"To steal from one person is theft. To steal from
many is taxation."
This section will not cover ALL of the nuances
of stopping withholding in the context of ONLY "private employers",
who are companies that have no contracts, agency, or relationship with
the federal government. This article does not refer to "public
employers", who are part of the federal or state government. The
IRS admits in their Internal Revenue Manual that "private employers"
are not required to enter into withholding arrangements on their website
IRM 22.214.171.124 (09-30-2004)
Payroll Deduction Agreements
2. Private employers, states, and political subdivisions
are not required to enter into payroll deduction agreements.
Taxpayers should determine whether their employers will accept and
process executed agreements before agreements are submitted for
approval or finalized.
If you would like to know more about the distinctions
between "private employers" and "public employers", please see the following
Why Your Government
is Either a Thief or You Are a "Public Officer" for Income Tax Purposes,
If you would like in-depth and complete coverage
of payroll tax withholding, please download our free book:
Federal and State
Withholding Options for Private Employers
We will therefore give you a very brief overview
of some of the more important facts regarding private withholding and
encourage you to download and read the above free book if you want additional
We will start this section with a summary
of very important withholding facts that contains several links so that
you can further research the documentation upon which they are based
yourself. This summary will then be applied in the next section
to develop a procedural approach towards selecting a withholding approach
in the context of private employers.
- Tax withholding is ONLY on "wages"
as legally defined, and not on ALL EARNINGS or everything you make.
See 26 C.F.R. §31.3401(a)-3(a).
26 C.F.R. §31.3401(a)-3 Amounts deemed wages under voluntary withholding
(a) In general.
the exceptions to the definition of wages specified in section
3401(a) and the regulations thereunder, the term “wages” includes
the amounts described in paragraph (b)(1) of this section with
respect to which there is a voluntary withholding agreement
in effect under section 3402(p). References in this
chapter to the definition of wages contained in section 3401(a)
shall be deemed to refer also to this section (§31.3401(a)–3).
(b) Remuneration for services.
(1) Except as provided in subparagraph (2) of this paragraph,
the amounts referred
to in paragraph (a) of this section include any remuneration
for services performed by an employee for an employer which,
without regard to this section, does not constitute wages under
section 3401(a). For example, remuneration for services
performed by an agricultural worker or a domestic worker in
a private home (amounts which are specifically excluded from
the definition of wages by section 3401(a) (2) and (3), respectively)
are amounts with respect to which a voluntary withholding agreement
may be entered into under section 3402(p). See §§31.3401(c)–1
and 31.3401(d)–1 for the definitions of “employee” and “employer”.
- The only people who can earn "wages" are those with a "voluntary
withholding agreement" in place. Therefore, the only people
subject to federal tax withholding on their earnings from private
employment are those who volunteer.
- The IRS form W-4 is called a "voluntary withholding agreement"
in the Treasury Regulations in 26 C.F.R. Part 31. However, the
IRS W-4 form nowhere indicates that it is an "agreement" because
the IRS simply does not want workers to know that their consent
and agreement is required in order to take money out of their paycheck.
- Only federal/public "employees" can be required under law to
submit a W-4. Private employees cannot and should not.
This is covered in the free pamphlet below:
Why Your Government
is either a Thief or You are a "Public Officer" for Income Tax Purposes, Form #05.008
- The IRS Form W-4 is the wrong withholding form to use for private
employees who are not federal workers or "personnel". The
correct withholding form to use for private employees is the IRS
form W-8BEN. See:
- The amount reported on the IRS Form W-2 block 2 entitled "wages,
tips, and other compensation" may only lawfully indicate the amount
of "wages" earned by a public/federal
"employee" with which there is a voluntarily completed IRS form
W-4 in place. It cannot and should not indicate ALL earnings
from that particular position. These "wages" are treated as
being "effectively connected with a
trade or business"
and are therefore taxable under the I.R.C. See our article
The Trade or Business Scam at:
- The entire amount of "wages" reported on the IRS Form W-2 MUST
be included as "gross income" on a IRS return, because the regulations
say so. See:
26 C.F.R. Sec. 31.3402(p)-1
26 C.F.R. Sec. 31.3402(p)-1
Sec. 31.3402(p)-1 Voluntary withholding agreements.
(a) In general. An employee and his employer may enter into
an agreement under section 3402(b) to provide for the withholding
of income tax upon payments of amounts described in paragraph
(b)(1) of Sec. 31.3401(a)-3, made after December 31, 1970.
An agreement may
be entered into under this section only with respect to amounts
which are includible in the gross income of the employee under
section 61, and must be applicable to all such amounts paid
by the employer to the employee. The amount to be
withheld pursuant to an agreement under section 3402(p) shall
be determined under the rules contained in section 3402 and
the regulations thereunder. (b) Form and duration of agreement.
