Scripture teaches us to be in the world but NOT of it. We regularly have the debate of which law and how it applies. CHRIST was often in the Pharisees temple but was never of it. "In" is a location of a, "of" is a possession. In legal terms "of" American law we are all "in" a state, "in" a county, or "in" a nation. I see nothing wrong about being "in" the law. "Of" seems to me to be the problem. I suspect few of us want to be the servants of man and his babble laws. It seems that we've become so lazy in our language and knowledge of language we are easily tricked. "In" and "of" is a place to start in renewing our language knowledge. Citizens "of" the State of California are those possessed by the state and owing allegiance to it. I doubt it makes a difference whether or not you capitalize the "c". I do suspect it makes a lot of difference if we use "in" rather than "of." Try to grasp it this way, a citizen "of" is one owing allegiance to that state, kingdom, or political entity that owns, possesses and created the legality of citizen. If we are GOD's creations, and have first sought the Kingdom of GOD, to be a part of His possessions, because He is our creator we are citizen's of JESUS' Kingdom in the earth. This seems preferable. Could it be the simplicity of language has escaped us in our legal studies of man's law? Could it be that during our captivity to confusion (babble) brought on by our laziness that we have adopted the traditions of man to make the laws of GOD of none effect? In ancient Israel the captivity was brought on by disobedience. The people forgot who really was the King and Master. Sort of like modern judaized Christianity whore Pastors constantly call JESUS a Jew. They lie. JESUS was a Judean because he lived in Judea as a country. JESUS was a Judahite because his genealogy of Mary was through the Tribe of Judah (of which there was no mention of a Priest [Hebrews]) one of the Tribes of Israel. JESUS was not a practitioner of the Talmudic Judaism of Babylon. At 12 he is reported to be amazing the Jews and Priests of Pharisaic Talmudism by his knowledge. However JESUS did not ever at any time accept, adopt, or practice the ritual traditions of Talmudic Judaism. The Talmud declares Judaism to be the enemy of JESUS CHRIST, refusing the Master as Messiah and King. The Talmud calls King JESUS the bastard son of a Israelite prostitute and a Roman soldier. The Talmudist remains sure he will yet receive or become his own messiah. Talmudism (Jewish) (Judeo) are confusion destroyer terms. Yes there is great reward in the babble buck society of fraud for the preachers who teach the fraud of Judeo, and Jew. Read Jude. JESUS was in Galilee. JESUS was in Judea. JESUS was not of the Pharisaic Talmudism of Babylon. JESUS showed us he was anti-Jew. The Jew shows us it is anti-Christ even spitting rather than say the name JESUS much less accept his rule as KING.. Pat Boone was one the first I recall who switched from Judeo-Christian to Jew. Judaism is not the root or origin of Christianity. It is the traditions of man to make man important. Whether the Judaism is of the profit, cardinal, pope, or rabbi it opposes the simplicity of JESUS as King. JESUS as Father Creator. John 1. JESUS as Son, Messiah. Matt and Luke. JESUS as Holy Spirit, husband and comforter. Gee lets see, Matt, Mark, Luke, John and Acts. THESE THREE ARE ONE Yesterday I was in the IRS office of Puerto Rico or the United States at Phoenix, Arizona. I believe it is clear to that agent that I am not of that order. All the Sovereign movements that use the traditions and definitions of Babylon and has black robed judges to deny CHRIST are Judeo. I do not wish to be of mammon. I do not wish you to be trapped in confusion. Sovereign citizen of the State is still owing allegiance to an order of man. If I am a citizen it is of the Kingdom of GOD and that is the only place I owe allegiance. If I am found in Arizona or in the United States it does not change who I am, only where I am. JESUS from His early ministry ridiculed the Talmudic traditions of the Pharisee religions. All these religions had grown out of the Levitical order, like wild suckers grow from the root of a tree. It does not mean they are good things. We are suppose to copy Him in our acts. Was JESUS of Galilee? Was He of Judea? Was JESUS a citizen of Rome? No, No, No. Paul was of Rome and later claimed his Roman right and suffered for it. In his writings he says he is a servant of JESUS CHRIST. Yes, of course it is better to be in and of the Kingdom of GOD in JESUS' name. No, "in" does not prove "of". Could it be that the simple little word "in" rather than "of" is one of the keys to the Kingdom? King "of" all; Creator "of" all; Lord "of" all; is a factual expression of JESUS.

