Do you use the word 'principal' as a euphemism for a Sovereign?
The sense I get from this sentence is what Michael Badnarik described in his book Good To Be King. That all Americans are sovereigns, and the government is their agent. Not the other way around.
Once you cancel the government's agency, and the government goes on to do evil things, what is your defense when the government (and the people collectively) are held accountable for those evil things?
Practically, once you renounce the government and adopt your sovereignty, you can still be held accountable with all those who supported the government.
Sure the government doesn't represent you, but try to convince the victorious enemies of the government of that.
It may be better to put physical distance between yourself and your errant former 'agent'. If that is possible.