The story of taxation in America is one filled with twists, turns, and quiet revolutions hidden in plain sight.

The Beginning: The Power to Tax

When the original Constitution for the United States was established in 1789, it gave exclusive taxing authority to Congress — and that power has never been legally delegated to any other entity since.

Fast-forward to 1909: Congress passed what became known as the 16th Amendment — attached not to the 1789 Constitution, but to what some historians describe as a revised charter created after the Civil War. This amendment opened the door for a federal income tax that no longer needed to be apportioned among the states.

However, the legitimacy and ratification of that amendment in February 1913 have remained hotly debated for more than a century.

1913: The Year Everything Changed

In October of 1913, President Woodrow Wilson signed the Revenue Act, which officially launched the modern federal income tax system. Just two months later, on December 23, 1913, the Federal Reserve Act was signed — creating what we now know as the Federal Reserve Bank.

That moment marked a new era. The Federal Reserve — a private banking corporation, not a government agency — was born, and with it came a complex web of financial control that would shape American economics for generations.

The Rise of the IRS

Originally established in 1862 as the Commission of Internal Revenue, the modern Internal Revenue Service (IRS) evolved into the enforcement arm of the Federal Reserve. Since 1954, it has operated under Title 26 of the U.S. Code — the Internal Revenue Code — with corresponding regulations outlined in the Code of Federal Regulations (C.F.R.).

Interestingly, legal researchers note that the territorial reach of these statutes is limited to the District of Columbia and certain U.S. territories. These laws apply primarily to federal employees, public officers, and residents of U.S. territories such as Guam or Puerto Rico — not necessarily to the average American living in the 50 states.

The Great Misunderstanding

Over time, however, this system expanded — convincing everyday Americans that they were all subject to federal income taxation. Yet, even the IRS’s own documentation distinguishes between “U.S. citizens” (those under federal jurisdiction) and “nonresident aliens” — a category that some interpret to include American Nationals living and working outside the federal zone.

According to that view, only a specific group of individuals — federal employees, residents of D.C., and those earning income directly from the federal government — are legally liable for federal income taxes.

The Remedy: Revocation of Election.

As the story goes, when you first file a Form 1040, you make what’s called an “election” to participate in the federal income tax system. For those who later discover this election was voluntary, there exists a process known as Revocation of Election (R.O.E.), described under 26 U.S.C. §6013(g)(4)(A) — Termination of Election by Taxpayer.

This process, according to its proponents, allows individuals to formally withdraw from the federal income tax system, restoring their standing as non-taxpayers or nonresident aliens under law.

Those who have successfully completed this process claim that their IRS records have been updated to reflect their changed status — provided the legal documents were prepared with precise language, grammar, and lawful intent.

Once the R.O.E. process is completed, individuals must also notify their employers of their new tax status to ensure compliance with actual withholding laws. Many choose to present new forms and legal notices to prevent further deductions from their pay.

This process, they say, isn’t about evading taxes — it’s about understanding your rights and making lawful, informed choices about your relationship with the federal government.

Knowledge Is Power

The deeper you dig, the clearer it becomes that freedom begins with knowledge. Understanding the original Constitution for the United States (1787), and how it differs from the later corporate version, opens the door to a greater awareness of personal sovereignty and self-determination.