"Withholding Taxes" On the Ropes (USA)
Vicegerent
Withholding On The Ropes?
U.S. Unable To Prove It's Not Voluntary
The United States appears to have bitten off more than
it can chew when it sued Bob Schulz and the We The
People organizations earlier this year in an effort to
shut down "Operation Stop Withholding."
In the lawsuit, the Government accused WTP of operating
an unlawful "abusive tax shelter" in violation of IRC
Sections 6700 and 6701, citing the organization's efforts
to urge individuals to terminate their W-4 wage and salary
withholding agreements.
In response to the lawsuit served on Schulz on May 3, 2007,
Schulz filed a motion to have the case dismissed on the
ground that Operation Stop Withholding is not only fully
protected by the First Amendment (including the Petition
clause), it is protected because We The People organization
is educating People about the withholding laws as they are
currently written and which expressly provide that such
agreements are voluntary.
The Government's lawsuit has asked the District Court to
issue an injunction prohibiting WTP's efforts to educate
Americans about the legal termination of private withholding
agreements. WTP's efforts rely on "black letter" law which
clearly establishes that Withholding Agreements (W-4s)
are voluntary and that a worker can -- at any time -- terminate
his W-4 by simply notifying the company that he no longer
gives his permission to the company to withhold from his pay.
The Government finds itself in a very tough spot.
On one hand, it is asking the Court to shut the WTP program
down, but on the other hand, neither the IRS nor the attorneys
at the Department of Justice have been able to dispute or
refute the simple truth that the law itself plainly establishes
that withholding is voluntary and permission to withhold can
be easily withdrawn by workers at their sole discretion.
For the rest of the article, go here:
http://www.wethepeoplefoundation.org/UPDATE/Update2007-07-19.htm
Posted by Vicegerent