“There is no law that requires average American workers to file or pay direct, un-apportioned taxes on the fruits of their labor.”

We The People Foundation

Around noon on Monday, September 17th, a Las Vegas federal jury returned its verdict refusing to convict nine defendants of any of the 161 federal tax crimes they had been charged with. The charges included income tax evasion, willful failure to file and conspiracy to evade taxes.

The four-month trial centered around the family businesses of Robert Kahre who paid numerous workers for their labor with circulating gold and silver U.S. coins, and did not report the wages. The payments took place over several years, allegedly totaling at least $114 million dollars.

On September 20, 2007, three days after the federal trial’s dramatic conclusion, the Las Vegas Review Journal, reportedly under a degree of public pressure, ran its first (and last) story about the outcome of the trial. To this day, with exception of the single article by the Review Journal, no major media entity has published a news story regarding the outcome of this important federal criminal tax case.

The censorship of this important news story is, unfortunately, not unexpected given the continuing, worldwide onslaught against the U.S. “dollar” — specifically the Federal Reserve variety, and the ever growing numbers of Federal Reserve Notes required to trade for an actual ounce of silver, gold, oil, or for that matter, anything.

In short, this failed prosecution has coalesced and exposed truths our Government desperately needs to hide from the People: the truth about our money, the truth about our (privately-owned) central bank, and the truth about the fraudulent nature of the operation and enforcement of the federal income tax system.

Click here to read the April, 2005 DOJ press release announcing the prosecution.
Click here to read the 9/20 story by the Review Journal about the trial.

According to defense attorney Joel Hansen, who represented co-defendant Alex Loglia, the primary “willfulness” defense was that the defendants believed they had no legal obligation to withhold, pay income taxes or report anything to the government because, in part, the nominal (i.e., face value) of the gold and silver coins is so small as to fall beneath the reporting thresholds set by the Internal Revenue Code.

The Defendants also argued that regardless of the valuation of the coins for internal revenue purposes, there is no law that requires average American workers to file or pay direct, un-apportioned taxes on the fruits of their labor.

The Government argued that the payments in solid gold and silver U.S. coins must be considered at their bullion (i.e., intrinsic full-market) value when considering the worth of the wages for purposes of the internal revenue code.

Attorney Hansen cited two Supreme Court cases bolstering Defendant’s monetary argument at the heart of the defendants “willfulness” defense.

The essence of the argument is that under the Constitution Congress is obligated by law to mint and circulate such coins as demand requires, and must establish the value of coins as they are used as legal tender, but the coins’ market value, arising as valuable personal “property,” is a distinct, separate attribute of such coins, and is of no legal consequence if the coins are used as legal tender.

In other words, if a worker is paid with such coins, his taxable “income” (if any) can only be the face value indicated upon the coin money paid — i.e., $1.00 for a circulating silver dollar or $50 for a circulating gold U.S. coin. Not surprisingly, the IRS has never issued any public guidance regarding this significant issue.

The first case, Ling Su Fan v. U.S., 218 US 302 (1910) establishes the legal distinction of a coin bearing the “impress” of the sovereign:

“These limitations are due to the fact that public law gives to such coinage a value which does not attach as a mere consequence of intrinsic value. Their quality as a legal tender is an attribute of law aside from their bullion value. They bear, therefore, the impress of sovereign power which fixes value and authorizes their use in exchange.”

The second case, Thompson v. Butler, 95 US 694 (1877), establishes that the law makes no legal distinction between the values of coin and paper money used as legal tender:

“A coin dollar is worth no more for the purposes of tender in payment of an ordinary debt than a note dollar. The law has not made the note a standard of value any more than coin. It is true that in the market, as an article of merchandise, one is of greater value than the other; but as money, that is to say, as a medium of exchange, the law knows no difference between them.”

Defense attorney Hansen confirmed that members of the jury were able to actually hold and inspect the gold and silver U.S. coins paid to the workers.

