we've been going over this a bit here:
http://www.suijuris.net/forum/taxati...-attorney.html
Sounds like you are looking to free your property from taxation. fair enough. Here is my strategy, and the tactics:
Strategy
The root of your liability is recorded on two documents- the employment contract with the company and the tax form (W9,W4) that you signed making the government a partner.
So thats where you need to start different. Something has to change on both of these documents- a notation such as
"Secure transaction w/o recourse: even-exchange loan proceeds on collateral depost with mutual assurance policy. Redeemed for lawful money at par value w/o gain profit or benefit. All Rights Reserved w/o Prejudice"
This could be stamped above your signature or marked in a box on the form, like "activity purpose" or whichever space is most available.
This is a CYA statement, trying to show a clear intent to exclude any monies received from "gross income". This wording changes the terms of the contract. Hopefully the company would find this acceptable...even if one of these conditions flies that's enough to change the course of business.
Tactics
When the company issues a 1099 or W2 information against you, there is an IRS form to deny or rebut these sort of claims. Maybe one of the readers here can post it's #, starts with a "4" as I remember.
The form just has basic personal info and space for the items you wish to contest. The reason for the denial is also requested on the form, to which I would simply demur. This has the effect of a denial- its saying "I dont understand", "Dont know what they are talking about", "unable to respond for lack of available info".
Because these forms are just hearsay from private accountants and unsworn private inexpert opinions. They are only business records sent for convenience- but if left w/o rebuttal they will stand as evidence.
Your rebuttal in this case is a demurrer, an answer without joining in the merits of the claim or offering a postive defense/alternative scenario- just "I do not understand this".
Because unless you agree with the W2 /1099 info, you have no way of knowing by what cause these items were accounted anyway.
If amounts have been witheld these may be claimed with the typical 1040 form.
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side note:
It may be better to refuse to make any W4 employee allowance form, and just let them withold at the maximum rate. Ask for the refund later. This form is only for employees with allowances anyway.
On the other hand if you substantially change the purpose of the form by adding your wording as indicated above, this point may be moot.
Life is much easier if they just "1099" you, no withholding. Its in the company's interest too, less papers and responsibilities, lower cost etc. If you are going to switch out of "gross income" mode (and enjoy so much more of your property), you can afford to accept a bit less than the company's overall cost for your efforts, which is a saving for them as well. Maybe you can meet at some point of mutual interest.
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Now that you have made a sworn declaration(s) rebutting the hearsay account statement, the ball is in the govt's court. Some official at the IRS would now have to issue their own sworn statement ("testimony") actually accusing you of receiving "gross income".
This is I believe called a "general tax assessment" and comes with some stringent regulations- there could be many errors and insufficiencies to attack in the assessment itself, again without joining in the merits of it's conclusions. (this is called a "collateral attack")
Then the govt still has to pursue the matter in court...they are very busy people. I would call it a victory to amicably settle for pennies on the dollar at this point, without admiting liability.
Or go to court and see who can prove their case. The burden is on the prosecution to make a fully-actionable stated cause, in every particular. And to prove every element of the offense or civil item charged. The presumption of innocence is in favor of the defendant.
All in all, good odds to me. Especially if you immunize yourself from civil attack, get "judgment-proof".