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IRS vs. KUGLIN (IRS Loses in Memphis: Is Income Tax History?)
Sierra Times ^ | August 10, 2003 | Carl Worden

Posted on 08/11/2003 7:12:43 AM PDT by ninenot

Forget the war in Iraq, Afghanistan and our excellent adventure in Liberia. Forget about Kobe, Arnold, Arriana, Scott and Laci. The biggest news of the entire week is that on August 8, 2003, the IRS was unable to convince a jury in Memphis, Tennessee that the Federal Tax Code requires the citizens to pay individual income taxes. I kid you not.

I watched as many Sunday news programs as I could possibly stand, and I didn't hear a single mention of the IRS' debacle in Memphis. If you ever had doubts about the mainstream media being controlled by the federal government, doubt no more.

For those not already aware, FedEx Pilot Vernice Kuglin began studying the IRS Code some years ago, and was simply unable to find anywhere in the code that she was required to pay federal income taxes.

And here's the most remarkable part: Back in 1995, Kuglin wrote letters in good faith to the IRS, asking them to show her where the Tax Code requires individual citizens to pay federal income taxes. Incredibly, the IRS never answered a single one of her letters!

As she studied the facts, laws and related documents more, Kuglin became convinced that, regardless of the IRS' failure to respond one way or the other, she was exempt from paying federal income taxes. So, Kuglin filled out W-4 forms showing 99 exemptions, and turned them in to her employer. Doing that meant Kuglin got to take home almost all of her paycheck each payday, instead of what was left after the feds ravaged it.

The IRS went after Kuglin for six counts of tax evasion on $920,000.00 income, and for filing "false" W-4 forms, charges that could have put the 58 year-old Kuglin in federal prison for up to 30 years and cost her 1.5 million in fines.

Apparently, things didn't go quite the slam-dunk way federal prosecutor Joe Murphy thought they would. My money says the IRS wishes they had never gone after Kuglin at all. In fact, after the jury returned not guilty verdicts on all counts, Murphy is reported to have demanded that the judge order Kuglin to file her forms, pay her taxes and "obey the law". The judge reportedly replied, "Sir, I don't work for the IRS."

Now pinch yourself and review this astonishing turn of events: A highly trained and educated federal prosecutor in Memphis was unable to convince 12 American citizens that Vernice Kuglin was required to pay federal income taxes. He was clearly unable to produce a single section of the Tax Code to that end, and the jury was unanimous in clearing Kuglin of all charges against her. If the foregoing was not so, Kuglin would have been convicted.

Jurors tend not to be very sympathetic with tax scofflaws, since each one of them is also a taxpayer and they understandably feel resentment towards anyone not paying "their fair share". So in order for this federal jury to completely vindicate Kuglin, the government's failure to prove their case against her had to have been clear and unequivocal!

I haven't read the trial transcript yet, but I must assume the federal prosecutor at least tried to twist some vague and ambiguous section of the Tax Code to make it look like it applied to Kuglin. I don't know that, but I'll bet he tried. What else could he use to prosecute her with?

Thanks to the IRS' arrogance and stupidity, and Kuglin's refusal to plead to lesser charges, Kuglin accomplished what Bob Schultz and the other "tax protesters" had been denied all along: To force the IRS into a public debate and to answer the question of whether or not the Tax Code requires an individual to pay personal income taxes. Kuglin and her two attorneys, Larry Becraft and Robert Bernhoft, have unequivocally forced the IRS to show its hand, and 12 judges hearing that debate ruled the answer to be "NO".

I think it's time for everyone reading this to send a very polite letter to the IRS, telling them they read about the case in Memphis, and is it true that there is no section in the U.S. Tax Code that requires an individual citizen to pay federal income taxes?

Don't be threatening in any way, or announce that you plan to stop paying federal income taxes. This request is for your personal edification, and you just simply want to know the truth.

Like Kuglin, you probably won't get an answer back, but just to prove you sent the letter and that they received it, be certain to send the letter via certified U.S. Mail, with a return receipt requested. When you get that receipt back, staple it to a copy of the letter you sent the IRS, and put it somewhere real secure, like a personal safe or bank deposit box.