After almost four months of testimony and three and a half days of deliberation, the jury did not convict any of the defendants of any of the 161 crimes alleged. Although some defendants were acquitted of multiple counts, and several were acquitted completely, others may have to stand for a retrial if the Government brings charges a second time.

The Review Journal reported the jury foreman claimed DOJ prosecutors admitted they were “shocked” by the outcome.

In March 2007, the primary defendant, Bob Kahre, filed a federal civil rights lawsuit against the prosecutor and IRS agents who had conducted what he alleges to be an unlawful search and seizure raid. In 2005, the Ninth Circuit Court of Appeals refused to overturn a previous District Court ruling holding that the federal prosecutor is not entitled to absolute immunity for the unlawful raid. Read more.

Click here to execute a Google News search to attempt to locate recent news stories about the Kahre tax trial.

The media suppression of this story is similar to the widespread mainstream media suppression of the July 11, 2007 acquittal of Louisiana attorney Tommy Cryer who was also charged with multiple federal income tax crimes and relied upon numerous Supreme Court precedents and U.S. tax laws to establish his “willfulness” defense. Click here for a previous WTP update containing a link to Cryer’s 100-page Motion to Dismiss which details his legal arguments.

Click here to execute a Google News archive search to attempt to locate news stories about Tommy Cryer’s tax trial.

PLEASE NOTE: Following recent statements by the DOJ, most of the content of the WTP websites (including our on-line store) has been fully restored for public access. The “6700″ case is currently being appealed to the Second Circuit Court of Appeals.

History is made by those who show up and make it happen. Please help us continue our epic fight by making a donation. If we have no funds, the battle cannot be fought.

To make a secure, tax-deductible donation to the WTP Foundation, please click here: Donation. You can make a one-time or recurring donation and can also establish the dates the secure transactions are processed each month.

14 Responses to “IRS Suffers Staggering Defeat: 161 Federal Tax Charges, 0 Convictions”

  1. 1 Brent from Vista

    Good! Chalk one up for the American Citizen. Every American should watch “America: Freedom to Facism”.

  2. 2 Eddie B.

    “The Defendants also argued that regardless of the valuation of the coins for internal revenue purposes, there is no law that requires average American workers to file or pay direct, un-apportioned taxes on the fruits of their labor.”

    Hats off to these Americans for having the guts to stand up to the IRS! And I agree with Brent. Everyone needs to watch Freedom to Fascism.


  3. 3 Mountain Man

    Brent from Vista,When is “America:Freedom to Facism”?

  4. 4 Jimmy

    Way to go.

    It’s high time the irs got theirs.

  5. 5 George(formerly-Ed)

    These win cases need to be shown on lou Dobbs show if he would show it more americans would refuse to pay these illegal taxes.

  6. 6 Matthew

    Paying taxes ain’t a bad thing except were paying them to fund the cockroach illegals and our ultimate demise. Not one red cent goes to better America or Americans. Even local taxes go to pay for the leach illegals and their wants and needs. They are such a complete nightmare and burden. As if raising our own family’s were hard enough. We have these third world scum bags (anchor baby’s included) standing there with their hands out and demanding.

    when is someone going to gather a class action against suit against the government for aiding and abetting illegal aliens with our money? In all actuality we are helping to commit crime by force and accomplice. such corruption.


    Matthew, should or could we try as a group ourselves for a class action suit? I’m clueless when it comes to law and I’m pretty much broke and my health is in & out but I could try. What would or could be my part in this? (just an idea anyway), but I am mad in San Jose about them allowing these illegal alien marches happen twice last year and once this year with (Vice Mayor Cortese) cavorting around with these people. AND…man do we have all those FREE papers of La Oferta and El Observador all over the place!

    I’ve also been noticing more & more Spanish signs in stores also and on the merchandise. …Aren’t these people supposed to know English before they get here (can they do at the very least)?

