I realize there are MANY intelligent people here and people that can interpret the law.. I figure with a community effort, perhaps we can come up with the meaning of whether we really have to pay or not. Here is something I recently came across.. and recommended that I sent this to my HR department. I'll start there.. and see what you guys think.. Marie? PsychDoc? LKH? Lizardking? Date of Letter Any Employer Address City, State. Zip/TDC Re: Notice of Termination of Current W-4 Agreement. Dear Sir, The laws and regulations providing for the withholding of employment taxes are found in Title 26, Subtitle C, Chapters 21 through Chapter 24. The legal provisions for the implementation of the Social Security program and the withholding of tax are contained therein. In the Code of Federal Regulations at Section 31.3402, which corresponds to 26 USC 3402(p), it states in pertinent parts: 26 CFR 31.3402 (p)-1 Voluntary withholding agreements. a) In general. An employee and his employer may enter into an agreement under section 3402 (p) to provide for the withholding of income taxâ?¦ b) â?¦ an employee who desires to enter into an agreement under section 3402 (p) shall furnish his employer with Form W-4 (withholding exemption certificate) executed in accordance with the provisions of section 3402 (f) and the regulations thereunder. The furnishing of such Form W-4 shall constitute a request for withholding.... Furthermore, 26 CFR 31.3402 (p)-1(b)(2)states : "An agreement under Section 3402(p) shall be effective for such period as the employer and the employee mutually agree upon. However, either the employer or the employee may terminate the agreement prior to the end of such period by furnishing a signed written notice to the other." (emphasis added) Per the instructions provided by these regulations, this is my formal notice to you, my "employer", that I wish to formally terminate between us any and all W-4 agreements on file with you, as per 26 CFR Sec. 31.3402 (p)-1(b)(2), effectively immediately. Consequently, all use of my social security number in making reports to the IRS must cease immediately, and the company must stop immediately the withholding of all employment taxes imposed under Subtitle C of Title 26, because, since I am no longer a voluntary participant in the Social Security program, I am no longer subject by law or regulation to the withholding or payment of those taxes associated with the administration of that welfare "benefits" program; because the laws and regulations implementing the Social Security program only apply to those individuals who have voluntarily chosen to participate in it. This letter terminates your authority to withhold from my paychecks the employment taxes imposed under Subtitle C. If you believe that there is a statutory authority that exists for you to continue to withhold tax from my pay under Subtitle A - income taxes, please cite the Code section within Subtitle A that you believe grants the authority to withhold income tax from a United States Citizen in your response to this letter. If you cannot cite a statutory authority within Subtitle A to withhold tax from a United States Citizen, I will presume that you understand that you no longer have any legal authority under which you may operate to withhold taxes from my paychecks, and consequently, you will cease immediately all such withholding from my pay. Thank you for your prompt attention to this matter. Sincerely, Sovereign Citizen
Opening a can of worms here.... I know of people and their organizations here in Alaska that have successfully opted out of Social Security. I know of people who don't pay income tax. Most are on the run or in jail. That said, there is a book and websiteby a guy named Irwin Schiff http://www.paynoincometax.com/ He says you don't have to. I like America and don't mind paying taxes..I like supporting the troops who fight for us. I also believe it is my responsibility as an American to pay as little as legally possible.
Paying troll here, but it is law that Social Security (6.2%) and Medicare (1.45%) be withheld from your paycheck because the employer must match these contributions (Social Security Act of 1935 - Medicare was required under Johnson's Good Society Plan 30 years later). I don't think any employer will go against this. They can be fined or shut down if they do; not to mention the threat of jail if they are convicted. I have seen it happen. It is your choice though not to have federal and state tax taken out of your pay. So the W-4 can be terminated, actually it should just be written as "do not withhold federal tax from pay." But, if you owe come April 15th, then you're required to pay; the same goes for state taxes. Dani
OT: Dani, are you still awake? Would it be possible for me to talk to you? I will send you my phone number via email now.. thx..
