About Freedom Law School

Freedom Law School (FLS) was founded in 1996 by Peymon Mottahedeh to be the most successful tax honesty organization since World War II. FLS educates people about the truth of federal income taxes, and helps to free them from the IRS tax slavery that most Americans are captive to.

FLS encourages individuals who are legally eligible to stop filing and paying federal income taxes while following the appropriate legal procedures. We also offer services to assist people in navigating these legal procedures, along with legal insurance to provide support in case our students encounter any issues with the IRS.

Do I have to pay federal income tax?

There is a portion of the population that is required to file and pay federal income taxes. To identify if you are among that portion, we must first take a look at 26 USC 79(a), which is Title 26 (the Internal Revenue Code) of the United States Code, in Chapter 79 (Definitions). Here we will look at the definitions of “United State” and “State,” and how they should be used within the context of this chapter.

(9) United States
The term “United States” when used in a geographical sense includes only the States and the District of Columbia.

Notice that the term “United States” is defined as including the States and DC. Well, what does “State” mean? It gives us a definition for that too…

(10) State
The term “State” shall be construed to include the District of Columbia, where such construction is necessary to carry out provisions of this title.

The term “State” is defined as including DC, but it doesn’t name any other states. We know from Meese v. Keene (1987) that legal definitions exclude unstated meanings of that term, and from Stenberg v. Carhart (2000) that when a statute includes an explicit definition, we must follow that definition, even if it varies from that term’s ordinary meaning. We also know that “includes” can be synonymous with “means” from Helvering v. Morgan’s, Inc. (1934).

But “United States” is defined in several other legal texts as well. Notice Title 8’s definition of “United States” in 8 USC 1101, which deals with Aliens and Nationality:

(38) The term “United States”, except as otherwise specifically herein provided, when used in a geographical sense, means the continental United States, Alaska, Hawaii, Puerto Rico, Guam, the Virgin Islands of the United States, and the Commonwealth of the Northern Mariana Islands.

And the definition of “United States” from 26 USC 4612, which deals with the taxation of petroleum and crude oil:

The term “United States” means the 50 States, the District of Columbia, the Commonwealth of Puerto Rico, any possession of the United States, the Commonwealth of the Northern Mariana Islands, and the Trust Territory of the Pacific Islands.

Clearly, lawmakers know how to define “United States” accurately. Section 7701 of Title 26 (Internal Revenue Code), which defines general terms for the IRC, uses a very specific definition which excludes most American citizens.

What about businesses?

The same principle from the previous text is applicable in the definition of “trade or business” in 26 USC 79(a):

(26) Trade or business
The term “trade or business” includes the performance of the functions of a public office.

This definition includes federal contractors, or anyone who is paid by the federal government. Regardless of any dictionary definition of a trade or business, the IRC defines that term as the performance of the functions of a public office.

How many Americans are required?

The only people who are required to file and pay federal income taxes are therefore (1) citizens and residents of Washington DC, and (2) anyone who performs the functions of a public office, including federal contractors. Let’s do the math…

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2,867,000 Federal Government Employees (July 2022, bls.gov)

671,803 Citizens and Residents of Washington DC (July 2022, census.gov)

2,665,000 Federal Annuitants (2018, congress.gov)

333,454,625 United States Citizens (July 2022, census.gov)---

(2,867,000 + 671,803 + 2,665,000) / 333,454,625 = 98.14%
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That’s right, 98.14% of Americans are not required to file and pay federal income tax, based on the law as written!

How do I stop paying fed. income tax?

The IRS is entirely dependent on the taxpayer filing a return. See this quote from former IRS Commissioners Fred Goldberg and Charles Rossotti (Source):

What’s critical here is that substantially all of the revenue increase does not come from IRS audits—it comes from taxpayers … when they file their returns.

By filing an income tax return, you admit to owing the IRS money (even if you don’t owe anything). You put the noose around your own neck. By filing, you give the IRS power to audit you, empty your bank account, steal your property, and put you in prison.

If you’re part of the 98% that are legally not required to file and pay federal income tax, you don’t have to claim anything — you just don’t file a tax return.

What about withholding?

