EDITORIAL NOTES:
The Internal Revenue Code nowhere defines the term "alien" or "alien individual". The regulation at 26 C.F.R. §1.1441 defines "alien individual" but does NOT actually USE the term "alien individual" in its provisions. They use the term "foreign person" i.e. not a U.S. person. The definition of alien individual there is a red herring to make it look like a foreign person does not include nationals of the United States (contradicting the IRC).
Alll aliens are presumed nonresident aliens. This is probably why they need to create the "shall be TREATED AS a resident alien" nexus at 26 U.S.C. §7701(b)--to establish a way to overcome the presumption of nonresident alien status.
"alien individual" is used only twice in the IRC. it is used in some other regulations, but in every case the context indicates that the term is being used to refer to a "nonresident alien".
Black’s Law Dictionary,
Sixth Edition, p. 773
Individual.
As a noun, this term denotes a single person as distinguished
from a group or class, and also, very commonly, a private or natural
person as distinguished from a partnership, corporation, or association;
but it is said that this restrictive signification is not
necessarily inherent in the word, and that it may, in proper cases, include [be limited to] artificial persons.
[Black’s Law Dictionary,
Sixth Edition, p. 773]
TITLE 5 >
PART I >
CHAPTER 5 >
SUBCHAPTER II > § 552a
§ 552a. Records maintained on individuals
(a)
Definitions.— For
purposes of this section—
(2) the term ''individual'' means a citizen
of the United States or an alien lawfully admitted for permanent
residence;
TITLE 26 > Subtitle F > CHAPTER 79 > § 7701
§ 7701. Definitions
(b) Definition
of resident alien and nonresident alien
(1) In general
For purposes
of this title (other than subtitle B)—
(B) Nonresident
alien
An individual
is a nonresident alien if such individual is
neither a citizen of the United States nor a resident of the
United States (within the meaning of subparagraph (A)).
26 C.F.R.
§1.1441-1 Requirement for the deduction and withholding of tax on payments
to foreign persons.
(c ) Definitions
(3)
Individual.
(i)
Alien individual.
The term
alien individual means an individual who is not a citizen or a national
of the United States. See Sec. 1.1-1(c).
(c ) Definitions
(3) Individual.
(ii) Nonresident alien individual.
The term nonresident alien individual means persons described in section 7701(b)(1)(B), alien individuals who are treated as nonresident aliens pursuant to § 301.7701(b)-7 of this chapter for purposes of computing their U.S. tax liability, or an alien individual who is a resident of Puerto Rico, Guam, the Commonwealth of Northern Mariana Islands, the U.S. Virgin Islands, or American Samoa as determined under § 301.7701(b)-1(d) of this chapter. An alien individual who has made an election under section 6013(g) or (h) to be treated as a resident of the United States is nevertheless treated as a nonresident alien individual for purposes of withholding under chapter 3 of the Code and the regulations thereunder.
At common law, a "corporation"
was an "artificial perso[n] endowed with the legal capacity of perpetual
succession" consisting either of a single individual (termed a "corporation
sole") or of a collection of several individuals (a "corporation aggregate").
3 H. Stephen, Commentaries on the Laws of England 166, 168 (1st Am.
ed. 1845). The sovereign was considered a corporation. See id., at 170;
see also 1 W. Blackstone, Commentaries *467. Under the definitions supplied
by contemporary law dictionaries, Territories would have been classified
as "corporations" (and hence as "persons") at the time that 1983 was
enacted and the Dictionary Act recodified. See W. Anderson, A Dictionary
of Law 261 (1893) ("All corporations were originally modeled upon a
state or nation"); 1 J. Bouvier, A Law Dictionary Adapted to the Constitution
and Laws of the United States of America 318-319 (11th ed. 1866) ("In
this extensive sense the United States may be termed a corporation");
Van Brocklin v. Tennessee, 117 U.S. 151, 154 (1886) ("`The United States
is a . . . great corporation . . . ordained and established by the American
people'") (quoting United [495 U.S. 182, 202]
States v. Maurice, 26 F. Cas. 1211, 1216 (No. 15,747) (CC Va.
1823) (Marshall, C. J.)); Cotton v. United States, 11 How. 229, 231
(1851) (United States is "a corporation"). See generally Trustees of
Dartmouth College v. Woodward, 4 Wheat. 518, 561-562 (1819) (explaining
history of term "corporation").
[Ngiraingas v. Sanchez, 495 U.S. 182 (1990)]
“All the
powers of the government [including
ALL of its civil enforcement powers against the public] must be
carried into operation by individual agency, either through the
medium of public officers, or contracts made with [private] individuals.”
[Osborn v. Bank of U.S.,
22 U.S. 738 (1824)]
This term individual is used
in sections
26 U.S.C. §1 and
26 U.S.C. §6012(a).
It is never defined anywhere in the I.R.C.
The reason it is not defined is that it would give away the
IRS' ruse. Therefore,
we have to look in the legal dictionary for the definition:
Individual.
As a noun, this term denotes a single person as distinguished
from a group or class, and also, very commonly, a private or
natural person as distinguished from a partnership, corporation,
or association; but it is said that this restrictive signification
is not necessarily inherent in the word, and that it may, in
proper cases, include [be limited to] artificial persons.
[Black’s Law Dictionary,
Sixth Edition, on page 773]
Note that this definition above
does not necessarily imply a natural (biological) person.
Therefore, the Internal Revenue Code cannot be said to necessarily
apply to natural persons.
