Sun Tzu, The Art of Our War and the IRS – One of John Benson’s students of many years, who prefers anonymity, sent a four and a half-page petition to the IRS Chief Counsel in Washington, DC, based on John Benson’s Taxation book. The Petition addresses the fact that U.S. tax regulations state, in plain English, that some items of income are not taxable by the Federal Government under the Constitution, but, conveniently, do not identify such “items of non-taxable income.” Adding to the conundrum, the regulations also state that any taxpayer who files a tax return must list separately, in detail, each and every non-taxable item of income and expense allocated thereto. Sun Tzu also points out to the Chief Counsel that Congress, in the tax Code, both authorizes and requires the Secretary of the Treasury to make all determinations of tax liability under the tax Code. The fascinating and important events that transpired as a result of the petition ultimately blaze a trail that others can follow.