If your employer requires you to fill out an IRS Form W-2 as a condition of employment or payment, and you are not a resident of DC nor a federal employee/contractor, you may provide your employer an amended W-4 Exempt form package. This form includes:

1. A statement that the form has been signed “under duress” (involuntarily), since you are being forced to fill it out.
2. An explanation of who the language of federal law says is an “employee” subject to income tax withholding, and that it doesn’t apply to you.
3. A statement that the form is a Release of Employer Liability for your employer when they stop withholding federal income taxes from your pay.
4. Attachments with the IRS instructions on how to file Exempt from Withholding, copies of the specific IRC paragraphs in reference, and the Supreme Court decisions for your employer to verify that your exemption is legal and correct.

You can find this amended W-4 form, alongside additional information on the W4 Withholding Package page.

What if they take me to court?

Based on the findings above, 98% of Americans are not legally required to file and pay federal income taxes. Here are some things to keep in mind when asking this question.

It’s unlikely — the IRS is mostly bluff.

The IRS is entirely dependent on you admitting that you owe them money. If you do not file and therefore do not claim to owing money, the IRS is highly unlikely to pursue you.

There are ~80 million income tax non-filers in America, and the IRS is already struggling to keep up with filers who voluntarily agree to pay taxes. Forced collections have dropped by ~93% since 2011, and regardless, pursuing non-filers is not profitable for the IRS (2.25x return) compared to collections from filers (300x return).

Learn more about the IRS’ bluffs here.

You are protected by petitions.

The petitions state your findings of federal income taxes in clear terms, and ask your representatives to correct you if they deem them inaccurate. The right to petition your elected officials is protected by the First Amendment:

Congress shall make no law respecting … the right of the people peaceably to assemble, and to petition the Government for a redress of grievances.

By sending petitions to Congress (and keeping the stamped certified mail receipts), you have a record of sending these documents to your representatives.

Your representatives will do one of the following:

1. They will usually ignore your letter entirely.
2. They may have their staff send you a “politically correct” letter, thanking you for expressing your concerns. The letter will not indicate that your representative (or their staff) will act on these concerns, that they understood your concerns, or that they even read the letter at all. The representative’s intention is usually to ignore you and your concerns without appearing to have ignored you outright.
3. They may send you an IRS publication or refer you to the IRS in some other way. However, it is critical to remember that an IRS publication is not law, because the IRS does not write laws — it is only authorized to execute laws written by Congress.
4. Rarely, they may paraphrase a law (or an inferior court case opinion) incorrectly or out of context without attaching a copy, or cite court case opinions ruling on issues that you never argued in the first place.

This protects you from being charged with tax evasion or other charges, because you have a record that before you refused to file, you expressed to the government that you are open and willing to pay your “fair share” of taxes, if they can show you the law which compels you to do so. Since they cannot show you the law, you do not have to file.

If you are a Restore Freedom Plan member, Freedom Law School will send these petitions for you. Click here to learn more about the Restore Freedom Plan. If you are not a Restore Freedom Plan member and you’d like to send petitions yourself, you may use our free Petitions to Congress tool.

Our 100% Guarantee.

In the event that your tax situation necessitates legal action, we will provide representation for you. Additionally, should the outcome of a court case result in lost funds, we will reimburse any money taken by the IRS.

Members of the Restore Freedom Plan enjoy several other benefits, as well:

• Expert correspondence handling. Should you ever find yourself in receipt of correspondence from the IRS, state revenue agencies, or any third parties associated with your tax affairs, Freedom Law School will draft a response on your behalf.
• Unlimited consultations. We will provide you with answers for any tax-related queries you may have.
• Referral rewards. We believe that good news is meant to be shared. For any new member you introduce to the Restore Freedom Plan, you will receive 50% of their first-year membership.

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Many states tie their income tax laws to federal income tax laws by adopting Internal Revenue Code definitions, calculating state tax as a percentage of federal taxes owed, or using other methods. This practice, referred to as “piggy-backing” by Freedom Law School, means most residents in these states may not owe additional state income taxes. Please refer to the map and information below.

While our Restore Freedom Plan and Employer Freedom Plan do not cover state tax collections, our staff is available to assist students in responding to unwarranted collection attempts by state taxation agencies.

