Failing to pay your fair share of taxes isn’t clever, it’s a crime that could land you in hot water once the IRS catches up with you.
Some people try to make a living bragging to others about how they don’t file or pay federal income taxes. And for a small fee they’re only all too happy to share their “secrets” with you. These swindler promoters frequently use advertisements and email spam to convey their messages of saving you big bucks on your federal taxes.
If you should chose to buy into this con and purchase their accompanying how-to material, and use their methods, you’ll ultimately find yourself out way more money than you would have been just paying your original federal tax bill. In addition to the money spent to acquire these fake tax saving secrets, you’ll also find yourself paying penalties and facing potential civil and criminal tax consequences.
It’s not a tax plan, it’s a con job
According to information on the IRS website (ww.irs.gov), they indicate several con artists have been convicted on criminal tax charges and more than a dozen injunctions to halt this tax con have been issued.
All U.S. citizens are required to pay taxes. And although the tax law is complex and there are legitimate deductions to be had, it’s a waste of time to dream of not having to pay your fair share under the law. The dishonest promoters of this type of con persuade customers to pay them to file an incorrect form for an invalid refund that doesn’t exist for the majority of tax payers. The form is number 2439, Notice to shareholder of Undistributed Long-Term Capital Gains. Filing this form is a huge waste of money and those who file successive claims using this form can be subject to a frivolous return penalty of $500. This deduction claim is almost always rejected. So if that happens to you, we suggest going ahead and paying all the taxes you owe. It’s the one sure way to keep you out of trouble and possible jail time for tax evasion.
There’s no magic tax loophole
Take a moment to think about what we just told you about this con. If such a valid loophole truly existed…don’t you think people would have been all over it? And the government would have shut it down by now? As great as an idea it would be to have a loophole, someone has to pay some taxes or our entire government and way of life would come to a screeching halt. Whether or not you think that should happen, it still doesn’t get you out of paying the taxes you owe according to U.S. tax law. If you still cling to the possibility that you could get out of paying your taxes, we suggest continuing to research this subject until you realize that taxes are inevitable. And though we all know deep down that we wish we didn’t have to pay so much in federal tax, I bet you’d rather part with the money now than go to jail for any length of time.
Be wary of outlandish tax avoidance schemes
You don’t have to be an expert to ask yourself whether some of these tax avoidance schemes are too good to be true.
There are some bad tax ideas floating around. Some have turned the peddling of these ideas into businesses. These businesses make their money designed by tricking taxpayers into signing up for a program or purchasing materials related to these “bad” ideas. The IRS calls many of these bad ideas frivolous tax arguments. They could also be called myths or urban legends. These arguments are listed and refuted on our Tax Protesting Page.
On this site you’ll see IRS arguments against old time favorites like:
Voluntary Nature of the IRS Claims
- It’s voluntary to file a tax return, not mandatory
- It’s voluntary to pay taxes, not mandatory.
- Taxpayers can reduce their federal income tax liability by filing a “zero return.”
- If you fail to file, the IRS has to prepare a federal tax return for you.
- Compliance with an administrative summons issued by the IRS is voluntary.
Wouldn’t you have to question these? If you’re wrong the penalties will be quite severe. Trying your luck with any of these involves enormous risk. I’d see what the IRS and court rulings have to say about it before you do.
The Meaning of Income: Taxable Income and Gross Income
- Income doesn’t include wages, tips, and other recompense received for personal services.
- Only income from foreign-sources is taxable.
- Income doesn’t include Federal Reserve Notes.
The Meaning of Certain Terms Used in the Internal Revenue Code
- Taxpayers in the United States are not the same as citizens and as such are not subject to federal income tax laws.
- When defining the “United States”, it only includes the District of Columbia, federal territories and federal enclaves – not states.
- The Internal Revenue Code doesn’t define a Taxpayer as a “person” and as such people are not subject to federal income tax laws.
- Federal income tax only applies to employees of the federal government, not to employees of other entities.
Taxpayers aren’t allowed to unilaterally define terms as it suits them. Take this to court if you’d like. You might want to find out how the courts have ruled in the past first.
Constitutional Amendment Claims
- Taxpayers can refuse to pay income taxes on religious or moral grounds by invoking the First Amendment.
- The Fifth Amendment is violated by Federal income taxes because the amount to a “taking” of property without due process of law.
- The Fifth Amendment provides Taxpayers protection from filing returns because self-incrimination includes the divulging of personal, financial information.
- The Thirteenth Amendment’s servitude protection is extended to compliance with federal income taxes as they are considered a form of servitude.
- Proper ratification was never completed for the Sixteenth Amendment, thus making federal income taxes unconstitutional.
- Direct, non-apportioned federal income taxes on U.S. citizens are not authorized in the Sixteenth Amendment.
Wouldn’t it be great if all of the above were true? It would mean that no one ever has to pay taxes. How could we all be such idiots not to have noticed it before? I would recommend doing some research first to find out what happened to the last person to make these claims in a courtroom.
Fictional Legal Bases
- Agencies of the United States don’t include the Internal Revenue Service.
- The OMB control number required by the Paperwork Reduction Act doesn’t appear in the instructions or regulations associated with the 1040 Form, so Taxpayers aren’t required to file a federal income tax return because of that.
- Taxpayers are permitted a refund of the Social Security taxes paid during their lifetime
- Taxpayers can legally and permanently avoid filing and/or paying federal income taxes by creating an “untaxing” package or trust.
- A corporation sole can be established and used for the purpose of avoiding federal income taxes.
These are only a few. Some of them are classics. One of these tax avoidance schemes may be new to you but the IRS has heard them all before. Any time you hear a new plan to cut your taxes refer to the following website for the complete list and full text.
Read about all of them and discover The Truth About Frivolous Tax Arguments on the IRS website.