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IRS vs. KUGLIN
The Sierra Times ^ | Carl F. Worden

Posted on 08/16/2003 7:37:24 PM PDT by webber

IRS vs. KUGLIN

By Carl F. Worden

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?

Carl F. Worden
The Sierra Times


Copyright 2003 The Sierra Times
SierraTimes.com™
A Subsidiary of J.J. Johnson Enterprises, Inc.
The Sierra Times

If this turns out to be another one of those "Gotcha" Fairy Tales, please don't let me know. I want to believe that this news is true. PLEASE?


TOPICS: Government; News/Current Events; US: Tennessee
KEYWORDS: aberration; incometax; irs; taxreform
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To: lainie
She doesn't "owe the taxes;" it is undetermined.

She's not going to jail for evasion, but she still owes the taxes.

21 posted on 08/16/2003 8:21:14 PM PDT by sinkspur
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To: webber
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?

How effing stupid can you get? Sending a letter to the IRS is waving an "audit" flag in front of them.
22 posted on 08/16/2003 8:22:02 PM PDT by jwh_Denver (If you've only got 2 cents to offer, don't bother.)
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To: sinkspur
In your opinion, perhaps; in the IRS's opinion, definately. :)
23 posted on 08/16/2003 8:22:08 PM PDT by lainie
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To: sinkspur
The government could not produce a law, that made her "liable" to pay the tax. If they collect the tax from her it would have to be without a law on the books that allow them to do it. I am not talking about a criminal liability but a "tax" liability.
24 posted on 08/16/2003 8:25:26 PM PDT by lvmyfrdm
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To: zchip
They will. And there isn't a court in the world that can stop them

IRS is Lawless
25 posted on 08/16/2003 8:27:03 PM PDT by lvmyfrdm
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To: lvmyfrdm
The government could not produce a law, that made her "liable" to pay the tax. If they collect the tax from her it would have to be without a law on the books that allow them to do it.

Nonsense. The 16th Amendment allows for the collection of an income tax, and that collection has been upheld by every court decision since its passage.

26 posted on 08/16/2003 8:28:09 PM PDT by sinkspur
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To: jwh_Denver
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?

Yes these is, but only certain people, on certain income, Income that is truely "income" a gain. NOT everyone.

27 posted on 08/16/2003 8:31:32 PM PDT by lvmyfrdm
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To: lainie; lvmyfrdm
Glad to see y'all are seeing Hannity for the brain-dead, collectivist, empty suit, Yankee he is.
28 posted on 08/16/2003 8:36:35 PM PDT by agrandis (What kind of nation sends its women into combat?)
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To: jwh_Denver
How effing stupid can you get? Sending a letter to the IRS is waving an "audit" flag in front of them.

They just won't answer you either. Sean Hannity, journalist, could ask on your behalf, but he thinks you should just shut up and pay your fair share, too.

29 posted on 08/16/2003 8:39:57 PM PDT by lainie
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To: agrandis
It has taken a few days to sink in, I'll be honest. As I heard earlier on the radio, oh he of the thousand-dollar suit, grilling this non-TV-personality woman who is standing up for what she believes, really showed his true colors.
30 posted on 08/16/2003 8:42:19 PM PDT by lainie
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To: sinkspur
Nonsense. The 16th Amendment allows for the collection of an income tax, and that collection has been upheld by every court decision since its passage.

Income is taxable, provided it is truely "income" and derived from a taxable activity.



Congress has not changed the meaning of "income" since the 16th amendment was written, and the Supreme court has said that the word "income" has the same meaning as it did in 1909 Corporate Income Tax. This word can not be redefined without an act of congress.

Maybe you should go and read what 16th amendment "income" is before you assume you know what the word "income" means.
You know the meaning the dictionary gives it, what matters is the meaning the law gives it.

Income Subject to Taxation
Corporate Dividends: When Taxable
Corporate Earnings: When Taxable
Gains: When Taxable
Income from Illicit Transactions
Deductions and Exemptions
Diminution of Loss

http://supreme.lp.findlaw.com/constitution/amendment16/

31 posted on 08/16/2003 8:52:56 PM PDT by lvmyfrdm
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To: lvmyfrdm
Ahh. This is so refreshing.