No income tax at all

You don’t need to do anything! These states don’t have any income tax.

• Alaska
• Florida
• Nevada
• New Hampshire (Beginning January 1, 2025)
• South Dakota
• Tennessee
• Texas
• Washington (Except certain long-term capital gain starting in 2022)
• Wyoming

Based on the federal laws

These states’ have an income tax which laws are based on the federal income tax laws.

State tax agency is known to be aggressive with collections +
State tax agency is known to be very aggressive with collections ++

• Arizona +
• California ++
• Colorado +
• Connecticut
• Delaware
• Georgia + (Tax forms only. Laws do not piggy-back)
• Hawaii +
• Idaho
• Illinois
• Indiana
• Iowa
• Kansas
• Kentucky
• Louisiana + (Tax forms only. Laws do not piggy-back)
• Maine
• Maryland
• Massachusetts ++
• Michigan +
• Minnesota
• Montana +
• New Hampshire (Will become a no income tax state after December 31, 2024. Currently only liable for taxes on interest and dividends. Piggy-backs on tax forms only; the laws do not appear to piggy-back)
• Nebraska
• New Mexico +
• New York ++
• North Carolina +
• North Dakota
• Ohio
• Oklahoma
• Oregon
• Rhode Island
• South Carolina
• Utah
• Vermont
• Virginia ++
• West Virginia
• Wisconsin ++

Independent from federal laws

These states’ income tax laws are independent from federal laws, and you cannot exempt from them.

• Alabama
• Arkansas
• Mississippi
• New Jersey
• Pennsylvania

If you have additional questions or concerns, call our office and ask directly by calling (813) 444-4800.

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Stanton v. Baltic Mining Co. (1916)

This case stated that the provisions of the 16th Amendment gave no new power of taxation to the federal government.

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But, aside from the obvious error of the proposition, intrinsically considered, it manifestly disregards the fact that, by the previous ruling, it was settled that the provisions of the Sixteenth Amendment conferred no new power of taxation, but simply prohibited the previous complete and plenary power of income taxation possessed by Congress from the beginning from being taken out of the category of indirect taxation to which it inherently belonged…

Gould v. Gould (1917)

In the interpretation of taxing statutes the government is unsupported in extending powers past the clear language of the law. When the government’s power to tax is questioned, the court is to strongly favor the citizen.

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In the interpretation of statutes levying taxes, it is the established rule not to extend their provisions by implication beyond the clear import of the language used, or to enlarge their operations so as to embrace matters not specifically pointed out. In case of doubt, they are construed most strongly against the government and in favor of the citizen.

Fox v. Standard Oil Co. (1935)

If a glossary of terms is provided with a law, the definitions of the terms listed override their typical meaning.

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In such circumstances definition by the average man or even by the ordinary dictionary with its studied enumeration of subtle shades of meaning is not a substitute for the definition set before us by the lawmakers with instructions to apply it to the exclusion of all others. … There would be little use in such a glossary if we were free in despite of it to choose a meaning for ourselves.

Hooven & Allison Co. v. Evatt (1945)

The term “United States” can mean…

• The nation of the United States, as opposed to other nations.
• Territories over which the United States government is sovereign.
• In a constitutional sense, the states, which are united.

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The term “United States” may be used in any one of several senses. It may be merely the name of a sovereign occupying the position analogous to that of other sovereigns in the family of nations. It may designate the territory over which the sovereignty of the United States extends, or it may be the collective name of the states which are united by and under the Constitution.

Meese v. Keene (1987)

It is self-evident that in regard to the law, a definition of a term excludes unstated meanings.

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Nor do we agree with the District Court’s assertion that Congress’ use of the term “political propaganda” was “a wholly gratuitous step designed to express the suspicion with which Congress regarded the materials.” … It is axiomatic that the statutory definition of the term excludes unstated meanings of that term. … As judges, it is our duty to construe legislation as it is written, not as it might be read by a layman, or as it might be understood by someone who has not even read it.

