Report #1099,Explanation of the

Confidential Report

Explanation of the Form 1099-OID and the Form 1040V

(Voucher) An What Impact It Has On Your Alleged Income
Tax Liability - theory

There have been a number of differing interpretations of the

use of the Form 1099-OID and the Form 1040V as well as to
who is the payer and who is the recipient. Also, there appears
to be some differing opinions regarding the term “IRS agent”.
In trying to understand the IRS function regarding prepaid
and the return to the private, here are some of my thoughts. I
will try to put this into an itemized format in order to separate
the different issues mentioned.

It is important, I believe, that we look at the use prescribed by

the IRS for each form; namely the 1099-OID and the Form
1040V.

Instructions for the 1099-OID state that it is a form to be

completed by REMICs (Real Estate Mortgage Investment
Conduit), FASITs (Financial Asset Securitization Investment
Trusts), Stock and Bond Brokers, and any other institutions
authorized by Congress to convert notes, bonds and other
securities into M-1 (liquidity).

1. The 1099-OID (original Issue) deals with our credit as

collateral for “newly created money” (that which is created by
the use of our credit/SS# - even though */all/* “old” money
(money already in circulation) was also created with our
credit, or through a pool or blocked grant).
2. Original issue would include all mortgages, bonds, certain
securities, car loans, and the like.

3. On the other hand, the Form 1040V would be to cover

other numerous types of transactions that have not been
directly funded by us, those which are *not *funded by
unilaterally signed (by us) futures contract* *notes, credit
applications and such future contracts. Rather the Form
1040V is used for instant use with re-circulated money and
bills & statements for products by corporations not
governmental approved nor licensed to create money; such
as Fanny & Freddie.

4. Is what we are doing cleansing all the money so that it is

no longer contraband (it has been accounted for ­ in other
words, appropriated to the proper debtor/tax payer fiction)?

5. So, it would seem that the 1099-OID when declared on the

1040, as that which must be returned to the source, (declared
in the total amount of income on line 21 of the 1040) that we
are due the refund and the “recipient(s)” are the ones
required to declare on their returns all the credit they withheld
from us, as their income (all the money created using our
credit/labor/assets as the collateral). This is the re-funding to
us by IRS thus making the IRS a “pass-through/clearing
house” for the reallocation of funds to the proper accounts at
the U.S. Treasury and to be properly applied to their
respective accounts thus bringing our account to ­0-).

6. *Next,* The back of the recipientʼs copy of the 1099-OID

states as follows (quoted below):
“Original issue discount
(OID) is the excess of an obligationʼs stated redemption price
at maturity over its issue price (acquisition price). OID is
taxable as interest over the life of the obligation. If you are the
holder of an OID obligation, generally you must include an
amount of OID in your gross income each year you hold the
obligation. Obligations that may have OID include a bond,
debenture, note, certificate, or other evidence of
indebtedness having a term of more than 1 year. For
example, the OID rules may apply to certificates of deposit
(CDʼs), time deposits, bonus savings plans, and other deposit
arrangements, especially if the payment of interest is deferred
until maturity. In addition, the OID rules apply to Treasury
inflation-indexed securities. See Pub 550. Investment Income
and Expenses, for more information.

(This is the point at which the account is accelerated in time

to maturity. To quote from one of your letters, “when the 1040
assessment is made in truth, the connection is made to all
agency accounts for the tax loss write-off as negative
payment to Treasury and, now, the prize is taken! How or
when is the prize going to be paid out?” We can only hope
the IRS will not be hi-jacked by the pirates before delivering
the prize.)

It continues: “Box 1. Shows, the OID on the obligation for the

part of the year you owned it. Report the amount in box 1 as
interest income on your income tax return. However,
depending on the type of debt instrument, the issue or
acquisition date, and other factors (for example, if you paid
acquisition or bond premium, or the obligation is a stripped
bond or coupon), you may have to figure the correct amount
of OID to report on your return.”