(1)(i) Except as provided in subdivision (ii) of this subparagraph,
an employee who desires to enter into an agreement under section
3402(p) shall furnish his employer with Form W-4 (withholding
exemption certificate) executed in accordance with the provisions
of section 3402(f) and the regulations thereunder. The furnishing
of such Form W-4 shall constitute a request for withholding.
- A "withholding agent" is legally defined in 26 U.S.C. §7701(a)(16):
CHAPTER 79 > Sec. 7701.
7701. - Definitions
(a)(16) Withholding agent
The term ''withholding agent''
means any person required to deduct and withhold any tax under
the provisions of section
Title 26, Subtitle A, Chapter 3, Subchapter A: Nonresident Aliens
and Foreign Corporations]
- You can only become a "Withholding
Agent" by having the Secretary of the Treasury sign an
IRS Form 2678. Few private employers even know what this
form is. Therefore, they cannot lawfully withhold anything.
- If you refuse to fill out a W-4, the IRS has NO AUTHORITY to
tell your private employer to deduct or withhold at the rate of
"single and zero". If they tell them that and the employer
listens, then both the IRS and the private employer become liable
for conspiracy to commit grand theft, involuntary servitude in violation
of the Thirteenth Amendment, and recruiting a person into peonage
and slavery if anything at all gets withheld. What is supposed
to happen if the private employer heeds the unlawful IRS request
is that under
26 C.F.R. §31.3401(a)-3(a), the private employer still earn no
"wages" because he has no W-4 in place. Therefore, withholding
occurs on an amount of "wages" that is "zero". Therefore,
the private employee is not harmed. However, what usually
happens is that the IRS will not tell private employers that they
cannot record the receipt of "wages" against private employees who
did not voluntarily submit a W-4. This leads the private employers
in essence to steal from their workers without the authority of
law and to produce reports of the receipt of "wages" that are in
fact false and fraudulent. The only way a worker who has been
injured in this way can respond is by submitting an
IRS Form 4852 to correct the erroneous report of "wages" on
the W-2 and then to ask for a refund of all wrongfully and illegally
withheld payroll taxes that were deducted from the improperly recorded
26 U.S.C. §31(a)(1),
all tax withholding is credited to any taxes imposed by Subtitle A of
the Internal Revenue Code, including the personal income taxes.
Stopping withholding can be tricky business because of the ignorance
of most private [nongovernmental] private employers about the tax laws.
Here is what we recommend to stop withholding, in descending order of
preference. You should only pursue higher numbered options if
you can’t get your employer to accept the lowest numbered options and
educating him or her doesn’t help:
Withdraw or cancel your W-4, leaving them with no proof that you
are allowing them to withhold income taxes. This should stop
all withholding, including Social Security, Medicare, and Income
taxes. The only reason this approach doesn’t work is because
The above may not work because your employer may be concerned that
they could be held liable for unpaid withholding taxes, even though
no law actually does this for private employers. If they manifest
this irrational fear, meet with their corporate lawyer and demand
that they show you the statute that makes them liable for taxes
you refuse to pay because there isn’t any. Don’t leave the
meeting until you get a definitive answer, and inform them that
if they can’t show you the law, then they are involved in criminal
extortion or “extortion under the color of law”. Try to use
this book to educate them on the error of their ways, focusing mainly
on chapter 5.
If educating your employer doesn’t help, then fill out a W-8BEN
form according to the instructions we describe in section 126.96.36.199.
This will declare you as a foreign person not subject to any type
of income tax withholding, including Social Security, Medicare,
FICA, etc. Attach the “IRS Form W-8/W-8BEN Attachment” form
that we provide in section 9.8.10 to your W-8BEN.
If the above W-8BEN doesn’t work, then fill out a W-4 Exempt and
add it to the W-8BEN and the attachment in #3 above. Then
check the “W-4 attachment” box at the top of the “IRS Form W-8/W-8BEN
Attachment” you attached in #3 above. This attachment reflects that
you are under criminal duress by your employer and makes the filing
of the W-4 invalid, and modifies the meanings of words on the form
to negate its affect and render it not useful as evidence in a court
of law. Under IRS regulations, the employer is required to
send in the W-4E to the IRS, and once they get it, they most likely
will try to send you a letter assessing a $500 false W-4 penalty.
We know, based on the discussion in section 5.4.4 of the
IRS Hoax that the IRS has no authority to assess penalties against
other than federal corporations, so you can’t be held liable for
this penalty but may have to do a lot of leg work convincing most
ignorant IRS clerks of this reality. When you submit this
form, mark “under duress” near your signature and make sure you
don’t put any kind of SSN on it, but instead write “NA” or “None”
or “5th Amendment”. If your employer twists your
arm to remove the “duress” or put an SSN on the form, make sure
that you get their demand in writing on company stationary with
the signature of an agent of the company so that you can prove duress,
and therefore not be held liable for putting the wrong number on
the form or committing fraud. Another sneaky technique is
to add the “under duress” to the form in original print by playing
with it on your word processor before you submit it so the clerk
accepting the form won’t notice. Put it in an inconspicuous
place they won’t look. This frequently works. You may
have to iterate to get the phrase to print in just the right spot
before it looks perfect, but it’s worth the effort if it will get
you off the hook.