Quoted in Stenberg v. Carhart (2000)

When a statute includes an explicit definition, we must follow that definition, even if it varies from that term’s ordinary meaning. Meese v. Keene, 481 U. S. 465, 484-485 (1987) (“It is axiomatic that the statutory definition of the term excludes unstated meanings of that term”); Colautti v. Franklin, 439 U. S., at 392-393, n. 10 (“As a rule, ‘a definition which declares what a term “means” … excludes any meaning that is not stated’ “)

Helvering v. Morgan’s, Inc. (1934)

While the term “includes” may sometimes be taken as synonymous with “means,” it may be used also as the equivalent of “comprehends” or “embraces.” Therefore, under § 200(a), the phrase “taxable year” may, where the context requires it, be taken to embrace all fractional parts of the taxable year;

Hoffman v. United States (1951)

Forcing Americans to submit an income tax form violates their Fifth Amendment right to refrain from providing any information to the government that could be used against them in prosecution.

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(a) The privilege against self-incrimination guaranteed by the Fifth Amendment extends not only to answers that would in themselves support a conviction under a federal criminal statute, but also to those which would furnish a link in the chain of evidence needed to prosecute the claimant for a federal crime. Blau v. United States, 340 U. S. 159. P. 341 U. S. 486.

United States v. Miller (1976)

Information on documents voluntarily given to banks and seen by their employees in regular business isn’t protected by the Fourth Amendment, and sharing information with a third party (such as a bank) removes the expectation of privacy under the Fourth Amendment.

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(b) There is no legitimate “expectation of privacy” in the contents of the original checks and deposit slips, since the checks are not confidential communications, but negotiable instruments to be used in commercial transactions, and all the documents obtained contain only information voluntarily conveyed to the banks and exposed to their employees in the ordinary course of business. The Fourth Amendment does not prohibit the obtaining of information revealed to a third party and conveyed by him to Government authorities.

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Source: Where Do Our Federal Tax Dollars Go?

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The claim of the IRS hiring 87,000 new agents is misleading.

The IRS has 79,000 employees, only 10,000 of which are agents. Of those only 2,000 investigate tax crimes. The 87,000 figure is a May 2021 estimate of proposed IRS hires over the next ten years. Additionally, the majority of the “new” 87,000 employees will replace the 52,000 employees which are expected to retire, and the rest are expected to modernize infrastructure.

There are Mortgage Brokers who do not need to see tax returns, and there are absolutely ones that are 100% legit! For example, see this very helpful explanation, “No Tax Returns? No Problem”, by Scott Smith of New Destiny Mortgage.

Many of our FLS members have been successful in becoming home owners without providing tax returns.

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Yes! Mailing cash is safe, as long as you send it through the United States Postal Service (USPS), and not through a private courier such as FedEx or UPS. Tampering with U.S. Mail is a federal criminal offense. Private shipment companies are not protected in this way.It is incorrectly believed that cash cannot be shipped through the U.S. postal services and that is not true. You can read more about the post office’s stance on mailing currency here.

Freedom Law School has received packages from USPS for over two decades with no significant mishaps. Due to our recent growth, however, we have changed our shipping protocol to require the Registered® mailing service for additional security. Instructions can be found below.

Shipping Instructions:

Freedom Law School requires that you send your cash payments through the United States Postal Services (USPS) by Priority Mail® with the Registered® mailing service added on.

Before going to the post office you will:

1. Wrap you cash payment in a copy of your application, copy of your consultation order form, or a piece of paper with your contact information written on it.
2. Place the wrapped cash in a regular mailing envelope.
3. Address the envelope to Freedom Law School and include your own address in the return mail section.
4. Take the envelope into the post office and to the counter clerk.

When you get to the post office you will:

1. Go to the counter to request a Priority Mail® envelope or box.
   IMPORTANT: Priority Mail® envelopes and boxes are white with red writing on them.
2. Put your envelope with your cash payment into the Priority Mail® envelope or box.
3. Tell the post office clerk to add the Registered® mailing service to your Priority Mail® envelope or box. They should provide you with a Registered® mail slip to fill out.
   IMPORTANT: The post office may suggest alternative methods for shipping, but you must insist that the package ship by Priority Mail® with the Registered® mail service add on.The post office clerk should use brown tape to cover all edges of the envelope or box.
4. On the Registered® mail slip declare that the content includes personal documentation.
5. On the Registered® mail slip insure the package for the minimum amount of $500.
6. Collect your receipt and the tracking information from the post office clerk.
   IMPORTANT: Registered® tacking numbers always start with the letter “R”.

