Like most people you are filing a 1040 form at the end of each year. The question is, why? Now don't get me wrong here. I am not saying it is time to stop paying your income taxes. If you tried to just stop sending in a 1040 form most likely the IRS would hunt you down and prosecute you to the full extent of the law.

So lets begin by getting to how you came to be in this position. The fact is, at some point, you were lead to believe that when you started to earn an income in this country you needed to file a 1040 Form to declare taxable income. As soon as you submitted that form a file was opened with the IRS called your Individual Master File (IMF). At that point you became a legal taxpayer, a person who is required to submit a 1040 Form each year from that time on. Before you filed your first 1040 you were a legal non-taxpayer and didn't even know it. How did this change take place?

Well, the fact is the United States Constitution states that the US Government could not tax an individuals wages. The only way they were allowed to collect taxes was through excise taxes. These are the taxes we pay on fuel, telephone service and other utilities, motels, etc. These taxes are what support the backbone of this country and they are entirely legal. They provide the services and roads that we depend on every day. Well the government decided that they needed more money so the 16th Amendment to the constitution was created. What people do not know is that the laws created in that amendment apply only to these people...Federal Employees, residents of Washington DC and other federally controlled territories such as US Virgin Islands. That amendment does not apply to the majority of Americans! So what the IRS did was create a form, (aka the 1040 Form) that is a legal document of the US Virgin Islands. So guess what, when you filed your first 1040 form, you fraudulently stated that you are a resident of the US Virgin Islands. Of course you did not know that but now your Master File with the IRS says that you are legally bound to file income taxes for the rest of your life, because you are a resident of the US Virgin Islands. That is why you cannot just stop filing without serious consequences.

Well how can you fix this issue? You need to get your IRS Master File corrected. Any information held within that file can be used against you, even if it is wrong, should the IRS ever decide to take court action against you. The information in that file is considered fact unless rebutted. So if it is taken before a court of law, whatever your file says is what the court is going to accept as truth.

Now the Freedom of Information Act states that any agency that maintains a file on you must provide you a copy if you request one, much like your credit report. However unlike your credit history, your IRS Master File is written entirely in numerical code. You could not read it if you wanted to. Therefore you must hire an agency to do that for you. They have the IRS codebooks to clearly understand what is in your file. Interestingly must peoples Master Files are as much as 30 pages long. They often list you as not only a Virgin Islands resident, but also as an arms dealer, drug trafficker, etc. That way they have a strong case pre-built against you in the event that they aver have to start court proceedings. However once you have your Master File decoded and all erroneous entries deleted, your file will fit on one page. You also can get a letter from the IRS that states that you have no 1040 form requirement. So do yourself a favor and get that file cleaned. I am not the person to do that for you but I can direct you to those who can.

Wishing you the best, Adron Wood www.realfinancialeducation.com