If this doesn’t work, then subcontract yourself out and handle your
own withholding and benefits. That way you become your own
withholding agent. What can the IRS do if they send you, as
your own private employer, a Notice of Levy or “Levy”? NOTHING.
In the event that you don’t have the nerve to word the “IRS Form
W-8/W-8BEN Attachment form” the way we do as a criminal complaint
and decide to put your tail between your legs and bend over to allow
your employer to force you to file a W-4
status or allowing for full withholding of federal income taxes,
then you have no choice from that day forward other than to continually
file 1040NR forms with zero filled in for the income amount, stating
that the taxes were paid under duress and that you are a “nontaxpayer”
who wants illegally extorted monies back and your employer prosecuted
for theft. You should also state on your income tax return
that the W-2 form is incorrect because you are not an “employee”
as the word is legally defined.
Whatever form you file, whether it be a W-4 or W-8, please make
sure that you put “Private” under your SSN and your address on the
form and stick an asterisk next to the word. At the bottom
of the form, put an asterisk saying “Protected by the Fifth Amendment
to the U.S. Constitution”. This will keep the IRS off your
back and make it very difficult, if they do get a copy of this form,
to assess penalties against you if they can’t locate you in their
records and don’t know your address. Under these circumstances,
they are also not authorized to contact your employer to obtain
personal information without a court order because it would be a
violation of your privacy.
Before you proceed with the rest of this section,
we recommend reading following sections of our
Hoax book for additional background if you haven’t already read
- Section 4.3.2 entitled “Government as idolatry/religion”.
- Section 5.6.8 entitled “Employment Withholding Taxes are Gifts
to the U.S. government”.
- Section 5.6.14 entitled “Your Private Employer Isn’t Authorized
by Law to Act as a Federal ‘withholding agent’”. This section
gives you some very valuable information that we won’t repeat here
on the subject of withholding by your employer.
We will now cover the information at the beginning
of the preceding section in more detail so you know why we suggested
them. Note that we don't recommend filing an Exempt W-4, or a
W-4E except as a last resort, as we discussed in sections 188.8.131.52.4,
because this may get you in trouble with IRS ultimately with a “false
W-4” penalty of $500. Sometimes, however, filling out a W-4 Exempt
may be your only recourse based on an ignorant employer who won’t cooperate
any other way and who forces you under duress to complete and sign the
form. Filling out an Exempt W-4 is like putting a target on your
back saying “Shoot Me, Kick Me, and Beat Me” and sending an invitation
to the IRS with your home address once a year to hurt you. Even
though the instructions on the W-4 Exempt form say you only have to
fill out your name and Social Security Number, write in Exempt, and
sign the W-4 form, you should keep in mind that the IRS doesn’t
look at the W-4 forms UNLESS they are marked exempt. Here are
the instructions off their website at
Do not send it to the IRS. However,
if you receive a Form W-4 on which the employee claims more than 10
withholding allowances, or claims exemption from withholding and his
or her wages would normally be expected to exceed $200 or more a week,
you must send a copy of
that Form W-4 to the IRS service center with your next employment tax
return along with a cover letter giving your name, address, EIN, and
the number of forms included. If you want to submit the Form W-4
earlier, you can send a copy of the Form W-4 to the IRS service center.
The service center will send you further instructions if it determines
that you should not honor the Form W-4.
You should inform your employees of the importance
of submitting an accurate Form W-4.
An employee may be subject
to a $500 penalty if he or she submits, with no reasonable basis, a
Form W-4 that results in less tax being withheld than is required.
There is no penalty if your employee doesn't claim enough withholding
allowances and has too much withheld.
employee fails to give you a completed Form W-4, you must withhold federal
income tax from his or her wages, as if he or she was single and claiming
no withholding allowances.
In many cases, some private employers do not send
in the W-4 Exempt to the IRS as required by the regulations. If
you work for such an employer, and many do, then you are very lucky.
You might want to ask your employer if they send these forms into the
IRS first before you decide what course to take.
Remember the most important thing about the above:
an “employee” is defined in 26 U.S.C. Section 3401(c ) and section 184.108.40.206
Great IRS Hoax as:
“the term ''employee'' includes [is limited to]
an officer, employee, or elected official of the United States, a State,
or any political subdivision thereof, or the District of Columbia, or
any agency or instrumentality of any one or more of the foregoing. The
term ''employee'' also includes an officer of a corporation.”