When you leave the post office you will:

1. Call Freedom Law School and provide the Registered® tracking number.
2. Keep the receipt from the post office until Freedom Law School calls and confirms the package has been received.

Following these instructions ensures that your mail will be signed for and tracked at every stop along the way by U.S. Postal Service employees. The post office will provide you a Registered® tracking number for your package and Freedom Law School requires that you call us with those tracking details to guarantee your account will be credited correctly. Do not email or text the tracking information. If you call outside of our normal business hours, please leave a detailed voicemail including your name, phone number, and the tracking details.

Freedom Law School guarantees that your account will be credited the full amount sent as long as all shipping instructions have been followed:

• Send your package through USPS,
• Ship your package by Priority Mail®,
• Have the Registered® mail service added to your Priority Mail® package,
• Call Freedom Law School to provide the Registered® tracking number.

Shipping address:

Freedom Law SchoolPO Box 10599Brooksville, FL 34603

Why does FLS only accept cash or cryptocurrency?

You give up your privacy when you use banks instead of cash cryptocurrency.‍The U.S. Supreme Court ruled in 1976 that the American people have no “expectation of [financial] privacy” when using banks and bank instruments to conduct financial affairs.

The court also concluded that the American People give up their right to financial privacy “voluntarily” when they use banks. For more information, see our blog article “U.S. Supreme Court says DO NOT USE BANKS, to protect financial privacy”.

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Unfortunately, due to regulations, you MUST submit your current address (which can be a PO box or private mailbox) to the IRS. The purpose of keeping your address current is to enable you to legally combat actions the IRS may take against you. If you do not, the IRS can claim, for example, that they sent you collections documents yet you never responded refuting their collections efforts.

If you are a green card holder, you still do not have to file and pay income tax, unless you are a resident of Washington D.C. or you are performing work functions of the federal government.

No, you must have a drivers license, license plate, registration, etc. Roads are government built, maintained and funded roads.

Do not buy into patriot mythology. We love promoting freedoms, but some theories, even when they sound well-put, are simply wrong.

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These are also protected under our guarantee same as any other income/investments. For those who are “mining” cryptocurrencies, make sure to include any amounts that you “mine” under the “self employed” section of our application. For any buying or selling of cryptocurrencies, make sure to include it in the appropriate section of the “capital gains” portion of our application to make sure it is covered by our guarantee. For any appreciation on its value, make sure to include that in the “interest and dividends” portion of the application.

Fear not! For many years Peymon has been accumulating his wisdom and strategies, documenting them, and passing them along to passionate activists who will one day be able to carry on Freedom Law School. You will not be stuck when Peymon passes away.

Richard Grant, once a student at Freedom Law School, ceased filing and paying income tax prior to his enrollment as a member. Subsequently, the IRS pressed criminal charges against Richard. However, he opted to engage a lawyer against FLS’ recommendations. Unfortunately, this decision left Richard inadequately prepared for his defense and lacking comprehension of IRS protocols, ultimately resulting in his prison sentence.

Several mainstream media outlets, including Forbes, have inaccurately and unjustly linked Richard’s imprisonment to Freedom Law School in an attempt to discredit FLS.

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For W2 employees who have taxes withheld on their paychecks we recommend that you file a W4 tax exemption form and submit it to your HR department to stop withholding on your paycheck. This will need to be done every year. See our guide for more specific instructions.

Filing 1099 forms is not required for most Americans, and is simply a way that the IRS can collect information that they do not need to collect on taxes they are not owed.

This is preferable to being a W2 employee. Simply keep the 1099 you receive for your records (if you desire). If your contractor requires a W9 form, we recommend you fill that out normally but do not sign it. If your contractor requires that you do sign it, signing will not affect your eligibility for our 100% protection guarantee for our students.

There are many options in this situation, and the best approach could vary widely on many factors. Primarily we recommend teaching your employees about tax freedom. You should also consider our Employer Freedom Plan to protect your company and your employees. Please call to discuss your options on how this could work for your situation.