TRUST COLUMN:

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#745 12/14/96 JC Chisum & Phil O'Neal Basics for LLC & Trust Business with some legal arguments.

#746 06/14/97 JC Chisum & A Special Guest, A good review with the thorough explanation about 97-24 Bulletin on Abusive Trusts.

#747 09/06/97 JC Chisum & Eddie Kahn An excellent teaching on the true nature of law and our entanglements.

#748 02/28/98 JC Chisum Digging for the basic understanding of Trust worthiness and truth.

#749 05/16/98 JC Chisum More depth on the trust - worthy moral connection for Trusts - LLC's and why they work.

#800 06/27/98 JC Chisum/Okla. I am told this was an Excellent teaching on the basics, basis of Trust and how to apply it.

#801 08/22/98 JC Chisum Details of law and why we win with Simple Trusts, directly from 26 USC 651 & 26 CFR 1.651. They lose.

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BRAVEHEART CONSULTING:

For all the weak at heart time is passing rapidly. We are now at a place to go to war. In the August 22 meeting and the letters that have followed I have adopted the posture and attitude of Wallace and the Scots at the battle on the glen. WE ARE flashing our KILTS. GOD has blessed us with the right information at the right time. Of course this is his normal routine and we are enormously grateful. NONE OF THIS WOULD BE POSSIBLE WITHOUT HIS GRACE AND CHARITY. A couple of weeks ago I made my inaugural visit to the internet for legal research. It was one of those times when everything went my way. My visit was to the IRS web page. In one of our tax court opportunities the enemy claimed we were not in compliance with 26 USC 651 or 661. So I decided to verify our position. THEY LOOSE! If you think the possibility exists for you to be harassed or bothered the August 22 tapes may be a vital addition to your library. The November 21 seminar will be EDDIE KAHN for the latest on his battlefront and the best he can supply us for peaceful redress weapons. WE are ready for the next phase in peaceful redress. LAW IS WORDS AND WORDS HAVE EXACT MEANINGS…Dorothy Nelson is wrong. In my adventure through the IRS web page and the house home page we have the tools to make this bureaucracy follow the law. DID YOU KNOW? THE TAXPAYER ADVOCATE HAS THE ASSIGNED DUTY TO INTERPRET THE CODE IN THE LIGHT MOST FAVORABLE TO YOU. It may now be time to let your advocate know you exist. No I do not want to hear all the arguments of why you are not a taxpayer. If we can get that interpretation promised in the 1998 Reformation your advocate will be forced to rule that though you may be a taxpayer the tax can be ZERO. What title of nobility do you seek. It is actually possible probable and even likely that we can achieve our goal of being in the world but not of it. IN AND OF ARE VERY IMPORTANT LITTLE WORDS.. Of is possessary while in merely shows location. Just another reason for not being a citizen of anything other than the KINGDOM OF GOD. Seek ye first…. For your information a servant of GOD who can not serve two masters but must choose can not be a sovereign citizen of any of the world's states. Congress has given us a tool. I suggest we put it to the test before the crooks try to water it down. Have you written your congressman to thank him for the new changes; or to challenge him to do more. Did you know that just after the president had signed this reform into law the Commissioner of Internal Revenue disclosed a six month old report that admitted over one quarter of all seizures were illegally done. Or were you aware that this timing upset NEWT who is already looking for witnesses to do more hearings for the purpose of the budget process for the IRS. In case you were not aware I have been trying to get a government job. The new reform legislation sets up civilian review panels with strong oversight of the acts of IRS agents. Dick Armey claims a proper size for the IRS to be 50,000 instead of the current 105,000. I have offered to set on the CRP for free so no-one can accuse me of prejudice in favor of government. I suggested to Armey that the "patriots" who would do this job for free could narrow the numbers in a few months. Today I have been back on the net verifying what others have said. And it all checks out! NOW ARE YOU READY FOR THE KNOWLEDGE AND EXPERIENCE OF THE SCOTTS. PATTRICK HENRY said our victory is certain for our cause is just.. and ..WE are assured the victory, Almighty GOD fights for us for our cause is just. We are to be judged by our works. Don't you want to be sure our cause and actions are just. One of the reasons you read this newsletter is that I try to make the gathering of knowledge as the beginning of wisdom easy and comfortable. Yes I try hard to make holding onto lies and false doctrines very hard….. Isn't that a just action? One of the reasons you should share us with friends and family is so you are not alone on the glen of the battlefield in spiritual warfare. All those present on 22 August tell me it was a good meeting full of knowledge. I did mess up on the morning video; however, the afternoon is the part with the real meat you need for your conscience. I encourage you to use all your knowledge resources to equip you for the task before you. I shall continue my seeking of knowledge. OH yes, thanks DP, we had an attorney with us this time so hopefully we will benefit from his knowledge also. I appreciate his coming and playing a part in the expansion of knowledge.

