From Debtor/Trustee → To Grantor/Beneficiary
From U.S. Taxable Person → To Private, Non-Adverse Principal
🔎 THE CODE TRAPS TO OVERCOME
🔗 26 USC § 61 – “Gross Income” (The Hook)
- Definition: All income from whatever source derived is presumed taxable.
- Includes: Wages, rents, pensions, business income, debt discharge, and trust income.
- Presumption: You are a U.S. Person who voluntarily participates in this federal revenue system.
🔗 26 USC § 676 – “Power to Revoke” (The Escape Hatch)
- If you, as Grantor, retain the power to revest title, you're treated as the owner of the trust.
- IRS uses this to tax you directly on any trust income.
- However, § 676 also affirms: the one who holds revocation power is the true owner and controlling party.
👉 Key Insight: IRS admits in § 676 that the one with revocation power controls the trust. Use that power not to stay liable, but to collapse the constructive trust.
🧱 STEP-BY-STEP REMEDY FRAMEWORK
✅ 1. Acknowledge the Constructive Trust Structure
- By default, your estate (birth certificate, SSN) was placed into a Cesti Que Vie trust (see: 18 USC § 153; 26 USC § 673–677).
- You're being treated as a trustee of a public trust operated for federal benefit.
✅ 2. Assert Your Role as Grantor + Beneficiary
- Under 26 USC § 676, you as the Grantor can revoke the trust or demand title be revested.
- Under trust law, you cannot simultaneously be Grantor, Beneficiary, and Trustee unless you revoke the administrative presumption.
🔑 Action: Draft and record a Revocation of Constructive Trust and a Notice of Private Status & Beneficial Interest.
✅ 3. Neutralize the Application of § 61
- § 61 applies to gross income of a U.S. person.
- “U.S. person” is defined in 26 USC § 7701(a)(30) – includes individuals liable under contract or statutory agreement.
- You're presumed liable unless rebutted.
🔑 Action: Include in your filing:
- “I am not a ‘U.S. person’ as defined at 26 USC § 7701(a)(30). I am the living man/woman and the Grantor-Beneficiary of the named trust.”
- Use UCC 1-308 (reservation of rights) and UCC 3-501 (demand for presentment of lawful claim).
✅ 4. Use § 676 as Remedy, Not Liability
Instead of letting IRS use § 676 to tie you to the income, use it to collapse the trust:
- “Pursuant to 26 USC § 676, I, the Grantor, revoke all constructive presumption of trust administered by third parties.”
- Demand a full GAAP/GAAS accounting of any funds or returns attributed to your estate name.
🔑 Action: Submit:
- IRS Form 4506-T + FOIA demand (5 USC § 552)
- Certified affidavit declaring revocation, demand for settlement and closure of the account
✅ 5. Reclaim Private Standing on the Land
- Re-record land patents or affidavits of ownership if needed
- Remove voter registration (contract of franchise)
- Correct the status on SS-5, DS-11, and IRS W-8BEN if applicable
- Record Notice of Status Correction in county land and probate records
You're not getting out of the tax system by "hiding"—you're collapsing the administrative presumption that you're a taxpayer/trustee of a public franchise.
- § 61: Only applies if you're a party to the corporate system.
- § 676: Confirms that the Grantor is the owner—use it to revoke, not comply.
⚡ SUMMARY STATEMENT FOR FILINGS:
“I, the living man/woman and Grantor of any trust formed using the Estate name, hereby revoke all powers of attorney, constructive trust presumptions, and third-party fiduciary control, pursuant to 26 USC § 676. I retain beneficial interest in all property and income derived therefrom, and deny all voluntary liability under 26 USC § 61 absent a valid, signed contract with full disclosure.”