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     In Order for any State to tax income they must ask permission from the Federal Government. That permission can be found in Title 5 U.S.C. 5517, and 5520. These statutes are for State, County and City respectively. I will put these sections here so you can see why an agreement must be written and in the hands of the state before they are allowed to lay a tax on income.

Sec. 5517. - Withholding State income taxes
(a) When a State statute -

     (1) provides for the collection of a tax either by imposing on employers generally the duty of withholding sums from the pay of employees and making returns of the sums to the State, or by granting to employers generally the authority to withhold sums from the pay of employees if any employee voluntarily elects to have such sums withheld; and

     (2) imposes the duty or grants the authority to withhold generally with respect to the pay of employees who are residents of the State;

     the Secretary of the Treasury, under regulations prescribed by the President, shall enter into an agreement with the State within 120 days of a request for agreement from the proper State official. The agreement shall provide that the head of each agency of the United States shall comply with the requirements of the State withholding statute in the case of employees of the agency who are subject to the tax and whose regular place of Federal employment is within the State with which the agreement is made. In the case of pay for service as a member of the armed forces, the preceding sentence shall be applied by substituting ''who are residents of the State with which the agreement is made'' for ''whose regular place of Federal employment is within the State with which the agreement is made''.

(b) This section does not give the consent of the United States to the application of a statute which imposes more burdensome requirements on the United States than on other employers, or which subjects the United States or its employees to a penalty or liability because of this section. An agency of the United States may not accept pay from a State for services performed in withholding State income taxes from the pay of the employees of the agency.

(c) For the purpose of this section, ''State'' means a State, territory, possession, or commonwealth of the United States.

(d) For the purpose of this section and sections 5516 and 5520, the terms ''serve as a member of the armed forces'' and ''service as a member of the Armed Forces'' include -

   (1) participation in exercises or the performance of duty under section 502 of title 32, United States Code, by a member of the National Guard;
and

   (2) participation in scheduled drills or training periods, or service on active duty for training, under section 10147 of title 10, United States Code, by a member of the Ready Reserve
   Parallel authorities for 5 USC 5517 (from CFR) 31 C.F.R. 215

Sec. 5520. - Withholding of city or county income or employment taxes

(a) When a city or county ordinance -

   (1) provides for the collection of a tax by imposing on employers generally the duty of withholding sums from the pay of employees and making returns of the sums to a designated city or county officer, department, or instrumentality; and

   (2) imposes the duty to withhold generally on the payment of compensation earned within the jurisdiction of the city or county in the case of employees whose regular place of employment is within such jurisdiction;

   the Secretary of the Treasury, under regulations prescribed by the President, shall enter into an agreement with the city or county within 120 days of a request for agreement by the proper city or county official. The agreement shall provide that the head of each agency of the United States shall comply with the requirements of the city or county ordinance in the case of any employee of the agency who is subject to the tax and

     (i) whose regular place of Federal employment is within the jurisdiction of the city or county with which the agreement is made or

     (ii) is a resident of such city or county. The agreement may not apply to pay for service as a member of the Armed Forces (other than service described in section 5517(d) of this title). The agreement may not permit withholding of a city or county tax from the pay of an employee who is not a resident of, or whose regular place of Federal employment is not within, the State in which that city or county is located unless the employee consents to the withholding.

  (b) This section does not give the consent of the United States to the application of an ordinance which imposes more burdensome requirements on the United States than on other employers or which subjects the United States or its employees to a penalty or liability because of this section. An agency of the United States may not accept pay from a city or county for services performed in withholding city or county income or employment taxes from the pay of employees of the agency.

  (c) For the purpose of this section -

     (1) ''city'' means any unit of general local government which -

    (A) is classified as a municipality by the Bureau of the Census, or

    (B) is a town or township which, in the determination of the Secretary of the Treasury -

      (i) possesses powers and performs functions comparable to those
associated with municipalities,

      (ii) is closely settled, and

      (iii) contains within its boundaries no incorporated places, as defined by the Bureau of the Census, within the political boundaries of which 500 or more persons are regularly employed by all agencies of the Federal Government;

   (2) ''county'' means any unit of local general government which is classified as a county by the Bureau of the Census and within the political boundaries of which 500 or more persons are regularly employed by all agencies of the Federal Government;

   (3) ''ordinance'' means an ordinance, order, resolution, or similar instrument which is duly
adopted and approved by a city or county in accordance with the constitution and statutes of the
State in which it is located and which has the force of law within such city or county; and

  (4) "'agency'' means -

     (A) an Executive agency;

     (B) the judicial branch; and

     (C) the United States Postal Service

Parallel authority 31 CFR 215

     Right from these you can see that the majority of people reading this are not those that are required to be liable for the income tax. The proof is in 31 CFR 215, which is rather large to place here. But the important points in 31 CFR are in the very beginning, which I will include here. There is another half way down. It would behoove the reader to go to the other sections on the government web page to see how they are totally working a fraud on the people of America when claiming we all owe an income tax when they cannot even supply the liability statute as what lies in the ATF section of 26 U.S.C... This is what the "Qualified Income Tax" as listed in 26 USC
6361 et sec. states, as well as Treasury Decision 7577 of January 22, 1979, Bull. No. 1979-4. You see when we found out about this the IRS pulled section 6361 as if it was repealed but it still exists as no repealing statute exists for it to be repealed. In the summary of the 6361 it states under General Rules;

This document provides final regulations relating to Federal collection and administration of qualifies State individual income taxes. Changes to the applicable tax law were made by the Federal-State Tax Collection Act of 1972 [Pub. L. 92-512, 1972-2 C.B. 684, 694] as amended by the Tax Reform Act of 1976 [Pub.L.94-455, 1973-3 C.B. (Vol.1)1] These regulations provide the States with guidance needed in determining whether to elect Federal collection and administration of their individual income taxes."