Here is the proper definition of "individual" in the context
of the IRS form 1040 and within the meaning of the code, as we understand
it:
Individual
An artificial federally-chartered entity, meaning a federal (but
not state) chartered corporation or partnership or trust.
Such an entity
is a citizen of the “United States” because it must have
a physical presence in the District of Columbia to be subject to
the exclusive legislative or territorial jurisdiction of the United
States under Article 1, Section 8, Clause 17 of the U.S. Constitution.
This “individual” is NOT a natural person
with income from outside the district (federal) United States
who is living and working for a private employer in the 50 united
States of America because of the restrictions on direct taxes imposed
by Article 1, Section 9, Clause 4, and Article 1, Section 2, Clause
3 of the U.S. Constitution..>[1]
We will now examine the definition
of “individual” found in
26 C.F.R. §1.1441-1(c )(3):
26 C.F.R. §1.1441-1 Requirement for the deduction and withholding
of tax on payments to foreign persons.
(c ) Definitions
(3) Individual.
(i) Alien individual.
The term alien individual means an individual who is not
a citizen or a national of the United States. See Sec. 1.1-1(c).
The above definition
ought to raise some BIG red flags!
First of all, if you live in the [federal] United States**
as a natural person, you aren’t an “individual” because the definition
of “individual” doesn’t include citizens or residents of the
United States**!
This is the ONLY definition of the term “individual” found
ANYWHERE in either the Internal Revenue Code or the 26 C.F.R. Regulations.
Therefore, the tax code can’t apply to you even if you claim
to be a U.S.** citizen or a U.S.** resident!
This is also consistent with our findings earlier.
It also explains why a U.S. citizen is defined as someone
who lives in the Virgin Islands, Guam, Puerto Rico, or American
Samoa, as follows:
26 C.F.R. 31.3121(e) State, United States, and citizen.
(b)…The term 'citizen of the United States' includes a citizen
of the Commonwealth of Puerto Rico or the Virgin Islands, and, effective
January 1, 1961, a citizen of Guam or American Samoa.
The definition for “individual”
that the government wants you to incorrectly assume,
however, is that found below:
5 U.S.C. §552a(a)(2):
(2) the term ''individual'' means a citizen of the United States
or an alien lawfully admitted for permanent residence;
But this definition of “individual”
is superseded by the only definition of “individual” found in the
Regulations for taxes in 26 C.F.R. 1.1441-1 above.
You therefore can’t be a “individual” who can be the “person”
against whom the income tax is imposed under 26 U.S.C. §1
unless you either reside OUTSIDE the “United States**” under
26 C.F.R. § 1.1441-1(c )(3) or you reside INSIDE the United States**
and are not a U.S.** citizen.
That’s why they created a definition of “U.S. citizen” that
means you are living outside the United States (in
the Virgin Islands) so they can “pretend” that you are taxable!
That way, even when you tell them you live in the “United
States” by giving them an address in the 50 states on your tax return,
they can still claim that you live in Puerto Rico or the Virgin
Islands because of your status as a “U.S. citizen”!
This whole scheme can be confirmed by ordering a copy of
your Individual Master File (IMF) from the IRS and looking at the
transaction codes on the IMF.
If you look at your IMF and you have been filing 1040 forms
for a while, chances are your record reflects that you reside in
the Virgin Islands, even if you really live in one of the 50 states
outside the federal zone!
That’s why the IRS made the Publication 6209, which is used
for decoding the IMF file, “For Official Use Only”, which is short
for “Don’t let Citizens get their hands on this at all costs!”.
They know they are committing fraud and they don’t want you,
the Citizen, to know the horrible truth and expose that fraud, because
then they lose their ability to claim “plausible deniability”.
I bet this all sounds pretty
crazy to you, right, but I swear to God it’s the truth!
These are the kinds
of sneaky tricks that IRS lawyers make their living dreaming up
in order to make the illegal fraud and extortion called the income
tax look more “civilized” and believable and well hidden from public
view. If they wanted
it in public view, they would have put the definitions of "U.S.
citizen" and “individual” in the Internal Revenue
Code right?
But they instead buried it deep inside regulations that few
Citizens ever view and only the agency itself usually looks at because
they wanted to hide it!
The above definitions of “Alien
individual” and “Nonresident alien individual” in 26 C.F.R. §1.1441(c
)(3) can also seem a little confusing initially.
You will find out that we suggest to people later in this
book (in section
5.6.9 to be exact) that they should renounce their “U.S.**
citizenship” and become “U.S.*** nationals”.
However, looking at 26 C.F.R. 1.1441-1(c )(3)(i) above leads
one to believe that they cannot be a nonresident alien
if they are a "U.S. national".
However, "nonresident aliens" are defined below:
TITLE 26 > Subtitle F > CHAPTER 79 > § 7701
§ 7701. Definitions
(b) Definition
of resident alien and nonresident alien
(1) In general
For purposes of this title (other than subtitle B)—
(B) Nonresident alien
An individual is a nonresident alien if such individual is
neither a citizen of the United States nor a resident of
the United States (within
the meaning of subparagraph (A)).
A person can therefore be a
“U.S. national” and not a “U.S. citizen” and live outside the federal
zone in a state and be a nonresident alien individual.
Our guidance is sound and based on the law.
Even if you believe you are
an “individual”, which you are not as a “natural person”, you
still don’t have any income that equates to a taxable
source or situs identified in 26 C.F.R. 1.861-8(f), and so you couldn’t
be liable for a tax due even if you wanted to.