So even if you begged your employer to withhold
and filled out the W-4 to start the withholding, they STILL can’t legally
withhold because you aren’t an “employee”. The IRS doesn’t tell
you this in the IRS publications, and so everyone thinks when they read
this that they could be fined $500 for not paying the right amount of
tax. Also, because in effect, your employer (who really isn’t
an “employer” by the IRC at all because you aren’t an “employee”) is
asked to snitch on you and notify the IRS immediately by sending your
W-4 in immediately if you claim exempt status, then the more information
you put on this form, the easier you will make it for them to target
you for harassment and prosecution for “willful failure to file”, even
if you don’t owe tax. Also, according to the instructions on the
W-4 form itself:
“Your exemption for 20__ expires February 18, 20__”
This means that you have to renew the exempt W-4 every year.
No one else who is paying taxes has to renew their W-4. Why?
If you are paying taxes, they get a W-2 from your employer every
year and can keep track of where you are.
They know that if you are
exempt, you probably aren’t filing taxes either so they don’t have
any information about you and they want to keep track of your address
to make it easy to come looking for you with their lawyers and their
harassing and threatening “notice of deficiency” correspondence.
QUITE FRANKLY, YOU’RE A DAMN FOOL IF YOU DO WHAT THEY TELL YOU AND
GET TRICKED INTO SENDING IN ANYTHING ABOUT YOURSELF ON THIS FORM,
AND YOUR FIFTH AMENDMENT PRIVILEGE OF NOT BEING COMPELLED TO INCRIMINATE
YOURSELF AND YOUR FIRST AMENDMENT PRIVILEGE OF NOT BEING COMPELLED
TO COMMUNICATE WITH YOUR GOVERNMENT BOTH GIVE YOU THE RIGHT TO NOT
COMPLETE THIS FORM AT ALL WITHOUT FEAR OF PENALTY OR TAX, AND IF
YOU DO COMPLETE IT, TO ONLY TELL THEM WHAT YOU WANT TO TELL THEM,
WHICH MEANS NOTHING THEY COULD USE TO HURT YOU. That’s why
we advocate giving them an affidavit in exchange for the Exempt
W-4, because unlike the Exempt W-4, the IRS instructions DON’T say
that the affidavit to stop withholding or no W-4 at all has to be
sent immediately to them.
The First Amendment
says we have a right of free expression, which also includes the
right to NOT be compelled to communicate with our government.
Remember also, that the exercise of rights CANNOT be taxed or penalized
by anyone, including the government, or they quite simply aren’t
rights! In this case, the IRS in effect penalizes you for
the exercise of your First Amendment right to NOT communicate with
your government by taxing you and then forcing you to reveal intimate
details about your personal life and your private affairs to justify
getting the money back that never should have been withheld to begin
The Fourth Amendment
also says we have a right to privacy, which means that we have a
right to the security of our papers and personal effects!
Them asking you for this information in effect, amounts to an invasion
of your privacy and YOUR papers (it’s your paper, right? You
filled it out!) and a search of your person for “information”.
You’re being “frisked” for information that will certainly be used
later to hurt you or at least compel you to do something, and you
don’t have to put up with this baloney.
also learned in section 5.6.8 of the
Hoax that employment withholding taxes fall in Tax Class 1, which
means they are gifts to the government and in section 5.4 of
IRS Hoax we learned that such gifts fall under 31 U.S.C. §321(d).
Nonetheless, private, nongovernmental employees (English definition)
are still issued W-4 forms to fill out by their “employer”. Is
the usage of the W-4 form an admission that the wage withholding laws
would apply to you? Perhaps, but the ability to file the W-4 as
"Exempt" allows you to disclaim liability, if so determined, which frees
you from the greater income tax (but not social security tax).
But how do you determine your liability? As we learned in chapter
5 of the
Great IRS Hoax, there is no law making American Citizens “liable”
for income taxes under Subtitle A of the Internal Revenue Code.
Before you attempt to stop withholding or even
mention it to your private employer, it's best to request a written
evaluation of your performance that is signed by your supervisor.
If the private employer asks why you want such an evaluation, just tell
him that you are very serious about your job and that you need written
feedback to help improve your performance. DO NOT say anything
about taxes being the reason or they may catch on to what you are doing.
Once you have this in hand, you can then initiate the stop of withholding
and if the evaluation is fairly good or even average, your private employer
will be deprived of an opportunity to make up lame excuses to fire you
that don’t look like discrimination.
If your private employer says they are afraid they
might be fined or held liable for not withholding payroll taxes after
you withdrew your W-4, leaving them with no authority at all to withhold,
then show them sections 5.6.8 through 220.127.116.11.8 of the
Hoax and convince them that they don't need to treat income to a
U.S. Citizen in the 50 states as "taxable income." Make sure they
know what the definition of “employee” and “employer” is and that you
are a “nonresident alien” and a “U.S. national” to the foreign jurisdiction
of the Internal Revenue Code. If they still continue to deduct
payroll taxes, then you may need to meet with their legal counsel and
explain the situation, and possibly provide a copy of this document
to them. If the legal counsel can’t be convinced, then file a
W-8 or W-8 BEN form declaring yourself as a foreign person not subject
to withholding. Note that there is no penalty for filing the W-8
or W-8BEN, like there is with the W-4, so the W-8 is the safest way
to stop ALL withholding.
