Thanks to Dan for this amazingly detailed account of the IRS…Incredibly loaded with research and historical details.-A.M

Historical Note

History & New Evidence that it is a foreign agency.

By Dan Meador
April 1, 2000

“Evan” (Internet name) forwarded the following article by Bill Cooper, published in the September 1995 issue of Veritas Magazine. As I understand it, Wayne Bentson of Arizona was largely responsible for research referenced in the article.

Since I’m suffering the fatigue of not getting home from Tulsa until the wee hours of the morning, and can’t seem to get kick-started to do what I should be doing, I’m going to take the opportunity to provide context for the lengthy Cooper article, and add information gleaned from research since. For those who haven’t seen it, the Cooper article should be enlightening. Additionally, evidence revealed in my portion of this compiled article is going to floor many readers. However, before disclosing new evidence, I’m going to present something of a history.

Gail and I had just finished what we called the “monster” tax index when someone sent the Cooper article via FAX shortly after it was published in September 1995. Our index went through the Internal Revenue Code section-by-section, listing regulations as they appear in the Parallel Table of Authorities and Rules, then we listed the regulation headings for the regulations. Because of our index, I was able to verify many of the references in the Cooper article without having to go to actual texts, and what I found was that many Cooper-Bentson conclusions were verified by the index. Of particular importance, we found that there are no implementing regulations for 26 U.S.C. Section 7621, which authorizes the President to establish revenue districts. Consequently, there are no revenue districts in States of the Union.

However, there was a significant gap in Cooper-Bentson research. At that point, they hadn’t found origins of the Bureau of Internal Revenue, Puerto Rico. I documented it in late 1998 even though I knew where to look when I read the Downs v. Bidwell decision in 1997: The first civil governor of Puerto Rico established five bureaus in the Puerto Rico Dept. of Treasury on May 1, 1900. The five bureaus were eventually to become the Bureau of Internal Revenue, Puerto Rico, predecessor to the Internal Revenue Service. The name change of BIR to IRS was in 1953 in advance of implementing the Internal Revenue Code of 1954, based on Reorganization Plan 26 of 1950 and Reorganization Plan 1 of 1952. Early Puerto Rico legislation, beginning with the gubernatorial and executive committee acts of May 1900, are published in Senate Documents for the period, so it’s just a matter of going through the publications to complete the merger history. Bentson and Cooper located origins of the Bureau of Internal Revenue, Philippines, and the Philippines special fund, in 1904 documents. The Philippines gained independence in 1946, leaving BIR, Puerto Rico as the only Bureau of Internal Revenue that was legislatively created, and not by Congress at that. The first Puerto Rico legislature in 1901 legislatively enacted executive acts of May 1900.

In 1934, Congress stipulated that the various special funds maintained by the Department of the Treasury would be known as trusts, i.e., Philippines Trusts ! & 2, and Puerto Rico Trust 62, all three of which are still in the books in Title 31 of the United States Code.

In his article, Cooper cites the Federal Register and the Internal Revenue Manual acknowledgment that Congress never created a Bureau of Internal Revenue. Someone else has since located a Supreme Court decision where justices of the Supreme Court affirm that Congress never created a Bureau of Internal Revenue or Internal Revenue Service. Consequently, IRS has no lawful authority to enforce anything in the Union as Congress is charged with responsibility for establishing any government department or agency that the Constitution itself does not establish.

At the tail end of this article, we’re going to share disclosures attorneys in Illinois and Idaho have secured that constitute astounding revelations that should give everyone cause to rethink strategy relating to the Internal Revenue Service. Read on. I will continue the account of the research effort that lays the factual foundation.

In the historical account by the Commissioner of Internal Revenue published in the Federal Register and the Internal Revenue Manual, the Commissioner alleges that Congress clearly intended to create a Bureau of Internal Revenue in 1862 legislation that established the office of the Commissioner of Internal Revenue. But reading the 1862 legislation reveals that there was no need for a Bureau of Internal Revenue or Internal Revenue Service. Congress established the offices of assessors and collectors, with one of each to be appointed for each revenue district. These offices were on the order of current U.S. Attorneys appointments. They were political patronage positions. The offices continued to exist until implementation of Reorganization Plan 26 of 1950.

In order to understand what happened via the reorganization plans behind the current Internal Revenue Code, we need to review what happened with respect to prohibition.

In 1933, the Twenty-first Amendment repealed the Eighteenth. However, Federal enforcement people continued to enforce state laws relating to alcohol to the point of the Constantine decision in December 1935. In the decision, the Supreme Court said that once the Eighteenth Amendment was repealed, State and Federal enforcement ceased to have concurrent jurisdiction for enforcement of alcohol-related laws as the Eighteenth Amendment contained the grant of authority. Once it was repealed, concurrent jurisdiction was repealed.

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