April 24, 1996

Name of Bus. Owner
or Payroll Officer

RE: Exempt Filing

Enclosure: Memorandum of Law

Dear Owner or Payroll Officer:

     You are  probably getting  tired of  (Name) and  other  area
employees filing  exempt forms  to discontinuing  withholding  of
state and  federal taxes,  so I  would like  to take  a  somewhat
different approach  by offering the possibility of a carrot being
hidden  in   the  mess:   Your  business,   which  I  presume  is
incorporated in  Oklahoma, is  no  more  subject  to  income  and
related tax prescribed in Subtitles A & C of the Internal Revenue
Code than the various people who work for you are.

     I will  address the  major  issues  briefly,  then  let  the
enclosed memorandum  tell the  rest of  the story:  The  Internal
Revenue Code  compiles federal  taxes enacted  by Congress  since
early in  the century.  Subtitle A is income tax, B is estate and
inheritance tax,  C is  Social Security,  Railroad Retirement and
withholding from  wages for  Subtitles A & C, D prescribes excise
taxes on gambling, certain types of manufacturing, and petroleum,
and E  prescribes taxes  on alcohol,  tobacco and  firearms, with
drugs of various sorts hidden in the folds. Subtitle F prescribes
administrative and judicial authority.

     Where  your  business  and  people  who  work  for  you  are
concerned, Subtitles A &  C are  at issue.  So the most immediate
question is  where these  taxes originate.  As it  turns out  the
Internal Revenue  Code of  1954, as amended in 1986 and since, is
simply reorganization  and amendment of the Internal Revenue Code
of 1939.  Income taxes  prescribed in Subtitle A originate in the
Public Salary  Tax Act  of 1939,  applicable  only  to  officers,
agents, and  employees of the United States, and taxes prescribed
in Subtitle  C stem  from the Social Security Tax which commenced
after 1936, and that, too, applies only to federal employees. The
rest  of  the  Subtitle  C  taxes  emerge  from  Social  Security
legislation. None of these taxes have ever been mandatory for the
general population.

     The next question concerns the Internal Revenue Service. You
will find  in the enclosed memorandum that Congress never created
a Bureau  of Internal  Revenue, which  is the predecessor of IRS,
and information  published last  September cements  a solid  link
between IRS and the Department of the Treasury, Puerto Rico.  The
principals of  interest are  the International  Monetary Fund and
the World Bank.

     In the  past year,  you have  heard  increasing  numbers  in
Congress condemn  IRS and  propose either  a flat tax or national
sales tax  to replace the current income tax system.  Don't for a
minute  think   Congress   has   turned   altruistic.   Dedicated
researchers across  the country were at the brink of breaking the
Internal Revenue  Code and defaulting IRS about 18 months ago, so
the handwriting was on the wall. For the last year, it has been a
footrace.  Can Congress replace  a fraud  with a fraud before the
IRS corpse  get dragged  up on  the Capitol  steps  and  laid  at
Congress'  feet.  The  enclosed  memorandum  is  the  product  of
cutting-edge research,  and should  prove to be the coup de grace
against the IRS. We have the number, and as the information moves
into legal  and public  information forums, it will be condemning
for Congress as well as IRS.

     The question,  of course,  is where  business owners such as
yourself are  in the midst of the struggle.  Do you capitalize on
information which  can now work to your advantage, or do you risk
third-party liability?

     Our research  group, to a greater extent than many, believes
in trying  to share  solid information  in such  a way  that  the
American people  understand not  only the  fraudulent system, but
the necessity  of posturing to restore constitutional government,
and  with  it,  the  nation's  sovereignty  and  solvency.  We're
obviously at  the brink  of shipwreck,  with  an  extremely  high
probability of  epochal economic  meltdown.  In  order  to  avert
disaster, we feel that it is necessary to be patient and diligent
in the  effort to  share information  one  to  another  and  seat
responsible  people   in  both  state  and  national  government.
Business owners  play a particularly important role, particularly
where state-based business is concerned.

     The letter terminating withholding that (Name) is submitting
complies with  statutory and  regulatory provisions.  If you have
questions, or  if your attorney would like to visit about details
of law  relating to  state and  federal tax  systems, I will make
myself available on your request or his.


/s/ Name


                             #  #  #

Return to Table of Contents