I don't have to explain why, now do I?

Now, how many calls to FOX' Bill O'Reilly will it take to convince him we know he's doing a spin in the No-Spin Zone by sitting on this story? Start e-mailing O'Reilly at oreilly@foxnews.com, and be sure to give him your city and state. He's gonna love me.

Carl F. Worden


TOPICS: Business/Economy; Constitution/Conservatism; Culture/Society; Government; News/Current Events
KEYWORDS: constitutionparty; incometax; irs
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The attorney representing the Memphis pilot is from Milwaukee and maintains a practice here.
1 posted on 08/11/2003 7:12:44 AM PDT by ninenot
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To: Eaker
ping
2 posted on 08/11/2003 7:16:00 AM PDT by thackney
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To: ninenot
A classic example that the media is neither 'conservative' or 'liberal' biased but it is 'statist' biased-- thanks for the find.
3 posted on 08/11/2003 7:18:26 AM PDT by JohnGalt (They're All Lying)
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To: ninenot
Powder..Patch..Ball FIRE!

I'd like to see a transcript of this trial!

4 posted on 08/11/2003 7:19:27 AM PDT by BallandPowder
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To: ninenot
bump
5 posted on 08/11/2003 7:19:40 AM PDT by cookcounty
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To: ninenot
This is hardly a sober, authoritative source.

By the author's logic, the jury which returned a not guilty verdict in the O. J. Simpson murder case intended to signal that murder should be legal.

6 posted on 08/11/2003 7:20:06 AM PDT by Mr. Lucky
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To: Mr. Lucky
True, but if this ruling took place, wouldn't there be some precedent to follow?

I am surprised that Boortz hasn't picked up on this.

I will do some research. See if we can get some independent verification.

7 posted on 08/11/2003 7:22:10 AM PDT by mattdono
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To: ninenot
a bump for good news
8 posted on 08/11/2003 7:23:32 AM PDT by Bill Davis FR
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To: Mr. Lucky
Hardly, the case demonstrates that Tax paying is "voluntary".
9 posted on 08/11/2003 7:24:22 AM PDT by ffusco (Maecilius Fuscus,Governor of Longovicium , Manchester, England. 238-244 AD)
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To: BallandPowder
You and a lot of other people.
10 posted on 08/11/2003 7:25:18 AM PDT by ninenot (Progressives make mistakes. Conservatives don't correct them.--Chesterton)
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To: thackney
If this article is, in fact, correct then the story should get significant coverage just from the "Man Bites Dog" angle.

I'd also look for the blog buzz to drive it onto talk radio. We'll see if the story has legs.

I couldn't find anything in the on-line Commercial Appeal - do any Memphis Freepers have any add'l info?
11 posted on 08/11/2003 7:26:33 AM PDT by G L Tirebiter
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To: Mr. Lucky
Agreed that the source has an interest.

But that does not serve to deny the truth of the report. Of course, there's a fair amount of "detail" missing...
12 posted on 08/11/2003 7:26:54 AM PDT by ninenot (Progressives make mistakes. Conservatives don't correct them.--Chesterton)
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To: ninenot
A Google News Search on "Kuglin" came up with two other postings:

IRS Loses Tax Case Against FedEx Pilot - Conspiracy Planet - http://www.conspiracyplanet.com/channel.cfm?channelid=111&contentid=909
IRS Loses a Big One - NewsMax.com - http://www.newsmax.com/showinsidecover.shtml?a=2003/8/9/164934

13 posted on 08/11/2003 7:27:10 AM PDT by alancarp (SItting Senators ought not cash in while under the public trust)
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To: ninenot
I think it's time for everyone reading this to send a very polite letter to the IRS, telling them they read about the case in Memphis, and is it true that there is no section in the U.S. Tax Code that requires an individual citizen to pay federal income taxes?

Change the "is it" to "it is" and change the "?" at the end to a ".". To ask the IRS if what the jury/court already decided is true is just dumb. This is a fight. Someone just won. You don't ask the loser if the winner won. He's likely to lie or otherwise try to subtract from the victory of the winner.

