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OPSEC Tax Preparation, by X. Liberal CPA

Many people ask me during tax season why there’s this entry or that box on their tax form. My answer? The IRS has more information on every citizen, even drilling down into data history on their family trees, than any other arm of the Federal, State, and Local governments combined.

Why? Because you volunteer the information willingly!

Massive Tax Code

The tax code is estimated at 59,000 pages (forms + instructional booklets + adhoc tables), about 4,000,000 lines, and approximately 350,000,000 characters. Why did this massive bureaucratic enigma code not go away with the passing of the recent Bill into U.S. tax law? Well, let’s see.

Scenario of John and Jane No’Opsec

John and Jane No’Opsec (must be an Irish name with that comma) don’t file paper returns and allow the IRS to record their IP address of their personal computer, along with potentially scraping all their files from their desktop and folder tree by flagging the NSA. In addition, they keep all their previous tax returns right on their desktop, encrypted of course. However, the commercial tax program they purchase every year has hooks right into those files for ease of entry by the NSA.

Never Keep Personal Info on Internet Computer

TIP: Never keep your personal information, especially Social Security number (SSN) and bank accounting information, on an Internet-utilized computer. For OPSEC, you should have a blank image of a PC/MAC to surf the net and another to use in an offline configuration. Then use a thumb drive with minimal files on it to pass back and forth between online computer and offline computer.

Info Gathered From Top of the 1040 Form

Right off the bat on the top of the 1040 form, prior to entering any financial data, the IRS has collected:

Don’t Give IRS Your Phone Number

TIP: Do not ever give the IRS your phone number. They are going to tie an SSN to your cell. The NSA has all the metadata collected (inbound/outbound calls, times of days, durations, phone numbers in your phone tree). Now both the NSA and IRS potentially can work in tandem to allow the NSA to run high speed, highly technical algorithms on you to build data profiles. You can get around this by filing paper tax forms each year. This is the first year I’ve seen where the IRS is now demanding your cell phone. We CPAs knew it was coming, just like the Constitutional Attorneys know the call to register firearms is coming. Do you obey or do you perform civil disobedience. Search your own conscience. But I’m warning you to be careful in giving up your cell phone.

IRS Has Your Dependents’ and Parents’ Personal Data

So now the IRS has all your personal data, including your dependents’ name and their SSN, and also your parents’ dependents from when your parents added your SSN to their tax return for a write off. So big deal that the IRS, with a click of a button, can see everyone in your family tree dating back a hundred years, including all their personal information with data drilldown capabilities into specific and discrete data records right from any agent’s PC? Who cares, right?

The No’Opsec Family Tax Return Scenario Continued

Well let’s continue with the No’Opsec family tax return. In order for it to be complete and them not go to jail, they enter in John’s W2 information, which contains his employer’s address, the location where John sits, his wages, employment status, and EIN number. Even when John worked in China for a brief training class is also recorded to the IRS along with dates of leave and entry.

No’Opsec Family’s Foreign Bank Account

The next question was John having to dispel his control over a foreign bank account. Under the last presidential administration, he and Jane moved money to a Swiss bank account. That account, bank routing number, address, and current amount in the account is willfully forwarded to the IRS for building a profile against John and Jane.

TIP: My fellow OPSEC family on SurvivalBlog, please create an irrevocable trust with no tie to your family name, offshore if possible, to stow your hard earned money. Speak with a trust attorney. There are ways to totally do this without ever tying it to your SSN or your taxes. If you remember OJ Simpson skirted around the Wrongful Death suit by the Goldman family, due to him having millions stashed in a whole life insurance policy. Currently, the IRS doesn’t make it a crime if you don’t reveal your life insurance policies.

No’Opsec Home/Property Information

Next, John, according to U.S. tax law, willfully gives the IRS the No’Opsec family home address, mortgage company, whether they purchased any solar panels that year, and the exact amount of property tax they paid for the year.

No’Opsec Children and Their Information

Then he completes the forms whereby he tells the IRS whether he and Jane adopted a child that year, whether the children are in daycare, and he enters all his children’s SSN, furthering the family tree in the IRS’s data collection algorithms. This is all done willfully without any governmental arm utilizing force or cohesion for information.