BIRTHRIGHT DEFENDERS, SAY IT AGAIN SOMEBODY :

Yesterday I had the privilege of Playing e-mail with GH who is the founder of the trust congress I keep challenging. Two main topics were covered. First the absence of any continuing interest in the congress. I can not figure out why it fell apart so easily. Could it be that all the egos thought this would be a place to make a profit and when that failed we lost interest. I suspect some clay feet were found and that a lot of consultants are running for the hills. The good news from Utah may only last a little while. We may have to see where J I shows up next. When we were at the PREMIER ADVANCED TRUST TRAINING IN DALLAS HE MADE A STRONG STATEMENT " YOU DO NOT HAVE A PROPER TRUSTEE UNLESS HE CAN TAKE EVERYTHING AND ALL YOU HAVE TO RELY ON TO GET IT BACK IS MORAL CHARACTER" strange words from a 350 an hour attorney. He made that statement concerning a Utah case. Could it be the same one? I think not because the most important one I know of is not using an attorney. Probably in part because there is not enough money. Well congress where are you. Despite my invitation not one have shown their face at a J C seminar. Could it be GH was correct and darkness can not stand light. For sure no hope exists for financial gain by visiting J C and his meetings. I never did hear from the preacher I met at Dallas. Could that be more feet of clay? TOPIC TWO PATENT Occasionally someone strikes a cord with me and I get to shoot off my mouth. Lets try a dose of reality. GH received my best in the email because it was entirely spontaneous on my part. Now you must accept the rethought version. When we start mixing biblical principles with the privileges of government we are soon headed for disaster. Patent is no exception to this rule. Let me try to explain my position in practical fact; in secular law; and in Biblical concept. Yes, I have addressed this topic before; however, it has not gotten through to at least some of you. This comes at an ideal time for the paranoid. Today 31 August the Stock market fell 512 points to a level 20% below its high a few weeks ago. The merchants are already wailing and the fear mongers have Armageddon at the door. Well it is not at my door. GH concern is that by 2003 there will be no usable circulating currency in this country or perhaps the whole earth. OKAY! Now what? Let us look back to tiny Panama and the Noriega capture or kidnapping as you prefer. When we went to invade that sovereign Nation the first attempt to force them to surrender Noriega was to close the banks. I suspect this was an experiment to see if the Bank holiday paranoia would work. It failed miserably. .PRAISE GOD. The perpetrators of course had to try out their theory on a small scale to decide if it would work on THE US. The experiment failed so badly the banks needed 219 Million to reopen and few of the people were even inconvenienced. And this was in a country where the general population is not engaged in the UNDERGROUND ECONOMY. Americans are engaged in the secret private economy above and under ground. It would cost too much to reopen the banks in the face of barter in America. Yes, I do believe great financial change is coming. PRAISE GOD! Revelations 18 is the best place to start and to finish. In between we'll look at some other familiar passages. Come out of her my children partake not in her privileges (benefits or lusts) that ye suffer not her plagues. Deuteronomy 28 comes to mind in describing the choices of blessing and cursing spoken of repeatedly in scripture. We are still operating by that same choice; and, still making the wrong one. HOW ABOUT "the earth is mine and the fullness thereof, the world and they that dwell therein". OR MAYBE " GOD ALONE IS SOVEREIGN." COULD IT BE " seek ye first the kingdom of GOD and his righteousness"? What I see is a whole bunch of trying to hedge your bets just in case God is not the only Sovereign. SHAME ON US! Yes the merchants will wail and all the people will have great fear and gnashing of teeth. OKAY LETS GET ON WITH THE PURPOSE FOR COMING TO AMERICA; TO FURTHER THE KINGDOM OF GOD WHERE JESUS CHRIST IS THE REIGNING KING. Are you one of those who refuses to be ruled over by CHRIST AS KING? Well of course not that would be hypocritical for those who call themselves Christian. There are dozens of passages you can think of on your own: here are a few to get you started: "fear not only believe", "Trust in ME" and "I will give you rest", "are there any faithful among them. No not one!", " a faithless generation", "you can not serve two masters", "neither a borrower nor a lender be", "the borrower is always servant to the lender", AND "WHOM YE FEAR YE WILL SERVE"… When we choose the master of fear over idols to dead presidents and live Queens we are choosing the wrong master. JESUS said when you leave the city don't look back or even go back for your coat. HE wants us to break all the bondages of man in order to become his servants. However we must learn to trust HIM to keep HIS word. He