The Fight Against Tyranny and Slavery in America

Chapter 19. Who & What is the Internal Revenue Service (IRS)

I'm sure by now you have many questions and you're asking, Who & What then is the IRS? Let me show you what I found and see if this can answer some of your questions. Some of this may have been stated before.

The pseudonyms seem particularly appropriate in light of the subject: Who or what is the Internal Revenue Service, and what authority does IRS have in States of the Union (In the state of Florida)? What internal revenue laws does IRS enforce? Where does this phantom agency derive its authority?

Through much research a few mysteries have been resolved. One of particular significance, the first civil governor and executive committee of Puerto Rico created five bureaus that were eventually merged to become the Bureau of Internal Revenue, Puerto Rico, on May 1, 1900. The first Puerto Rican legislature, convened the following year, legislatively endorsed the original bureaus. Reports are published in Senate Documents for Y1900 and after.

Special funds were established for taxes collected on behalf of Puerto Rico and the Philippines. In 1934, Congress legislatively determined that these special funds would be called trusts, i.e., Philippines Trust #2 (internal revenue), and Puerto Rico Trust #62 (Internal Revenue).

How does IRS escape Bureau of Alcohol, Tobacco and Firearms regulations to wind up under Customs regulations? Virtually all Internal Revenue Code Subtitle F administrative sections, including regulations relating to assessment, liens, levies, crimes, et al, are under BATF regulations, mostly 27 CFR § 70 (see Parallel Table of Authorities and Rules in the Index volume of the Code of Federal Regulations). Yet transaction codes and other entries on Individual Master Files invariably suggest liabilities under drug laws, with the Virgin Islands being the "situs" of the obligation or infraction.

That riddle has also been resolved: Where IRS initiatives administrative procedures adverse to the American people, there is invariably a presumption of property being used in violation of "internal revenue laws" (drug laws; 26 U.S.C. § 7302), and IRS exits the Internal Revenue Code via 26 U.S.C. § 7327: "The provisions of law applicable to the remission or mitigation by the Secretary of forfeiture under the customs laws shall apply to forfeitures incurred or alleged to have been incurred under the internal revenue laws."

There are two sets of regulations for this section: BATF regulations relating to international trade in alcohol, tobacco and firearms are at 27 CFR § 72, and IRS regulations pertaining to drug-related maritime infractions are at 26 CFR § 403. There is always a presumption of a commercial crime listed in one or the other of these regulatory provisions. Where one can emphasizes that the IRS operating as a BATF surrogate, the more probable truth is that IRS routinely operates as surrogate of the U.S. Customs Service.

Notwithstanding, It is another significant contribution to the axiom, "Truth is stranger than fiction."

In 1972, an Internal Revenue Manual ("IRM") 1100 was published in both the Federal Register and the Cumulative Bulletin; see 37 Fed Reg. 20960, 1972-2 Cum. Bul. 836. On the very first page of this statement published in the bulletin, the following admission was made. (Emphasized the significant sections):

"(3) By common parlance and understanding of the time, an office of the importance of the Office of Commissioner of Internal Revenue was a bureau. The Secretary of the Treasury in his report at the close of the calendar year 1862 stated that 'The Bureau of Internal Revenue has been organized under the Act of the last session....' Also it can be seen that Congress had intended to establish a Bureau of Internal Revenue, or thought they had, from the act of March 3, 1863, in which provision was made for the President to appoint with Senate confirmation a Deputy Commissioner of Internal Revenue 'who shall be charged with such duties in the bureau of internal revenue as may be prescribed by the Secretary of the Treasury, or as may be required by law, and who shall act as Commissioner of internal revenue in the absence of that officer, and exercise the privilege of franking all letters and documents pertaining to the office of internal revenue.' In other words, 'the office of internal revenue' was 'the bureau of internal revenue,' and the act of July 1, 1862 is the organic act of today's Internal Revenue Service."