TIP: OPSEC family, please pay off your mortgages, then immediately route the home out from under your family name and into your irrevocable trust or another corporation, without a tie back to you or your loved ones’ SSN. When people or the government perform searches in a neighborhood, they will never see your last name but some corporate name, which has no connection to you. X. Liberal’s wife is Chinese, and our Redoubt property is in a Chinese corporation, which has no connection to us. As long as we pay our taxes, they will never do a “drilldown” on our data. Even if they do, as our nosy neighbor did, he came back with “What’s that name on your property with the address in China?” OPSEC, folks! OPSEC!

No’Opsec’s Charitable Donations

Next up, the No’Opsec family lists all their charitable donations for the year. This included their favorite Goodwill store and hebdomadal church service location with addresses.

No’Opsec’s Vehicles

They willfully enter in all the No’Opsec family automobiles, VINs, and annual repairs, including routine oil and brake changes. They also provide information on the credit institutions that actually own the vehicles.

TIP: Pay your vehicles off and place them into a trust/corporation, which doesn’t connect to your SSN. I say pay off the home/car first, because you will need to have a new mortgage or auto loan based on the corporation name and then you will need to tie it to you with a SSN for a valid warm body credit score. Pay them off first, and then transfer deeds/titles.

No’Opsec’s Education Expenses

Next they put Jane’s PhD program down, including cost of books. They even provided them with her classes taken, university address, and student loan information.

No’Opsec’s Medical Expenses

The No’Opsec family lists out all their medical expenses for the year (HSA, 1099-SA, MSA) and hands that bundle of information to IRS data banks for their queries to go to work. Even information on a rash Jane had, lists out the Perminthene saved through a prescription drug store, including address of pickup and date and time stamp. The IRS knows what days she might have been home itching herself. You get the point. It’s all logged into historical records of their databases!

No’Opsec’s Retirement and Investment

Next under the Retirement and Investment section, John adds his 401K and Jane’s Roth IRA, including account numbers, brokerage firms, and addresses, and the current amount. He tells the IRS about the Microsoft stock he has and what capital gains he needs to pay taxes upon selling those shares. Jane is forthcoming with information of her 401K rollover and what account it came from and where it rolled into.

TIP: You’ve heard the talk, even from politicians, that the government will take your retirement accounts and savings. Now you know that massive storehouse of data the IRS has on you, because you gave it to them willfully.

Jane No’Opsec’s Part-Time Work and Business Write-Offs

Next Jane dispels her substitute-teaching job at the local elementary school and the clothes and supplies she’s writing off in order to work there. This is all information given to hopefully net her a few dollars back in the form of a tax refund. (Ooh! That IRS is so cleaver! Taking our hard earned money and dolling it out to the tune of $trillions to weaponize governing authorities, then giving out a few morsels to us in exchange for our most private and revered information. It’s clever!)

Other Write-Offs of the No’Opsec Family

John illustrates their moving expenses from a previous address, the date and time of their move, and the cost of living for a write off on his taxes.

Since they moved from a bad section of town, the IRS has the date and time stamp of the three burglaries under the Casualties and Thefts worksheets. They even get the police report docket number and court outcomes, if any. There’s even a section for legal and any lawsuits the No’Opsec family is involved in, such as the one Jane had with a neighbor from a dog bite during a pet in violation of the lease law. The IRS wants that information for their governmental data-mining engines to go to work formulating a behind-the-scenes and most classified profile. A profile to be shared with any other government agency and at any time in the future.

Additional Data Provided By No’Opsec Family

Next the IRS asks the No’Opsec family to gladly disseminate into their data coffers any and all taxes required from the previous year. This is in regards to Alternate Minimum Tax—AMT, Business taxes, Underpayment penalties, Nanny and household employee tax (the Nanny’s and Servant’s name, address, SSN, hours worked, schedule, type of work performed), and any outstanding tax revenue not accounted for.

K-1 Form

Then John queues up the K-1 form and willfully doles out the exact addresses of his three rental properties, amount of rents charged, renter’s names, the condition of the home with maintenance records, annual taxes, and any liens or penalties from city ordinances or associations. He then writes down the exact airplane hanger where his plane (in his S-corporation name) is parked along with its tail number. He has his logbook [1] of date and time stamps of flights taken and whether he was pilot in command. Then he gives the IRS the exact boat slip at the harbor and the bow number of his fishing boat USS-No’Opsec.

