sent May 16, 2003, 15:31

TO: IRS Email Tax Law Assistance

Dear Mr. Engels, (EMPLOYEE ID: 75-10393)

Re: msg#: 1427074, email, dated Wed, 14 May 2003

My question is “Where is MY tax liability in the law?" specifically what law makes me (‘average-Joe working man’) “liable” for Federal income taxes.

Your letter states, “The obligation to pay the correct amount of tax …is mandatory as enacted by congress in the various public laws comprising the Internal Revenue Code.”

So why didn’t you cite the exact law, and it's specific provisions, which was “enacted by congress” which crates “the obligation to pay” income taxes?

The point is, I want to know what law makes me “liable” for income taxes and requires me “to pay” such a tax. This should not be too difficult for you to define, if such laws were “enacted by congress.” For example, in connection with the federal wagering tax, Code section 4401(c) says, “Each person who is engaged in the business of accepting wagers shall be liable for and shall pay he tax under this subchapter on all wagers placed by him.” Section 5703(a) and (b) states in connection with tobacco products, “The manufacturer ...of tobacco products shall be liable for the taxes imposed thereon by section 5701… (and) …Such taxes shall be paid on the basis of a return.”

Therefore, please identify for me the exact statute “enacted by congress” that similarly states, “Those receiving income shall be liable for and shall pay an income tax,” or words to that effect.

Also Mr. Engles, please note that there seems to be a bit of conflict within your letter. How can there be a “mandatory …obligation to pay” income taxes,” if, as you say, “the income tax system is one of voluntary compliance”? How can the payment of a tax be “mandatory” and “voluntary” at the same time? Are the payments of the federal wagering and tobacco taxes (noted examples above) also based on “voluntary compliance”?

Therefore, I would appreciate your specific answers to these two questions for further clarification of my initial question:

1)      What federal statutes specifically and which part or parts specifically thereunder mandates the payment, by ME, of income taxes; and

2)      Are the above noted 'federal wagering' and 'tobacco taxes' also based on “voluntary compliance”? If not, how can some taxes be based on“voluntary compliance” and others, not?

Respectfully,

/s/ Gene Chapman

mailto: gene@in-austin.com