IRS Suffering Repeated Defeats
IRS Suffers Staggering Defeat
Source:
http://z13.invisionfree.com/THE_UNHIVED_MIND/index.php?showtopic=33512
161 Federal Tax Charges, 0 Convictions - Total National Media
Blackout
10 -4 -2007
IRS Suffers Staggering Defeat
Tax Questions Raised Regarding Gold and Silver Coins Used to Pay
Wages
Around noon on Monday, September 17th, a Las Vegas federal jury
returned its verdict refusing to convict nine defendants of any of the
161 federal tax crimes they had been charged with. The charges included
income tax evasion, willful failure to file and conspiracy to evade
taxes.
The four-month trial centered around the family businesses of Robert
Kahre who paid numerous workers for their labor with circulating gold
and silver U.S. coins, and did not report the wages. The payments took
place over several years, allegedly totaling at least $114 million
dollars.
On September 20, 2007, three days after the federal trial's dramatic
conclusion, the Las Vegas Review Journal, reportedly under a degree of
public pressure, ran its first (and last) story about the outcome of the
trial. To this day, with exception of the single article by the Review
Journal, no major media entity has published a news story regarding the
outcome of this important federal criminal tax case.
The censorship of this important news story is, unfortunately, not
unexpected given the continuing, worldwide onslaught against the U.S.
"dollar" -- specifically the Federal Reserve variety, and the ever
growing numbers of Federal Reserve Notes required to trade for an actual
ounce of silver, gold, oil, or for that matter, anything.
In short, this failed prosecution has coalesced and exposed truths
our Government desperately needs to hide from the People: the truth
about our money, the truth about our (privately-owned) central bank, and
the truth about the fraudulent nature of the operation and enforcement
of the federal income tax system.
According to defense attorney Joel Hansen, who represented
co-defendant Alex Loglia, the primary "willfulness" defense was that the
defendants believed they had no legal obligation to withhold, pay income
taxes or report anything to the government because, in part, the nominal
(i.e., face value) of the gold and silver coins is so small as to fall
beneath the reporting thresholds set by the Internal Revenue Code.
The Defendants also argued that regardless of the valuation of the
coins for internal revenue purposes, there is no law that requires
average American workers to file or pay direct, un-apportioned taxes on
the fruits of their labor.
The Government argued that the payments in solid gold and silver U.S.
coins must be considered at their bullion (i.e., intrinsic full-market)
value when considering the worth of the wages for purposes of the
internal revenue code.
Attorney Hansen cited two Supreme Court cases bolstering Defendant's
monetary argument at the heart of the defendants "willfulness" defense.
The essence of the argument is that under the Constitution Congress
is obligated by law to mint and circulate such coins as demand requires,
and must establish the value of coins as they are used as legal tender,
but the coins' market value, arising as valuable personal "property," is
a distinct, separate attribute of such coins, and is of no legal
consequence if the coins are used as legal tender.
In other words, if a worker is paid with such coins, his taxable
"income" (if any) can only be the face value indicated upon the coin
money paid -- i.e., $1.00 for a circulating silver dollar or $50 for a
circulating gold U.S. coin. Not surprisingly, the IRS has never issued
any public guidance regarding this significant issue. The first case,
Ling Su Fan v. U.S., 218 US 302 (1910) establishes the legal distinction
of a coin bearing the "impress" of the sovereign:
"These limitations are due to the fact that public law gives to such
coinage a value which does not attach as a mere consequence of intrinsic
value. Their quality as a legal tender is an attribute of law aside from
their bullion value. They bear, therefore, the impress of sovereign
power which fixes value and authorizes their use in exchange."
The second case, Thompson v. Butler, 95 US 694 (1877), establishes
that the law makes no legal distinction between the values of coin and
paper money used as legal tender:
"A coin dollar is worth no more for the purposes of tender in payment
of an ordinary debt than a note dollar. The law has not made the note a
standard of value any more than coin. It is true that in the market, as
an article of merchandise, one is of greater value than the other; but
as money, that is to say, as a medium of exchange, the law knows no
difference between them."
Defense attorney Hansen confirmed that members of the jury were able
to actually hold and inspect the gold and silver U.S. coins paid to the
workers.
After almost four months of testimony and three and a half days of
deliberation, the jury did not convict any of the defendants of any of
the 161 crimes alleged. Although some defendants were acquitted of
multiple counts, and several were acquitted completely, others may have
to stand for a retrial if the Government brings charges a second time.
The Review Journal reported the jury foreman claimed DOJ prosecutors
admitted they were "shocked" by the outcome.
In March 2007, the primary defendant, Bob Kahre, filed a federal
civil rights lawsuit against the prosecutor and IRS agents who had
conducted what he alleges to be an unlawful search and seizure raid. In
2005, the Ninth Circuit Court of Appeals refused to overturn a previous
District Court ruling holding that the federal prosecutor is not
entitled to absolute immunity for the unlawful raid. Read more.
Execute a Google News search to attempt to locate recent news stories
about the Kahre tax trial.
The media suppression of this story is similar to the widespread
mainstream media suppression of the July 11, 2007 acquittal of Louisiana
attorney Tommy Cryer who was also charged with multiple federal income
tax crimes and relied upon numerous Supreme Court precedents and U.S.
tax laws to establish his "willfulness" defense. Click here for a
previous WTP update containing a link to Cryer's 100-page Motion to
Dismiss which details his legal arguments.
Execute a Google News archive search to attempt to locate news
stories about Tommy Cryer's tax trial.
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