7. The taxes required to be paid by the recipient on the 1099-

OID will be the difference between the original issue (will be
the face value of the note plus all interest calculated to
maturity for mortgages, cars, and financed items) and the
discount. (Similar to the difference between wholesale and
retail). Each corporation/vender only pays tax on the interest
received each year less their costs. This changes and
becomes all due when the account is accelerated in time to
maturity at which time all interest is due.

8. From the above, I concluded the following as pertains to

Mortgage Companies (REMICs - Real Estate Mortgage
Investment Conduits), FASITs, (Financial Asset Securitization
Investment Trusts) and Brokerages, etc..

a. In the case of REMICs etc., (where our credit has been

hijacked ­ similar but not identical to what the FTB has
done) we now file an IRS form 1099-OID for the amount
of the note or original document used by the REMIC to
obtain the “loan”, etc. which they have requisitioned to
their own account. Or we may file any other appropriate
1099, i.e. 1099-B such as would be used for title to real
estate or title to a vehicle, etc. or in the case of arrest,
the “body”. This is when we become identified as the
source. The amount on the 1099-OIDs or other 1099s
(red forms only) should include the original amount of
the “loan” (face amount of the note) in addition to any
“payments” that have been made against the “loan”.
These payments may be put on separate 1099-OIDs
instead of being included with the note amount. These
are all amounts of our credit, which they have
requisitioned to use to make claim against us. This is
declared on line 21 of the Form 1040 as taxable income,
as zero on line 63, and then as withholding on Line 64
(as we are not the tax payer and we are only identifying
our Treasury Account balance). This will then indicate
that we are entitled to have our credit re-funded for the
amount on line 64. Can you tell me if, at this point, we
 now have “true title” to the property that was used as
collateral for the “loan” the REMIC etc. made against our
credit? Would this remove our “real property”, real estate
out the control/possession of the government and give
us a fee simple or allodial (absolute) title to the
property? If so, this would probably also apply to autos,
refrigerators, tractors, etc..
Only that which we have discharged with cash, checks,
money orders, etc, or subsidized with our credit goes
onto the 1099-OID.
A 1040-V is prepared for the balance they are claiming is
owed. the Form 1040V is only for “open” accounts
(those showing a “balance owed”) If we pay with a 1040-
V, the product will have been purchased with credit.
Would this give us the superior title?
The REMIC now made a “loan” of our credit (they borrowed
our credit at the Treasury ­ because they have been
authorized by Congress to do so) using our note as
collateral. The REMIC now provides the so-called
“lender”, the one on the Trust Deed that has requested
the REMIC to borrow our credit in order that they may
pretend to be the “lender” on the Trust Deed and
submitted the Trust Deed to a Trustee to act as “holder”.
Is the Trustee now the holder of the Title. If so, which
Title. Since the Title Insurance Companies are the ones
insuring the “Title” to the REMIC are they not
responsible to provide a clean title to us through the use
of our credit by the REMIC since they claim they only
insure the REMIC, but we pay the premium through
escrow?
The REMIC has passed our credit, that has been converted
into futures (Mortgage Backed Securities ­MBSs) and
provided funds to close out any prior mortgages, and
 equity created by “payments” (the giving of money we
labored for) as well as inflation from derivatives.
When “billing” us, the mortgage company/bank puts a
coupon on the bottom of their “assessment/bill” to us
(which we do not owe). This zeroes the account on their
books because they have billed us and paid us with the
coupon (Rogetʼs Thesaurus qualifies under the heading
of “Money” that money is a token, script, *coupon*,
check, etc. and under the heading of “securities” that a
security is a stock certificate, street certificate, interim
certificate and coupon). (Blackʼs, Fourth Edition defines
a coupon as: They use the coupon as a disguised
payment to *execute* our credit in order that we still
believe we owe and will volunteer into the contract.
(Similar to what the FTB does) Would we not then use
the 1099-B (barter) in lieu of the 1099-OID to claim our
credit used to produce the coupon?
At that point we really do not owe anything; they owe us
what they borrowed of our credit plus interest. They are
still withholding our exemption they procured from the
Treasury and have failed to pay us the interest.
If or when we send a check to them, we have volunteered to
contract with the “so-called lender” to make the
payments and not use the coupon. They */presume/* we
have a contract.
So, we can send the Form 1040V and use their coupon, for
the remainder of the futures contract as we are prepaid
and our portion of prepayment being held by the
Treasury (unidentified in the pool) with the note or other
instrument as collateral, (in Trust Deed states, the Trust
Deed is collateral for the Note) can now be appropriated
to our account. We file this with a 1099-B for return of all
the coupons.
Since they have previously used our SS# to “borrow” from
our credit at the Treasury, we must take it back from
them by filing with IRS to show they are the holders of
contraband funds. We undo the presumption that we are
the debtor and they are the creditor.
When opening a credit card account, applying for a
mortgage, and including any previously “paid” property
taxes, sales tax, etc., these so-called debts are the ones
we want to claim on the 1099-OID since this is “stolen
credit” (inflation money) and the pirating of our credit.
Until we report this on a 1099-OID to IRS, the institution,
that converted our instrument (note, bond, application,
cash or checks expended, etc.) to create this spendable
credit, is identified as the creditor. So, when reported on
the 1099-OID we are now identified as the
source/creditor of the funds. When we make
“/payments/” for the so-called “/loan/” with FRNs,
checks, etc., the 1099-OID would also be used since
money had been placed into circulation that this
payment is off-setting ­ the OID now identifies it. We
should then expect to be reimbursed through IRS (the
accountants and clearing house for the Treasury) for the
use of our credit which was wrongly appropriated and
identified.
I feel uncertain about filing a 1099-OID against certain
venders (the self-employed and those who have used
their own hard earned money to go into business) as the
vendor was not the originator of the funds directly
through us. Only credit banks, credit agencies, mortgage
companies, and other organizations authorized by
Congress to create money should receive a Form 1099-
OID. Since very few vendors provide “deferred
payments”, they may be using a bank or other credit
 agent, i.e. Target, Sears have their own bank. An
ordinary vender is not an original issuer nor an initiator
of a blocked grant nor a distributor of same, so, we
would need to know if there is a credit provider or not,
but if so who they are. A self-employed machine shop,
auto repair shop, or other businessman has paid for
materials and labor would we not be claiming his
credit/labor?
9. We send the form 1040-V with the MO (statement showing
“outstanding balance”) made payable to the Treasury - For
transactions involving vendors.

