Pete HENDRICKSON's Lost Horizons - Solutions?
For quite some time Pete has been fabricating the illusion that his book Cracking the Code is viable remedy by encouraging people to post their Refund Checks and when they get into trouble and want their testimony removed, banishing them from the Website (Lost Horizons). Pete is now in prison and nobody will let me onto Lost Horizons to discuss the problems people have there. - Mainly the problem is that the IRS often bills back for the Zero Income Return strategy in CtC. Often times with the $5K fine.
People are helpless to fight the Frivolous Return accusation because all that Pete offers are tired old interpretations of Title 26 - which is not postive law. None of these interpretations may be brought up in tax court. If an attorney tries to bring any of them up, he will be sanctioned without warning; that is how long they all have been failing and failing miserably.
My proposition is that once one begins to redeem lawful money, that they can apply remedy retroactively by one or both methods.
1) Stand on the accusation of Fraud by Omission. That is that the contract demanding Information and Self-Assessment (1040 Form) is vitiated by that fraud and that our civics teachers, parents and bank tellers are not to blame for the fraud, but rather are victims of the same fraud.
2) Stand on being a peaceful inhabitant. There has been some discussion here about that - being a conduit and allowing the State (by militant occupation) own the assets, but give you the usage. This involves volunteering to help the trustee settle up the account, after establishing that you know of the remedy and are consistently applying it. There is some evidence that this will "Satisfy" the IRS or DoR agent and cause setoff even for tax years prior to when the suitor began to redeem lawful money.
Which is to say, in either method Lost Horizon victims facing having to repay Refunds and $5K penalties too, who cannot should be looking seriously into applying remedy. Not just to apply remedy, but to cause Setoff and get the IRS off their backs.
Regards,
David Merrill.
Notes from a CtC "victim"
By way of introduction to this forum, I read Cracking the Code several times before filing in the "CtC-educated" manner. For the first two years, I got full refunds, and was emboldened to file amended returns for two previous years. Then, the series of letters began from the IRS. I followed the examples of replies to these letters found on Pete's site, until I got letters assessing me multiple $5K "frivolous" penalties. Pete maintains that those who send timely replies to these letters, and don't back down, ultimately prevail. I will never know if this would have been true in my case; after missing a reply deadline, the IRS proceeded to levy my assets and announced their intent to lien all future income. My wife prevailed upon me to hire an attorney, and it hasn't gone so well since. It doesn't seem to matter (to my attorney and my CongressCritter) that the IRS ignores the law and their own procedures.
I've been reading with interest your websites, forum and source materials, and have a few comments on the post quoted below:
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By signing a 1040 Form under the penalty of perjury the IRS agent is compelled to honor the initial assessment and send the Refund Check. Pete's book however leaves people in the lurch though, upon a reassessment based on the 1099 and W-2 Forms.
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My insight, as is typical is from a suitor who was applying CtC methods to garnishments by the IRS and state DoR. He had Pete for a houseguest for strategy sessions. Cracking the Code is not about what it pretends to be about. The suitor disclosed to me, It is all about the Right to be Heard. Since I have not read it, I am going on that testimony, that to the Reader, CtC is about something else while the real operation of law is that Taxpayer Signature under the Penalty of Perjury. Since the IRS in America is based in voluntary self-assessment that means unless the IRS agent is willing to stop processing on the spot to investigate the 1040 Return Form, he is compelled to send the Refund Check.
Pete maintains that all "CtC-educated" returns are immediately forwarded to the department that investigates suspect claims, and the refunds are sent out with their foreknowledge?indicating that there is some strategy involved here, not just the compulsion of law (which they flout regularly). I have (what I thought was) written evidence that a human eye had examined my return and agreed with my self-assessment that I had no "income." (Do I see an entrapment scheme here?) My attorney had taken an IRS "tour" and saw the computer systems that auto-respond to return data, and is of the opinion that no human eye necessarily "saw" my return. (I remain skeptical of this.) He also said that the IRS can make any "mistake" they want with impunity.
I posted most of my "interactions" with the IRS on my blog, but am now faced with updating all these posts with the foreword/disclaimer, "kids, don't try this at home." The most recent relevant post is here, where I was introduced to your forum.
Again, I will never know if simply responding to all the IRS letters within the stated deadlines would have saved me from the levy. I agree with other forum members here that Pete's analysis of tax law is correct, as far as it goes. One key aspect of taxation that Pete does not address (or seem to recognize) is the nature of money, and the fact that all IRS rules apply to what everyone assumes is "money," while what we commonly (and usually unknowingly) deal with in commerce is actually certificates of debt, masquerading as money. The acquisition of this perspective changes the whole ball game. Although I doubt that Pete will change his perspective, as he has a tremendous psychological investment in his analysis of the law, I hope he can see the bigger picture. The issue of money versus debt certificates is a realm of knowledge which lies outside of, or above, Pete's legal analyses. I hope he will come to see this, and not fall victim to his own hubris by dismissing the issue as just another "patriot myth."
Meanwhile, I look forward to learning more from this group, and finding an effective remedy for my current situation.