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Tips & Tricks for Court member Carrol thinks with some modifications it can:

After Lindsey Springer was convicted recently in spite of his Paperwork Reduction Act defense, Carrol posted the following to my Tips & Tricks for Court group on Yahoo:

I think Springer only had a portion of the requirements. There is more that would have made that case much stronger.

The IRS, the Commissioner of Internal Revenue and the Department of the Treasury are all required to also comply with the Privacy Act of 1974 and the Federal Register Act.

In Order to comply with these, 2 Treasury Directives are in place – TD 25-03 Subject: Filing Documents for Publication with the Office of the Federal Register; TD 25-04 Subject: The Privacy Act of 1974, As Amended.

In the Federal Register publication, the IRS is required to comply with the Paperwork Reduction Act.

Its not just the form that requires it, the regulations themselves are required to be published in the Federal Register.

Failure of the IRS to comply with the Federal Register Act means that they have not established general applicability and legal effect. re: 44 USC 1506, and 5 USC 553.

49 Stat. 501 Sect 5: “There shall be published in the Federal Register (1) all Presidential proclamations and Executive orders, except such as have no general applicability and legal effect or are effective only against Federal agencies or persons in their capacity as officers, agents or employees thereof; (2) such documents or classes of documents as the President shall determine from time to time have general applicability and legal effect; and (3) such documents or classes or documents as may be required so to be published by Act of the Congress: Provided, That for the purposes of this Act every document or order which shall prescribe a penalty shall be deemed to have general applicability and legal effect.”

So I figured a worthwhile exercise was to see if I could establish the regulations that general applicability and legal effect with regard to the 1040 form income section.

I gathered a list from 26 CFR 602.101 to identify the authorized regulations attached to the 1040 form income section. There are over 100 of them.

If 26 USC § 61 is the Section that identifies one of the filing requirements, just which line of the income section does 26 CFR 1.61-15: Options received as payment of income, apply to?

Other published regulations in 26 CFR 602.101 for Section 1.61 regs: 26 CFR 1.61-4 OMB NO: 1545-0187 EXPIRATION DATE: 09/30/2004 RESPS:407,719 HOURS:1,793,964 COSTS(000):$0 Farm Rental Income and Expenses FORMS: 4835 Complete form 4835, if the result is income, place the result on line 40 of Schedule E, then place the result from that form on line 17 of Form 1040 or line 18 of Form 1040NR.

26 CFR 1.61-2 and 1.61-2T OMB NO: 1545-0771 EXPIRATION DATE: 08/31/2003 RESPS:44,905,150 HOURS:37,922,688 COSTS(000):$0 EE-63-88 (Final and temporary regulations) Taxation of Fringe Benefits and Exclusions From Gross Income for Certain Fringe Benefits; IA-140-86 (Temporary) Fringe Benefits; Listed Property FORMS: NONE

I correlated this information to willful failure to file provisions. One thing you will note is that ALL of these provisions specifies partnerships, trust, interest in foreign corporations, small business corporations, etc. None of them state anything about an individual being subject to willful failure to file on “wages”. I am in the process of getting the Federal Register publications on these now. I have identified several, however, I don’t know if these are all of them. Some do specify specific regulations that are authorized for the 1040 form:

Sect 1.6031(a)-1 return of partnership income

Sect 1.6033-2 Returns by exempt organizations

Sec. 1.6034-1 Information returns required of trusts described in section 4947(a)(2) or claiming charitable or other deductions under section 642(c).

Sec. 1.6035-1 Returns of U.S. officers, directors and 10-percent shareholders of foreign personal holding companies for taxable years beginning after September 3, 1982.

Sect 1.6037-1 Return of electing small business corporation.

Sect 1.6038-1 Information returns required of domestic corporations with respect to annual accounting periods of certain foreign corporations beginning before January 1, 1963.

Sect 1.6038-2 Information returns required of United States persons with respect to annual accounting periods of certain foreign corporations beginning after December 31, 1962.

Sect 1.6038-2T Information returns required of United States persons with respect to annual accounting periods of certain foreign corporations (temporary).

Sect 1.6041-5 Information as to actual owner.

Sect 1.6043-4 Information returns relating to certain acquisitions of control and changes in capital structure.

Sect 1.6045-4 Information reporting on real estate transactions with dates of closing on or after January 1, 1991.

Sect 1.6045-5 Information reporting on payments to attorneys.

Sect 1.6046A-1 Return requirement for United States persons who acquire or dispose of an interest in a foreign partnership, or whose proportional interest in a foreign partnership changes substantially.

Sect 1.1461-3 Withholding under section 1446.

Sect 1.852-9 Special procedural requirements applicable to designation under section 852(b)(3)(D).

So the real question is – which section identifies you as a taxpayer that is subject to penalties for failing to file (all under Section 1 of the IRS code)? This was because you failed to use that which was taken from your “wages” by your employer (taken under Section 24) and use it as credit against your Section 1 responsibilities per 26 USC § 31, 26 CFR 1.31-2 (a 1040 authorized regulation)??

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