Frank R. Brushaber Precedent for an American Nonresident Alien Tax Status

Transcription

1 Frank R. Brushaber Precedent for an American Nonresident Alien Tax Status The following evidence demonstrates that a United States citizen under the Fourteenth Amendment who is domiciled and resident within the boundaries of one of the fifty states is a nonresident alien for the purposes of the federal income tax. Treasury Decision has not been repealed and is still in legal effect. Frank Royal Brushaber was born September,, in Brooklyn, New York. Brushaber was the plaintiff in the landmark Supreme Court tax case of Brushaber v. Union Pacific Railroad Company, 0 U.S. (). Brushaber, a cashier for the Wall Street firm of Davies, Thomas & Co. protested the withholding and reporting of income accrued from his stock investment in the Union Pacific Railroad Company a domestic United States corporation. In Brushaber s bill of complaint, he specifically identified himself as a citizen of the State of New York and a resident of the Borough of Brooklyn, in the City of New York establishing as a matter of fact his domicile and residence to be without the United States as defined for the purposes of the federal income tax. However, Brushaber wrongly identified the Union Pacific Railroad Company as a corporation and citizen of the State of Utah. In fact, the Union Pacific Railroad Company was incorporated in the District of Columbia under the Pacific Railway Act of ( Stat. ) an Act of Congress. At the time of the Union Pacific Railroad Company s incorporation, Utah had not yet been admitted into statehood, but was a federal territory under the exclusive jurisdiction of the United States government pursuant to art. IV,, cl. of the Constitution. The Brushaber case was ruled upon in, two decades after Utah had been admitted into statehood, which occurred in. Because the Union Pacific Railroad Company was a domestic United States corporation and not a foreign corporation created by and under the laws of the State of Utah, the income accruing to Brushaber s stock investment was indeed United States sourced, and subject to withholding and taxation under the federal income tax. Had the Union Pacific Railroad Company been a corporation and citizen of the State of Utah as alleged in Brushaber s bill of complaint, the proceeds of the stock investment would not have been United States sourced within the meaning of the act of, and would have been exclusively outside of the Federal government s taxing power unless taxed through the process of apportionment under art. I,, cl. of the Constitution, as Brushaber was domiciled and resident without the United States so defined in the act of and not within. The most noteworthy item in the wake of the Brushaber v. Union Pacific Railroad case was the ensuing Treasury Decision, which was issued just eight weeks following the Brushaber ruling. In T.D., the Commissioner of Internal Revenue, W.H. Osborn, and Acting Secretary of the Treasury, Byron R. Newton declared, in an effort to clarify the Brushaber ruling, that income accruing to nonresident aliens in the form of interest from bonds and dividends on the stock of domestic corporations is subject to the income tax imposed by the act of October,. The circumstances surrounding the aforementioned case and subsequent Treasury Decision present an interesting question for the unsophisticated or casual observer: Question: If Brushaber was born in Brooklyn, New York, and a citizen of the United States under the Fourteenth Amendment, why was he considered a nonresident alien for the purposes of the federal income tax? Answer: The United States of America is organized under the principles of federalism not nationalism. Although politically domestic, the State of New York is civilly foreign to the federally domestic geographical region comprising the District of Columbia, Federal Territory, and possessions. This geographical division of the United States of America is defined as the United States in the Internal Revenue Code a geographical circumscription establishing where an Act of Congress is locally applicable and thus domestic for tax purposes.

2 0 Supporting Evidence -- Copy of 0 New York Census Record Indicating Brushaber s Parents birthplace as New York, U.S.A. -- Copy of Brushaber s Birth and Baptism Record from the Zion German Evangelical Lutheran Church in Brooklyn -- Copy of 0 New York Census Record Indicating Brushaber s political citizenship as United States -- Copy of Brushaber s Draft Registration Card Indicating a Native Born U.S. CITIZEN political status -- Copy of Brushaber s Certificate and Record of Marriage Indicating a birthplace of Brooklyn -- Copy of 0 and 0 Federal Census Records Indicating Brushaber s birthplace as New York -- Copy of Brushaber s Certificate of Death Indicating a birthplace of Brooklyn -- Copy of the Opening Page of the Act establishing the Union Pacific Railroad as a domestic corporation -- Copy of the Final Page of the Act establishing the Union Pacific Railroad as a domestic corporation -- Copy of the Opening Page of Brushaber s Petition to the U.S. District Court Southern District of New York -- Copy of the Opening Page of Treasury Decision, referring to Brushaber as a nonresident alien 0 0

