But what is worst is that Americans let them!
Read here what one American, David Myrland, did when he realized the scam:
“In 1988 (April 15th) the IRS found me and accused me of having failed to report any tips on my 1984 tax return. At that time I was one of the fastest bartenders alive and took exception to the attitude and tone of the IRS’ Agent, and began studying tax law in June of 1988. In 1994 I made a couple of appearances as an expert witness in tax trials and completed my treatise which detailed a host of differences between the Tax Code and the IRS’ standard operating procedure which was discovered through my six years of analysis. This 1994 treatise has prevented approx. ten tax indictments since 2004.
The depth of my research led me to conclusions about parts of the Tax Code that nobody else has sought to use in their curriculum’s, organizations, or law practice. Tax Code § 83 is perhaps the best example of this dynamic of my curriculum. It still astonishes me when I think of being the only one I know of that bothers with this statute, yet the courts say that it applies to any and all compensation for services, that it “explains how property received in exchange for services is taxed.” Twenty years after I wrote the first edition of this manual in 1994 I am still the only one interested in its language to any degree.
By the Supreme Court’s October Term of 1998 my clients had petitioned five times, two of whom made it past the clerks to the Justices before being denied. I am 5 for 6 against the Oregon State Attorney General in civil cases. In 2005, in US District Court – Austin, TX, Ass’t US Attorney Stephen Bass asked for and received a “protective order” to keep from having to indulge my primary arguments against income taxation as the IRS advises. That protective order was Exhibit #1 behind my Jan. 2006 complaint to eighty members of Congress, to which I’ve never received so much as an acknowledgement or reply of any nature. In 2007 a criminal defense attorney I had tutored asked a twenty year IRS Officer, “How did § 83 operate in your determination that Mr. Gebauer owed an income tax on his compensation?” The IRS Officer, Sue Besson, replied, “I am unfamiliar with § 83.”
Montelepre Systemed, Inc. v. C.I.R., 956 F.2d 496, 498 at  (CA5 1992): “Section 83(a) explains how property received in exchange for services is taxed.”
Gudmundsson v. US, 634 F.3d 212 (CA2 2011): “At the heart of this case is I.R.C. § 83, which governs the taxation of property transferred in connection with the performance of services.”
Robinson v. C.I.R., 82 USTC 444, 459 (1984); The legislative history of section 83 does not require the conclusion that the statute should be applied to tax-avoidance techniques only. To the contrary, the House and Senate reports specifically delineate transactions and transfers to which section 83 was not to apply and do not exclude from its purview contractual provisions that were not tax motivated.”
Cohn v. C.I.R., 73 USTC (Tax Court) 443, 446 (1979): “Petitioners rest their entire case on the proposition that Elovich and Cohn and/or Mega were “independent contractors” and not employees of the Integrated and that, therefore, section 83 does not apply to the acquisition of the shares from Integrated. They rely on the legislative history surrounding the statute to support their proposition that section 83 was intended to apply only to restricted stock transferred to employees. Respondent contends that the words “any person” in section 83(a) encompass independent contractors as well as employees. We agree with Respondent. . . . We reject petitioner’s argument. While restricted stock plans involving employers and employees may have been the primary impetus behind the enactment of section 83, the language of the section covers the transfer of any property transferred in connection with the performance of services “to any person other than the person for whom the services are performed.” (Emphasis added.) The legislative history makes clear that Congress was aware that the statute’s coverage extended beyond restricted stock plans for employees. H.Rept. 91-413 (Part 1) (1969), 1969-3 C.B. 200, 255; S.Rept. 91-552 (1969), 1969-3 C.B. 423, 501. The regulations state that that section 83 applies to employees and independent contractors (sec. 1.83-1(a), Income Tax Regs.). There is no question but that, under the foregoing circumstances, these regulations are not “unreasonably and plainly inconsistent with the revenue statutes.” Consequently, they are sustained. (cites omitted)”
MacNaughton v. C.I.R., 888 F.2d 418, 421 (CA6 1989): “The Alves court stated that the plain language of section 83 belied this argument because the “statute applied to all property transferred in connection with the performance of services” and because no reference is made to the term “compensation.” Id. The court further concluded in Alves that “if Congress had intended section 83(a) to apply solely to restricted stock used to compensate employees, it could have used much narrower language.” Id. at 481-82. Upon consideration, we agree with the interpretation advanced by the Alves court and, therefore, join the Ninth Circuit in holding that section 83 is not limited to stock transfers which are compensatory in nature.”
Pledger v. C.I.R., 641 F.2d 287, 293 (CA5 1981): “The taxing scheme imposed by Congress more accurately reflects what taxpayer received as compensation than a scheme that taxes the taxpayer on merely a portion of the compensation.”
Alves v. C.I.R., 734 F.2d 478, 481 (CA9 1984): “The plain language of section 83(a) belies Alve’s argument. Section 83(a) applies to all property transferred in connection with the performance of services. No reference is made to the term “compensation.” Nor is there any statutory requirement that property have a fair market value in excess of the amount paid at the time of transfer. Indeed, if Congress had intended section 83(a) to apply solely to restricted stock used to compensate its employees, it could have used much narrower language. Indeed, Congress made section 83(a) applicable to all restricted “property,” not just stock; to property transferred to “any person,” not just to employees; and to property transferred “in connection with . . . services,” not just compensation for employment. See Cohn v. Commissioner, 73 USTC 443, 446-47 (1979).” 
Concurring with Cohn, Alves, see Centel Communications Co. v. CIR, 920 F.2d 1335, 1342 (CA7 1990).
Klingler Electric Co. v. C.I.R., 776 F.Supp. 1158, 1164 at  (S.D.Miss. 1991): “Section 83(a) applies to all property transferred in connection with the performance of services.”
An IRS Officer of twenty years is “unfamiliar with § 83” which determines whether or not somebody who received compensation even owes a tax to begin with? Really? She was lying. These circuit courts (US Courts of Appeals) and US Tax Court say it’s the controlling statute, I’ve began hammering on the IRS with it in 1993 five times to the Supreme Court, and an Officer of twenty years is “unfamiliar” with it? Nobody has an option but to consider the statute and to comply with it, and my manual explains my conclusion about statutory language that has the IRS lying about its considerations.
 That’s the 9th Circuit citing US Tax Court in Cohn v. Comm’r, 73 USTC 443 (1979).”
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