Based on numerous legal precedents and the inability of the IRS to cite a single law that would entitle them to collect income tax from American citizens, the Tea party is mounting a court challenge that if successful, would effectively shut down the IRS.
In the case of Peck v. Lowe, the Supreme Court contended that:
“The Sixteenth Amendment, although referred to in argument, has no real bearing and may be put out of view. As pointed out in recent decisions, (Brushaber), it does not extend the taxing power to new or excepted subjects, but merely removes all occasion, which otherwise might exist, for an apportionment among the states of taxes laid on income, whether it be derived from one source or another.”
The Tea Party argues that even if the 16th Amendment to the U.S. Constitution was properly ratified, which is debatable, the IRS still has no legal right to tax the income of American citizens.
More to the point, the Tea Party contends that an audit of the FED will prove every tax dollar that the IRS collects goes directly to the Federal Reserve. If this turns out to be true, a key revenue stream of the Federal Reserve would be cut off by a successful court challenge.
Given the multitrillion dollar debt that the Federal Reserve has recently acquired after the bank bailouts, the outcome of this upcoming court case could determine who is legally responsible for paying off the $12 Trillion debt--the Federal Reserve or American taxpayers.