assures us total victory and the overcoming of all evil, even the grave if we trust in HIM rather than the merchants of fear and finance. This is how the corporate church merchants acquire the souls of man to trade and to mortgage for the building fund building greater monuments to men of stone hewn by the hands of man.. Back to Patent; in the United States of America all the land is patented as a privilege of government and almost all of that federal privilege. Go read some patents; even in the 1830s the patent was limited and never conveyed total ownership. The Fed never surrendered all the rights nor the jurisdiction. Yes the primary police power jurisdiction transferred to the county division of the state of the union. In most patents from homestead the mineral and some water rights are reserved to the fed. In mining related patent oil and gas are reserved as early as the civil war. And jurisdiction over airspace is never included, so when you look up and see a black helicopter it is in the fed airspace. What a good system of traps to capture the souls of man as we try to ourselves replace GOD as the true owner. Our own lusts and greed are the enemies of JESUS CHRIST AS KING… And yeah but is just an excuse for our rebellion refusing our DRED SOVEREIGN.. I have seen dozens of plans to become like GOD owning the land and deciding our own watered down standard of right and wrong. All are filled with lies and lust. It will be a glorious day when we have no working currency based on fear of man. Yes by all means if you can get out of Sodom, Gomarah, Gotham, and Babylon do so. If you can use the fraud created by the whore to double unto her double taking some of the treasure with you as when we came forth out of egypt it is ok with me. Lets just not get too carried away with what we can do SO AS NOT TO REPEAT THE ERROR OF AARON AT SINAI. GOD ALONE IS SOVEREIGN. GOLD IS THE METAL OF IDOLS …. Go ahead get out of the city, set up your farm. JUST remember it never was and never can be yours ..... Do you count it all joy when man persecutes you? Ah but you must for first they persecuted the KING OF KINGS. TAKE MY YOKE UPON YOU MY TASKS ARE EASY AND MY BURDENS LIGHT. WOW WHAT A RELIEF FROM ALL THE BONDS OF MAN! DOUBLE UNTO HER DOUBLE IN THE CUP THAT SHE HATH MADE seems a lot like how we can use the internet to spread knowledge . After all it was created to keep knowledge of the Manhattan Project secret from the people. So if we use it to break the bondage of man they will have no souls of man to sell and they will do the wailing and gnashing of teeth. Here in our part of GOD's KINGDOM we have had a lot of fun lately doubling unto her by this cup. OUR CUP RUNNETH OVER with good news of truth GOD has permitted us to find from this keyboard. It was 1988 when man lost the opportunity to capture us by fear. GOD ALONE IS SOVERIGN AND THE ONLY ONE WORTHY OF OUR FEAR OR OUR ALLEGIANCE. So come on congress where is your master? Like William Wallace we radical followers of KING JESUS are in the glen flashing our kilts at the follies of mere men thinking they can defeat us. Like PATTRICK HENRY we are assured the victory for our cause is just. WE are taking a very aggressive posture with our hirelings in government, especially District Council. He is not accustomed to orders from his employer the people and taxpayers. Yes we are aware people and taxpayers are two separate groups. OUR PRAYER REMAINS FOR TOTAL AND COMPLETE VICTORY IN SUCH A WAY THAT NO MAN CAN DOUBT IT CAME BY GIFT FROM GOD HIMSELF IN JESUS NAME. Just last week our paralegal who just happens to be an ISRAEL brother in GHRIST saw new light and changed his attitude about our level of aggression. PRAISE GOD IN THE HIGHEST MAKER OF HEAVEN AND EARTH. Hallelujah to KING JESUS THE ONLY BEGOTTEN SON OF GOD WHO IS RAISED FROM THE DEAD. The earth is thine oh LORD and we who are in it but not of it. For you have sent us into the world to bring forth the good tidings of your SOVEREIGN REIGN. And you have assured us of victory… Now the rest of the story. If the economy and love of money false doctrines (like the tithe) should so fully collapse that we did not have all our trinkets, toys, and other idols to play with, worship, and fear loosing maybe then we will choose the right master. Yes we are going to choose HIM. Some will do it without many trials or much persecution. Most will require a lot of pain before choosing GOD rather than man to serve and fear. It is going to happen!!!!!!! So lets quit crying over idols to dead presidents and usury schemes created by the merchants of the love of money in confusion to steal the souls of man. ALL THE KINGDOMS OF THE EARTH SHALL BE HIS KINGDOM. And that can not happen while we are scheming for ways to become gods and owners ourselves. That was Eve's and Adam's mistake and JESUS CHRIST HAS REDEEMED THAT ERROR so please quit trying to repeat the errors of the past. All the money and land of the merchants of fear in government will fall before the RIGHTEOUSNESS OF GOD IN JESUS NAME.

