By OBBM Network Editorial Staff

Derived from an episode of Going Rogue With Lara Logan.

What would you do if the government told you to sign a contract you never agreed to?

Historical Roots of Direct Taxes

Payman Mottahedeh, founder and president of Freedom Law School, opened the conversation by tracing the origin of direct taxation in the United States. He explained that the Constitution originally required direct taxes to be apportioned among the states, a practice used in the late 1700s and early 1800s before being abandoned in the second half of the 19th century. “If you look it up for yourself at uscode.house.gov, you can see the law as it is written,” Mottahedeh said, emphasizing that the legal language, not personal opinion, supports his view.

This historical context, he argued, reveals that the modern federal income tax system is a departure from the Constitution’s original design. The shift, he suggests, was a legislative decision rather than a constitutional mandate.

IRS Enforcement Gaps and Government Reports

Central to Mottahedeh’s case are recent Treasury Inspector General for Tax Administration (TIGTA) reports. A 2020 TIGTA review found that high‑income non‑filers, amounting to billions of dollars in unpaid taxes, were largely left untouched by the agency. He cited the figure of 900,000 non‑filers and noted that “the IRS sent out one generic letter and about 10% of those people received a notice of deficiency,” a process that, by law, must be followed by a court challenge before any levy.

He also referenced a August 31, 2026 TIGTA report stating that the agency’s lack of resources prevents it from pursuing the richest non‑filers, who collectively owe an estimated $10 billion. “They literally said they don’t have enough funding from Congress,” Mottahedeh remarked, framing the agency’s inaction as evidence of systemic incompetence.

The Legal Mechanism: Refusing the 1040 Contract

According to Mottahedeh, the act of filing a 1040 form creates a contractual obligation to pay the government. “You sign a form that says you owe the federal government; until that moment you don’t actually owe it,” he explained. By refusing to sign, individuals can avoid entering that contract. He urged listeners to stop using the W‑4 form that employers require for tax withholding, arguing that the form is not legally mandatory and that courts have recognized the right to withhold consent.

He offered a practical step: write a petition to one’s congressional representatives stating, “I do not owe any income tax,” and attach the relevant statutory language. He claims that, historically, the IRS has focused enforcement on those who file returns, not on non‑filers, making the risk of prosecution minimal.

Criticism of Government Overreach and Economic Philosophy

The discussion also touched on broader philosophical concerns. Mottahedeh linked the IRS’s coercive tactics to a “communist‑style” agency lacking profit incentives, contrasting it with the free‑market principles championed by the Trump administration’s budget cuts. He suggested that the agency’s inefficiency is a direct result of those cuts, stating, “The IRS has forced collections, taking bank accounts and paychecks since 2011, and it’s a 90 percent plus crash in effectiveness.”

He framed the issue as a matter of personal responsibility and family stability, arguing that individuals should not fear a faceless bureaucracy that, in his view, seeks to “enslave” citizens through tax enforcement.

Practical Advice for Those Facing Tax Claims

For listeners who have already filed a return and now face a large tax bill, Mottahedeh recommended negotiating a payment plan while emphasizing the long hold times and understaffing of the IRS. He warned that the agency often requires a certified‑mail notice of deficiency before any collection action, providing a window for legal challenge.

He concluded with a call to action: visit StopTheFed.com, review the government’s own reports, and consider opting out of the income‑tax system altogether. “When you stop giving the rope to the IRS, you free yourself,” he said, positioning his strategy as a form of constitutional self‑defense.

While Mottahedeh’s approach is controversial and not widely accepted by mainstream tax professionals, his arguments reflect a growing segment of Americans skeptical of federal tax authority. Whether his legal interpretations hold up in court remains to be seen, but the conversation underscores a deepening divide over the role of government in personal finances.

The full episode of Going Rogue With Lara Logan is available on OBBM Network TV.