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Originally Posted by macerico
Okay, in reading "Cracking the Code," I see that a nonresident alien (which most all people born in one of the 50 states of the united States are) does not owe income taxes.
Okay, now, starting this year, I desire to file tax papers as a nonresident alien. Problem is that (obviously) for all prior years, I've filed as a resident citizen. Does one just change filing status and if ever questioned declare (truthfully) that prior filings were in error due to a bad understanding of what the definition of nonresident alien really means or do you have to file amended tax returns for X prior years changing the filing status accordingly?
Anyone been down this road who can give a heads up on what to do?
I know there is something I file listed in "Cracking the Code" that declares and gives formal notice that you renounce any identification as a U.S. Citizen as you now understand the definition of terms as they really apply, but is that enough? I'm starting on working my way through "Cracking the Code" this weekend.
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Dear macerico,
I like Cracking the Code, however, I think that there are a few issue you may want to review.
I have not used the information myself due to my reluctance to using any IRS forms. These forms are for taxpayers, thus, you must handle them with great care if you wish to maintain that you are not liable for the
subtitle A tax.
As you can see from the 10th Circuit case below, it looks like the IRS is making it as hard as possible to claim a non-resident status. I think that a great deal of care must be taken to make it abundantly clear that you are a non-resident alien to the federal United States (the District of Columbia, and any federal possession such as Guam, etc.), and not an non-resident alien to the 50 states (national, I don’t think that there is a clear definition in the tax code).
It seems to me that the IRS may be trying to claim that anyone using the 1040NR form, or making any non-resident claim, is foreign to both the federal United States and the united states of America (the 50 states).
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Defendant Ernest Glenn Ambort appeals his conviction and sentence
following a jury trial on one count of conspiracy to defraud the United States by
assisting in the preparation of false tax returns, in violation of 18 U.S.C. 371,
and sixty-nine counts of aiding and assisting in the preparation of false federal tax
returns, in violation of 26 U.S.C. 7206(2). We affirm.
BACKGROUND
We take the following facts from one of our prior opinions in this case:(1)
The conspiracy count alleges that Defendants operated an
organization known as "Association de Libertas" (ADL) that
conducted "constitutional history seminars" throughout the United
States. It further alleges that ADL leaders falsely told the seminar
attendees that they were "nonresident aliens" exempt from most
federal income taxes. For a fee of $1,500 to $1,600 for "forms
training," ADL instructors taught the attendees how to complete an
amended return form (Form 1040X) and/or a nonresident alien
income tax return form (Form 1040NR), falsely claiming a refund for
past years' taxes. In addition to the above fee, ADL also required
one-third of any refund. To ensure payment, the mailing address of
an ADL instructor or "escrow agent" appeared on the amended
returns. The false return counts allege that the Defendants assisted
in preparation of tax returns that were false and fraudulent as to a
material matter, specifically classifying the taxpayers as nonresident
aliens when the taxpayers were in fact residents of the United States
subject to taxation and not entitled to the refunds claimed.
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the 10th Circuit Ruling
http://laws.lp.findlaw.com/10th/034243.html
Here is the section regarding the "nonresident alien" issue, for your review:
http://famguardian.org/TaxFreedom/Instruct...nshipStatus.htm
http://famguardian.org/forums/index....hl=hendrickson
Take care.