Title 31 -- Money and Finance: Treasury
Subtitle B -- Regulations Relating to Money and Finance
CHAPTER II -- FISCAL SERVICE, DEPARTMENT OF THE TREASURY
Part 215 -- Withholding of District of Columbia, State, city and county income or employment taxes by Federal agencies
215.1 Scope of part. [PDF]
215.2 Definitions. [PDF]
215.3 Relationship of Standard Agreement to existing agreements. [PDF]
215.4 Procedures for entering into a Standard Agreement. [PDF]
215.5 Procedures for an agreement other than a Standard Agreement. [PDF]
215.6 In general. [PDF]
215.7 Parties. [PDF]
215.8 Compliance by agencies. [PDF]
215.9 Withholding certificates. [PDF]
215.10 Change of legal residence by members of the Armed Forces. [PDF]
215.11 Agency withholding procedures. [PDF]
215.12 Miscellaneous provisions. [PDF]
215.13 Supersession, amendment and termination provisions. [PDF]

     This is all you need to see that you may not qualify as being subject to a federal or state income tax. I will highlight that which is critical in understanding if you fit the definition of one liable.

Subpart A--General Information

Sec. 215.1 Scope of part.

     This part relates to agreements between the Secretary of the Treasury and States (including the District of Columbia), cities or counties for withholding of State, city or county income or employment taxes from the compensation of civilian Federal employees, and for the
withholding of State income taxes from the compensation of members of the Armed Forces. Subpart A contains general information and definitions. Subpart B prescribes the procedures to be followed in entering into an agreement for the withholding of State, city or county income or employment taxes. Subpart C is the Standard Agreement which the Secretary will enter into with any State, city or county which qualifies to have tax withheld. Requests for deviations from this
Standard Agreement will be agreed to by the Secretary only if the State, city or county's unique circumstances require it.

Sec. 215.2 Definitions.

As used in this part:
(a) Agency means each of the executive agencies and military
departments (as defined in 5 U.S.C. 105 and 102, respectively) and the United States Postal Service; and in addition, for city or county withholding purposes only, all elements of the judicial branch.
(b) City means any unit of general local government.
(1) Which:
(A) Is classified as a municipality by the United States Bureau of the Census, or
(B) Is a town or township which, in the determination of the Secretary of the Treasury,
(i) Possesses powers and performs functions comparable to those associated with municipalities,
(ii) Is closely settled, and
(iii) Contains within its boundaries no incorporated places as defined by the United States Bureau of the Census; and
(2) Within the political boundaries of which five hundred or more persons are regularly employed by all agencies of the Federal Government.
(c) City income or employment taxes means any form of tax for which, under a city ordinance:
(1) Collection is provided by imposing on employers generally the duty of withholding sums from the pay of employees and making returns of the sums to a designated city officer, department, or instrumentality; and
(2) The duty to withhold generally is imposed on the payment of compensation earned within the jurisdiction of the city in the case of employees whose regular place of employment is within such jurisdiction. Whether the tax is described as an income, wage, payroll, earnings,
occupational license, or otherwise, is immaterial.
(d) Compensation as applied to employees of an agency and members of the Armed Forces means wages as defined in 26 U.S.C. 3401(a) and regulations issued thereunder.
(e) County means any unit of local general Government which is classified as a county by the Bureau of the Census and within the political boundaries of which 500 or more persons are regularly employed by all agencies of the Federal Government.
(f) County income or employment taxes means any form of tax for which, under a county ordinance:
(1) Collection is provided by imposing on employers generally the duty of withholding sums from the pay of employees and making returns of the sums to a designated county officer, department, or instrumentality; and
(2) The duty to withhold generally is imposed on the payment of compensation earned within the jurisdiction of the country in the case of employees whose regular place of employment is within such jurisdiction. Whether the tax is described as an income, wage, payroll, earnings, occupational license, or otherwise, is immaterial.
(g) District of Columbia income tax means the income tax imposed under 47 District of Columbia Code, chapter 15, subchapter II.
(h)(1) Employees for the purpose of State income tax withholding, means all employees of an agency, other than members of the armed forces. For city and county income or employment tax withholding, it means:
(i) Employees of an agency;
(ii) Members of the National Guard, participating in exercises or
performing duty under 32 U.S.C. 502; or
(iii) Members of the Ready Reserve, participating in scheduled
drills or training periods, or serving on active duty for training under 10 U.S.C. 270(a).
The term does not include retired personnel, pensioners, annuitants, or similar beneficiaries of the Federal Government, who are not performing active civilian service or persons receiving remuneration for services on a contract-fee basis.
(2) Employees for purposes of District of Columbia income tax withholding, means employees as defined in 47 District of Columbia Code 1551c(z).
(i) Members of the Armed Forces means all individuals in active duty status (as defined in 10 U.S.C. 101(22)) in regular and reserve components of the Army, Navy, Air Force, Marine Corps, and Coast Guard, including members of the National Guard while participating in exercises
or performing duty under 32 U.S.C. 502, and members of the Ready Reserve while participating in scheduled drills or training periods or serving on active duty for training under 10 U.S.C. 270(a).
(j) Ordinance means an ordinance, order, resolution, or similar instrument which is duly adopted and approved by a city or county in accordance with the constitution and statutes of the state in which it is located and which has the force of law within such city or county.
(k) Regular place of Federal employment means the official duty station, or other place, where an employee actually and normally (i.e., other than in a travel or temporary duty status) performs services, irrespective of residence.
(l) Secretary means Secretary of the Treasury and Fiscal Assistant Secretary or his designee.
(m) State means a State of the United States or the District of Columbia, unless otherwise specified.
(n) State income tax means any form of tax for which, under a State status:
(1) Collection is provided, either by imposing on employers generally the duty of withholding sums from the compensation of employees and making returns of such sums to the State or by granting to employers generally the authority to withhold sums from the compensation of employees, if any employee voluntarily elects to have such sums withheld; and
(2) The duty to withhold generally is imposed, or the authority to withhold generally is granted, with respect to the compensation of employees who are residents of such State.

[42 FR 33731, July 1, 1977, as amended at 55 FR 3590, Feb. 2, 1990; 55
FR 7494, Mar. 2, 1990]

TITLE 31--MONEY AND FINANCE: TREASURY

CHAPTER II--FISCAL SERVICE, DEPARTMENT OF THE TREASURY

PART 215--WITHHOLDING OF DISTRICT OF COLUMBIA, STATE, CITY AND COUNTY INCOME OR EMPLOYMENT TAXES BY FEDERAL AGENCIES--Table of Contents

Subpart C--Standard Agreement

Sec. 215.9 Withholding certificates.

