If you think you’ve a clever tax avoidance claim, chances are the IRS has heard it before. Every year more people use frivolous arguments to get out of paying their taxes. The IRS puts out an annual report of the latest and greatest scenarios. Certain arguments the IRS considers frivolous may draw a chuckle, however they will even draw a heavy fine.
Tax cheating never good to do
The Truth about Frivolous Tax Arguments is an annual report the IRS has just released for 2011. Probably the most popular tax evasion scenarios were put in the 87 page document. The document also involves the official legal policies the government has used to get frivolous tax arguments rejected by courts, as well as the penalties and sanctions levied against would-be tax cheats as a result. There are several scam artists that are using arguments spread on the internet refusing to pay taxes for reasons that are religious, moral, philosophical and semantic.
The cost of frivolous tax arguments
You will find a lot of people that say they aren't a "person" as the IRS defines it in their argument. Others have argued that the federal income tax is unconstitutional or that paying taxes is voluntary. Foreign income is taxable for military members occasionally. Some military members do not have to pay on income. At least 10,000 individuals try to stay away from paying taxes yearly. There is a $5,000 IRS penalty to anybody that files a frivolous tax return argument. Sometimes taxpayers will go to court with it. This means a $25,000 IRS penalty. There have been many injunctions filed by the Department of Justice for these tax arguments. Since 2000, there have been 455 corporations and individuals filed against.
Never seeing courts rule in favor of tax arguers
There have been claims that paying taxes violates the fifth amendment, that it is against ones religion or that it is against the 13th amendment, the IRS explained. Courts do not like the "paying taxes is against my religion" argument. It never wins. According to the fifth amendment, a person won't be "deprived of life, liberty, or property, without due process of law.” But the law gives the government authority to collect taxes from United States citizens. Courts don't think the idea that paying taxes is servitude is really a valid argument when using the 13th Amendment.
Information from
Main Street
mainstreet.com/article/moneyinvesting/taxes/tax-excuses-irs-won-t-buy?page=2
Portfolio.com
portfolio.com/views/blogs/resources/2011/03/21/irs-warns-taxpayers-about-excuses-for-not-paying-that-won
Christian Science Monitor
csmonitor.com/Business/2010/0415/Tax-Day-101-42-excuses-you-can-t-use-to-avoid-filing-IRS-forms
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