What does ‘Voluntary Compliance’ mean?
- Wealth Guranted
- Oct 25
- 2 min read

Understanding Voluntary Compliance and How to Opt Out of Paying Income Tax Using 12 USC 411
Taxes Are Voluntary Per 26 CFR 601.602(a)
Most Americans believe that paying income taxes is mandatory, but the IRS itself confirms that the tax system is based on voluntary compliance.
The Code of Federal Regulations (26 CFR 601.602(a)) states:
“The tax system is based on voluntary compliance, and the taxpayers complete and return the forms with payment of any tax owed.”
This means that the IRS does not automatically impose taxes on you. Instead, it relies on taxpayers to “voluntarily” calculate their income tax liability and submit payment.
The key to understanding this system is self-assessment—the IRS gives you the opportunity to determine your own taxable income.
Each year, taxpayers file a 1040 tax return and self-assess how much they owe. However, the law also allows taxpayers to apply legal deductions and exemptions to lower or even eliminate their taxable income. One of the most powerful, yet hidden, deductions is found in 12 USC 411.
The Federal Reserve Act Section 16.1. states: “Federal Reserve Notes… shall be redeemed in lawful money on demand.”
This means that all U.S. dollars (Federal Reserve Notes) are taxable by default, but the law gives you the right to convert them into lawful money, which is non-taxable. By properly redeeming your income as lawful money, you are legally declaring that your income is not subject to taxation. This process, known as the 12-411 Process, is a fully legal method of selfassessment that allows you to file your tax return with a $0 tax liability—the same way the ultra-wealthy legally avoid paying taxes.
This is not a loophole—this is the law, and it has been successfully applied for over 100 years. The Nations Largest Tax Collection Agency does not Wealth Guaranteed Company, ETO. (737) 285-4285 THE ONLY CERTIFIED ZERO INCOME TAX PROFESSIONALS WITH A ZERO INCOME TAX LIABILITY GUARANTEE Wealth Guaranteed Company, ETO c/o Post Office Box 2531, Atascadero, California [93423] NON-DOMESTIC, ZIP CODE EXEMPT, WITHOUT THE UNITED STATES challenge this process because it is based on federal statutes and their own tax code. Why Doesn’t Everyone Know About This?
The wealthy and corporations have been using the 12-411 process for generations, but the general public has been misled into believing that income taxes are mandatory for everyone. Complex strategies mentioning offshore trusts, foreign bank accounts, and tax shelters distract everyday Americans from the simple legal methods hidden in plain sight.
WARNING:
This process must be done correctly. Never attempt to apply 12 USC 411 on your own. Always consult a CPA or tax professional. At Wealth Guaranteed, we specialize in guiding individuals and business owners through the 12-411 process and ensuring full compliance with US Tax regulations.
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