Each agency may require employees or members of the Armed Forces under its jurisdiction to complete a withholding certificate in order to calculate the amount to be withheld. The agency shall use the withholding certificate which the State, city or county has prescribed.
Where the State, city or county has not prescribed a certificate, the agency may use a certificate approved by the Department of the Treasury. The agency may rely on the information in the certificate. Copies of completed certificates shall be provided to the taxing authority by agencies upon request.

Dear reader, have you yet seen any mention of the private sector employer or their employees mentioned that is subject to all these statutes and regulations for them to tax your pay, whether state or federal?

Now as to the question, can the state garnish your pay is answered here in Title 5. The answer has to be no, even when reading the last two sections of the above 5520 (a) (n) (1) and (2), when reading this section especially since the above does not state a private sector employee or employer. Remember the term "agency" and ask yourself the question , Is my employer an "agency" by definition in 31 C.F.R. 215?

Sec. 5520a. - Garnishment of pay

(a) For purposes of this section -

(1) ''agency'' means each agency of the Federal Government, including

(A) an executive agency, except for the General Accounting Office;

(B) the United States Postal Service and the Postal Rate Commission;

(C) any agency of the judicial branch of the Government; and

(D) any agency of the legislative branch of the Government, including the General Accounting Office, each office of a Member of Congress, a committee of the Congress, or other office of the Congress;

(2) ''employee'' means an employee of an agency (including a Member of Congress as defined under section 2106);

(3) ''legal process'' means any writ, order, summons, or other similar process in the nature of garnishment, that -

(A) is issued by a court of competent jurisdiction within any State, territory, or possession of the United States, or an authorized official pursuant to an order of such a court or pursuant to State or local law; and

(B) orders the employing agency of such employee to withhold an amount from the pay of such employee, and make a payment of such withholding to another person, for a specifically described satisfaction of a legal debt of the employee, or recovery of attorney's fees, interest, or court costs; and

(4) ''pay'' means -

(A) basic pay, premium pay paid under subchapter V, any payment received under subchapter VI, VII, or VIII, severance and back pay paid under subchapter IX, sick pay, incentive pay, and any other compensation paid or payable for personal services, whether such compensation is denominated as wages, salary, commission, bonus pay or otherwise; and

(B) does not include awards for making suggestions.

(b) Subject to the provisions of this section and the provisions of section 303 of the Consumer Credit Protection Act (15 U.S.C. 1673) pay from an agency to an employee is subject to legal process in the same manner and to the same extent as if the agency were a private person.

(c) (1) Service of legal process to which an agency is subject under this section may be accomplished by certified or registered mail, return receipt requested, or by personal service, upon -

(A) the appropriate agent designated for receipt of such service of process pursuant to the regulations issued under this section; or

(B) the head of such agency, if no agent has been so designated.

(2) Such legal process shall be accompanied by sufficient information to permit prompt identification of the employee and the payments involved.

(d) Whenever any person, who is designated by law or regulation to accept service of process to which an agency is subject under this section, is effectively served with any such process or with interrogatories, such person shall respond thereto within thirty days (or within such longer period as may be prescribed by applicable State law) after the date effective service thereof is made, and shall, as soon as possible but not later than fifteen days after the date effective service is made, send written notice that such process has been so served (together with a copy thereof) to the affected employee at his or her duty station or last-known home address.

(e) No employee whose duties include responding to interrogatories pursuant to requirements imposed by this section shall be subject to any disciplinary action or civil or criminal liability or penalty for, or on account of, any disclosure of information made by such employee in connection
with the carrying out of any of such employee's duties which pertain directly or indirectly to the answering of any such interrogatory.

(f) Agencies affected by legal process under this section shall not be required to vary their normal pay and disbursement cycles in order to comply with any such legal process.

(g) Neither the United States, an agency, nor any disbursing officer shall be liable with respect to any payment made from payments due or payable to an employee pursuant to legal process regular on its face, provided such payment is made in accordance with this section and the regulations issued to carry out this section. In determining the amount of any payment due from, or payable by, an agency to an employee, there shall be excluded those amounts which would be excluded under section 462(g) of the Social Security Act (42 U.S.C. 662(g)).

(h)
(1) Subject to the provisions of paragraph (2), if an agency is served under this section with more than one legal process with respect to the same payments due or payable to an employee, then such payments shall be available, subject to section 303 of the Consumer Credit Protection Act (15 U.S.C. 1673), to satisfy such processes in priority based on the time of service, with any such process being satisfied out of such amounts as remain after satisfaction of all such processes which have been previously served.

(2) A legal process to which an agency is subject under section 459 of the Social Security Act (42 U.S.C. 659) for the enforcement of the employee's legal obligation to provide child support or make alimony payments, shall have priority over any legal process to which an agency is subject under this section.

(i) The provisions of this section shall not modify or supersede the provisions of section 459 of the Social Security Act (42 U.S.C. 659) concerning legal process brought for the enforcement of an individual's legal obligations to provide child support or make alimony payments.

(j)
(1) Regulations implementing the provisions of this section shall be promulgated -

• (A) by the President or his designee for each executive agency, except with regard to employees of the United States Postal Service, the President or, at his discretion, the Postmaster General shall promulgate such regulations;

(B) jointly by the President pro tempore of the Senate and the Speaker of the House of Representatives, or their designee, for the legislative branch of the Government; and

(C) by the Chief Justice of the United States or his designee for the judicial branch of the Government.

(2) Such regulations shall provide that an agency's administrative costs in executing a garnishment action may be added to the garnishment, and that the agency may retain costs recovered as offsetting collections.

(k)
(1) No later than 180 days after the date of the enactment of this Act, the Secretaries of the Executive departments concerned shall promulgate regulations to carry out the purposes of this section with regard to members of the uniformed services.

(2) Such regulations shall include provisions for -

(A) the involuntary allotment of the pay of a member of the uniformed services for indebtedness owed a third party as determined by the final judgment of a court of competent
jurisdiction, and as further determined by competent military or executive authority, as appropriate, to be in compliance with the procedural requirements of the Soldiers' and Sailors' Civil Relief Act of 1940 (50 App. U.S.C. 501 et seq.); and

(B) consideration for the absence of a member of the uniformed service from an appearance in a judicial proceeding resulting from the exigencies of military duty.