He also dispels his corporate diesel pickup VIN along with any and all maintenance records on it for the year. So far, he’s not stupid enough to disseminate his firearm collection along with serial numbers, but that is coming soon from the IRS or harsh penalties and confiscation of property by law enforcement.

Jane’s Schedule-C Tax Form

Jane completes her Schedule-C tax forms with John as he outlines to the IRS her sewing business from home, the exact office space in his home, the number of square feet of his home, and types of clientele Jane has. Jane also keeps a driving logbook [2] and meal receipt stash in case the IRS calls upon them to see her driving schedule and eating habits.

State Authorities Given Information Too

The No’Opsec family repeats this willful giving of information once again, but this time to the State authorities where they currently reside.

Not Everything on IRS Forms Must Be Revealed

TIP: Not everything on the IRS forms are against the U.S. Tax law for not revealing. Here are some hardened tips. Most likely you are giving this information for a reduction in paying taxes, so if you don’t mind paying a bit extra, then don’t add anything to those forms which are only there as information grabs for their refund scam. This would be such as in charitable contributions, write-offs for your business supplies and home office, your leisure items in your company name, such as plane, boat or truck, medical expenses, et al.

Items on Tax Form That Are A Must

The types of items that are a must, according to U.S. Tax law would be your work history and pay records, your retirement accounts, and offshore bank accounts, et al.

Be sure you become a student of OPSEC, when it comes to the U.S. Tax Code. There are many, and I mean many pieces of information, that are not needed to grace the cells of IRS datamarts with your annual tax filing, but for a minimal tax write off you do it!

I understand! But please understand the power they have over you, when you do willfully and eagerly give this information to a government. One day “they” may use it against you!

God speed!

SurvivalBlog Writing Contest

This has been another entry for Round 75 of the SurvivalBlog non-fiction writing contest [3]. The nearly $11,000 worth of prizes for this round include:

First Prize:

  1. A $3000 gift certificate towards a Sol-Ark Solar Generator from Veteran owned Portable Solar LLC. The only EMP Hardened Solar Generator System available to the public.
  2. A Gunsite Academy Three Day Course Certificate. This can be used for any one, two, or three day course (a $1,095 value),
  3. A course certificate from onPoint Tactical for the prize winner’s choice of three-day civilian courses [4], excluding those restricted for military or government teams. Three day onPoint courses normally cost $795,
  4. DRD Tactical is providing a 5.56 NATO QD Billet upper [5]. These have hammer forged, chrome-lined barrels and a hard case, to go with your own AR lower. It will allow any standard AR-type rifle to have a quick change barrel. This can be assembled in less than one minute without the use of any tools. It also provides a compact carry capability in a hard case or in 3-day pack (an $1,100 value),
  5. Two cases of Mountain House freeze-dried assorted entrees [6] in #10 cans, courtesy of Ready Made Resources (a $350 value),
  6. A $250 gift certificate good for any product [7] from Sunflower Ammo,
  7. Two cases of Meals, Ready to Eat (MREs), courtesy of CampingSurvival.com (a $180 value), and
  8. American Gunsmithing Institute (AGI) is providing a $300 certificate good towards any of their DVD training courses [8].

Second Prize:

  1. A Model 175 Series Solar Generator provided by Quantum Harvest LLC (a $439 value),
  2. A Glock form factor SIRT laser training pistol and a SIRT AR-15/M4 [9] Laser Training Bolt, courtesy of Next Level Training, which have a combined retail value of $589,
  3. A gift certificate for any two or three-day class from Max Velocity Tactical (a $600 value),
  4. A transferable certificate for a two-day Ultimate Bug Out Course from Florida Firearms Training (a $400 value),
  5. A Trekker IV™ Four-Person Emergency Kit from Emergency Essentials (a $250 value),
  6. A $200 gift certificate good towards any books published by PrepperPress.com,
  7. RepackBox is providing a $300 gift certificate to their site.