It means what they say it means.
32 posted on 08/16/2003 9:08:03 PM PDT by lainie
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To: webber
Well, I suppose I'll be flamed for this, but I believe that all citizens of this country should pay the necessary amount of income tax to fund two things; the National defense and the National transportation infrastructure. I don't believe those two items constitute anywhere near 25% of my income though.
33 posted on 08/16/2003 9:17:53 PM PDT by yooper
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To: sinkspur
"She's not going to jail for evasion, but she still owes the taxes."

Since she's not going to jail for evasion, what would stop her from further evasion? She refused to pay before; do you think this verdict will convince her to pay now?

34 posted on 08/16/2003 9:22:59 PM PDT by yooper
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To: lvmyfrdm
Wonder how many people will even question such a statement right from the IRS website.

To determine if you need to file a Federal Income Tax return for 2002 answer the following questions:

Occasionally, individuals have one-time or infrequent financial transactions that may require them to file a Federal Income Tax return.

Do any of the following examples apply to you?

Did you have Federal taxes withheld from your pension and wages for this tax year and wish to get a refund back?

Are you entitled to the Earned Income Tax Credit or did you receive Advance Earned Income Credit for this tax year?

Were you self-employed with earnings of more than $400.00? Did you sell your home?

Will you owe any special tax on a qualified retirement plan (including an individual retirement account (IRA) or medical savings account (MSA) ? You may owe tax if you:

Received an early distribution from a qualified plan Made excess contributions to your IRA or MSA

Hello

Occasionally, individuals have one-time or infrequent financial transactions that may require them to file a Federal Income Tax return.

35 posted on 08/16/2003 9:26:27 PM PDT by lvmyfrdm
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To: yooper
If she enters into taxpayer status she'll pay the taxes she owes. That's my guess.
36 posted on 08/16/2003 9:27:59 PM PDT by lainie
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To: webber
The problem with a "win" of this type is that a jury decision only applies to the case at hand. It sets no precedent for use in other cases (it does not rule on the law itself, and does not establish 'case law' to cite in other trials). It may show a trial procedure that can be used in other cases to get aquittals for those who study the trial. If a trend of aquittals develops, it can end up changing the laws themselves on the legislative level (as it did with prohibition and, in some areas, marujuana).
37 posted on 08/16/2003 9:34:24 PM PDT by templar
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To: yooper
She refused to pay before; do you think this verdict will convince her to pay now?

More than likely, the IRS will just seize everything she owns for the rest of her life. Property, bank accounts, jewelry, vehicles, just about anything that is cash or that can be sold at auction. I don't know if bankruptcy can eliminate an IRS tax judgment ... anyone?

38 posted on 08/16/2003 9:38:29 PM PDT by templar
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To: lainie
They charged her with a "crime" but couldn't/didn't produce an actual broken law. She said show me where I'm liable for this code and they said pay or go to jail.

Round two will be a civil enforcement proceeding. By the time she's done with that one she will have paid several times as much in attorney fees as the taxes she avoided.

Then next year, they'll come after her again criminally and civilally.

This acquittal was a fluke. She cannot consistently win acquittals in tax evasion prosecutions. The only way to win these things is in the legislature by changing the law.

39 posted on 08/16/2003 9:42:12 PM PDT by Kevin Curry (Put Justice Janice Rogers Brown on the Supreme Court--NOW)
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To: templar
I don't know if bankruptcy can eliminate an IRS tax judgment ... anyone?

It cannot.

But the IRS really isn't the bad guy. Congress created both the tax code and the IRS to enforce it. Congress loves having the IRS as enforcer because it knows that citizens tend to focus their anger on the IRS--not Congress.

40 posted on 08/16/2003 9:51:34 PM PDT by Kevin Curry (Put Justice Janice Rogers Brown on the Supreme Court--NOW)
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