(3) The Secretaries of the Executive departments concerned shall promulgate regulations under this subsection that are, as far as practicable, uniform for all of the uniformed services. The Secretary of Defense shall consult with the Secretary of Transportation with regard to the promulgation of such regulations that might affect members of the Coast Guard when the Coast Guard is operating as a service in the Navy

Now here are the parallel authorities for 5520(a)

5 CFR part 582
32 CFR part 112
32 CFR part 113
39 CFR part 491
So let us look at one to see if your pay can be garnished by the state.

Title 5 -- Administrative Personnel
CHAPTER I -- OFFICE OF PERSONNEL MANAGEMENT
Part 582 -- Commercial garnishment of Federal employees' pay

Does this mention that your pay can be garnished? Only if you are an employee of a "AGENCY." To further clarify you are not to be subject to any garnishment for income tax is found in the notes of the 5520(a) section
EX. ORD. NO. 12897. GARNISHMENT OF FEDERAL EMPLOYEES' PAY
Ex. Ord. No. 12897, Feb. 3, 1994, 59 F.R. 5517, provided:

By the authority vested in me as President by the Constitution and the laws of the United States of America, including section 5520a(j)(1)(A) of title 5, United States Code, as added by section 9 of Public Law 103-94, it is hereby ordered as follows:

Section 1. The Office of Personnel Management, in consultation with the Attorney General, is designated to promulgate regulations for the implementation of section 5520a of title 5, United States Code, with respect to civilian employees and agencies in the executive branch, except as provided in section 2 of this order.

Sec. 2. The Postmaster General is designated to promulgate regulations for the implementation of section 5520a of title 5, United States Code, with respect to employees of the United States Postal Service. William J. Clinton

Now with all this background in mind you can see that you first have to be liable for a federal income tax before a State can require you to pay a State income tax. That is why the Congress cannot answer the people that placed the question as to what makes the common man in the states liable for an income tax. There are no such liability statutes for a personal income tax as shown here.

I will take one State's income tax agreement, which is well over 50 pages, to show what all States have to have in order to begin to have any right to lay a tax on income upon certain people that are not necessarily you. If a State says they have no Tax Agreement they are either lying or do not want to be caught in their R.I.C.O. action towards all people in the state that are not an "agency" employee and their employers are not defined as an "Agency" subject to an income tax withholding.

New Jersey had a tax agreement long before they instituted their income tax scam in 1976 and the Tax Agreement shows that to be. When reading the Agreement you will note many pages carrying the same page number. That is because within the Agreement are addendums and other agreements that have to have their own page 1, 2 , 3 etc., etc. The previous agreement concerned ATF type taxes, motor fuel taxes, etc. The list is extensive and with the new Tax Agreement now includes personal income tax since the State had to make a new Agreement to institute a personal income tax on "AGENCY" employees.

Many people have asked their states for the Tax Agreement only to be turned away by the state people saying they don't know what the party is asking or they say they don't have one. Now all of you reading this know it is a lie and they are covering up the fact that when one gets this Tax Agreement the scam will be uncovered, especially when the people start digging into what I am presenting here. The State of North Carolina is in the category of play dumb mode, but in the State of North Carolina instructions to fill out a NC1040 Form, it clearly states that you are to fill out a NC 1040 on the determination that you are liable for a federal tax and if you don't have to file a federal tax than fill out a NC 1040 as if you did have to file a federal 1040. Now I ask you, how much double speak can one take from government that is out to rob you of your non taxable pay? How can you fill out a NC 1040 when you have no federal tax liability to go by to fill out a NC 1040? It's the same as saying, fill up this milk jug as if you had the milk to fill it and if you don't you will be prosecuted..

You will note in the Tax Agreement document of New Jersey the Agreement tells the State to rely on the IR Code sections listed and in the federal government manuals that are included in the Tax Agreement they tell the State exactly what is to be written in the letter to the taxpayer when they notify him of a tax due. With this in mind I want you to note these pages in the IRS manual supplied to each state, they are page 1272-381, 382. Then page 1272-386 showing gift tax is under a BMF not an IMF. Pages 1272-395, 395 shows the letter IRS tells the State you should receive when you don't do some things they say you should, like not filling up the milk jug when you have no milk. . And finally Exhibit (33) 00-3 showing all the States having a tax agreement and what federal codes apply. What it particularly interesting, that many of us already know, is look what state has the Department of Treasury listed. Is it where everyone thinks it is in D.C.? Now I refer you to 27CFR part 250.11. This just so happens to be the regulation for 26 USC "Collection Authority," as cited in 68 A Stat. 775 and 70 Stat 391 and found in T.C. ATF-48 Federal Register 13551, Mar. 31, 1978 as required by Title 1 Code of Federal Regulations Subpart B section 21.40 and 21.41.

It is well known by the true researches in America that 80 percent of the American men and women do not have a tax liability and neither the Congress nor the Private Internal Revenue Service will provide that which cannot exist. They would be bending over backwards to give it to you if there was one that affects the common man and woman living in the areas called North Carolina, New York, California, etc., etc.. Now I did not say State of North Carolina, New York, or California for a reason, which is too complicated to go into as this for Tax Agreements Only.
There are no statutes written by Congress that imposes a tax liability for the private man or woman and that is why no State can write a statute that imposes a liability either. The proof is in the State of North Carolina tax instructions that says the federal liability determines state liability. Absent this federal liability, the State personnel are involved in one gigantic R.I.C.O. action against the people in conspiracy with the Internal Revenue Service..

So with that I now present the State Tax Agreement that all States are mandated to have to implement their income tax scam.

The Informer July 2003

AGREEMENT

ON

COORDINATION OF TAX ADMINISTRATION

BETWEEN

THE STATE OF NEW JERSEY

AND

THE INTERNAL REVENUE SERVICE

                       AGREEMENT ON COORDINATION OF TAX ADMINISTRATION

In the interest of extending mutual benefits to be derived

from the coordination of tax administration by the State of

New Jersey and the Internal Revenue Service. U. S. Department of

the Treasury, the following agreement is entered into for

the exchange of tax information and the carrying out of joint

arrangements to improve the enforcement of the tax laws of

their respective jurisdictions.

(1) Establishment of Mutually Agreeable Programs - The

Director, Division of Taxation for the Department of the

Treasury of the State of New Jersey. and theDistrict Director

of Internal, Revenue, Newark. New Jersey will establish

mutually agreeable programs to exchange information on a

reciprocal basis in order to secure returns, improve enforce-

ment, efforts, determine tax liability, and effect col1ections

of. taxes from persons subject to tax under either jurisdiction.