Third Prize:

  1. A Royal Berkey water filter, courtesy of [10] Directive 21 (a $275 value),
  2. A large handmade clothes drying rack, a washboard, and a Homesteading for Beginners DVD, all courtesy of The Homestead Store, with a combined value of $206,
  3. Expanded sets of both washable feminine pads and liners, donated by Naturally Cozy (a $185 retail value),
  4. Two Super Survival Pack seed collections [11], a $150 value, courtesy of Seed for Security, LLC,
  5. Mayflower Trading is donating a $200 gift certificate for homesteading appliances, and
  6. Two 1,000-foot spools of full mil-spec U.S.-made 750 paracord [12] (in-stock colors only) from www.TOUGHGRID.com (a $240 value).

Round 75 ends on March 31st, so get busy writing and e-mail [13] us your entry. Remember that there is a 1,500-word minimum, and that articles on practical “how to” skills for survival have an advantage in the judging.

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Comments Disabled To "OPSEC Tax Preparation, by X. Liberal CPA"

#1 Comment By CD On February 27, 2018 @ 1:24 pm

Thank you for writing this article even though it is extremely depressing. We have a small orchard and receive the Agriculture Statistics Survey from the USDA. So in addition to all the information the IRS collects the USDA also wants to knows what is produced, how much it sold for what it costs to raise it, etc. After consulting attorneys at the Farm-to-Consumer Legal Defense Fund, we don’t complete this survey as it has no enforcement, yet anyway and we do not accept any aid, in any form for the operation of our small orchard.

These government agencies, with the IRS being the worse by far, are so out of control. They really do believe that all money, property, crops, livestock, trees and anything of value or that has the capacity to earn income belongs to them and they are gracious enough to let us keep some of it.

So depressing.

#2 Comment By Red C On February 27, 2018 @ 2:14 pm

If you take the standard deduction instead of itemizing, it reduces the amount of information requested.

#3 Comment By Anonymous On February 27, 2018 @ 3:01 pm

Some good points. But doing anything on line puts you at risk as does your phone. The newer photo viewer software catalogs and categorizes all your photos. The cloud captures your files, your email captures all your friends names and info. The worst offender to opsec is of course the social media sites. Even if you don’t use them they can expose you because your friends and relatives do. That picture taken last month at your brothers birthday party has your smiling face and probably your name as well. Simply being online puts you out there.

#4 Comment By Anonymous On February 27, 2018 @ 3:26 pm

You have NO concept nor idea of the information that is required forcibly to be given to the IRS and the onerous cost & requirements of the IRS until you are (fortunate or unfortunate enough depending upon how you look at it) required to go through the estate tax process. The process is so convoluted, complicated, and corrupt that you WILL require a law firm or a VERY good accountant who is an expert in the tax codes that specializes in estate tax returns to complete the process if you want to keep any meaningful part of the estate your family pass on to you or at least tries to.

#5 Comment By Pigfarmer On February 27, 2018 @ 3:39 pm

I am a CPA as well. It is so refreshing to meet somone that believes the same way about the IRS being an arm of the tyrannical government. I hope one day that our paths will cross.
Thank you for taking the time to share your thoughts.

#6 Comment By Homer On February 27, 2018 @ 5:27 pm

So, to what would be the best way to go about setting up an offshore trust or LLC? Any ocompanies that handle this sort of thing?

#7 Comment By OneGuy On February 28, 2018 @ 3:55 pm

I would advise people to find a local CPA firm that does taxes and use them. Avoid the large companies that only do taxes. Then your CPA can help you create an LLC. But do not expect them to do anything illegal or sketchy AND you should not either. If you have a legitimate reason to form an LLC it is easy to do and if you have some vague idea that you can dodge taxes with a sketchy LLC no good CPA will assist you in that and that is a good thing for you and them.