If the private employer
still refuses to
(federal, state, Medicare, social security) withholding with the W-8
or W-8BEN, then you may be able to file a W-4 Exempt, but you under
all circumstances, we recommend attaching a W-8BEN and the “IRS Form
W-8/W-8BEN Attachment” we provide in section 9.8.10. Be prepared
to get into a tangle with the IRS over a $500 false W-4 penalty and
over the private employer being told by the IRS to withhold at the single
zero rate. If your private employer still won’t honor the W-4
Exempt, then you will need to litigate against them to get them to change
their policy on this issue by suing them for the amount of income they
are taking away from you because of their misinterpretation of the laws
and violation of your Fifth amendment right not to have your property
taken from you without due process of law. Neither they nor the
IRS have the authority to
steal your wages
without a court hearing and a court order, and even if the IRS tells
your private employer to deduct taxes against your will, they aren’t
authorized under the Fifth Amendment to do so without a garnishment
and especially without any kind of documentation and just a phone call
that isn’t traceable to an known IRS agent.
Before you sue private employers for forcing you
to withhold or the government for refunding your money back, you will
need evidence to prove they are committing extortion and duress in violation
of your property rights in the process of forcing you to withhold.
Therefore, you should be polite at all times but firmly insist on written,
signed evidence from them showing that your employment is threatened
if you don’t withhold. You can send this in with your tax return
asking for your money back, and it will give you a great foundation
to sue the government in equity for returning your unlawfully paid taxes.
If they won’t give you written, signed evidence, then get them on camera
on on an audio recorder telling you that your job is threatened if you
don’t withhold. Make sure they know you are recording the conversation,
because some states make it a crime to record unless both parties consent
(these states are called “two party” states). If they allow you
to record as they talk after they were informed you were recording,
then they consent to the recording implicitly. If they won’t give
you written evidence of their position and won’t let you record the
conversation, then be sure to bring a witness to hear what they are
saying to you. Then after the meeting with your private employer,
get the witness to sign a signed and notarized affidavit documenting
what was said so you that you can admit into evidence in court.
Make sure your witness is not a relative or friend, but a neutral third
party, because they will have more credibility.
If the IRS sends a letter to your private employer
after you file a W-4 Exempt asking him or her to withhold at the single
zero withholding rate, insist on getting the name, address, and phone
number of the IRS Agent and insist that your private employer obtain
an affidavit from the IRS ordering your private employer to withhold
at the single zero rate
before they actually do it. Inform your
private employer that they are liable for violating your Fifth Amendment
rights if they don’t get this affidavit. Make sure that in the
affidavit the IRS documents why they think you are liable to pay tax
and therefore, why withholding is needed. Insist on a copy of
the IRS Agent’s Delegation of Authority Orders (DOA’s) to withhold at
the single zero rate and make sure it is attached to the affidavit.
Then when your private employer
gets the affidavit from the IRS, get a copy of it and DRAG THE IRS AGENT’S
ASS INTO COURT and prosecute him for the following (or any number
of additional claims found in section 11.5):
- Violation of rights (18
- Violating your Fifth Amendment rights (which you can petition
the government to correct under the First Amendment to the Constitution,
called the Petition clause).
- Mailing threatening communications (18
U.S.C. 876)—it’s threatening to be told your pay will be stolen
from you if you don’t “volunteer” to give it away by filling out
a W-4 form.
- Taking more money than is owed (26
U.S.C. 7214)—they haven’t even demonstrated or documented a
tax liability, and yet they’re taking your money anyway. What
kind of justice is that?
- Receiving the proceeds of extortion (18
U.S.C. 880)—taking your pay without your consent and threatening
legal action if you don’t provide it is extortion.
- Blackmail (18
- Taking of property not based on law (26 C.F.R. 601.106(f)(1)).
However, you will be at a big disadvantage in court
at this point if you haven’t previously established a prima facie case
against income tax liability as we described in section 18.104.22.168.
Be careful how you do this or it could blow up in your face. Without
a clear trail of evidence in your administrative record with the IRS
showing over the years the history of your understanding of the tax
laws and your understanding of your lack of tax liability, it will be
difficult to defend your position in court.
On the other hand, if your private employer understands
this document, then he will realize that you are not an “employee” (within
the meaning of the IRC) and it is OK for you to not file a W-4 "volunteering"
to have income taxes deducted from your pay because you have no income
from foreign or corporate sources and therefore have no "gross income"
or "taxable income". Smart private employers who you have taken
the time to educate will also understand that you filing a W-8 or W-8BEN
takes them off the hook to withhold ALL federal taxes from your wages,
including medicare, social security, FICA, and federal income tax.
Smart private employers will also realize that if you file a W-8 or
don’t give them any W-4 authorizing withholding, they consequently don't
need to prepare or file a W-2, because the amount in block 10, "wages,
tips, and other compensation", will consistently be zero with no gross
income. You can’t have “wages” if you aren’t an “employee” as
defined in the internal revenue code.
