR de-select certain options, according to your preference. (I suggest you keep the first circle - already selected for you - which says "Yes" to the question: "Do you want the PDFzone.com web guide"; you may want to read this later). When you've completed entering the information, you will click "Continue" at the bottom of this page, It will automatically take you to the actual download page.

3. From the download page, you'll click "Start Download Now". You'll notice on this page, that you have the option (while the file is downloading) of going to other pages which supply tips on using Acrobat for Windows, Macintosh, and Unix, etc. These are the pages to which you might want to return if you experience any difficulty. If you choose, you can browse these pages while the file is downloading to your computer.

(NOTE: IF your Internet connection is through AOL or through any of the "Free" Internet service providers, and IF you experience problems downloading software like this, you may need to check with your Internet provider for their guidelines. You may also need to check with them if you have any problem accessing or opening the attached files I've included in this email).

If we have to, and sometimes it works out this way, the simplest and easiest way for me to get these documents to you is either to send them to you via FAX, or to send them to a friend's computer or fax machine, or perhaps to a fax machine "at work". (Plain paper fax preferably. four documents: one is 4 pages, one is 15 pages, another is 51 pages, and the last, the application, is 13 pages). In order to do that, I'll need you either to call me or email me back, either with your fax number, or a friend's email address or fax number, or a fax or email at work.

If you've received this information from me, you are already entered into my database for receiving "littlehammer's Weekly Tax Exempt Newsletter," (unless you have NEITHER an e-mail address nor a fax number] in which I provide further clarification about what the company does, often using as my vehicle my answers to questions people have asked me; I share both sides of the dialogue for the benefit of others (maintaining the questioner's privacy, of course). I also sometimes include recent news affecting the issue of taxes and tax exemption or tax problems, along with my comments, when I think it's helpful in clarifying the distinctions which make what the company does so successful. The newsletter also serves as a conference call reminder, since I aim to get the newsletter out the day before each Wednesday's Conference Call.

Do you ever receive e-mail you'd like to copy or print and pass on to your friends, either in e-mail form or hard copy? And, you know the trouble you sometimes have, with lines of print that are broken up and uneven, or too short, with extra carriage returns, line feeds, five forwarding arrows, extra spaces, tabbed spaces, etc.? Don't you find it exasperating to have to go through all the work you have to go through to clean it up, so that it's readable and presentable?

Here's a piece of software I use EVERY day. It works magic. It's something you may be interested in, which has no direct connection to the subject of income taxes. There is no benefit to me in this, except in the joy of sharing something I've found immensely useful, particularly in my e-mail activities and in any thing I "copy" from the Internet. If you don't have something like this, you're spending a lot of unnecessary time in cleaning up e-mail messages that you otherwise might want to keep or share. This software can NOT, of course, account for the variances in what may occur to a perfectly clean piece of email you send out, when it encounters the various other e-mail programs and Internet Service Providers that will be receiving it, with all their different parameters and options, such as "word wrap" length, or their ability to "read" certain characters or fonts, but at least you can send (and store for yourself) a really neat, crisp-as-new version, even if it came to you "all jumbled up".

...where it seems evident that the computer that sent it to you has different word-wrap parameters than yours and filled with those distracting "forwarding" arrows, you can, with the click of your mouse (or keyboard stroke), automatically eliminate all the broken lines and extra carriage returns and forwarding arrows, and the text will be word-wrapped according to your email viewing parameters. I have MY email software set for displaying 80 characters in a line, and this allows me to receive MOST email in fairly easy to read form, but occasionally, I still receive email that looks like the example I just provided. (I can not, of course, vouch for how my email shows up on YOUR computer). The shareware program called "TextSoap" takes care of all that (and a lot more).

You can go to the following web site for free trial download of TextSoap. With just a click, or two, of your mouse (or keyboard), it does just what the name implies: it instantly cleans up all the screwed up text that makes it hard to read, clearing away all the junk (or just some of it, depending on what you ask it to do), including everything I mentioned a moment ago. It does a lot more than I said, however. When it comes to stuff like this, there is no equal.

Like all software, of course, it may take an hour, or so, of reading the documentation that comes with the software and playing with the program ("application") to most fully appreciate what it can "magically" do for you. It's available for both PC's and Macintosh. You get a FREE month to try it out, with all it's features intact. And, if after trying it for a month, you find that you like it, it only costs you $20.00. It's produced by "Unmarked Software".

*Copyright Chris Hansen*	By: Chris Hansen, 858-538-6607, chansen3@san.rr.com Last revision: May 25, 2009 10:39 AM
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