Irwin Schiff
Irwin Schiff
Irwin Schiff

Thursday, May 15, 2003

Irwin Schiff Responds

As noted above my question was what law makes me “liable” for Federal income taxes. Your letter states, “The obligation to pay the correct amount of tax …is mandatory as enacted by congress in the various public laws comprising the Internal Revenue Code.” So why didn’t you cite the law which was “enacted by congress” which crates “the obligation to pay” income taxes? The point is, I want to know what law makes me “liable” for income taxes and requires me “to pay” such a tax. This should no be too difficult for you to define, if such laws were “enacted by congress.” For example, in connection with the federal wagering tax, Code section 4401(c) says, “Each person who is engaged in the business of accepting wagers shall be liable for and shall pay he tax under this subchapter on all wagers placed by him.” Section 5703(a) and (b) states in connection with tobacco products, “The manufacturer ..of tobacco products shall be liable for the taxes imposed thereon by section 5701…(and)…Such taxes shall be paid on the basis of a return.” Therefore, please identify for me the statute “enacted by congress” that similarly states, “Those receiving income shall be liable for and shall pay an income tax,” or words to that effect.

Also, there seems to be a conflict within your letter. How can there be a “mandatory …obligation to pay” income taxes ,” if, as you say, “the income tax system is one of voluntary compliance” ? How can the payment of a tax be “mandatory” and “voluntary” at the same time? Are the payments of the federal wagering and tobacco taxes also based on “voluntary compliance”?

Therefore, I would appreciate your specific answers to these two questions.

1) What federal statutes specifically mandates the payment of income taxes, and

2) Are the federal wagering and tobacco taxes also based on “voluntary compliance”?
If not, how can some taxes be based on “voluntary compliance” and others, not?

Sincerely yours,

Irwin Schiff

Wednesday, May 14, 2003

Gene Chapman Asks Irwin Schiff To Respond To IRS

Gene Chapman requested today that Irwin Schiff, Larken Rose, and perhaps two or three others respond in writing to the first official response that Gene has received from the IRS.