If your private employer won't cooperate with you
in eliminating your W-4, here are some additional tactics you can use:
- Change private employers and don’t give your new private employer
your social security number. If they threaten to fire you
or not hire you, then report them to the Department of Justice for
discrimination. The case of EEOC v. Information Systems
Consulting, Case number CA3-92-0169, which we talked about
in section 2.6.2 (entitled “Social Security is Voluntary Not Mandatory”),
resulted in an private employer being criminally prosecuted for
discrimination by the Department of Justice for refusing to hire
a person who wouldn’t provide their social security number.
- Tell them you moved and that the address they have on file is
incorrect but that you won't give it to them. Or give them
a bogus address. That way, when the IRS gets your W-2 with
a bad address and doesn't get your 1040, they won't know how to
- Tell them the social security number they have for you is incorrect
but don't tell them the correct one.
- If your private employer insists that you sign or maintain a
signed non-exempt W-4 form, then just write "duress" next to your
signature in pen (so they can't change it or remove it). This
invalidates your signature because it implies that you were forced
or coerced (distraint) to sign under threat in violation of your
due process rights under the 5th Amendment. This will
let you off later when you apply for a refund of amounts withheld
illegally and against your will.
If your private employer won’t accept no W-4 or
an affidavit letter from you because the IRS instructions say above
to withhold at the single zero rate, and if you decide to fill out an
Exempt W-4 as your only option, and if you are too chicken to prosecute
the IRS or your private employer for violating your Fifth Amendment
and other rights by them compelling your private employer to withhold
at single zero, you are admonished to do the following:
1. DO NOT put your social security number on the form and replace
that space with the word “PRIVATE”. Put an asterisk next to the
word and a note at the bottom of the form saying: “Protected from disclosure
by the First, Fourth, and Fifth Amendment”. Read them the following
warning if they give you a bad time about not providing your social
Federal Law, Section 7 of Public Law 93-579 provides
that: It shall be unlawful for any Federal, State or local government
agency to deny to any individual any
right [First, Fourth,
Fifth Amendment], benefit, or privilege provided by law because of such
individual's refusal to disclose his social security account number.
Federal courts have ruled the Privacy Act applies equally to the private
Warning, you are in violation of Federal
Law and persisting with your demand may lead to your arrest and/or civil
damages! The law provides that you can be held personally responsible
and liable, as well as your company or agency.
There is no law requiring an individual to obtain
or use a social security number. Your requirement and/or demand that
I provide a social security number to you is a violation of one or more
of the following laws: 4 C.F.R. 83.9; 5 USC Sec. 552a; 7 C.F.R. 1.123; 7 USC
Sec. 2204g; 14 C.F.R. 1212.604; 17 C.F.R. 249.501a; 19 C.F.R. 118.11; 19 C.F.R.
122.25; 19 C.F.R. 24.5; 24 C.F.R. 5.212; 28 C.F.R. 16.53; 28 C.F.R. 513.31; 28 C.F.R.
700.25; 29 C.F.R. 70a.10; 29 C.F.R. 71.12; 31 C.F.R. 1.32; 31 C.F.R. 501.806; 32
CFR 270.19; 32 C.F.R. 310.20; 32 C.F.R. 311.5; 32 C.F.R. 316.6; 32 C.F.R. 317.20;
32 C.F.R. 323.5; 32 C.F.R. 505.2; 32 C.F.R. 701.108; 32 C.F.R. 806b.9; 38 C.F.R. 1.575;
38 C.F.R. 3.216; 38 USC Sec. 5101; 39 C.F.R. 266.4; 45 C.F.R. Part 801; 47 C.F.R.
0.554; 49 C.F.R. 10.29.
If they look in your
personnel record to find your SSN or mailing address because you wouldn’t
supply it on your W-4 form, then tell them that they are violating the
Privacy Act of 1974 because they are divulging private and personal
information about you to third parties absent your consent. Tell
them this violates your Fourth Amendment right to privacy of your papers
and personal effects in your personnel record. Remind them that
the ONLY information they can legally put into their payroll system
as far as taxes on your pay is concerned is what you put on the W-4
form, which did NOT include your Socialist Security Number. If
they violate your privacy and your wishes and take your SSN out of your
personnel record and give it to the IRS anyway by disregarding what
you wrote on your W-4 (“PRIVATE”), tell them you will sue them for violation
of the laws indicated above
Don’t worry about the IRS. They can’t prosecute you for 26 U.S.C.