We recommend that you use independent contractors to fulfill your labor needs as you are able. We also recommend that you organize your company under an LLC to protect your personal assets. You should also consider our Employer Freedom Plan to protect your company from corrupt government collections.

As long as your business is conducted outside of D.C we recommend setting your company up under an LLC, and to simply stop filing under the corporation laws. There is no need to close out the corporation as it will be considered closed after a few years of no transactions.

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Revocation of election to stop paying federal income tax is a patriot mythology. The process of revocation of election involves sending a letter to the IRS to revoke your election to pay income taxes for the rest of your life.

Freedom Law School does not deal with revocation of election, because it is not a successful legal strategy in practice.

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In the income tax freedom movement, some alluring teachers use the term ‘[American] State National’ (aka “sovereign citizen”) to describe a fictitious citizenship status, aiming to liberate themselves from the constraints of U.S. law.

Sovereign citizens believe that the existing American governmental structure, including the courts and law enforcement, is illegitimate and that they retain an individual common law identity exempting them from the authority of those fraudulent government institutions. They may issue their own driver’s licenses and vehicle tags, create and file their own liens against government officials who cross them, question judges about the validity of their oaths, challenge the applicability of traffic laws to them, and in extreme cases, resort to violence to protect their imagined rights.

Sovereign citizens speak an odd quasi-legal language and believe that by not capitalizing names and by writing in red and using certain catchphrases, they can avoid any liability in the judicial system.

Read this excerpt from a State National promoter’s page:

As a completely unincorporated Person, a State National is sovereign and private and generally immune from prosecution until and unless they take some action that causes actual physical harm to someone else or someone else’s property, whereupon they are subject to the Common Law of the County and State where they live or where the alleged crime is committed. (Source)

You read that right, American state nationals and sovereign citizens claim that they are immune from prosecution unless they cause physical harm to person or property. Does this work? No.

Sovereign citizens’ tactics often succeed in delaying legal proceedings, and may occasionally confuse or exhaust public officials. However, their arguments are never upheld in court. (Source and Reference)

Other SovCit-related theories

Can I claim sovereign citizenship? Does using a ZIP code make me part of DC? Does my name in CAPITAL LETTERS refer to my straw man? Am I out of the federal government’s jurisdiction?

These theories are what Freedom Law School refers to as “baseless legal theories” or “patriot mythologies.” With the ease of internet communications, these baseless theories spread like weeds, offering fantasy solutions to common Freedom and Tax Honesty Movement issues. They sound great, but in reality do not work. Unfortunately, in dealing with the corrupt IRS and U.S. government, there are no “silver bullet” miracle cures.

Ultimately, the focus is not solely on the technical accuracy of a theory, but rather on its practical effectiveness and likelihood of being upheld in court. The sovereign citizenship theory, like many others, does not work in practice. Rather than dabbling in a multitude of unfounded theories, stick with what has been proven effective. Check out Freedom Law School’s seven steps and our track record of court victories.

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Irwin Schiff was a very honorable patriot to be commended for his work in the Tax-Honesty and Freedom Movements. Irwin however made mistakes and refused to accept advice from Peymon and others. While Irwin was technically 100% correct on the fact that there is no law requiring the average American to file and pay income taxes, he did not follow procedure to protect himself better from the corrupt court systems.

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Wesley Snipes relied on something we warn you about at Freedom Law School: fake patriot mythology. Wesley Snipes did not get a prison sentence from following Freedom Law School’s advice. He relied on the false advice of Eddie Kahn and mailed in a fake, phony, fraudulent receipt to the IRS for taxes he owed, expecting a refund.

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Zero returns are an attempt to get money back from the IRS after filing. The process involves filing a tax return with the IRS which shows zero income.

This method is advocated by Pete Hendrickson, notably in his book “Cracking The Code” and on his website, Lost Horizons. Both Pete Hendrickson and his wife, Doreen, were sentenced to prison after using this method. (Source.)

They may work to get money back from the IRS, but are not recommended by Freedom Law School because it defeats the purpose of not filing, and involves lying on a return which exponentially increases your chances of being pursued by the IRS.

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