Only a few disingenuous cracks so far, and none really pithy enough for me.
Look, naysayers, I don't disagree with your warnings about the potential illegality of unreported BITCOIN transactions. I read that some government prosecutor claimed the typical American commits 5 felonies a day, or was it before lunch? So I have this little question for all of us: Who has a spotless soul, a flawless loyalty to truth, and an impeccable lawfulness? If you're lawyer, forget answering the question because all of us already know the answer for you. So, try not to preach so much against law-breaking because you cannot and will not practice what you preach.
Furthermore, I know well that the law IS only what the COURTS say it is. But, non-unanimous panels don't know what the law is, and we have many non-unanimous rulings that amount to nothng more than bullshouts. Those of you who support and don't fight against them are pragmatic, perhaps, but unethical cowards nonetheless. And many lower court rulings come from judges who ignore precedent, owing to the lackluster performance of attorneys who fail to take exception to or appeal them, maybe because they have so pillaged the client's resources that the client is broke and can't even pay for a transcript, let alone an appeal. So, no preaching from you, either.
I do appreciate the dialog, though. It has shown that one doesn't think straight who believes the IRS cannot ever penetrate the morass of Thor and BITCOIN transactions. For, as the present money debacle has proven, Congress has an endless supply of dough to hand out to the IRS to beat BITCOINers to death. On the other hand, as the Church of Scientology proved with the Kilauea-sized black eye it gave the DOJ, completely depleting its annual IRS litigation budget halfway through the year, you CAN kick the IRS and DOJ's asses if you have enough dough and membership to sue the IRS into submission. So, Fellas, it's not that the IRS/DOJ are right in their estimation of the meaning of the law, nor the judges. It's just a matter of divide and conquer.
Thus the BITCOIN issue boils down to a refusal to kowtow to the thieves of American wealth who operate with relative impunity in government and Big Money. Many of them are evil, scheming criminals who deserve a good hanging for their crimes. And the wee victims in the land have attorneys to thank for it. Owing to the legal services monopoly they enjoy, very few victims can actually afford to hire attorneys to push litigation to its proper conclusion. Owing to the judicial oligarchy that rules the states thanks to integration of the bar into the judiciary, and the concomitant violation of separation of powers doctrine, lawyers run scared from the prospect of standing up to judges and filing criminal complaints against them and government attorneys as they often should because if they fight as they ought, they will get sanctioned or disbarred or both. Few can brook such summary destruction of their careers, so they cave in and cheat the client. Now such cheating of clients has become an American pandemic.
In other words, BITCOIN operates like a Guy Fawkes guerilla activism to increase wealth and engage in buy/sell transactions beyond the scrutiny of government, robbing government of any and all undeserved benefit.
Furthermore, as I have said in the past, supported by the Supreme Court, the income tax is NOT a direct tax, but the IRS treats it like one. It does not tax income but rather some activity for which income merely provides a measure of tax due. And receiving money does not constitute such an activity. A direct tax taxes a person or his property, and revenue is property. So if the income is taxed, as the taxcode implies, it can only be collected by apportionment. The 16th Amendment did not create an income tax, for Congress has always had the power to tax incomes. Not did it remove the requirement to operate a direct income tax by the rule of apportionment, for it did not repeal the apportionment provisions of Article I. Our central problem lies in the fact that the IRS ignores that and courts let them get away with it because of BAD LITIGATORS. The caselaw supporting the IRS in the lower courts would not exist if the DOJ couldn't suborn judges and juries, and if IRS agents and DOJ attorneys couldn't get secret cash awards for hammering IRS victims into submission with crooked judges assistance.
SO, right, all those frivolous arguments are frivolous indeed in our crooked courts. So Americans face the dilemma of finding SOME OTHER WAY to keep their wealth away from the thieves in the IRS/DOJ/Court Mafia, or engage in open rebellion or random assassinations till the powder keg really blows up. But the Quatloosian advocates of the evils of the IRS should not feel so proud and pompous about pointing out the fact that frivolous arguments won't win because they are wrong because some USDC judge or Circuit panel said so. That does not make them wrong. That just makes them losing arguments. The fact that bad or ignorant litigators propounded those arguments originally with ignorant, corrupt, incompetent or no lawyers helping them CAUSED them to become frivolous or losing arguments IN SOME PART. That is, some really are frivolous, and some really are not, even though ruled so.
The clearest recent example I know of is the Lindsey Springer PRA argument. It makes perfect sense to me. Yet circuit panels ruled that the IRS does not have to obey the PRA, EVEN THOUGH the IRS gives a kind of lipservice to the PRS with all the incompolete disclaimers on the instruction book for the 1040.
And he made pretty good points about the statutes requiring District Directors, even though the commissioner got rid of their positions nearly 10 years ago. The fact that the courts let the IRS get away with these and other violations seems clearly to indicate the kangaroo nature of those courts. America's people simply cannot trust them to do an honest job because they follow some kind of public policy that says "let the IRS do whatever the want so long as they keep on stealing the money from the people."
THAT is just one reason I don't buy Famspear's facile views about the direct/indirect tax meanings.
In my final analysis of the issues, I encourage people not to put themselves in harm's way. Even though they don't make frivolous arguments (which are not wrong), if the courts consider them frivolous, people should not propound them as arguments. I tell people to decide how they want to spend their lives, and if they absolutely must do battle regarding income tax, to make themselves judgement proof and go ahead and get divorced and put the kids in foster homes, and quit that cushy job and find some cash-only business to get into because if he makes what the IRS considers income and doesn't file returns, the IRS will either get it or file a criminal complaint and get the court to jail him, and then still hound him for the tax they think he owes.
In spite of this, people still call me complaining about the $5000 penalties for frivolous filings following the Cracking the Code method. One man has a legal team (of non lawyers of course) working on a way to use the CtC method without filing government forms. Nowadays when people call me for tax help, I try to send them to Larry Becraft or Mac MacPherson or Michael Minns. But some of them, with good reason, hate or don't trust lawyers. So what can I tell them except to find some way to get off the IRS's radar?
Why? Because they're wrong? No. Because they'll lose. They are right, of course, not that I expect any of you to agree. I believe most Quatloosians live in denial of the reality that most Americans don't engage in a taxable activity, so they don't owe income tax and don't need to file a tax return at all. Most like to give lip service to income tax nearly everyone owes, not because it's true, but because it's too hard to defend non-tax-owers and win because the IRS, DOJ, and Judges will conspire to make those non-tax-owners lose. I imagine you (the most Quatloosians to whom I refer) as the modern day Pharisees - hypocrites and agents of America's secular equivalent of the Sanhedrin.
Speaking of which, I'd like to take a moment to salute Jesus of Nazareth for his birthday yesterday 21 August (7 B.C.E). See Paper 122 of The Urantia Book
for more details. A belated Quatloosian's Happy Birthday, Jesus.
And I bid you all good night. I appreciated your insightful comments and incisive arguments on taxes, BITCOIN, and shady dealings. Thank you for the dialog.