       (2) Consideration of Differences in State and Federal

           Tax Structures - It is recognized that differences

in tax structures and rates, statutory authority regulations,

admistrative procedures, and available enforcement resources

must be given appropriate consideration in determining the

extent to which the State and the Internal Revenue Service

can reasonably be expected to undertake to provide information

                                        OFFICIAL USE ONLY

                                                         - 2 -


and assistance and evaluating the benefits to be derived there-

from.
           ( 3) Basis for Instituting Actions - This agreement pro-

vides the general basis for achieving the objectives desired

in the coordination of tax administration and the nature of the

actions to be taken in accordance with these objectives. The

actions included in the categories referred to in the attach-

ment to this agreement, if not already in effect, will be

initiated at the earliest practicable date.

          (4) Additional Aspects of Coordination - The State

officers and the District Director will consider additional

aspects of coordination and make such recommendations to the

parties to this agreement respecting any substantial changes

in the attachment as may from time to time appear desirable.

If either party to this agreement determines that modification

or supplementation would be in the interest of improved mutual

exchange or coordination he will advise the other party of

the desired change and, within a reasonable period, arrange-

ments will be made to amend or revise the agreement on a

mutually satisfactory basis.

               (5) Changes in the Attachment Not of a Substantial

                    Nature - Changes not of a substantial nature in the


                                                      OFFICIAL USE ONLY


                                                         - 3 -

provisions of the attachment to this agreement may be made by

mutual consent of the State officers and the District Director.

Whenever either the State or the Federal officials are of the

opinion that highe rauthority should be consulted before under-

taking such changes, they will consult such authority and there-

after inform the other officials of the result of the consultation.


APPROVED:
Governor of New Jersey                                   Commissioner of Internal Revenue

Signed at Trenton, New Jersey                            Signed at Washington, D.C.
(signature omitted)                                            (signature omitted)

This 15th day of September, 1966                       This 27th day of September, 1966



                                AGREEMENT ON COORDINATION OF TAX ADMINISTRATI0N


The State of New Jersey and the United States

Internal Revenue Service. U. S. Department of the Treasury

recognize the mutual benefits to be derived through

coordination of their tax administration program to

secure returns, determine tax liability, and effect collection of

taxes, and the parties (--updating and renewing their

agreement of September 27, 1966- -) do hereby agree to

continue cooperative programs already established and to

enter into additional arrangements designed to improve the

administration and enforcement of the tax laws of their

respective jurisdictions. With these objectives, officials of

the State, acting under authority vested in or delegated to

them to administer State tax laws, and the District Director

and other appropriate officials of the Internal Revenue Service

will consult from time to time regarding their respective

enforcement facilities and problems, and will establish

mutually agreeable programs for the exchange of information

and assistance.



                                                                - 2 -


          1.     Basis for Instituting Actions - This agreement

provides the general basis for achieving the stated objectives

in the coordination of tax administration and the general nature

of the actions to be taken in accordance with these objectives.

Specific arrangements to achieve these objectives will be

initiated in a manner and at such time as is mutually agreeable

to the appropriate State and Internal Revenue Service officials.

They shall explore and adopt mutually acceptable techniques

and modes of exchange which will provide the most useful

data, at the least possible cost and with least possible

interruption to their respective operating routines. To this

end, they will seek to attain the maximum exchange of data

by electronic and mechanical means.

           Modifications of or supplementations to this agreement

which are not of a substantial nature may be made by such

officials without consulting higher authority, but proposed

changes of a substantial nature will be referred to the Governor

and the Commissioner of Internal Revenue.


                                                         - 3 -


                2.  Inspection of Tax Returns - This agreement shall

constitute the requisite authorization for designated personnel

of the Internal Revenue Service to inspect all classes of State

tax returns.'This agreement shall also constitute the

requisite authorization for designated tax personnel of the

State to inspect income, estate, gift, excise and all other

classes of Federal tax returns (except returns relating to:

the tax on wagering, Chapter 35; the occupational tax on coin-

operated devices, Subchapter B of Chapter 36; and the tax on

machine guns and certain other firearms, Chapter 53) for

the purpose of administering State tax laws or for the purpose

of furnishing information to local tax officials for use in

administering local tax laws; this authorization shall continue

in effect until such time as the Commissioner of Internal

Revenue by written notice to the Governor provides that such

inspection will be permitted only on the basis of periodic

applications therefor. The inspection of Federal returns

pursuant to this authorization will be for the purpose of

administering the following State tax laws:

                    Title 54 of the Revised Statutes of New Jersey


                                                      - 4 - 

         As a prerequisite to inspection by State tax

personnel of Federal returns or receipt of related information,

the Governor agrees to furnish to the District Director of

Internal Revenue at Newark a list showing the names, official

titles, and if feasible the social security numbers, of all

State tax personnel designated by the Governor to inspect

Federal tax returns or receive related information. Such

list will note whether any State tax personnel so designated

are limited to the inspection of certain classes of Federal

tax returns or related information. Additions to and

deletions from the list will be furnished as they occur.

Likewise, information concerning Internal Revenue Service

personnel designated to inspect State tax returns or related

information shall be furnished to the State in the form and

manner requested by the State.

           Before Federal tax return, or taxpayer name and

address, information may be furnished by State tax authorities

to tax officials of a political subdivision of the State for use

in administering the tax laws of such subdivision, the Governor



                                                  - 5-



will request authorization from the Conmmissioner of

Internal Revenue, stating the official title of the tax officials

who will receive the tax return information, indicating the

specific data to be furnished, and referring to the local tax

laws which such officials are charged with administering. In

this event, the State agrees to furnish to local tax officials

only such tax return data as is directly pertinent and

essential to the administration of the local tax laws, will

exercise diligence to assure that local tax officials take

appropriate steps to prevent unauthorized use or disclosure

of such information, and will maintain a list of the names of

the local tax officials to whom the information is furnished.


                     3.          Delinquent Returns and Collection of Taxes

Under such arrangements as may be practicable and feasible,

the appropriate State and Internal Revenue Service officials

will furnish each other information which will assist in

locating the whereabouts sources of income, employers, or

real and personal property of persons whose tax accounts are

delinquent. Additionally, they will exchange lists of taxpayers


                                                    - 6 -


and other information relevant to the identification of persons

who have fai1ed to file tax returns.

