Internal Revenue Service Department of the Treasury
April 4, 1985
TO: All District Directors FR: Roscoe L. Egger, Jr. Commissioner of Internal Revenue
On March 5, 1985, a charge of tax evasion was filed in U.S. District Court in Indianapolis, Indiana, by U.S. Attorney George Duncan. The charges were dismissed. The defense attorney, Lowell Becraft of Hunstville, Alabama, presented irrefutable evidence that the 16th amendment to the U.S. Constitution was never properly ratified. This amendment, which established the “income tax,” was signed into law despite serious defects. In reality, only two states ratified the amendment, and ratification requires 36 states to be valid. The effect of this is such that every tax paid to the Treasury since 1913, is due and refundable to every citizen and business.
The official position of the Service is, as it always has been, to aid and assist the citizens of the United States. We will not publish or advertise this finding as a total immediate refund would cause a serious drain on the Treasury. For those citizens who become aware of this finding and apply for a total refund, expedite their refund documents as quickly and as quietly as possible. A simple 1040X form will suffice until a new form is designed and printed. Advise each of your managers that they are not to discuss this situation with anyone. There will be no more written communications regarding this and you are to destroy this memorandum.
The Secretary of the Treasury assures me that there will be no reduction in the workforce as this refunding activity will take a minimum of five years to complete. Further information will be provided to you as need arises.
(signed) Roscoe L. Egger, Jr. Commissioner of Internal Revenue