14 posted on 08/11/2003 7:27:11 AM PDT by Jason_b
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To: G L Tirebiter
Oops, a little more looking found this:

http://www.gomemphis.com/mca/local_news/article/0,1426,MCA_437_2169609,00.html
15 posted on 08/11/2003 7:28:19 AM PDT by G L Tirebiter
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To: mattdono
I found a limited amount of information. Google has a cached page of the court calendar (here) and another cached page that shows the hearing was scheduled for July 24 at 2:00 PM (here)...

Also found an article talking generally about the case. Basic detail, but here is the here.

16 posted on 08/11/2003 7:29:08 AM PDT by mattdono
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To: ninenot
Guess this 'lady' thinks she is better than the rest of us... who have to pay her share. Hope she doesn't drive on the roads that she didn't help to pay for. Pure lunacy.
17 posted on 08/11/2003 7:29:22 AM PDT by StolarStorm
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To: Mr. Lucky
By the author's logic, the jury which returned a not guilty verdict in the O. J. Simpson murder case intended to signal that murder should be legal.

Um, I'm not so sure about that. Now I didn't follow the O.J. trial so I don't know what was said, but I suspect the argument presented to the jury was that O.J. didn't do it. I would be surprised if the argument was that the legal code permitted him to commit murder.

But I agree with you; this case needs more careful attention and analysis.

18 posted on 08/11/2003 7:29:26 AM PDT by Eala
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To: G L Tirebiter
Ah, beat me to it. That was one of the links I posted...1 minute after you had.
19 posted on 08/11/2003 7:29:52 AM PDT by mattdono
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To: ninenot
Things like this are why I think jury trials are a much better avenue for change than elections.

Doesn't matter who passes the laws, doesn't even matter if the prosecutor is right on the law, if juries refuse to convict.

20 posted on 08/11/2003 7:32:16 AM PDT by Tauzero (This was not the sand-people, this was the work of Imperial Storm Troopers: only they are so precise)
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To: ninenot
This is why they have "tax courts" to try IRS cases.
21 posted on 08/11/2003 7:32:58 AM PDT by wjcsux
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To: mattdono
Jury verdicts do NOT set precedents.

Court rulings do - since the Judge did not RULE in this case, there is no precedent.
22 posted on 08/11/2003 7:34:02 AM PDT by taxcontrol
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To: ninenot
A big Yeeehaaa to ya, ms. kuglin
23 posted on 08/11/2003 7:35:45 AM PDT by Johnbalaya
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To: wjcsux
I'm of the opinion that the first step in changing the system is to return tax cases to regular court - with all the normal rules of evidence.
24 posted on 08/11/2003 7:36:18 AM PDT by taxcontrol
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To: StolarStorm
"Guess this 'lady' thinks she is better than the rest of us..."

I very much doubt that.

"who have to pay her share."

Her point is that you don't have to pay it either.

"Hope she doesn't drive on the roads that she didn't help to pay for. "

Income taxes are pooled with other taxes and distributed for various purposes. She is undoubtedly paying other taxes, which do, in part, pay for roads.

"Pure lunacy."

Pure, wonderful rebellion.
25 posted on 08/11/2003 7:36:33 AM PDT by Tauzero (This was not the sand-people, this was the work of Imperial Storm Troopers: only they are so precise)
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To: ninenot
Bump for later.
26 posted on 08/11/2003 7:36:40 AM PDT by Bikers4Bush
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To: ninenot
Good for Vernice..............I think. Are we now going to have to have a special session of Congress to pass a retro active tax package? God help us!
27 posted on 08/11/2003 7:37:21 AM PDT by Sunshine Sister
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To: wjcsux
Ah, but you are entitled to a jury trial in cases over $10000, I think.
28 posted on 08/11/2003 7:37:26 AM PDT by Tauzero (This was not the sand-people, this was the work of Imperial Storm Troopers: only they are so precise)
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To: StolarStorm
she doesn't drive on the roads that she didn't help to pay for.