3 Copy of 0 New York Census Record Indicating Frank R. Brushaber s Parents Place of Birth as New York and Residence as Quincy Street, Brooklyn, New York Enlarged Detail

4 Copy of Frank R. Brushaber s Birth & Baptism Record Zion German Evangelical Lutheran Church Henry Street, Brooklyn Heights, New York, U.S.A. 0 Frank Royal Brushaber. geb. (born) Sept. (). v. (father) Henry Brushaber, (born in) New York. m. (mother) Lucia Maria geb. (born - maiden name) Luke, (born in) New York. flh. Nr. (Family House Number) Quincy Street. p. (Paten Godparents) Eduard W. Brushaber. und seine Ehefrau (and his wife) Emma Louisa.

5 Copy of 0 New York Census Record Indicating Frank R. Brushaber s Citizenship as United States and his Residence as Quincy Street, Brooklyn, New York 0 Enlarged Detail

6 Copy of Frank R. Brushaber s Draft Registration Card Indicating Native Born U.S. CITIZEN Political Status 0 0 NAME: Frank Royal Brushaber PERMANENT HOME ADDRESS (domicile): St. Marks Ave., Brooklyn, Kings, New York Age by Years: Date of Birth: Sept., RACE: White checked U.S. CITIZEN: Native Born checked PRESENT OCCUPATION: Cashier EMPLOYERS NAME: Davies, Thomas & Co. PLACE OF EMPLOYMENT OR BUSINESS: Nassau St., N.Y. City NEAREST RELATIVE: Anna S. Brushaber, St. Marks Ave., Brooklyn DESCRIPTION OF REGISTRANT: HEIGHT Medium checked BUILD Medium checked COLOR OF EYES Blue COLOR OF HAIR Brown Has person lost arm, leg, hand, eye, or is he obviously physically disqualified? O.K. except-hd Rupture (Probably refers to a Herniated disc Rupture in the back)

7 Blank Copy of Draft Registration Card Similar to that filled out by Frank R. Brushaber (Provided for Clarity) 0

8 Copy of Frank R. Brushaber s Marriage Certificate Indicating a Birthplace of Brooklyn, New York 0

9 Copy of 0 & 0 Federal Census Records Indicating Frank R. Brushaber s Birthplace as New York, U.S.A 0 Census Record 0 Census Record 0

10 0 Copy of Frank R. Brushaber s Death Certificate Indicating a Birth Place of Brooklyn, New York

11 Copy of the Opening Page of the Act of Congress Establishing the Union Pacific Railroad Company as a domestic United States Corporation Stat. () Created a domestic United States corporation called the Union Pacific Railroad.

12 Copy of the Final Page of the Act of Congress Establishing the Union Pacific Railroad Company as a domestic United States Corporation

13 Copy of Opening Page of Frank R. Brushaber s Petition to the U.S. District Court Southern District of NewYork Brushaber identifies himself as a Citizen of the State of New York and a resident of the Borough of Brooklyn. This establishes him as nonresident to the United States (geographically defined as D.C., Federal Territory and possessions) for the purposes of the federal income tax.

14 Copy of Opening Page of Treasury Decision, Referring to Frank R. Brushaber as a Nonresident Alien for the Purposes of the Federal Income Tax Brushaber was a United States citizen under the Fourteenth Amendment, but a statutory nonresident alien for the purposes of the federal income tax because he was domiciled and resident within the state of New York a foreign civil jurisdiction to that of the domestic United States defined in the act of October,. Tax status and nationality are mutually exclusive in the United States of America.