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From: alpert@nanook.DEC
Newsgroups: net.taxes
Subject: Re: felonies in Chicago
Message-ID: <446@decwrl.UUCP>
Date: Sat, 2-Feb-85 04:04:53 EST
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Posted: Sat Feb  2 04:04:53 1985
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Regarding the indictments in Chicago...

I don't believe the person who gave the seminar mentioned was Schiff.
Schiff's argument is NOT that the tax laws are unconstitutional, but that
they are carefully crafted to avoid conflict with the Constitution.

In doing this, the authors of the IRS Code (according to Schiff) had to 
leave out a few minor details, such as mandating income tax returns and
making anyone liable for an income tax.  

To date, despite the fact that the IRS has wanted Schiff's hide for the 
past decade, they have never attempted to prosecute him for violation of 
sections 6701 or 7302 of the IRS code. These impose penalties on any 
individual who advises others to pay less taxes than they are liable for.
Section 7302 also makes it illegal to possess any property intended to be
used to violate "the provisions of the IRS laws", and provides for the 
confiscation of such material.

Therefore, I would be very surprised if Schiff were involved in this
situation. 

BTW, the "things IRS Won't Tell You" articles have tapered off primarily 
because we have examined most of the basic points. I'll post updates and 
items of interest as I receive them (the current Schiff Report has more 
information on the IRS "Notice of Levy" which I will post shortly).

In the meantime, this short piece from a past Schiff Report:

-------------
MAKE 'EM PAY!  (based on Schiff Report article of January, 1984)
-------------

(This piece of information was discovered and used by a resident of
Montgomery, Alabama.)

All those who are summoned to produce books and records (pursuant to
section 7602) are entitled to monetary reimbursement.  Section 7610
of the Code covers "fees and costs for witnesses".  The public, however,
has been thrown off by subsection (b) which states that "No payment may
be made... if the person with respect to whose liability the summons is
issued has a proprietary interest in the books, papers...".  This would
seem to indicate that if it were *our* books and records that were being
summoned (as opposed to material summoned from third-parties) that we
are barred from being reimbursed under this provision.

However, close inspection of the Code reveals that subsection (b) (where
this exception occurs) *only* applies to payments "made under paragraph
(2) of subsection (a)".  The exception *does not* apply to "fees and mileage"
provided under Section 7610(a)(1).  In this case, payment was demanded
(and received) under this provision.  

A letter was written to the IRS requesting reimbursement "pursuant to 
Sec. 7610, paragraph (1) of subsection (a)".  In the IRS's reply, 
the District Director (Philip J. Sullivan) stated that "you are entitled 
to the reimbursement for witness and mileage fees under section 7610 of the
Internal Revenue Code", and enclosed a form to fill out to obtain the
reimbursement (form #1157).

=======================================================================
=== The Schiff Report is published by Freedom Books, P.O. Box 5303, ===
=== Hamden, CT 06518                                                ===
=======================================================================

			Bob Alpert
			...decwrl!dec-rhea!dec-nanook!alpert