THANK YOU FOR CARING:

When I get into the personal stuff about family you make the most comments about the newsletter. It seems all of you like knowing we are human too. Well although human may be a bad term to some of you I personally and practically see no problem with it. It is rather like those little pieces of candy you eat after dinner I know what we meant. The children are all doing great. Of course they have not yet achieved all that we wish. Amber finally decided potty training was a good ides. It became the path to Barbie. And just like any other benefit or privilege (rev 18) specific performance is required. Whether we choose to admit it or not that is the righteous principle which keeps us in bondage to man for specific performance under the police state. Government is not the cause of my situation and plight. It just really enjoys being the beneficiary of the messes we and our fathers before us created. The good thing is that all of the bondages to man are revocable and redeemable trusts. ALMIGHTY GOD has reserved unto himself a reversionary interest so when we get done with our whoring after other gods and the flesh HE HAS ALREADY BOUGHT US FOR HIMSELF into HIS IRREVOCABLE KINGDOM TRUST. At eight Miss B is reading at about the fifth grade level and comprehends what she read, PRAISE GOD FOR GRANDMA and home schooling. She is in her second season of ballet classes and that sense of accomplishment really brings her alive in other areas. She has made wonderful progress recently dealing with the horrible things she saw and felt her first six years. At six the next JC decided he wanted to try dance class so he is in tap. The first lesson coordination was a foreign concept to his left leg. The brain was almost willing but that left foot just was not getting the message. He may have the most to overcome in that area. Both parents used more foreign substances before and during his development in the womb. He is the one who was most malnourished and the one that had marijuana smoke blown in his face to see how funny he would act. So if you wish to complain about what you have for challenges and opportunities to overcome I suggest you try to impress someone else. I almost forgot RM she has decided it is time for school and learning to read. That is all it takes because brother and sister jump in to help and grandma makes sense of the chaos. Her dance lessons are part tap and part ballet so practice ties them all together. To be 5 in October she is also working on drugs and abuse she was subjected to. The parents had less drugs available to hurt her because father had given up the pretense of working before she was conceived. Please do not get the idea I am complaining about how hard the children are to help. They are the greatest blessing in our lives. Not only do they let me see how petty my gripes are but how easy overcoming can be. These truly are treasures of GOD for the population of HIS kingdom. Even my thing with my brothers has not blown out of proportion to the degree I thought likely. Thank you for caring.

