How is this legal?
A: If you were born in one of the 50 states that make up the United States of America your original political status is that of state citizen or National of the USA. (after a lifetime of believing and claiming to be a U.S. citizen, most Americans have been presumed to be federal citizens of Washington DC without the protections of the US Constitution and Bill of Rights) As a National or state citizen, you are not legally obligated or mandated to pay federal income tax or file a 1040 tax return. [26 CF1.871-1(a)] The first time you file a 1040 you elect to join the “IRS Tax Club”. Unfortunately, we are led to believe this is “law” and we are all required to be tax paying citizens. This is far from the truth, and we can lawfully get you removed from the income tax system via the Revocation of Election process. For even more information on how this process is legal, please click to review this document: 100 Reasons Why Most Americans Aren't Liable For Paying Federal Income Taxes.
What is Revocation of Election (ROE)?
A: A legal process established by the United States Congress that allows most state Citizens to be once again classified by the IRS as legal non-taxpayers. If you were born or naturalized in one of the 50 union states, or at least one parent is an American, not in D.C. or US territories [what are the US territories] then you are a state Citizen/National. You can elect to be treated as a U.S. citizen and U.S. resident for purposes of determining your income tax liability; typically, this happens as a result of deception, indoctrination, or programming. [See tax treatment of resident aliens and nonresident aliens at 26 CFR §1.871-1(a)]. Believing that your primary political status is that of U.S. citizen or resident alien, along with the ‘programming’ to file, is what causes most to file a 1040 early in their working life. This is done on a voluntary basis, unfortunately what they fail to tell you once you file your first 1040 income tax return with the IRS, is that you’ve elected to opt yourself into the federal tax club when you had no lawful duty to do so. The ROE process revokes or removes you from the taxpayer club, legally returning you to your state Citizen/National status with the IRS. ROE does not make your status known to other government agencies outside of the IRS. While correcting one’s status is recommended generally, it is not mandatory to correct your status on a broad scale.
How do I get my employer to stop withholding federal taxes from my check?
A: We coach you on exactly how to provide a W-4 withholding Certificate to your employer. This is rare, however, if your employer requires you to have federal taxes withheld, you may not be able proceed with the ROE. When an employer does this, you are forced to file tax returns to recover your property.
How do I stop paying Federal Income Taxes?
A: You make sure that no one withholds federal taxes from your pay, distributions from retirement accounts, pensions etc.
Will I still have to pay State Income Taxes?
A: Possibly, it depends on several factors. Some states can be difficult, some are easy. It can depend on what is reported on 1099s or K-1s that cause a state to presume you are required to file and pay the state tax. If you have difficulty with your state, we can refer you to someone that may be able to assist with eliminating the state taxes. Once the ROE has been filed and completed, you will no longer be obligated to pay income taxes (unless that income is sourced directly from the federal government, the District of Columbia).
Will I still file business/entity tax returns?
A: Yes, you will still file entity tax returns if you have a partnership, S-Corp, C-Corp, PLLC, statutory trust, etc. We can discuss options for changing or replacing those entities if desired or recommended. The ROE is for men and woman only, not for entities.
What if I am self-employed?
A: Being independent or ‘self-employed’ is ideal. The more privately you earn your livelihood, the better. Once you complete the ROE process you will no longer be legally obligated to file federal income tax returns. This includes individuals receiving 1099 statements.
Will I still pay property taxes?
A: Yes. These are not collected by the IRS on a form 1040.
Does the ROE process affect my social security number?
A: No. You will maintain use of the social security number which is the property of the Social Security Administration. You can continue to use the SSN as it is used for many other purposes (i.e. personal credit, applying for credit, mortgage loans, etc.) The ROE process has nothing to do with your social security number.
Will I still be able to get my Social Security payments when I retire?
A: Yes. After doing ROE, it will not interfere with your receiving Social Security payments when you are age eligible—as long as you paid into that system for a minimum of 10 full years. The Social Security guidelines state that after 40 quarters (10 years) you are vested in the system. We highly recommend that you plan for your retirement in other ways also. The Social Security is based on what you paid in so when you stop legally paying taxes, your benefits will be calculated on your lifetime of contributions to Social Security (and Medicare).
What is the difference between a State Citizen, National, or Nonresident Alien?
A: There is no difference, basically they are the same. These are different terms that describe the same status.
Will I have to claim future capital gains or income received from investments?
A: No. Once the ROE process is complete you will not be responsible for federal income tax on your private sector income. There can be challenges with mandatory withholdings in some states when selling real estate/real property. But you do not report capital gains.
Will I still owe back taxes from previous years of filings?
A: Yes. Your federal taxes will still be owed for past years. The ROE does not retroactively solve your prior history or issues with IRS. Let’s say you owe no back taxes, but you filed a tax return for the year prior to doing the Revocation of Election (ROE), you must still pay the taxes on the year you filed before your ‘election’ (or reasonably soon after you revoke). We can refer you to a service that can help with discharging debts for 25 cents on the amount owed--ask us about this.
How does the revocation process affect getting any government guaranteed student loans or a mortgage?
A: The ROE will change how you qualify for these loans since you will no longer have tax returns. You can prepare an “as if” return to provide your income and other information, but this will NOT be a filed tax return after you do the ROE. Filing a tax return after doing the ROE negates it. If they require a tax return for a mortgage, you should work with a lender that can qualify you based on your bank statements to prove your income. We can provide tips and resources for finding such a lender.
How long does the process take?
A: Once you have become a client, our document preparation only takes a week or two. Once documents are prepared and filed, the IRS has 60 days to rebut your ROE. They have never rebutted any ROE. Time frames may vary depending on your individual situation.
How much does the ROE documentation service cost?
A: Should you choose to learn more, click Work With Us, and you will receive information on how to proceed. You will receive the ROE video and Application link. Once we have received your application/questionnaire and confirmed your eligibility, you will receive a proposal based on the nature and scope of work for your situation.
What is a legal non-taxpayer?
A: A legal non-taxpayer is a state citizen/National that has never opted in to the federal tax club. This means they have never filed a 1040 tax return with the IRS, or they have done the ROE to terminate their ‘taxpayer’ status.
What is a legal taxpayer?
A: Legal taxpayers are those who are within the exclusive jurisdiction of the federal Government, which is the District of Columbia and U.S. Territories. State citizen/Nationals are considered legal non-taxpayers when born in in one of the union states or who become naturalized in one of the 50 states. If at any time they elected to join the tax club by filing a form 1040 they have now elected to become legal taxpayers. Revocation of election is key to exiting the US tax club.
Frequently Asked Questions
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Disclaimer statement. Exit Tax Club, LLC is not a non profit company. We are also not affiliated with any government agency. Exit Tax Club, LLC is not a law firm, nor do we give or offer legal or financial advise of any kind. We are a North Carolina company and operate under the state laws of North Carolina. Any information listed herein is for educational purposes and is based on facts of existing laws, constitutional articles, Internal Revenue Service code (IRC), and court cases of the U.S. Supreme Court system. Furthermore, we are a documentation processing service company not a law firm.
