of the Early Freedom Movement
The Anti-IRS News has
previously featured articles about the early Freedom Movement. The history continues in this article. Robert B. Clarkson
of the Patriot Network was one of the early freedom fighters. He founded the Patriot Network in 1976; the object of
the network was to preserve the constitution. Clarkson was a Vietnam Vet and he had a law degree from the University of South
Carolina. The Greenville News carried an article about him published on November 27, 1979 regarding an IRS
audit. When an IRS Agent called to conduct an audit, he offered her an uncomfortable chair while he and a witness had comfortable
seats. When he attempted to record the meeting, the IRS Agent fled and the conference was over.
Clarkson was one of the first leaders in the Freedom Movement who provided information to confront the Internal Revenue Service.
He provided much of the early information regarding quashing subpoenas, tape recording meetings, etc. Clarkson succeeded in
tying up the courts so well on the third party summons issue that Congress changed the law and made it much easier for the
government to get records. For several years he published a newsletter called the Patriot Cannon, Booming for
the Tax-Patriot Movement which featured news concerning his Network. Clarkson used various techniques of delay and
he taught individuals to make the IRS spend a lot of money in their quest against the American citizen. Clarkson stated in
an early issue of the Patriot Cannon why he refused to pay income taxes:
I closed all of my bank accounts in November, 1977, I have been outside the jurisdiction of the IRS-Federal Reserve-Rockefeller
Cabal. Our enemy has no control over us unless we voluntarily submit ourselves to his jurisdiction.
Since I have removed myself from one division of the Federal Reserve, i.e., the Banks, and no longer have a privilege, i.e.,
a checking account, I have automatically removed myself from the other arm of the Federal Reserve, the IRS.
My allegiance is to God, Family and Country. The Washington regime is ungodly;
one that no religious man could support. My tithe is to my church, to my churches' charity, not to the satanic wastrels,
scoundrels, and politicians in the Babylon on the Potomac.
I must be prepared to support my family,
not depend on the good will of lying bureaucrats, thousands of miles away. To provide for my family's future, I need
to store survival food now, survival guns, and survival currency, and not to send any more hard-earned dollars to their bankrupt
When I joined the Army in 1967, I took an oath to support and defend our Constitution
from all enemies, both foreign and domestic. I reaffirmed that oath in August 1969, when I accepted a commission in
the U.S. Army. As yet, I have not been released from the solemn swearing.
Sending Federal Reserve Notes to Washington's bloated bureaucracy is financing the destruction of our country, making more
funds available to the welfare industry to increase the open-ended obligations to society's parasites."
The Patriot Cannon stopped publishing in 1981 and the Federal Criminals
sent Robert off to prison for income tax evasion.
Another great Patriot from the early years
is George Hansen: the courageous congressman from Idaho. Although there were other congressmen who criticized the IRS
in the past, George Hansen was probably the most outspoken critic before the current attack on the IRS. He wrote a book
entitled, To Harass Our People, which he published in 1980. Hanson said that the people of the United
States are afraid and frightened by the runaway agency. He pointed out in his book that: Only the IRS can attach 100
percent of a taxpayer's wage, salary, and/or property. Only the IRS can invade the privacy of a citizen without a court
order. Only the IRS can seize property without a court order. Only the IRS can force a citizen to try his case
in a special court governed by the IRS. Only the IRS can compel production of documents, records, and other material
without a court case being in existence. Only the IRS can with impunity publish a citizen's debt to the IRS. Only
the IRS can legally, without a court order, subject citizens to electronic surveillance. Only the IRS can force a waiver
of the Statute of Limitations and other citizen rights through the power or arbitrary assessment. Only the IRS uses
extra-legal coercion. Threats to witnesses to examine their taxes regularly produce whatever evidence the IRS dictates.
Only the IRS is free to violate a written agreement with a citizen. Only the IRS uses reprisals against citizens and
public officials alike. Only the IRS can take property on the basis of conjecture. Only the IRS is free to maintain
lists of citizens guilty of no crime, for the purposes of harassing and monitoring them. ONLY THE
IRS PUBLICLY ADMITS THAT ITS PURPOSE IS TO INSTILL FEAR INTO THE CITIZENRY AS A TECHNIQUE FOR PERFORMING ITS FUNCTION.
