Income Tax Case of the Century

by Sofia Smallstorm

On Tuesday, October 20th, Pete Hendrickson, author of the bestselling book Cracking the Code: The Fascinating Truth About Taxation in America, will be tried at the Theodore Levin Courthouse before Judge Gerald Rosen and a Detroit, Michigan jury.  Word of the trial has not reached most Americans, even those who are aware of the  income tax fraud. 
Hendrickson is charged with not actually believing what he wrote on his tax returns that were filed between 2002 and 2007. This is not a matter of law but a philosophical question.If I.O. readers were asked to answer that question, they would consider the decade Hendrickson spent researching the six million plus words of Internal Revenue Code and statutory law. They would also consider the ground-breaking book he published about his findings, and the enormous website he built and still maintains at On his website one can view the results of hundreds of individual filings made by those who studied Cracking the Code. Listed are the collective victories that total $10.2 million to date, including complete annual refunds of wage withholdings and dismissals of 1099s. There are likely countless other victories since Hendrickson only posted the victories of those who have reported their successes to him.
The charges against Hendrickson were filed in November 2008 and amounted to a last-ditch PR effort on the part of the IRS to put a blight on Cracking the Code in order to frighten people from even reading it. However, the entire time Hendrickson was preparing his defense, the IRS continued to refund income tax filers applying the liberating truth they learned from Cracking the Code.
Why are income tax activists not up in arms about this trial?  Why do we not even know about it?  Probably because the most important issues whirling around us are given the least attention… by design. On any given topic there is a thesis, antithesis, and finally synthesis. Regarding income tax, most Americans believe it is unavoidable. If you work for a living, you must pay the government a portion of your earnings. Thesis:  It’s the law.  Antithesis:  Income tax is unlawful; it’s unconstitutional. Just don’t file; just don’t pay.  The synthesis is what Hendrickson’s research brings us: Income tax is lawful, it is constitutional. However, it is a very narrow, benign tax that does not apply to the money most people bring in. It is a federal excise tax and not a direct tax, and which is payable only on money earned that is federally connected. The reason most people pay their earnings to a fraudulent nationwide reporting system is out of ignorance that the IRS forms they use are in fact are intended only for federally connected payments to advise the IRS of amounts they have paid to each other.  The W-2 and 1099 “information returns” subject those whose names appear on them to a tax on their income. The legal term applying to earnings that originate from a federal nexus is “income”.
Cracking the Code discloses ways that Americans can rectify the reports they have filed and the IRS accepts these corrections. When people employ what Hendrickson calls “Congress’s own method of restitution”, they have consistently succeeded in obtaining a return of their withheld earnings which is the original intended meaning of the “1040 U.S. Individual Income Tax Return.”
It is an important discovery. The government expanded its revenue by imposing a broad income tax upon the people in the early 1940s that even extended to those who did not qualify as “taxpayers.” The justification was the fact that we were at war and government needed the funds. Our federal government felt it was okay to borrow from our paychecks throughout the year since we could turn around and ask for a return of the withholdings by April 15 of the next year if we did not qualify as a true employee earning wages. 
Hendrickson’s reward for this amazing gift to the American people is to be branded for falsifying income tax returns. If he is not able to convince the jury on the correctness and fairness of the law, he may be sentenced to a lengthy prison term. Readers are encouraged to donate to Hendrickson’s legal defense fund since he was forced to hire only the best attorneys to work with him. A victory in this trial could mean a turning point for you and every other American alive today.

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