                4.      Cooperative Audits and Audit Adjustments -

Within the framework of available enforcement resources, the

appropriate State and Internal Revenue Service officials will

develop cooperative return selection and examination programs

with the objective of minimum duplicate audit effort, increased

Federal and State audit coverage, minimum taxpayer contact

and optimum revenue results. They will furnish each other,

in accordance with mutually agreed schedules and routines,

information on audit adjustments mnde by their respective

offices, and such other information as will assist in determining

final tax liability.

              5.    Scope of Exchange - Other information relevant to

the administration of State and Federal taxes may be exchanged,

if feasible, under arrangements made by the appropriate State

and Federal tax officials. Such informtion may include, but

shall not be limited to, lists, magnetic tapes, transcripts or

abstracts pertaining to: (a) taxpayer identity and address, and


                                                  - 7 -


tax return and related data; (b) tax refunds and rebates; (c)

registrations of automobiles, trucks, tractors, and other

highway motor vehicles; (d) distributors and suppliers of

motor fuels and special fuels; (e) organizations exempt from

taxes under State or Federal law and revocation of exempt

status; (f) individuals, partnerships, and corporations engaged

in a specific type of business or profession; (g) incorporations

and dissolutions of corporations; (h) valuations and appraisals

of real or personal property; (i) inventories of lock boxes of

decedents; (j) employers, together with their addresses and

identification numbers; and (k) other data which the appropriate

State and Federal officials may deem to be useful in tax

administration.

               6.       Other Cooperative Activities - In addition to the

exchange of tax information. State and Internal Revenue Service

officials will, to the extent feasible, extend to each other

assistance in other tax administration matters.

This may include such activities as taxpayer assistance, stocking of

tax forms for the public, training of personnel, special

statistical studies and compilations of data, development and

improvement of tax administration systems and procedures,



                                                 - 8 -


and such other activities as may improve tax administration.

                7.     Limitations - Differences in tax structures and

rates, statutory authority, regulations, administrative pro-

cedures. and available resources must be given appropriate

consideration in determining the extent to which the State

and the Internal Revenue Service can undertake to provide

information and assistance to the other.

              All tax information furnished pursuant to this

agreement, irrespective of the manner, form or mode, shall

be used solely for the purpose of tax administration and

shall not be made public or otherwise used except to the

extent and in the manner permitted by applicable laws, rules

or regulations.

       Information genera1ly will not be furnished respect-

ing any case in which prosecution is pending or is under

consideration, but may be furnished after the criminal aspects

of a case have been finally disposed of, irrespective of the

method of disposition.

                                                          - 9 -

                   8.    Officials to Contact for the Obtaining of

                          Information - Requests by the State for tax

return information in magnetic tape mode will be made to

the Commissioner of Internal Revenue, attention D:O.

Requests for physical inspection or copying of Federal tax

returns showing addresses within the State will be made to

the Director, Internal Revenue Service Center. 11601

Roosevelt Boulevard, Philadelphia, Pennsy]vania, 19155;

requests for audit abstracts and reports pertaining to such

returns will be made to the District Director at Newark;

for tax returns showing addresses outside the State, the

requests will be made to the Commissioner of Internal

Revenue, attention CP:C:D. Requests by Internal Revenue

Service personnel for inspection or copying of State tax

returns and related documents will he made to such State

officials as the Governor or his delegate shall designate.


              9.     Protecting the Confidentiality of Tax Returns -

The Governor hereby designates the Director of Taxation to

be responsible for maintaining the safeguards necessary to



                                               - 10 -

preserve the Confidentiality of Federal l tax return information

in the hands of State, and if applicable local, tax authorities,

and for maintaining the list of local tax officials to whom

information is furnished.

             The appropriate State and Internal Revenue Service

officials shall take all steps necessary to safeguard the

storage and handling of tax return data exchanged under this

agreement -- whether in hard copy, photocopy, magnetic tape

or other form. All personnel having access to tax returns

or tax return data in any form shall be reminded in writing

of the criminal penalties for any unauthorized disclosure of

tax returns or data therefrom..


APPROVED:
(signature omitted)                                                                               (signature omitted)                 
Governor of the                                                                           Commissioner of
State of New Jersey                                                                     Internal Revenue

Signed. at Trenton, New jersey                                                     Signed at Washington, D. C.
this 6th day of Nov., 1970                                                             this 30th day of November, 1970




                             AGREEMENT ON COORDINATION OF TAX ADMINISTRATION

Section 1. Introduction

        1.1    The Agency and IRS recognize the mutual benefits to be derived

through coordination of their tax administration programs to secure

returns, determine tax liability, and effect collection to taxes; and

the parties do hereby agree to continue, to the extent permitted by law,

the cooperative programs already established and to enter into additional

arrangements designed to improve the administration and enforcement of

tax laws to their respective jurisdictions. Officials of the Agency,

acting under authority vested in or delegated to them to administer

State tax laws, and the appropriate officials of IRS will consult from

time to time regarding their respective enforcement efforts and will

establish mutually agreeable programs for the exchange of information

and assistance.

       1.2   This agreement provides the general basis for achieving

coordination of Federal and State tax administration. Specific arrange-

ments will be initiated in a manner and at such time as are mutually

agreeable to Agency and IRS officials. They shall explore and adopt

mutually acceptable techniques and modes of exchange which will be most

beneficial to improved tax administration with the least possible inter-

ruption of their respective operating routines and with strict adherence

to laws, regulations, and rules for protecting the confidentiality of

returns and return information.


Section 2.   Definitions

           For purposes of this agreement, the following definitions shall

apply:

           2.1 Agency.   The term "Agency" means            Division of Taxation____________
                                                                                   (Name of State agency,
              of the Department of the Treasury_______________________________________
                           body, or commission)

           2.2     The term "IRS" means the Internal Revenue Service,

U. S. Department ot the Treasury.

2.3     State.    The term "State" means the   ___________    State of_______________________
                                                                                                                         (Name of State,
-          New Jersey ____________________________________________________________
    Commonwealth, etc.) 

        2.4      Agency Representive. The term  "Agency Representative"

means an Agency officer or employee designated in writing by the head

of the Agency as an individual who is to inspect or receive Federal

returns or Federal return information on behalf of the Agency as provided

by section 6103(d) of the Code, but only so long as the duties and

employment or such officer or employee require access to Federal returns

and Federal return information for purposes or State tax administration.