10. the Form 1040V is mainly good for set-off (or payment?)
of current (open) billings/statements. It will be one of the red
form 1099s to claim the re-funding of the credit.

11. It is important to identify whether our credit has been used

or not. Otherwise, you may be providing whomever you are
sending the Form 1040V payment twice, i.e. he will receive
two tax exemptions.

12. Original 1040-V with MO goes to IRS with MO made

payable to the Treasury

13. Declare the amount on the MO as income on line 21 of

form 1040 (This assesses the tax)

14. the Form 1040V (voucher) for payment of tax, pays the
amount on line 21- zeroes out the amount on the 1040. (This
is slightly different from the 1099s)

15. IRS sends the MO to the Treasury for allocation of the

credit to be provided as a tax exemption to the vendor.
16. When the “vendor” received the Form 1040V with their
bill/statement/money made “payable to U. S. Treasury”, they
can then adjust their books to show the product has been
paid for with our exemption and they now have a tax credit.

17. When the product was sold, the company credited “sales”
on their Profit and Loss Statement and debited “accounts
receivable” which is a Balance Sheet account.

18. They can then transfer the amount of the asset account
“accounts receivable” on their Balance Sheet to the asset
account “prepaid tax” on their Balance Sheet.

19. The tax will be paid by them when they file their yearly tax
return because their taxes are based on sales less cost of
good sold shown on the Profit and Loss Statement.

20. Since we have given our credit for payment of the

vendorʼs MO. The vendor issuing the MO can now use the
copy we have sent to them on their tax form (corporation
Income Tax Form) to receive a tax exemption/our credit
against any tax they may owe. If none owed, they will get a
receive a tax refund for the amount of their bill/MO.

21. As pertains to the State tax Assessor, (so-called unpaid

statements or “owed” amounts)

22. The State Tax Assessor sends an assessment and has

used our SS#.