At the suggestion of my wife the remainder of our space will be excerpts of what we found in our visits to the internet. All of this came from house.gov or irs.gov so don't think the big bad web is too tough. I found the first critical pieces on my first visit. Let me say thanks to Eddie for inspiring me to prove what he said about the people also applied to our contracts for trust. Yes it had a little bit to do with the DC at IRS making sham trust allegations and the dereliction of duty by the appeals officer. Like 17 years ago I developed a need to know. The student became ready and the teacher filled my cup.. Under Admiral Richover everything was verbatim compliance. Well guess what the IRS is bound to verbatim compliance with the letter of the law. Here is some law you can read.

All my good plans for just photocopying and reducing fell through so you will have to endure my pecking away at the keyboard and trying to make sense of what we learned AGAIN BECAUSE WE KNEW MUCH OF THIS ALREADY years ago. The argument over regulations or self enforcing has long haunted us. With GOD's help we will make a notch or two of progress to accord. I went to irs.gov for a beginning. The netscape did the rest. The IRS Restructuring and reform act of 1998 is useful reading . Here we find Tax Regs in plane English. 1102(c) - Expansion of Taxpayer assistance ORDERS Authority really does what it says. These are regs passed by congress. 3001 - Expansion of burden of proof is actually a very large expansion. We now have the tools to push buttons and this was signed into law. 3465 - IRS Procedures Relating to Appeal of examination and collection. Did you know that tax court petitions is only one of the ways to get into appeals. Yes these create new IRC articles to work with the regulations. Congress at least appears to have done both parts of the law; code and reg in plane english. I have no difficulty understanding this language. So lets go on to 3106… Civil action for Release of Erroneous lien. Looks to me like a lot of help probably growing out of the number of suits the Service is loosing for third parties. Can you believe this 3417 - PROHIBITION on IRS Contact of Third parties without prior notice. And the heading is actually related to the text. This one may be BIG because all the third party records become fruit of the poison tree. This bars them from using it. WAS I HAVING FUN OR WHAT???? Next just for fun I printed out the PRIVACY Act of 1974 5 USC 552(a) just for fun I also read most of it.

THEN IT GOT SERIOUS:

