This step requires a lot of planning and organization
and even some cooperation from your spouse. Being judgment proof means
that even if the IRS does win against you in a court of law, they won't
be able to collect from you because you have taken great care to ensure
that they can't get to any assets to levy or seize, because they either
can't find them or can't legally take those that they have found.
We’d like to emphasize that the advice in this section is not intended to
violate 26 U.S.C. Section 7206 item (4), which makes it a crime to conceal
assets otherwise lawfully owed:
(4) Removal or concealment with intent to defraud.
Removes, deposits, or conceals, or is concerned in removing,
depositing, or concealing, any goods or commodities for or in respect
whereof any tax is or shall be imposed, or any property upon which
levy is authorized by section 6331 with intent to evade or defeat
the assessment or collection of any tax imposed by this title; or ….
shall be guilty of a felony and, upon conviction thereof,
shall be fined not more than $100,000 ($500,000 in the case of a corporation),
or imprisoned not more than 3 years, or both, together with the costs of
If the other options presented elsewhere in this document
are observed, then the reader will lawfully owe no income taxes and therefore,
it will not be a criminal act to follow the advice in this section.
There are a number of areas you need to work on to
become judgment proof:
Before 1923, most people didn't even
get marriage licenses. Instead, they just recorded the strictly
religious marriage ceremony in their family bibles. Then the lawyers
and the government in 1923 tried to get involved so they could more
easily get jurisdiction and control over marital assets in court
and violate people's constitutional rights in the process. They
passed the Uniform Marriage and Marriage License Act, which gave
the government jurisdiction over your marriage and your property
no matter where you lived. That was about the time the Uniform Commercial
Code was passed and the lawyers wanted a way to eliminate the constitutional
protections people had within a marriage (right not to testify against
self in 5th amendment) so they could force spouses to testify against
each other in financial matters and more easily recover judgments.
Think about this: A license is a permission from the state to do
something that would otherwise be illegal. Is it illegal to get
married without a state marriage license? Absolutely NOT!! Marriage
licenses are just a power grab by the state to take away more of
your constitutional rights. The original purpose of marriage licenses
was to permit interracial marriages, which were otherwise forbidden!
Don't become a slave of the state and surrender your rights when
you get married: That's a violation of the separation of church
and state and makes you into a polygamist. Why? Because if you get
married and get a license, then you not only married your spouse,
you also married the state and your pastor who does the ceremony
and signs the license is both a pastor and an agent of the state
when he does the ceremony.
In community property states, such
as California, New York, and Texas, where both spouses have a state
marriage license, if the IRS tries to collect from you, they can
take half of the collection from assets that are only in your spouse's
name, unless you take measures to prevent this.
How can you protect your spouse?
Here are some options:
Don't get a state marriage license.
Then they can't prove you are married. Keep the evidence of
your marriage in your family bibles (both your spouse and you)
and don't let them see the bibles. That way they have no "state"
or "government" documents proving you are married.
- Get a “Common Law Marriage” and annul your marriage license.
You can also download the extensive book on the subject
entitled Sovereign Christian Marriage from the
SEDM website at:
Sovereign Christian Marriage, Form #06.009; https://sedm.org/Forms/FormIndex.htm
Keep everything in separate names
with no joint accounts they can levy or seize.
If they try to take assets from
any of your spouse's accounts, then prosecute them for wrongfully
File separate returns so they
don't know who your spouse is and don't reveal your spouses
name on your tax returns.
Have a premarital or post-marital
agreement that specifies the property rights of each spouse
and which protects spouses from collection activities against
the other spouse. Make sure you show this to the IRS before
they try to collect any money from you so they know what they
Just before collection activity
begins by the IRS, gift your assets to your spouse and ensure
that it is in his or her name. Before you do this, you better
ensure that you trust your spouse and that you have a pre-marital
agreement that keeps the assets of each spouse separate. Without
an agreement, and especially in community property states like
California, this doesn't work because the courts consider everything,
regardless of whose name it is in, to be community property.
NEVER discuss with anyone why
you have a premarital agreement or why you gift assets to anyone,
because the IRS will try to establish that you got it to protect
- Your business.
- When you get a business license and
ask the government to recognize your "fictitious business name",
then you are subject to their legal jurisdiction and have to surrender
your constitutional rights and privileges because you are relying
on a privilege granted by the government to run your business under
the "Collective Entity Rule". There is an unspoken contract that
is signed when you get the business name that basically says:
"Caesar has recognized my business
name and agrees to limit and protect my liability in running this
business. Therefore, I must pay tribute (bribe) to the king as a
reward for having that privilege and surrender all my constitutionally
- Because of the above, you should
avoid using fictitious business names and if you have them, you
should not keep any of your financial accounts or
property in the name of your business. Instead, keep them in your
personal name or in the name of you and/or your spouse. That way,
you still have rights, like the 5th Amendment right not to incriminate
yourself or your spouse by not responding to a discovery request,
subpoena, or deposition.
- You are warned that businesses with
fictitious names have a legal obligation to provide any and all
documents and records about themselves in any legal proceeding,
even if it might incriminate them, and against the 5th Amendment!
This is because of a thing called the "Collective Entity Rule",
which we talked about in section 3.12.3 of the
IRS Hoax. That's why the government wants you to get a business
license: so they can have jurisdiction over you and can violate
your constitutionally protected rights!
Moving your assets into trusts.
Trusts are a good vehicle to protect
assets being illegally taken from you, both from IRS collections
and from probate.
Using pure trusts is also a recommended
option and is preferred over living trusts.
If you don't get a pure trust, then
at least get a living trust so that your assets don't have to go
through probate and aren't subject to any IRS collection activity.
- Moving your assets overseas.
- Put them in bank accounts that don't
require social security numbers and in banks that have strict confidentiality
laws against the IRS.
- Keeping your money out of banks.
Banks typically are ignorant of the
law and will often honor an IRS "Notice of Levy", which isn't actually
a valid levy until it is issued following a court judgment unless
you are a federal appointed or elected official.
Ensure that your bank is aware of
the IRS' authority to levy BEFORE you open an account. Show them
the law and ask them to tell you how they handle IRS levies and
under what circumstances they will honor the levy.
- Avoiding cash and using gold coins and
barter, so transactions are not traceable.
- Note that it is best to buy your
gold coins without paying sales tax, or you will lose part of your
assets right off the bat. Ordering the coins via mail order
or over the internet is a good way to avoid paying sales tax.