23. The State Tax Assessor puts a coupon on the bottom of

the assessment.

24. This zeroes their account because they have charged our
account with the assessment and issued the coupon/money
to off-set the assessment, account ­0-.

25. At that point we really do not owe anything, the account is

at zero; therefore, *they are not in violation* of the
law/Constitution as they have not as yet taxed us.

26. If or when we send a check we have *volunteered* and

the tax becomes payable because we have contracted by
volunteering. Income tax is a volunteer tax.

27. If we send the Form 1040V and use their coupon, we are
prepaid and our portion of prepayment being held by FTB can
now be appropriated to our account. We can then file a 1099-
B for the value of the coupon.

28. As pertains to the State Tax Assessor (funds we have

given them or they have hi-jacked from us)

29. If the State Tax Assessor has taken from us then we file a
1099-OID to identify the funds they pirated from us.

30. The 1099-OID is filed on the 1040 in lines 21 and 64.

31. We should then be in line to receive a refund for the

amount in line 64.

32. We should also be able to file a 1099-B as above.

33. As pertains to the IRS:

Follow the procedures above as pertain to State Tax

Assessor (the STA) is only a franchise of the IRS and the
rules are the same.)

34. When the Form 1040V is sent to the vendor, they are now
paid by us, for the product, using the IRS as a pass-
through/clearing house for the funds they are billing or
charging, by now being eligible for a tax credit on *their*
returns; a tax credit being the full amount prepaid against any
tax they owe (now an asset on their books as prepaid tax).
the Form 1040V which we send to the IRS is our “payment”
(accessing our credit through IRS) for the product and
authorization to provide the vender a tax exemption for his
services and authorization for the funds to create the next
prepaid item since they will report the sales on their tax return
and provide the amount of the “cost of good sold” which will
also be declared on their tax return as to how the “credit” was
used in the manufacture of the item. We do not want to
interrupt commerce. The vendor has paid for the materials
and workforce (other peopleʼs labor) used to produce the
product from some prior original issue. We are then acquiring
the item with our exemption/credit through a tax credit to him.

35. Since the Form 1040V is a payment to by us to IRS, I

believe we need to send the Form 1040V directly to the IRS
for IRS to validate the invoice/charge/money order made by
the vender (that we received the product and the credit was
converted into produce (used up in materials and labor) with
a copy to the vender and instructions to the vendor that this is
payment via their “tax credit”.

36. The instructions for the Form 1040V state that this form is
to be used when submitting payments against income tax
owed. See quote from the form:

*“What Is Form 1040-V and Do You Have

To Use It?*
37. Detach Form 1040-V along the dotted line. Do not staple
or otherwise attach your payment or Form 1040-V to your
return or to each other. Instead, just put them loose in the
envelope.

38. Mail your 2005 tax return, payment, and Form. It is a

statement you send with your check or money order for any
balance due on the *“Amount you owe” *line of your 2005
Form 1040. Using Form 1040-V allows us to process your
payment more accurately and efficiently. We strongly
encourage you to use Form 1040-V, but there is no penalty if
you do not.”

39. It seems that we might need to file a 1040-V for the total
amount of the 1099s filed for return of withholding and show
the total amount of tax due on line 63 with the Form 1040Vs
as payment of the taxes in lieu of the services or product.

40. Therefore, this form has nothing to do with the creation of

M-1, rather a payment against taxable income,
bill/statement/money order (re-circulated money which would
be part of the velocity of money). So, when we use this form
we are making the payment against *income* created through
a transaction between me and a taxpayer vendor or service
provider. When I send the Form 1040V to the vendor/service
provider, I am telling him that I have made a payment to the
IRS and a tax refund is now waiting for him to claim. When he
receives the Form 1040V with the “money order”, he can now
show the account paid by journaling the money being held as
an accounts receivable, from the accounts receivable, to
another asset account; namely, “prepaid taxes”. He can now
take the Form 1040V with the bill/statement/money order and
present this to the IRS for payment, either as a credit against
any taxes he owes or as a refund. Unless new money has
been created by a licensed agency, a 1099-OID is not the
form to use for a vendor, i.e. the “mom and pop” places. We
have received the product in exchange for our exemption.
This is exchange dollar for dollar.