From house.gov my lovely bride pulled the backups in the 26 USC. In one of our cases the Notice of deficiency claims we failed to meet section 651. EL-WRONGO my dear! Sec 651 Deduction for trusts distributing current income only (a) Deduction In the case of any trust the terms of which - (1) provide that all of its income is required to be distributed currently, and (2) do not provide that any amount are to be paid, permanently set aside, or used for the purposes specified in 642(c) ( relating to charities, etc., purposes), there shall be allowed as a deduction in computing the taxable income of the trust the amount of the income for the taxable year which is required to be distributed currently. (b) Limitation on Deduction If the amount of income required to be distributed currently exceeds the distributable net income of the trust for the taxable year, the deduction shall be limited to the amount of the distributable net income. For this purpose, the computation of distributable net income shall not include items of income which are not included in the gross income of the trust and the deductions allocated thereto. I bet you thought gross income meant everything… 661 is for the complex trust and still has a bunch of traps ..we do not write complex trusts and diligently work to avoid being treated as complex at any time. sec 67. 2-percent floor on miscellaneous itemized deductions Go to (e) (2) the deduction allowed under sections 642(b), 651, and 661 shall be treated as allowed in arriving at adjusted gross income. Under regulations, appropriate adjustments shall be made in the application of part I of subchapter J (that is where 651 is found) of this chapter to take into account this section. (bingo baby)! (f) You have to love this one Coordination with other limitations This section shall be applied before the dollar limitation of the last sentence of section 162(a) (relating to trade or business expenses). Let that one soak in a minute there are incomes which are not gross AND DISTRIBUTABLE NET INCOME CAN BE CALCULATED BEFORE CONSIDERING EXPENSES… I LIKE WHAT I SEE….. I HOPE YOU ARE WITH ME FOR ON WE GO, 652. Inclusion of amounts in gross income of beneficiaries of trusts distributing current income only (a) Inclusion Subject to sub section (b), the amount of income for the taxable year required to be distributed currently by the trust described in section 651 shall be included in the gross income of the beneficiary to whom the income is require to be distributed, whether distributed or not. ( hello is anybody listening). (b) same character in the hands of the beneficiary as in the hands of the trust. (so if it were not included as gross income or taxable income in the trust it can not be to the beneficiary). See even an unskilled common man can have fun with the internet and the law. There is more.. 643. definitions applicable (a) Distributable net income get it and read it all (7)Abusive transactions The secretaty shall prescribe such regulations as may be necessary or appropriate to carry out the purpose of this part, including regulations to prevent avoidance of this purpose. If the estate or trust is allowed a deduction under section 642(c), the amount of the modification specified in paragraphs (5) and (6)---------- (b) for purposes of this subpart and subparts B, C, and D, the term "income", when not preceded by the words "taxable", "distributable net", "undisrtibuted net", or "gross", means the amount of income of the estate or trust for the taxable year determined under the terms of the governing instrument and applicable local law, Items of gross income constituting extraordinary dividends or taxable stock dividends which the fiduciary, acting in good faith, determines to be allocable to corpus under the terms of the governing instrument and applicable local law shall not be considered income. Now for all you doubting Thomas style of patriot lawyers. Yes the supreme court has said code without regulation imposes no duty. However we have allowed the judicial gloss to so color the law we wouldn't recognize fact if it bit us. The remainder here is from irs.gov and the code of federal regulations. 26 CFR 1.651(A)-1 simple trust, deduction for distribution; in general. Section 651 I applicable only to a trust the governing instrument of which: (a) requires that the trust distribute all of its income currently for the taxable year, and (b) Does not provide that any amount may be paid, permanently set aside, or used in the taxable year for the charitable, etc., purposes in section 642 (c), and does not make any distribution other than of current income. A trust to which section 651 applies is referred to as a "simple" trust. Trusts subject to 661 are referred to as "complex" trusts. A trust may be simple for one year and complex for another year. It should be noted that under 651 a trust qualifies as a simple trust in a taxable year in which it is required to distribute all the income currently and makes no other distributions, whether or not distributions of current income are in fact made. On the other hand a trust is not a complex trust by reason of distributions of amounts other than income unless such distributions are in fact made during the taxable year, whether or not they are required in that year.

26 CFR 1.6012-3 Returns by fiduciaries (a) fir estates and trusts—(1) In general, every fiduciary, or at least one of joint fiduciaries, must make a return of income on form 1041 ( or by use of a composite return pursuant to Sec. 1.6012-5) and attach the required form if the estate or trust has items of tax preference (as described in section 57 and regulations thereunder) in any amount. It just goes on and on proving we have been doing more than the law requires from the beginning.

Most of those who attended the 22 August meeting felt empowered to do that which is right. Thank You!!!!!!

If Your still Not convinced, Go HERE !