AFFIDAVIT OF TRUTH & FACT

Notice is hereby given that failure or refusal to contest this AFFIDAVIT OF TRUTH & FACT within twenty (20) days on a point-for-point basis shall be construed as constructive silence and concealment of incriminating evidence and shall create the legal presumption or conclusion that the authorities stated by the IRS do not exist and that the IRS agent(s) has/have acted individually under color of law or under pretense of law and not as an agent for the IRS and that such agent(s) is/are involved in fraud or extortion. If the IRS should choose to authorize activities by such agent in conflict with statutory or delegated authority, it shall be constructive evidence that the IRS is involved in fraud and extortion. IMPORTANT NOTICE: Receipt of this AFFIDAVIT OF TRUTH & FACT requires a response as stipulated above, acquiescence will be your answer to all below statements if respondents fail or refuse to provide a written response in the form of a rebuttal Affidavit. Acquiescence means A persons tacit or passive acceptance; implied consent to an act. Review Morris vs. NCR, 44 SW2d 433 which states: An Affidavit if not contested in a timely manner is considered undisputed facts as a matter of law. Also, review U.S. vs. Pruden, 424 F.2d 1021 (1970) which states: Silence can only be equated with fraud where there is a legal or moral duty to speak or where an inquiry left unanswered would be intentionally misleading We cannot condone this shocking behavior by the IRS. Our revenue system is based on the good faith of the taxpayer and the taxpayers should be able to expect the same from the government in its enforcement and collection activities. JOHN DOE SMITH, Authorized Representative 12345 N 5th Avenue Anywhere, Utah [11111] Affiant, J. Russell George INSPECTOR GENERAL FOR TAX ADMINISTRATION Department of the Treasury 1500 Pennsylvania Avenue NW Washington, DC 20220 Douglas Shulman IRS Commissioner INTERNAL REVENUE SERVICE Room 5226 1111 Constitution Avenue, NW Washington DC 20224 ACS Manager Memphis IRS Service Center PO Box 249 Memphis, TN 38101-0249 Respondents. NOTICE TO THE PRINCIPAL IS NOTICE TO THE AGENT, NOTICE TO THE AGENT IS NOTICE TO THE PRINCIPAL. Page 1 of 5

AFFIDAVIT OF TRUTH & FACT

State of Arizona County of Maricopa ) ss: )

1. It is a fact that, John Doe Smith, the real man, is the authorized representative for the U.S. Government held Trust entity known as JOHN DOE SMITH with account number 123-45-6789. 2. It is a fact that, Betty Joe Davis, the real woman, is the Authorized Representative for the U.S. Government held Trust entity known as BETTY JOE DAVIS with account number 222-22-2222. 3. It is a fact that said Authorized Representatives, John Doe Smith and Betty Joe Davis filed amended 1040X tax returns for years 2005, 2006, 2007 and original 1040 2008 tax return to recover over payment of tax and/or withheld credit not reported by others. 4. It is a fact that if Authorized Representatives were not to report and/or correct credit instruments issued to other parties, then their Trust entities (Donor) would be held obligated by the IRS to pay a gift tax under 26 USC 2502(d). 5. It is a fact that, Authorized Representatives did file tax returns for years 2005, 2006, 2007 and 2008 that reflected recovery of such credit using IRS information instruments such as the 1099-A and 1099-OID. 6. It is a fact that the INTERNAL REVENUE SERVICE (IRS) received said information instruments and tax returns and has issued a frivolous claim with a penalty threat that we either change our testimony as submitted or suffer a charge in the sum of $5000 and/or such IRS agent will/has unlawfully changed / modified Authorized Representatives tax returns. 7. It is a fact that, there is no evidence that the penalty threatened by the IRS has any basis in Title 26 USC or Internal Revenue Code (IRC). 8. It is a fact that, there is no evidence that our filed tax returns for years 2005, 2006, 2007 and 2008 are not valid, true, correct, complete, and of our firsthand knowledge.

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AFFIDAVIT OF TRUTH & FACT

9. It is a fact that, there is no evidence that my/our tax returns are not signed under the penalty of perjury. 10.It is a fact that, there is no evidence that our filed tax returns do not clearly show all required items of income, deductions, credits and withheld funds, and over paid taxes. 11.It is a fact that, there is no evidence that our tax returns are not in full agreement with supporting documentation and information filings. 12.It is a fact that, there is no evidence that our tax returns did not properly identify withheld funds that were previously unreported by others. 13.It is a fact that, there is no evidence that information filings (ie. 1099-A and 1099-OID) did not clearly show where the unreported withheld funds are being held. 14.It is a fact that, there is no evidence that the refund as requested by our filed tax returns 2005, 2006, 2007 and 2008 are not valid and due. 15.It is a fact that, there is no evidence that our filed tax returns do not contain information on which the substantial correctness of the self-assessment may be judged under 26 USC 6702(a)(1)(A). 16.It is a fact that, there is no evidence that our filed tax returns contain information that on its face indicates that the self-assessment is substantially incorrect under 26 USC 6702(a)(1)(B). 17.It is a fact that, there is no evidence that our filed tax returns are based on a position which the Secretary has identified as frivolous under subsection (c) under 26 USC 6702(a)(2)(A). 18.It is a fact that, there is no evidence that our filed tax returns reflect a desire to delay or impede the administration of Federal tax laws under 26 USC 6702(a)(2)(B). 19.It is a fact that, there is no evidence that our tax returns are based on positions identified as frivolous under 26 USC 6702(c). 20.It is a fact that, there is no evidence that we are not correctly reporting transactions (previously unreported or misreported by others) to cause the proper application and administration of federal tax laws by the IRS. 21.It is a fact that, there is no evidence that failure to make certain information filings (ie. 1099-A and 1099-OID) would not make me liable for Penalties for Failure-To-File Certain Information Returns or Furnish Certain Statements. 22.It is a fact that, there is no evidence that our tax returns for years 2005, 2006, 2007 and 2008 were not submitted on valid IRS forms. Page 3 of 5

AFFIDAVIT OF TRUTH & FACT

23.It is a fact that, there is no evidence that correcting or withdrawing our tax returns is not unlawful and/or frivolous. 24.It is a fact that, there is no evidence that correcting or withdrawing our amended return would not make us liable for a Failure-To-File Penalty. 25.It is a fact that, there is no evidence that gives the IRS the lawful authority to change the calculations of our sworn testimony (tax returns) that has been signed under the penalty of perjury.

I, John Doe Smith, the authorized representative for Trust entity known as JOHN DOE SMITH ACCT # 123-45-6789 and creator of this Affidavit, does hereby confirm and affirm that all facts stated herein are true, correct, complete to the best of my knowledge, not misleading, admissible as evidence, and are signed under the penalty of perjury.

Date: __________________

BY:_________________________________________ John Doe Smith, Authorized Representative seal

JURAT

State of Utah County of xxxxxxx ) ss: )

On the _____ day of __________________, 2009 before me, ________________________, personally appeared _________________________________ who proved to me on the basis of satisfactory evidence to be the person whose name is subscribed to this Page 4 of 5

AFFIDAVIT OF TRUTH & FACT

instrument and acknowledge to me that he is the person that executed this instrument. I certify under PENALTY OF PERJURY under the laws of the Utah state that the foregoing paragraph is true and correct. WITNESS by my hand and official seal.

________________________________________________ Signature of Notary Public

SEAL

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