Lunacy describes those who don't understand that the tax on fuel is what pays for road's. The rats alway's us this line.

29 posted on 08/11/2003 7:37:32 AM PDT by org.whodat
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To: ninenot
I imagine this came from the definition of the two words "income" and "wages". Somehow over the years, these two words have been redefined to mean the same thing. In reality, wages are a means of exchanging hours of labor for goods. Income is the difference a business has between revenue and expenses. The later supposedly is taxable while the first case is not.
30 posted on 08/11/2003 7:37:53 AM PDT by tang-soo
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To: StolarStorm
Roads are by and large fudned using taxes from gasoline sales.

If she buys gas or pays someone to drive her who buys gas then she's paying for the roads.

More likely that she's tired of seeing her tax dollars sent overseas and used to support illegal aliens here in the U.S.
31 posted on 08/11/2003 7:38:20 AM PDT by Bikers4Bush
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To: ninenot
BTTT
32 posted on 08/11/2003 7:38:59 AM PDT by StriperSniper (Make South Korea an island)
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To: StolarStorm
Guess this 'lady' thinks she is better than the rest of us... who have to pay her share.

If you 'voluntarily' decide to pay 'your share' then so be it. But this lady (and every other American) is under no obligation to follow that which can not be proven to be legally binding upon them. To suggest otherwise is to not understand the meaning of freedom.

33 posted on 08/11/2003 7:41:38 AM PDT by asformeandformyhouse
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To: mattdono
Apperantly, Ms. Kuglin is a prominent member of the Libertarian party.

Here is an excerpt from a report on the 2000 LP convention ...

At the party's convention, which ends here today, Tennessee delegate Vernie Kuglin says she may have caught her libertarian spirit growing up in Nigeria as the child of missionary parents. "I think I developed a libertarian attitude in my soul from the Africans there, who lived very free," she says. "They didn't have much government intrusion in their lives at that time."

It wasn't until 1992, however, that she first heard of the Libertarian Party - which since its beginnings in 1971 has campaigned for a radical reduction in the role of the government in the lives of American citizens.

"The logic of it made sense to me," says Ms. Kuglin. "I liked the idea of responsibility, of individual choice."

Link
34 posted on 08/11/2003 7:42:54 AM PDT by mattdono
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To: Bikers4Bush
Thanks. I wasn't aware that the fuel taxes paid for interstates. I always thought that only state and local roads were. My mistake.

One thing though, I'm a fan of the US military. If a tax rebellion occured we'd have to kiss our defense goodbye. This is all well and good on a theoretical standpoint, but scary as hell in reality.... unless you are looking forward to anarchy.

35 posted on 08/11/2003 7:42:54 AM PDT by StolarStorm
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To: asformeandformyhouse
Good luck living in the relative freedom that we have here if everyone decides not to pay their income taxes. The chinese would love to show us their brand of 'freedom' after they roll through our non-existant military.
36 posted on 08/11/2003 7:44:59 AM PDT by StolarStorm
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To: StolarStorm
oh get off your high horse. I am CERTAIN that the FEDEX pilot spent HER money much more wisely than the goobermint would have (wasted) spent it.....
37 posted on 08/11/2003 7:45:00 AM PDT by Capt.YankeeMike (get outta my pocket, outta my car, and outta the schools)
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To: StolarStorm
Hope she doesn't drive on the roads that she didn't help to pay for. Pure lunacy.

It has always been my understanding that the gasoline tax and auto registration fees cover the largest part of road expenses. Except for Interstate Highways, the local and state govt's handle most road projects and repairs. The Federal Income Tax feeds a bloated bureaucracy and massive entitlement programs. How, in a system where many pay NOTHING, can you say anyone is paying their FAIR SHARE? As long as the gov't confiscates my money to pay someone else to sit on their lazy butt; nothing is fair.