        2.5       Federal Return.      The term "Federal return" means any tax or

information return, declaration of estimated tax, or claim for refund

required by, or provided for or permitted under, the provisions of the

Code which is filed with the IRS by, on behalf of, or with respect to

any person, and any amendment or supplement thereto, including supporting

schedules, attachments, or lists which are supplemental to, or part of,

the return so filed.




                                                                - 3 -

         2.6       Federal Return Information.          The term "Federal return

information" means -----

               (a) a taxpayer's identity, the nature, source, or amount of

his income, payments, receipts, deductions, exemptions,

credits, assets, liabilities, net worth, tax liability,

tax withheld, deficiencies, overassessments, or tax pay-

ments, whether the taxpayer's Federal return was, is being,

or will be examined or subject to other investigation or

processing, or any other data, received by, recorded by,

prepared by, furnished to, or collected by IRS with

respect to a Federal return or with respect to the

determination of the existence, or possible existence,

of liability (or the amount thereof) of any person under

the Code for any tax, penalty, interest, fine, forfeiture,

or other imposition, or offense; and

          (b) any part of any written determination or any background

file document relating to such written determination (as

such terms are defined in section 6110(b) of the Code)

which is not open to public inspection under section 6110

of the Code.

     2.7       State Return. The term "State return" means any tax or

information return, declaration of estimated tax, or claim for refund

required by, or provided for or permitted under, the provisions of the




                                                           - 4 -      


internal revenue laws, or related statutes, of the State, and any

amendment or supplement thereto, including supporting schedules,

attachments, or lists which are supplemental to, or part of, the

return so filed.

     2.8 State Return Information.      The term "State return infor-

mation" means a taxpayer's identity, the nature, source, or amount of

his income, payments, receipts, deductions, exemptions, credits, assets,

liabilities, net worth, tax liability, tax withheld, deficiencies, over-

assessments, or tax payments, whether the taxpayer's State return was,

is being, or will be examined or subject to other investigation or

processing, or any other data, received by, recorded by, prepared by,

furnished to, or collected by the Agency with respect to a State return

or with respect to the determination of the existence, or possible

existence, or liability (or the amount thereof) of any person under

the internal revenue laws, or related statutes, of the State for any

tax, penalty, interest, fine, forfeiture, or other imposition, or

offense.

       2.9    Inspection.      The term "inspection" means any examination or

a return or return information.

     2.10    Disclosure.     The tern "disclosure" means the making known to

any person in any manner whatever a return or return information.

     2.11   State Tax Administration.    The term "State tax administration"

              (a) means --


                                                              - 5 -

             (i)   the administration, management, conduct, direction,

and supervision of the execution and application of the

revenue laws, or related statutes of the State, and

          (ii) the development and formulation or State tax policy

relating to existing or proposed internal revenue laws, or

related statutes, of the State, and

     (b) includes assessment, collection, enforcement, litigation,

and statistical gathering functions under such laws or

statutes.

       2.12     Code.     The tem "Code" means the Internal Revenue Code of

1954, as amended.

Section 3.     Disclosure of Federal Returns and Federal Return Information____________________________

        3.1   Under the laws of the state, the Agency is charged with the

responsibility tor the administration of taxes imposed on ____________________________________________
                                                                                                                                   (specify)

___________________________________________________________________________________________________                                                                                    SEE                              SEE ATTACHED LIST
_______________________________________________________________________________________
_______________________________________________________________________________________
_______________________________________________________________________________________
_______________________________________________________________________________________

Federal returns and Federal return information (whether originals, paper

copy, photocopy, microfilm, magnetic tape, or any other form) received

                         AGREEMENT ON COORDINATION OF TAX ADMINISTRATION

Section 3. Disclosure of Federal Returns and Federal Return Information

     3.1 Under the laws of the State, the Agency is charged with

the responsibility for the administration of taxes imposed on:

                                         -6-

pursuant to this agreement will be used for the purpose of, and only

to the extent necessary in, State tax administration.

        3.2 This agreement constitutes the requisite authorization

pursuant to section 6l03(d) of the Code for IRS to disclose to, and

permit inspection by, an Agency Representative of Federal returns and

Federal return information relating to taxes imposed by chapter(s)

1,   2,    6,   11,   12,   21,   23,   24,   44,   51,   52,   and   Subchapter_____________________

____D of 36                                       of the Code.

         3:3.    Upon the occurrence of any change in employment, duties, or

other relevant matters affecting an Agency Representative's right of

access to Federal returns and Federal return information or status as

Agency Representative, the head of the Agency shall promptly advise IRS

in writing that such individual is no longer an Agency Representative.

        3.4   An Agency Representative to whom a Federal return ot a tax-

payer or Federal return information relating to a taxpayer has been

disclosed as provided by section 6103(d) of the Code and paragraph 3.2

ot this agreement may thereafter disclose such return or return infor-

mation:

               (a)  to another employee or the Agency for the purpose of,

                    and only to the extent necessary in, the administration

                    of the State tax laws for which the Agency is responsible;

               (b) to another officer or employee of the State to whom such

                    disclosure is necessary in connection with processing,

                    storage, and transmission of such returns and return



                                                       - 14 -

Section 1.  Limitations

     7.1   Subject to manpower and time considerations, IRS may in its

discretion prepare and furnish to the Agency, upon written request by

the head or the Agency, special tabulations or compilations of Federal

returns or Federal return information to which the Agency is granted

access pursuant to section 6103(d) of the Code and the terms of this

agreement.

     7.2   Pursuant to the provisions of section 6l03(p)(2) of the Code,

IRS may charge the Agency a reasonable fee for furnishing Federal

returns and Federal return information under the terms of this agreement.

     7.3   Under no circumstances shall the Agency permit any Federal

return or Federal return information to be inspected by or disclosed

to, an individual who is the chief executive officer of the State or any

person other than one described in section 3 of this agreement.

     7.4    Notwithstanding any other provision of this agreement, IRS

shall not disclose or make known in any manner whatever to any person

described in section 3 of this agreement--

               (a) any original, copy, or abstract of any return, payment

                    or registration made pusuant to chapter 35  of the Code

                    (relating to taxes on wagering);

              (b) any record required for making any such return, payment,

                   or registration made or required pursuant to chapter 35,

                   which IRS is permitted by the taxpayer to examine or

                   which is produced pursuant to section 7602, of the Code

                   (relating to the examination or books and witnesses); or



                                                      - 15 -

                (c)  any information obtained by the exploitation of any such

                      return, payment, registration, or record made or required

                     pursuant to chapter 35.