Hanson said that the IRS "is an extraordinary example of the age-old adage that
the 'end justifies the means.' The means used by the Agency is growth. In fact, it has a pathological fixation for growing,
for consuming. The IRS reminds me of a tasteless parody of bad science fiction--a monstrous organism from another
planet bent on devouring all within its path until its swelling protoplasm finally fills the entire earth."
Hanson did such a good job of showing how corrupt the IRS is that the agency attacked him on a technicality. He was
tried and found guilty and sent off to prison. The government simply incarcerates its vocal critics. That is how our government
works and that is how it keeps the sheep lining up for the slaughterhouse each April 15.
figure from the early years of the Freedom Movement is Dr. Cleon Skousen. Dr. Skousen founded the Freeman Institute,
which is located in Salt Lake City. Dr. Skousen received his jurs doctorate from George Washington University and
he practiced law in the District of Columbia. He was chief of police in Salt Lake City from 1952 to 1956 and he taught
law at the BYU from 1956 to 1979. He has written many books on history, economics and law and he is especially well
known for his excellent material that explains the United States Constitution.
Trusts and the IRS
The IRS takes the following position toward the trusts that are being set
up by many groups across the country:
"When trusts are used for legitimate business, family or estate planning purposes, either the trust, the trust beneficiary
or the transferor to the trust, as appropriate under the tax laws, will pay the tax on the income generated by the trust property.
In the abusive trust arrangements, presently being marketed as tax avoidance vehicles, the original owner of the assets effectively
retains authority to cause the financial benefits of the trust to be directly or indirectly returned or made available to
the owner. These arrangements seek to reduce or eliminate the purchaser's tax liability without reducing real income
or the taxpayer's control over the income or property. This type of arrangement is not permitted under Federal tax law.
Several well-established tax principles
control the proper tax treatment of these abusive tax arrangements. If the person who transferred property into the
trust (called the 'grantor') retains control over the trust property or income, then that person will be taxed on the income.
I.R.C.671-679; and Wesenberg v. Commissioner, 69 T.C. 1005 (1978). Under the substance over form doctrine,
the abusive trust arrangements may be viewed as sham transactions, and the IRS may ignore the trust and its transactions
for federal tax purposes. See Markosian v. Commissioner, 73 T.C. 1235 (1980); and Zmuda v.
Commissioner, 731 F.2d 1417 (9thCir. 1984). If the trust is not a sham and is not a grantor trust, the trust
is taxable on its income, reduced by amounts distributed to beneficiaries. See Sections 641, 651, 652, 661, and 662.
Alleged charitable payments made by the trust, which in substance are for the benefit of the owner or the owner's family members,
are not deductible charitable contributions. See, e.g. Fausner v. Commissioner, 55 T.C. 620 (1971).
The courts have consistently held that non-deductible personal expenses cannot be transformed into deductible expenses by
the use of trusts. See e.g., Schulz v. Commissioner, 686F.2d 490 (7th Cir.1982); Neely v. United
States, 775 F.2d 1092 (9th Cir. 1985). In addition, transfers to a trust may be subject to gift taxes and/or the
property may be included in the grantor's estate upon death.
The courts have sustained the imposition of civil or criminal penalties against taxpayers who attempt to use trusts to evade
tax liability as well as against the promoters who sell these arrangements. Accordingly, in addition to disregarding
the trust entity, the Government may pursue civil and criminal penalties against such taxpayers and promoters. See,
e.g. Wesenberg, supra; United States v. Buttorff, 761 F.2d 1056 (5th Cir. 1985); United
States v. Krall, 835 F.2d 711 (8th Cir. 1987); and Zmuda, supra."
If you have been sold a common law or pure trust and the promoter took the
position that you can receive expenses from the trust and that the payments are non-taxable; and that the trust is not required
to file returns and pay taxes, please pay attention to the discussion quoted above. The IRS may attack your trust in