Former IRS agent explains why income taxes are legally voluntary so he stopped filing 25 years ago

Investigating Claims about Federal Income Taxes

• Joe Bannister, a former IRS special agent, started investigating the legitimacy and constitutionality of federal income taxes after hearing a guest on a talk show claim that income taxes were voluntary and not required by law. This led him on a two to two-and-a-half-year investigative journey while still working for the IRS.
• Despite his initial disbelief, Joe decided to delve into the claims made by the talk show guest and spent his evenings, weekends, and even vacation days researching the allegations.

“There’s a talk radio station… I was out doing my investigations there was nothing against the regulations to listen to the radio. She started talking about the income tax… and she put address, the names of the people, addresses, phone numbers.”

Initial Doubts and Investigation Journey

• Initially skeptical, Joe Bannister was cautious and approached the claims with the mindset that if they were false, he would expose them.
• Despite being a federal agent pursuing tax evaders, Joe began to question the status quo and decided to research the claims thoroughly during his personal time.

“Well, something’s wrong here… there’s something to this. That was just before Christmas in 1996, so that started me on about a two, two and a half year journey…”

Transitioning from Disbelief to Genuine Inquiry

• Joe went from distrusting the claims about income taxes to considering their validity by investigating the information provided by the talk show guest.
• Initially focused on catching tax cheats, Joe’s mindset shifted as he delved deeper into the claims, questioning the narrative he had believed in for years.

“Not initially, I really was like, well, if they’re lying to me, then if I’m ever given a forum to talk about it, I’m going to say, ‘Wow, I encountered all these liars’.”

Investigating IRS Claims

• The former IRS agent discusses how he diligently gathered facts and evidence to uncover the truth behind claims made by individuals regarding IRS limitations and jurisdiction.
• He mentions accessing the IRS law library to verify claims made by guests on radio shows.
• These claims questioned the IRS’s authority over Americans living and working within the United States.
• The agent points out discrepancies between what the IRS claimed and what their internal manuals actually stated.

“I began to gather facts for two and a half years, all through 1997 and 1998.”

Absence of Federal Income Tax Liability for Americans

• The conversation delves into the absence of a liability statute in the Internal Revenue Code that explicitly makes the average American liable to pay federal income tax.
• The agent references the Privacy Act and Paperwork Reduction Act notice, which outlines the obligations of Americans concerning tax returns.
• He highlights the IRS statement indicating that individuals need to pay taxes they are liable for, pinpointing the absence of a clear liability for federal income tax for average Americans.
• He shares details on his website, agentfortruth.com.

“As an American you are not liable for paying federal income tax. It’s absent.”

Confronting IRS Supervisors with Findings

• The agent recounts how he approached his IRS supervisors with his meticulous analysis and concerns regarding the lack of liability for federal income tax.
• Despite the gravity of the information, he ensured to present facts and evidence rather than opinions, emphasizing his commitment to uncovering the truth and upholding his oath to defend the Constitution.

“I just wanted them to look at my analysis. I didn’t make up anything myself; I was simply an investigator gathering facts and evidence that were already out there.”

Investigating IRS Concerns

• The former IRS agent conducted an independent investigation during personal time, following all Treasury guidelines on handling fraud, waste, or abuse.
• Despite taking an oath to support and defend the Constitution, superiors refused to address the agent’s concerns and pushed for resignation instead.

“I didn’t go to the media or anything… I just wanted some assistance… Here’s the evidence I gathered, here’s how I gathered it.”

Confrontation and Resignation

• Superiors, instructed by high-ranking officials in Washington, DC, dismissed the agent’s concerns, presenting resignation as the only option.
• The agent was directed to leave quietly and submit resignation paperwork, leading to the decision to stop paying federal income taxes.

“They told me they wouldn’t be addressing any of my concerns… provide me with the paperwork necessary to tender my resignation… I’ve just discovered this.”

Legal Consequences of Nonpayment

• Upon ceasing federal tax payments, the agent faced significant retribution, including indictment for felony charges related to filed tax returns.
• Accusations of fraudulent refund claims and tax perjury led to a trial where lack of false entries on tax returns was highlighted.

“There was significant retribution… both my client and I were indicted on four Federal felonies… The jurors were like, ‘Why are we even here?'”

Fmr. IRS Agent’s Experiences of Investigation and Trial

• The former IRS agent testifies that despite three years of investigation by a special agent that found no evidence of wrongdoing, the Department of Justice and IRS pursued prosecution.
• The jury deliberated for an extended period before acquitting him of all charges.

Evidence of a conspiracy that he found, and he testified that he couldn’t find any evidence of a conspiracy, so then the jury’s really scratching their heads.

Challenges Faced Post-Trial and Impact on CPA Certificate

• The IRS initiated a civil complaint leading to the revocation of the individual’s CPA certificate in California due to diligent scrutiny applied during client interactions.
• The revocation of the CPA certificate had adverse perceptions among the general public, despite the professional conduct maintained.

I have a revoked CPA certificate, and of course, to the general public, it’s like, ‘Oh, that guy’s damaged goods. He must have done something wrong.’

Public Response and Tax Filing Behaviors After Exposing Inequities

• Individuals who were assisted by the former IRS agent have altered their stance on tax filing, with some opting not to pay income taxes based on their research and understanding.
• Responses from the public vary, with cases of individuals abstaining from filing tax returns for decades or modifying their filing behaviors based on their circumstances and visibility to the IRS.

They’ve said, ‘Well, we learned from Joe. We don’t have to pay our taxes. He’s opened our eyes. We’ve done our research. We’ve decided we’re not paying income taxes anymore.’

Ethical Principles and Constitutional Duty

• Taking an oath to support and defend the Constitution and upholding ethical standards as a CPA professional guided the speaker in his actions regarding tax obligations.
• Emphasizes the importance of being a good citizen, setting a positive example, and asking critical questions to understand government actions.

Wouldn’t it be amazing if we all felt good about ourselves when we pay taxes, thinking it’s for the betterment of the United States, instead of funds being directed elsewhere?

Government Accountability and Financial Mismanagement

• Critiques the government’s allocation of funds to international aid and military expenditures while domestic issues persist, like border security and urban decay.
• Questions the government’s fiscal responsibility and stewardship of taxpayers’ money leading to citizen dissatisfaction and calls for greater transparency.

The reason we’re asking these questions is that the government has been belligerent with our money; they’ve been poor stewards of our money.

Legal Challenges and Unfair Tactics

• Discusses the challenges faced in legal battles with the IRS, highlighting attempts to manipulate defense teams and employing dirty tricks.
• Emphasizes the importance of honesty and integrity to avoid negative portrayals during legal proceedings.

The IRS still seems to think they are above the law and prosecute and harass people, showing dirty tricks in legal proceedings.

IRS Enforcement Approaches and Consequences

• Outlines the two primary ways the IRS enforces compliance: civil actions such as asset seizure and imprisonment for severe cases.
• Emphasizes the significance of maintaining integrity and seeking proactive legal advice to safeguard assets and navigate IRS investigations effectively.

The principal ways the IRS goes after you are through civil means and, in rare cases, imprisonment, emphasizing the importance of honesty and legal measures to protect oneself.