    These businesses are ticking me off. I flat out don’t go into them anymore, but I’m seeing the Spanish labels in more and more stores now.

    Curse these scoundrels who know no loyalty to this nation or its people (especially after 9/11)!

  8. 8 Eddie B.

    MountainMan -

    This is a documentary film directed and produced by Aaron Russo. You can rent it from Netflix or order it from Amazon. A must see film.

    After the IRS piece he goes into the Federal Reserve system (Edwards who wrote The Creature from Jekyll Island which is where our Federal Reserve started in secret planning), chipping the population, fascist Nazi Germany (Jim Marrs is great here), the UN and leaves with Alex Jones, state sponsored terrorism and false flag operations.

    Watch this film.

  9. 9 Sandman

    MM, Freedom to Fascism can be vieved on YOUTUBE also. I have several copies that I hand out to willing listeners of the message. Most people who watch it view the tax system in a whole new light after watching the movie. If you have the time, go to YOUTUBE and check out “Zeitgeist” (part 3) and also there is the fantasic documentary (3 hours long though) called “the Money Masters.” The Federal Reserve System is the biggest fraud in American history. We have no need for a private bank to issue money (at interest) to the public. This game is rigged to always put the Fed in a win-win situation. Our debt = their gain. They control the economy, our leaders, the media, pretty much everything. The only way that our economy can stay solvent now is to borrow endlessly. The perception of a good economy is an illusion, anyone could look rich if they could use credit cards without limits. The problem is though, eventually pay-up time will come and many think that time is soon. Some economists believe that the dollar could loose over half its value overnight. (think post ww1 Germany or Argentina 10 years ago) Saving dollars may be a waste of time. Invest in physical assets like storable food, firearms and ammo. Things that can be bartered will have the best return…And dont forget to have a good GUARDDOG!

  10. 10 BEADALONG

    Yea Sandman, I’ve been reading about this drop in our $ too. It’s getting me worried. It happened in the 30s and (I think it was done intentionally) and it appears we might be headed for that again.

    And with me having my health problems and my hubby just working as a security guard, our income hasn’t been great, so we never able to invest in gold.

  11. 11 BEADALONG

    Oops. lost my track of thought, but I have been starting to stockpile also. I was looking for canned meats and so far, that seems to be mainly ham/Spam or corned beef and tuna. It would be nice to find chicken and such.

    There’s a lot of Top Ramen and other dried soups where you just add water. I was also looking at powdered milk/potatoes and evaporated milk which can be used when mixing it with water.

    Soap/candles runs out pretty fast too. Sure I’ve got a couple of soap/candle making books, but if the electricity is gone, then what? Firewood might be hard to collect.

    Of course, there’s always the BBQ. I was looking at propane but than runs out real quick. I’ve heard that there’s solar stoves (I’ll have to Google and find out about that).

    Supplies like even deodarant that we don’t even think twice about would be nice or toothbrushes.

    Large bags of baking soda could come in handy for cleaning purposes (even brushing your teeth and laundry) if push comes to shove and after having run out of toothpaste and laundry soap. There’s also Borax.

  12. 12 Mountain Man

    Thanks DOGS I will check out the videos.

  13. 13 Sandman

    The nice thing about stocking up on supplies is that almost everything can be used anyway, without the inflation index attached. Considering inflation now and in the future, the return on investment may exceed interest in savings accounts. Dont overlook water purification either!

  14. 14 sierrahpbt

    Taxes are never good… only slaves pay taxes… unfortuletly I have been a Slave for all my working life! Folks if your tired of ALL the BS in government! please join me and millions more of freedom loving Americans who support RON PAUL FOR PRESIDENT. PLEASE SUPPORT HIM WITH YOUR DONATIONS AND WORD OF MOUTH CAMPAIGNING! ronpaul2008.com
    dailypaul.com RON PAUL IN 08!

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