38 posted on 08/11/2003 7:46:23 AM PDT by Extremist
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To: Tauzero; taxcontrol
I believe we all should pay SOME taxes. I am sick and tired of paying for deadbeats, illegals, and the U.N., among other things.
39 posted on 08/11/2003 7:46:43 AM PDT by wjcsux
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To: Capt.YankeeMike
Think she bought any cruise missiles or bullets for our troops? Doubt it. I'm sure that she thought that her HDTV and 5000 sq ft house was better expenditure (for her). Selfish people.
40 posted on 08/11/2003 7:47:40 AM PDT by StolarStorm
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To: StolarStorm
I'm a big fan of the military myself, if you look at how much the military gets compare to what we send overseas and use to support the illegals etc. you'd find that there's a lot of room for us to get OUR money back and still keep the military in good shape.

The truth is that this might start a flat tax revolution.
41 posted on 08/11/2003 7:49:37 AM PDT by Bikers4Bush
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To: taxcontrol
Point taken. Perhaps I meant precedent in that there is now a way, though not an actual legal precedent, to follow to tell the IRS to bugger off.
42 posted on 08/11/2003 7:51:33 AM PDT by mattdono
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To: StolarStorm
Good luck living in the relative freedom that we have here if everyone decides not to pay their income taxes. The chinese would love to show us their brand of 'freedom' after they roll through our non-existant military

Again this shows you do not understand freedom. If american citizens can be forced to obey what the government demands which can not be legally proven to be binding upon them, then in fact we have the Chinese system here already.

The constitution originally provided for a method of taxation that would fund the existence of a military. It is the 'income tax' on american citizens that is in question here.

43 posted on 08/11/2003 7:52:24 AM PDT by asformeandformyhouse
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To: ninenot
He was clearly unable to produce a single section of the Tax Code to that end, and the jury was unanimous in clearing Kuglin of all charges against her. If the foregoing was not so, Kuglin would have been convicted.

The author assumes the lady was acquitted because she was not convicted. Wrong, there could very well be a hung jury here. The court docs on the PACER site have not been posted yet.

44 posted on 08/11/2003 7:52:32 AM PDT by RGSpincich
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To: ninenot
I heard it this morning on that awful Doug Steffen (sp) radio program
45 posted on 08/11/2003 7:53:08 AM PDT by mel
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To: Bikers4Bush
The truth is that this might start a flat tax revolution

The Flat Tax or a Nat'l Sales Tax would beat our current system and lower, if not eliminate, the need for the IRS.

A sales tax would be good because it would bring illegal aliens into the system. Of course its downside is that it would turn all merchants into Federal Tax Collectors.

46 posted on 08/11/2003 7:53:14 AM PDT by Extremist
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To: Extremist
Agreed, although I don't like the idea of every merchant becoming an agent of the government either.
47 posted on 08/11/2003 7:54:38 AM PDT by Bikers4Bush
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To: StolarStorm
One thing though, I'm a fan of the US military. If a tax rebellion occured we'd have to kiss our defense goodbye. This is all well and good on a theoretical standpoint, but scary as hell in reality.... unless you are looking forward to anarchy.

We had a military that defeated the England twice, Spain, Mexico, and won a civil war without an income tax.* The chief purpose of the income tax is funding the welfare state. The legitimate functions of government don't need an income tax.

This case will likely not change anything, but even if it did the issue deserves serious discussion, not the sort of hysterics the democratic party uses for every issue.

*Income taxes were passed at times, but never made it throught the courts.

48 posted on 08/11/2003 7:54:51 AM PDT by hopespringseternal
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To: StolarStorm
Hope she doesn't drive on the roads that she didn't help to pay for. Pure lunacy.

Actually the lunacy is when people are led to believe income taxes not gasoline taxes paid at the pump pay for roads...

49 posted on 08/11/2003 7:56:39 AM PDT by lewislynn
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To: StolarStorm
"Guess this 'lady' thinks she is better than the rest of us... who have to pay her share. Hope she doesn't drive on the roads that she didn't help to pay for. Pure lunacy."

What is "pure lunacy" is that June 2 is tax freedom day.


50 posted on 08/11/2003 7:56:54 AM PDT by Manic_Episode (Improvise. Adapt. Overcome.)
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