The 1099 OID process is a dangerous Patriot Mythology. Patriot Mythologies are legal theories that sound great and promise great results. Some of these myths are -- removing yourself from the jurisdiction of the "government's (or IRS’) jurisdiction;" "wiping out the taxes"; "untaxing yourself;" assisting you in "regaining your sovereign status;" or "removing you from admiralty or maritime jurisdiction back to Common Law where you belong. These and many other fantastic unfounded theories often promise easy and quick methods coupled with some simple "legal" paperwork.
Your physical and mental health depends on your effort to stay healthy. To stay healthy you need to stay away from drugs, artificial ingredients, eat nutrient rich foods as close as possible to their natural state, and exercise your mind and body regularly. As with your physical health, common sense also dictates that to stay legally healthy there is no quick cure to get the Government or IRS out of your life regardless of how "good" the quick easy cure appears.
The same is true with money. To earn and save money you have to work hard and smart, be organized and apply imagination – and more. To be free of Government oppression you best know the law, your rights, and have some knowledgeable experienced people on your side to assist you, should you need assistance.
Unfortunately, the 1099 OID argument promises to get some of the money you paid to the IRS returned to you which is supposedly contained in "your treasury account that the government created in your name by capturing your strawman." The promoters have their naïve followers file forms with the IRS which will dupe the IRS’ employees to send you checks as "refunds," sometime to the tune of hundreds of thousands of Dollars.
Many of the people who engage the 1099 OID process will receive a check from the IRS, cash it and enjoy the money sent to them because of this procedure. However, many of them will be contacted by the IRS. The IRS will demand repayment of the monies, with penalties and interest. Fraud will be claimed by the government on the part of the person who received the money. Many of these people will be financially crushed by the IRS. A few will be prosecuted criminally and end up in prison.
Don’t take such an unnecessary risk. As Freedom Law School has always counseled, learn the law, and challenge what you are being told; whether it is information from a private person or organziation, or information from the government. Learn how to use the law library and read the law for yourself. Listen to the FLS Level 1 Course and empower yourself with REAL solutions that really WORK. Don’t take our word for it. Check out a sampling of our documented wins against the IRS.
Remember, in the end, YOU, and you alone, are responsible for your actions. In the end, you will pay the price for a bad mistake or reap the rewards for taking common sense actions. So, take the time to educate yourself and make wise, rewarding choices for yourself and your family. The links provided you in the last paragraph is a good place to begin your education.
Below you will find sample indictments (an indictment is the accusation by the grand jury that someone has committed a crime and must go through a jury trial to be found guilty or not guilty) used to charge those people who promoted or used the 1099 OID process.
The Sundberg case (see links below) show an overview of what goes on during the 1099 OID process. Follow the hyperlinks below to read the indictments:
The Sunberg case:
Another 1099-OID indictment:
From: Larry Becraft
Sent: Saturday, September 11, 2010 3:31 PM
Subject: Another 1099-OID indictment
I learned yesterday about an optometrist who was indicted for tax crimes. After he was indicted, he "learned" about 1099-OIDs and filed a 1099-OID tax return seeking a refund of 40 million. That resulted in a superseding indictment adding count 10. See attached copy.
If convicted, the Guidelines for an alleged 40 million intended loss are high: 78-97 months.
It has always been bad advice to advocate 1099-OID returns.
Click here for a copy of the indictment.
Brekke, Chung, Colaco 1099 OID Indictment:
From: Larry Becraft
Sent: Monday, November 29, 2010 5:34 PM
Subject: Re: More 1099-OID insanity
Guys and gals,
Fred Fox just sent me an e-mail about somebody else indicted for using that damnable 1099-OID process. I just added the following to my page that discusses this insanity:
Here is another indictment for using the 1099-OID "process." The gurus who promoted this garbage need to be impaled.
I think I am moving from hanging the bastards to impaling them.
Committee to Hang the Gurus
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Last Updated on Thursday, 03 May 2012 12:48