Quick Read
Summary
Takeaways
- ❖Peymon Mottahedeh claims over 99% of Americans are not legally required to pay federal income taxes.
- ❖The 1913 income tax law, according to Mottahedeh, only applied to Washington D.C., Guam, Puerto Rico, Alaska, Philippines, and U.S. territories.
- ❖Mottahedeh argues that the 1040 income tax form is a 'confession trap' that creates a tax liability when signed.
- ❖Freedom Law School provides free information on how to stop paying taxes and offers a paid 'Restore Freedom Plan' with legal defense and a 100% reimbursement guarantee.
- ❖Mottahedeh states he has not filed or paid federal taxes for over 30 years and none of his compliant students have gone to prison or had assets levied by the IRS.
Insights
1The 1913 Income Tax Law and 'United States' Definition
Mottahedeh argues that the 1913 federal income tax law was written to apply only to the District of Columbia and U.S. territories. He claims that the Internal Revenue Code's definition of 'United States' for individual income tax purposes does not include the 50 states, making residents of these states legally 'foreign' to Washington D.C. and thus exempt from federal income tax.
The guest refers to the 1913 law, the evolution of territories to states (Alaska, Hawaii, Philippines), and definitions within the Internal Revenue Code. He states that the 1040 form's 'US individual income tax return' is a deception to imply it applies to the 50 states.
2The 1040 Form as a 'Confession Trap'
Mottahedeh contends that individuals do not owe federal income tax until they sign the 1040 form under penalty of perjury. By signing, individuals declare a debt to the IRS, effectively creating their own liability and exposing themselves to potential federal tax crimes if any errors are present.
He highlights that the 1040 form is signed 'under penalty of perjury,' making the individual, not their accountant, liable for mistakes, potentially leading to nine years of prison time for each signed form.
3Freedom Law School's 'Restore Freedom Plan' and Guarantee
Freedom Law School offers a paid program where members contribute 30% of their avoided tax payments to a fund. This fund is used for legal defense against IRS actions, supporting 'truth-telling media,' and electing constitutional representatives. The plan includes a 100% reimbursement guarantee: if the IRS successfully levies or takes money from a member, Freedom Law School will fully reimburse them within 30 days.
Mottahedeh states, 'If the IRS ever takes any money from them, we'll reimburse them because a lot of times... IRS is such a broken agency... But if they ever do take your money, yes, we will reimburse you everything that I from you in full within 30 days.'
Bottom Line
The strategy of writing petitions to Congress, quoting tax law and requesting correction, creates a legal record that can protect individuals from prosecution.
This tactic aims to demonstrate a good-faith effort to comply with the law if shown to be wrong, thereby making it difficult for government lawyers to pursue criminal charges, as it would risk exposing the legal arguments to a jury.
Individuals can leverage this petition strategy as a defensive measure, potentially deterring IRS legal action by establishing a documented attempt to seek clarification from lawmakers.
Opportunities
Legal Defense and Reimbursement Service for Tax Avoidance Strategies
Establish a membership-based service that provides legal education, defense, and a financial guarantee (reimbursement) for individuals adopting unconventional tax avoidance strategies. The model involves members contributing a percentage of their 'saved' taxes to a collective fund.
Affiliate Program for Promoting Tax 'Freedom' Education
Develop an affiliate marketing program where individuals are compensated for spreading awareness and recruiting new members to a platform that educates on legal pathways to stop paying taxes. This leverages a 'Paul Revere' model for disseminating controversial information.
Lessons
- Educate yourself on the Internal Revenue Code and Supreme Court decisions regarding federal income tax, specifically focusing on the definition of 'United States' and who is legally required to pay.
- Consider ceasing to file 1040 income tax forms and stopping income tax withholding from paychecks, based on the argument that these actions create a voluntary tax obligation.
- Draft and send petitions to your congressman, quoting relevant tax laws and requesting clarification on your tax obligations, to create a legal record of good-faith inquiry.
Peymon Mottahedeh's Seven Steps to Stop Paying Federal Income Tax
Follow the law as found in the Internal Revenue Code, US Treasury regulations, US Supreme Court decisions, and 1040 form instructions, which Mottahedeh claims support his view.
Stop filing 1040 income tax 'confession forms' and stop income tax withholding from your paycheck, as these actions are argued to create a voluntary obligation.
Debrainwash yourself from the belief that not filing and paying income tax leads to prison, by understanding the IRS's alleged reliance on deception and bluff.
Write petitions to your congressman, quoting the law and humbly asking for correction if your interpretation is wrong, thereby creating a protective legal record.
Take courage from the victories of Mottahedeh and his students, none of whom, he claims, have gone to prison or had assets levied by the IRS after following his instructions.
Join the 'Restore Freedom Plan' (optional privilege) by contributing 30% of your avoided taxes to a fund for legal defense, support for media, and political action, receiving a 100% reimbursement guarantee.
Spread the word about this 'restoration of a republic' through the 'Freedom Opportunity Plan,' acting as a 'modern-day Paul Revere' and potentially getting paid for referrals.
Notable Moments
Peymon Mottahedeh, an Iranian-born Jewish immigrant, founded Freedom Law School in 1996 and claims he has not filed or paid federal taxes for over 30 years.
This personal history and long-term non-compliance without apparent legal repercussions serve as a core piece of 'evidence' for the viability of his controversial tax avoidance strategy.
Mottahedeh claims to have helped 'hundreds of thousands' of Americans stop paying income tax since 1992 through seminars, online resources, and his programs.
This assertion, if true, suggests a significant underground movement or widespread interest in his legal interpretation and methods, despite the mainstream legal consensus.
Quotes
"The people that do have to pay it by law is citizens and residents of Washington DC and federal workers that work in DC or anybody with real estate that sells it in DC."
"When you see that 104 income tax confession trap form that says it's a US individual income tax return, they want you to believe it is the 50 states when in reality it is only the District of Columbia individual income tax return."
"You don't owe nothing to the IRS until you sign that 1040 income tax confession form and under oath you declare you owe IRS the money on line 37 of the 1040 form."
"If the IRS ever takes any money from them, we'll reimburse them because a lot of times... IRS is such a broken agency... But if they ever do take your money, yes, we will reimburse you everything that I from you in full within 30 days."
Q&A
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