7201 “tax evasion” by you refusing to disclose your SSN because doing
this would penalize you for exercising your Fourth Amendment right to
privacy, which is illegal. This was confirmed by the U.S. Supreme
Court below in Harman v. Forssenius, 380 U.S 528 at 540,
85 S.Ct. 1177, 1185 (1965):
"It has long been established that a State [or the
U.S. Government] may not impose a penalty upon those who exercise a
right guaranteed by the Constitution." Frost & Frost Trucking
Co. v. Railroad Comm'n of California, 271 U.S. 583. "Constitutional
rights would be of little value if they could be indirectly denied,'
Smith v. Allwriqht, 321 US. 649, 644, or manipulated out of existence,'
Gomillion v. Lightfoot, 364 U.S. 339, 345."
2. DO NOT, under any circumstances put your mailing address in
block 1 of the form. Instead, put “PRIVATE” with an asterisk next
to it. Why? Because the reverse side of the form says: “Routine
uses of this form include giving it to the Department of Justice for
civil and criminal litigation [AGAINST YOU!], to cities and
states, and the District of Columbia for use in administering their
tax laws”. This statement is there for a reason. They
are putting you on notice, rather blandly, that
you are waiving your 5th
Amendment rights to not be compelled to incriminate yourself, which
can only be done voluntarily and without coercion.
Remember that the main purpose of the Department of Justice is to PROSECUTE
CRIMES, and the 5th Amendment says you can’t be compelled
to incriminate yourself. Don’t let your private employer incriminate
you either by filling in any part of the form in for you. There’s
no law that says your private employer has to do anything with the form
if you won’t fill it out.
3. Attach your “Affidavit and Request to Stop Tax Withholding”
letter to the W-4 and write at the top of the W-4 form “Not valid without
the attached letter and all enclosures”. See sections 9.8.4 through
9.8.5 for example letters.
The heart of our income tax system is voluntary
self assessment and payment and not
distraint, according to
the Supreme Court in Flora v. United States,
362 U.S. 145 (1959). Here is the legal definition of “voluntary”:
“Unconstrained by interference; unimpelled by another’s influence; spontaneous;
acting of oneself. Coker v. State, 199 Ga. 20, 33 S.E.2d 171,
174. Done by design or intention. Proceeding from the free
and unrestrained will of the person. Produced in or by an act
of choice. Resulting from free choice, without compulsion or solicitation.
The word, especially in statutes, often implies knowledge of essential
facts. Without valuable consideration; gratuitous, as a voluntary
conveyance. Also, having a merely nominal consideration; as, a
[Black’s Law Dictionary,
6th Edition, page 1575]
Anything that is “voluntary” must also be consensual.
Here is the legal definition of “consent”:
"A concurrence of wills.
Voluntarily yielding the will
to the proposition of another; acquiescence or compliance therewith.
Agreement; approval; permission; the act or result of coming into harmony
or accord. Consent is an act of reason, accompanied with deliberation,
the mind weighing as in a balance the good or evil on each side.
It means voluntary agreement
by a person in the possession and exercise of sufficient mental capacity
to make an intelligent choice to do something proposed by another.
It supposes a physical power to act, a moral power of acting, and a
serious, determined, and free use of these powers.
Consent is implied in every
agreement. It is an act unclouded by fraud, duress, or sometimes
Willingness in fact that an act or an invasion of
an interest shall take place. Restatement, Second, Torts §10A.
As used in the law of rape "consent" means consent
of the will, and submission under the influence of fear or terror cannot
amount to real consent. There must be an exercise of intelligence
based on knowledge of its significance and moral quality and there must
be a choice between resistance and assent. And if a woman resists
to the point where further resistance would be useless or until her
resistance is overcome by force or violence, submission thereafter is
See also Acquiescence; Age of consent; Assent; Connivance;
[Black's Law Dictionary, Sixth Edition, page 305]
The submission of W-4 or W-8 withholding forms
they are fraudulent and invalid and inadmissible as evidence in court,
even if they don’t say you were under duress on their face when you
signed them. See Weeks v. United States,
232 U.S. 383 (1914). It is quite common for private employers
to attempt to intimidate or coerce you to either submit or not to submit
a a specific income tax withholding form that they, not you, designate
or to tell you what you
must put on this form or which form you must submit.
Such coercion, when not authorized by law, is called
duress and it is
civil rights violation that is an injury you can sue for. It's
based on discrimination against you that is based on your religious
faith and your national origin as a "U.S.
First Amendment violation, because you are being told how and
when you can or must communicate with your government.
creation of a religion in the workplace called “government”
in violation of the
First Amendment, which prohibits the government from establishing
a “religion”. See section 4.3.2 of the
IRS Hoax for further details on this fascinating subject.
Whenever the government makes itself into a “superior being” that
is above the people and demands allegiance or tribute, then it has
become idolatry and an artificial, man-made god to be worshipped.
This act is most repugnant to Christians, who are not allowed to
put any man-made god or idol above their god, or to obey any law
that conflicts with God’s law as documented in the Bible.
Such acts of duress on the part of private employers
amounts to blatant workplace discrimination against you based on your
religious beliefs, if you are like the majority of people who read and
use this book.