41. Iʼm not sure if we need to take into account the difference
between new money (original issue) and old money (money
in circulation). Or perhaps it does not matter. the Form 1040V
pays our expenses/bills/invoices etc. but we are not to get
rich off of other peoples labor. It seems to me that if we
attempt to get a cash refund in addition to the produce we are
stealing. The corporation has converted the credit into
product and distributed the credit for materials and labor
(other peoplesʼ).

42. The municipalities also make payments for services to the

public via contractors which places the funds into circulation.
A friend sent a 1099-OID with a 1040-V to the County
Property Tax Collector. She received the copy of the 1099-
OID back saying they did not need it. They said if she had
any questions to call. They kept the Form 1040V and we
have dropped a short note asking for an acknowledgment of
the payment. If she gets it, we will know that the taxes have
been paid and the County does not need the 1099-OID
probably because they do not file or pay tax or perhaps they
have identified the credit already through our property.

43. If her County taxes go away, it would seem we can use

the coupon on the bottom of the service companies, phone,
gas, electric company, etc. with the Form 1040V to pay them.
The coupon is the money/check and the amount is usually
indicated on the bottom of the coupon similar to check
numbering. Blackʼs says a coupon is to be cut and redeemed
for the amount on the coupon. Most companies that use
coupons require it to be cut and have the value of the coupon
must be printed on it. Just as on coupon bonds, newspaper
coupons to clip, and bills to those who have used our credit.
They appear on Franchise Tax assessments, IRS
assessments, property tax assessments, utility bills, etc., all
of which are indirectly using our credit.

44. Many of the services that are under blocked grants, the
funds have been designated for certain services i.e. police,
fire department, road repair, street lighting, just to name a
few, and our 1040-V will underwrite them for us by
designating our portion of the “pool” (blocked grants which
include all properties assessed by the county and other
assets). Because these services have been paid to
contractors who perform these services, etc. the levies now
placed upon us are indirect and we need to use the Form
1040V to pay for our portion of municipal services with the
Form 1040V. This would then be indirect as opposed to a
direct creation of credit and we can use the Form 1040V to
pay for these services. I do not believe we should request a
refund as we are using the services. Please comment on this
as others disagree with me. It depends on the intent of asking
for the refund and the ultimate objective that would determine
whether or not we do so.

45. When the Form 1040V is filed with the 1040 as a

payment for all debt using funds that have been in circulation;
i.e. purchases using cash, checks money orders, etc. as well
as statements/bills sent by the vendor which would also
include any payments made against credit cards, mortgages,
auto loans, etc. we then need to use both the 1099-OID or
1099-B and 1040-V in order to get a return of the funds we
have given to them as well as a return of our credit.
46. The Internal Revenue Service is only an accounting
service and collection agency for the United States Treasury.
They are acting as a pass-through/clearing house for the
money system. Therefore, they are the ones who will do the
bookkeeping to determine the balances in each account.
They can draw on our direct Treasury Account when we send
the proper documents. So, it is incumbent upon us to use the
forms properly and to the best of our understanding in order
that the IRS will be able to perform their duty to keep accurate
books and records of our credit with the Treasury and to
provide us with the service. If we fail on our part to make
frivolous filings, i.e. requesting a refund with the 1099-OID
indicating ­0- withholding, we will be defeated before we start.

47. I didnʼt expect this writing to grow so large, but hopefully

you will have time to review it and comment on my
assessment of what is the proper process. My mind keeps
going and doesnʼt want to stop. Since this is all accounting,
the question is how do we access the record/system to set it
straight and get our return/withheld funds/payment for
labor/intellect, if not through the 1040 and the other forms
provided? Title 5 section 552 (I believe this is the correct site)
requires that all agencies must correct their records and the
Treasury Department has a department, the “Data Integrity
Board” in Washington, D.C. that requires all agencies must
coordinate their records accurately. The Data Integrity Board
must report to Congress. This might be a source to assist if
IRS does not resolve this matter.