As for offshore accounts; Don’t!
IF you are planning on avoiding taxes and IF you have millions THEN you can and will find those who will help you do this. IF you are smart, don’t do it.
One exception, a legal and honest exception. If you can get a bank account in Canada then do it. Put (after tax) money into that account just as you would an account in the U.S. Small sums; a few thousand or less a year and typically at regular intervals, say; $200 a month rather than $2400 once a year. Simply create a “offshore” savings account. Report it with your U.S. taxes (it can be handled by your CPA but it gets a little tricky because you must pay taxes and obey Canadian laws too.) Why, you ask? Well, for one reason only. Not to avoid taxes and not to do anything illegal, but simply to give you an option in the event of some mass disaster. It may still be possible for you to load up the car and drive to Canada and avoid whatever it is that happened in the states. But you will need money. This is not a “perfect” plan but it is an option. We do it but we have relatives in Canada and would be able to find a place to stay and some support. We do not expect to ever need this, our bug out pan is to bug in. But we do go to Canada every Summer and it is convenient to have easy access to Canadian dollars while there. (Obviously anyone who has gone to Canada knows that every bank will convert you U.S. dollars to Canadian AND that almost every business in Canada will accept American money at a markup of course. Also American credit cards work too.) But it is nice to have an account there just in case you need a little extra money.

#8 Comment By TrixieD On February 27, 2018 @ 7:55 pm

A note about keeping electronic copies of your tax returns on your computer:
We file paper returns every year but never enter our SSNs/EINs on the pdf form(s) that remain on the PC.
I recommend printing out the form with the relevant data typed in (names, figures, etc.) and then hand-writing the SSNs/EINs on the form(s) before mailing.
We also make paper copies of our tax forms before the SSNs/EINs are written in, and we keep those paper copies in a locked, fireproof filing cabinet.

#9 Comment By Jeff from Colorado On February 27, 2018 @ 8:09 pm

Check out Simon Black for additional information.

#10 Comment By Not So Free On March 1, 2018 @ 12:43 am

I have never filed electronically, and never will until forced to.
There is nothing of a personal nature on my computer.
I usually find the tax forms at the local library and hand write the info needed.
.
Yes, I’m an old(er) fart. No smartphone, no social media. This laptop is as far as I go.

#11 Comment By Granny Stout On March 1, 2018 @ 12:44 pm

I’m also a CPA. For the small business owners, be aware that Intuit has for the last few years been pushing their product “QuickBooks Online” really actively. They bury information about the desktop version of the product so deep in their website that a lot of folks don’t even realize it’s still available. QuickBooks Online has you storing all your business accounting transactions in the cloud. I foresee the day that the government will just “convenienty” go into your accounting data file, calculate your income tax, and automatically withdraw the “correct” amount of taxes from your bank account whether you want them to or not. I advise my clients to have their business accounting file on a computer not connected to the internet, but very few heed my advice, because they think I’m old-fashioned or a conspiracy theorist. But I advise you all, beware!

#12 Comment By lin lee On March 1, 2018 @ 7:20 pm

Thank you for this information, some of these things I had not thought about.

#13 Comment By tz On March 3, 2018 @ 11:12 pm

Of course you may get audited, and they will ask where the money went and might just confiscate it or impound your property for “money laundering”.
The IRS doesn’t obey its own rules and it doesn’t matter if you are innocent.
Assuming X. Liberal is using a computer, which can be seized (how is he encrypting everything? how did he get the article here for publication?), or uses almost anything online, it is being tracked – by Google, Facebook, Twitter, etc. Even here, the Amazon affiliate program tracks you (if you don’t use some blocker).

So you need to insure you NEVER email, or fax, or use your “surveilphone” when creating these trusts and other corporate entities. And China? The NSA specifically looks for things which go outside the USA and the whole finance with China or Chinese owned entities is fair game for FINCEN, the IRS, the NSA and more.

If you want to avoid the threat of government (which you didn’t detail – what do you fear? Confiscation? Seizure? – Can you access the assets in your trusts if the SHTF?), you need to reduce your attack surface, not try to create a Maginot Line.

#14 Comment By Ol’ Blogger On March 5, 2018 @ 11:26 pm

You should look at the number of foreign countries which own US assets – about $32-trillion worth.
[14]

The NSA’s role is not to target (whether an entity has a foreign company or not)- its role is to gather as much information as it can grab for their data mining algorithms to go to work. There is no special case of the NSA targeting a country or person or entity – they gather all data indiscriminately then use it when they are tasked.

To me it doesn’t matter how X. Liberal is encrypting- but that there are tools out there for the general public like us to encrypt. So far everything in this post has been perfectly legal and good information coming from a former accountant myself. You might want to check out proton mail which is an email that the NSA can’t decrypt.

It’s ensure not insure.