IRS Special Agent Resigns
Finds IRS Has No Laws 
To Collect Tax

From Dave Champion


Dear Friends, 
A few days ago, I sent out a piece which contained information
regarding Joe Banister. Joe is, or more accurately was, an IRS
Special Agent working in the Criminal Investigation Division of
the Internal Revenue Service. 
14 Months ago, Joe began to communicate with several "tax
protesters". In a rare occurrence, representatives from Freedom
Law School and the Free Enterprise Society, along with Bill
Conklin, Attorney Larry Becraft, Devvy  Kidd and Bill Benson were
able to convince Joe (whose job it was to put people like them in
jail) to actually evaluate the information that was so
objectionable to the IRS. 
For the next 14 months, Joe poured over the information. A few
weeks ago, he submitted a 90 page report to his superiors at IRS.
In his report, Joe informed his superiors that he had found the
following information to be legally accurate and factual (partial
1) There is no federal law requiring an American Citizen, working
and living in one of the 50 states, to file an income tax return
or pay income tax. 
2) The 16th Amendment did not provide Congress with any new
taxing authority, but merely reversed an earlier US Supreme Court
decision, thus placing the income tax forever within the
category of a "privilege tax" (i.e. a tax for doing something
that you have no natural right to do as a Citizen). 
3) The so-called 16th Amendment was never properly ratified and
therefore, having never received the blessings of the Union
states, it is only a federal  law which applies to Washington
D.C. and its territories. 
4) The United States operated each year EXCLUSIVELY by loans
provided by the Federal Reserve (which is a 100% private banking
institution and is not a government agency) and not one penny of
income tax goes to the US Treasury, but rather 100% of the tax
collected goes directly to the Federal Reserve banks. In short,
the IRS acts EXCLUSIVELY as the collection department of the
Federal Reserve banking system. 
Below, you will see Joe's most recent e-mail to the Patriots he
now considers his friends. 
Letter From IRS Agent (Former) Joseph R. Banister 
Dear Friends: 
Well, the day of reckoning has arrived. On February 11, 1999, in
my capacity as a Special Agent and federal law enforcement
officer sworn to support and defend the Constitution of the
United States, I submitted a "preliminary report" to the Chief of
the IRS Criminal Investigation Division for the Central
California District. My report summarized my findings regarding
allegations that the income tax and filing of federal income tax
returns is voluntary, that the 16th Amendment was never ratified,
and that income taxes are not used to pay for daily government
In order to ensure that unnecessary and unwarranted delay would
not occur, I requested that my report be forwarded to top
officials in the IRS up to and including Commissioner Charles O.
Rossotti, and I respectfully requested that the Commissioner or
his designee respond to the evidence in my report within 30 days.
Today, my Chief called me into his office and gave me a

The memorandum dated February 17th, 1999, read in part: 
The Internal Revenue Service will not be responding to your
request and will provide you with the necessary paperwork to
tender your resignation. You will be placed on administrative
leave effective upon receipt of this memorandum for a period of
seven calendar days to consider what actions you wish to take.
I was told that officials at the highest levels of the Internal
Revenue Service were consulted regarding a response to my report.
Apparently, I have now joined the ranks of every other taxpayer
who ever was ignored or otherwise rebuffed by the Internal
Revenue Service when they petitioned the IRS for a reasonable
explanation. The only conclusion that I can reach is that those
officials thought it was better to rebuff my request and pass up
a golden opportunity to prove my research wrong than to have to
admit that so-called "tax-protesters" and other supporters of the
U.S. Constitution have been right all along. Ironically, had the
IRS taken the time to address my concerns, or perhaps perform the
simple task of proving the allegations wrong, I would have gladly
been their spokesman advising taxpayers not to fall for these
untrue allegations for the rest of my career. 
As the memorandum states, I have until Friday, February 26th,
1999, the day after the 86th anniversary of the alleged
ratification of the 16th Amendment, to tender my resignation.
This is certainly a sad day in my life. 
Although I was hoping for a better result, I learned today after
over two years of investigation that the Internal Revenue Service
is everything that the so-called "tax protesters" said it was;
non-responsive, unable to withstand scrutiny, tyrannical, and an
agency oblivious to the rule of law and the U.S. Constitution. 
May God help us all. 
Joseph R. Banister 
And here is another note on Joe Banister from attorney Steffan
CID Agent, Joe Banister Resigns from the IRS 
From Steffan M. Bertsch Washington State
Bar number 8650 to all who seek to end the fraud that Congress
has perpetrated through the IRS. On thursday, February 25, 1999,
Joe Banister voluntarily relinquished (which is not to be
confused with "voluntary compliance") his title as a special
agent for the Internal Revenue Service. He no longer works for
the Criminal Investigation Division of that agency because he
presented his superiors with various discoveries he made
concerning fraudulent implementation of the income tax laws. His
superiors refused to address any of the issues, so Joe did what
you would expect of a person of integrity, he resigned.
Joe researched the income tax code, as many of us have, and was
unable to discover the law that made ordinary Americans subject
to the income tax.  Before he joined the IRS, Joe had been
accredited as a certified public accountant, so his search for
the elusive statute which would make Americans subject to the
income tax was most certainly a professional endeavor.  It is
Joe's professional opinion, as a CPA and a former special agent,
that there is no such law. And, as an attorney, I have conducted
a similar search, and like Joe, have also concluded that there is
no such law. 
For those who wish to know more about Joe Banister, click onto
his site at:
You can also send him an e-mail, but please realize that he could
be too swamped to personally respond to your message.