     7.5   Notwithstanding any other provision of this agreement, IRS

shall not disclose or make known in any manner to any person described

in section 3 of this agreement information which was obtained pursuant

to a tax convention between the United States and a foreign government.


Section 8.    Officials to Contact tor Obtaining Information

     8.1   Requests by the Agency for Federal return information in

magnetic tape mode should be made to the Commissioner of Internal

Revenue, Attention ACTS:A. Requests for physical inspection or copying

of Federal returns showing addresses within the State should be made to

the Director, Internal Revenue Service Center,           Holtsville,__________________
                                                                                                            (address)
New York          11799            (Brookhaven Services Center);___________________;

and requests for inspection and copying of audit abstracts and reports

pertaining to such returns should be made to the District Director(s) at

Newark, New Jersey_______________________________________, who will

be responsible for making the proper arrangements for such inspection.

     8.2   Requests by the head of the Agency for Federal returns of tax-

payers or Federal return information relating to taxpayers showing

addresses outside the State should be made to the appropriate District

Director.

     8.3   Requests by authorized officers and employees of the IRS for

inspection or copying of State returns and State return information



                                                        - 10-

should be made to          Director,             New Jersey Division of Taxation____________________
                                ( title of agency official)

Section 9.1   Termination of Modification of Agreement

     9.1   The provisions of this agreement are subject to the provisions

     Section 6.4 of the Agreement on Coordinaton of Tax Administration,

signed by the Commissioner of Internal Revenue on Feb. 22    , 1976, and

by the      State Treasurer          , on    December 29         , 1976, and
             (Title of agency official)
by the     Attorney General         of the         State                     of
         (Governor or Attorney General)            (State or Commonwealth)

    New Jersey                          is hereby amended to read as follows:
         (Name of State)

               6.4        Processing of Federal returns or Federal return
      information received by the Agency from IRS in the form of
      microfilms, photoimpressions, magnetic tapes, or other
     format (including reformatting or reproduction, or conver-
     sion to magnetic tapes, punch cards, or hard copy printout)
     and transmission and storage of such Federal returns or
     Federal return information by or on behalf of the Agency
     shall be performed only by use of State owned or operated
     computer or other facilities. In those cases where such
     facilities used by the Agency are shared with other State
     agencies, the Agency will assure that only those persons
     described in section 3 of this agreement will have access
     to Federal returns or Federal return information, that,
     in the case of processing of Federal returns and Federal
     return information, such processing is conducted under the
     immediate supervision and control of Agency Representatives
     or other authorized employees of the Agency, and that the
     processing, transmission, or storage of Federal returns or
     Federal return information by use of such shared facilities
     is performed in a manner which meets the requirements of
     section 6.1 of this agreement.      

APPROVED:

_(signature omitted)________________                     ____(signature omitted)_______________
        (signature)                                                                         Commissioner of Internal Revenue

State Treasurer              
(title of ageny official)

Signed at Trenton, New Jersey                                    Signed at Washington, D. C., this

this 24th  day of     April, 1977                                      1 day of               June, 1977.

.

                                                                            - 2 -

MEMORANDUM

Date:    Memorandum June 27,1983

to:         Director, Disclosure and Security Division
             National Office
attg:       Michael Sincavage   PM:S:DS:O:D

from:     Disclosure Officer
            Newark District Office
______________________________________________________________________________________

Subject: Implementation Agreements

Pursuant to your June 14,1983 request, find enclosed a
complete copy of our current agreement with the New Jersey
Division of Taxation.

Be advised that this is the only agreement with the
jurisdiction of the Newark District.

If you have any questions concerning this matter,
please contact our office at FTS # 341-2494.

Stephen D. Fedlam

GUIDELINES FOR IMPLEMENTATION OF THE
AGREEMENT ON COORDINATION OF TAX ADMINISTRATION
DEPARTMENT OF THE TREASURY, DIVISION OF TAXATION NEW JERSY/
INTERNAL REVENUE SERVICE

I.   General Purposes and Objectives

     1)  Under the authority of Section 6103(d) of the Internal

Revenue Code, as amended by the Tax Ref'orm Act of 1976, the

New Jersey Department of the Treasury, Division of Taxa-

tion (hereafter referred to as the Agency) and the

Commissioner of Internal Revenue adopted the Agreement on

Coordination of Tax Administration. This Agreement has

been in full force and effect since June 1, 1977.

     2)   In order to facilitate the implementation of the Agreement

the Director of the Newark District, Internal Revenue Ser-

vice (hereafter referred to as Director); the Director,

Brookhaven Service Center, Internal Revenue Service (here-

after referred to as Director, BSC); and the Agency

consider it mutually beneficial to state the procedures

and understandings concerning the physical exchange of information.

     3)   Therefore, in order to implement the Agreement on Coordina-

tion of Tax Administration, the Director; Director, BSC,

and the Agency agree to establish and implement the following guidelines.


Any line marked with a # is for Official Use Only


                                                               - 2-

Liaison Officials:
The Assistant Director, Special Procedures and Investigations,

Division of Taxation, and the Disclosure Officer of the Newark

District will be the primary liaison officials for all exchange

program matters. In addition, the Disclosure Officer, Brook-

haven Service Center; the Chief, Centralized Services, Newark

District; and the Chief, Systems and Methods Division of

Taxation, may be contacted regarding any problems relating

to the transmittal of documents between our offices.

III.   Types of Returns and Return Information

The Director, Director BSC, and the Agency will transmit

information on a continuing basis subject to the tolerances

and criteria set out in Section IV below, as follows:

1)  The Director will provide the Agency with copies of reports

o£ individual and corporate audit changes; Forms 1902E,

Reports of Individual Income Tax Examination Changes;

4549, Income Tax Examination Changes; 4549A, Income Tax

Examination Changes; 4549B, Income Tax Examination Changes;

and Forms 5278, Statement - Income Tax Changes.

2)   The Director BSC will provide the Agency with copies of

Pages 1, 2 and 3 of Form CP-2000, Request for Verification

of Unreported Income.

                                 Any line marked with a # is for Official Use Only