When it comes to discrimination, smarter and more
experienced private employers will be very subtle and indirect about
doing it while the ignorant ones will be obvious. The presence
of the discrimination amounts to illegal duress and coercion against
you and also amounts to a civil rights violation. Fraud or duress
also vitiates and nullifies anything you do while you are under the
influence of it.
An agreement [consent] obtained by duress, coercion, or intimidation
is invalid, since the party coerced is not exercising his free will,
and the test is not so much the means by which the party is compelled
to execute the agreement as the state of mind induced.
 Duress, like fraud, rarely becomes material, except where a contract
or conveyance has been made which the maker wishes to avoid.
As a general rule, duress renders the contract or conveyance voidable,
not void, at the option of the person coerced,
and it is susceptible of ratification. Like other voidable
contracts, it is valid until it is avoided by the person entitled
to avoid it.
 However, duress in the form of physical compulsion, in which a party
is caused to appear to assent when he has no intention of doing
so, is generally deemed to render the resulting purported contract
 Brown v Pierce, 74 US 205, 7 Wall 205, 19 L Ed 134
Barnette v Wells Fargo Nevada Nat'l Bank, 270 US 438,
70 L Ed 669, 46 S Ct 326 (holding that acts induced by duress
which operate solely on the mind, and fall short of actual physical
compulsion, are not void at law, but are voidable only, at the election
of him whose acts were induced by it); Faske v Gershman, 30
Misc 2d 442, 215 NYS2d 144; Glenney v Crane (Tex Civ App Houston
(1st Dist)) 352 SW2d 773, writ ref n r e (May 16, 1962); Carroll
v Fetty, 121 W Va 215, 2 SE2d 521, cert den 308 US 571,
84 L Ed 479, 60 S Ct 85.
 Faske v Gershman, 30 Misc 2d 442, 215 NYS2d 144; Heider v
Unicume, 142 Or 416, 20 P2d 384; Glenney v Crane (Tex Civ App Houston
(1st Dist)) 352 SW2d 773, writ ref n r e (May 16, 1962)
Restatement 2d, Contracts § 174, stating that if conduct that appears
to be a manifestation of assent by a party who does not intend to
engage in that conduct is physically compelled by duress, the conduct
is not effective as a manifestation of assent.
[American Jurisprudence 2d, Duress, Section 21]
Gathering evidence of the duress in the form of
written correspondence and eye witnesses is very important under the
circumstances because this is the only way you will prevail in court.
It’s therefore important to keep a journal of what went on in pen and
insist that all communications about the issues of withholding or your
job between you and your private employer be in writing and signed.
Now we’ll give you a list of the more common tactics
that private employers may use against those who choose not to withhold
or pay federal or state income taxes. If your private employer
attempts any of the tactics listed below or attempts to influence your
decision to submit or not to submit either a W-4 or W-8 or W-8BEN tax
withholding form, then he is exercising duress and coercion, because
as we said in section 5.4.14 of the
Hoax, he has no authority even to volunteer to be a “withholding
agent” as defined in
- Threatens to not
hire you based on tax issues.
- Threatens to fire
you based on tax issues.
- Threatens to withhold a recommendation if you seek employment
- Threatens to withdraw your next pay raise based on tax issues.
- Assigns you to less desirable duty as a way to coerce you to
change your mind about tax issues.
- Refuses to promote you or promotes others less experienced ahead
of you, and won’t explain why.
- Threatens to report you to the IRS.
- Illegally honors an IRS request or a regulation to initiate
withholding at the single zero rate if you refuse to submit a form.
This regulation only applies to elected or appointed officers of
the U.S. government inside the federal zone. It does not apply
to persons or private employers who are outside the federal zone
or to private, non-federal private employers.
- Accepts your withholding form stopping withholding and then
subsequently fires you quickly thereafter, and claims some lame
excuse like “We needed someone with more experience.” You
can head this off by getting in writing from your private employer
a written evaluation BEFORE you stop withholding, so they will have
to contradict themselves in order to do this. Don’t tell them
when you ask for the written evaluation that you are considering
- Talks to anyone, including the company lawyer, about doing any
of the above.
Discrimination is against federal law and the federal
government has a whole agency that does nothing but prosecute and intimidate
private employers for discriminating against their employees.
This federal agency is called the Equal
Employment Opportunity Commission (EEOC), and they get most of their
jurisdiction from the commerce clause of the Constitution found in Article
1, Section 8, Clause 3. Their website is at:
If you have been discriminated against by your
private employer as described above, we encourage you to file a formal
complain with the EEOC at the following web address:
Be careful. If you show your private employer
this section and he knows what you are up to, he may invent an excuse
to fire you and make it look like a performance problem so he doesn’t
have to pay the legal fees needed to litigate against you. Some
of our readers have complained of this.
Lastly, if your interactions with the
EEOC are unfruitful in getting your
private employer to cooperate, then another option is to sue them yourself,
preferably in state court, for a violation of civil rights. We
are working on some pleadings that you can easily fill in and file for
yourself but are not yet complete.