Posted 5:27 AM by Dee

THANK YOU THANK YOU THANK YOU - all of you who helped.

And especially T. I got the point across in court today. Exempt income 1.861-8T(d)(2)(ii)(A) and 1.861-8(a)(4).

The Constitution limited Congress' jurisdiction. The 16th amendment did not make any thing taxable that was not taxable before.

They tried the 861 crap that we say wages are not income. I stood right up and said I object your honor. The IRS always says I say wages are not income. I have never said wages are not income. I say wages are not always gross income and no judge has ruled on that and there is a big difference.

My argument is that our income is exempt income and nothing else.

I had to object three times because the IRS agent tried to pull it again claiming we said wages are not income. Three times is a charm you know - she quit saying we said that on my third objection.

I asked the IRs agent if she ever read the codes and regs and she said sure. I asked her if she knew if there was any income in the statutes that was exempt income. She said oh, there might be, but I'm not sure what it is. I asked her if she was aware of the Regulation that showed that there is income that is exempt from federal taxation under the constitution. She said no. I said 17 years in the service you should know. Try reading 26 CFR § 1.312-6(b)) which states: "all income exempted by statute, income not taxable by the Federal Government under the Constitution, as well as all items includible in gross income under section 61 or corresponding provisions of prior revenue acts".

I referred to the old regulations too: Reg. 62, Art. 71. "What excluded from gross income. Gross income excludes the items of income specifically ex-empted by the statute and also certain other kinds of income by statute or fundamental law free from tax.

Such tax-free income should not be included in the return of income and need not be mentioned in the return.

The exclusion of such income should not be confused with the reduction of taxable income by the application of allowable deductions. See section 212 of the statute and article 21. As to exclusions from gross income by corporations, see section 233 and article 541."

I asked her what her authority was for issuing a summons to someone who is not a third party recordkeeper per 7609. I asked her if she had examination authority for private citizens in the sovereign areas of a state. She said I suppose so. I now have a definite lawsuit folks - she admitted she summonsed a private wholesale warehouse. I know she has no authority for it. Attorney Gen'l Manual in the summons part shows specifically that private wholesale warehouses and mom and pop groceries they have no authority to summons because they are not considered third party recordkeepers because they keep records for themselves, not for someone else. IRS agent got info without authority.

When I got done quizzing her, I took the stand - which everybody says is a no, no. I remembered my stuff, their jaw hung open and when I got done the judge turned to the US attorneys (2 of them) and said - what is your authority? They stammered and stuttered and finally said well, I'm sure there is one but we'll have to go back to DC and find it.

The judge said I'll give you a scant 10 days to come up with your authority for what you're asking for and I'll give the defendant another 20 days after that to answer you. Then I'll make my decision.

The judge was actually funny - he asked them what Coors would think if they had tried this on their owners. (We're talking the Coors Beer Bottling plant - it is in Golden, 20 miles west of Denver).

My husband told me I was awesome (I take a bow, but I give credit to all of you who have helped so much). It's not over yet, they'll scratch everywhere they can trying to dig up something. I can tell you though, this judge is perturbed with them.

Love and hugs to you all. I'm going to get some sleep - there has been very little of that for about five days. My e-mail box has over 500 messages in it - but I'm not going into it to start to read until tomorrow.

dee