Jeanine Skowronski
Friday, April 1, 2011
Friday, April 1, 2011
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Americans have tried just about everything to get out of paying their taxes, the Internal Revenue Service says, but very few of these excuses are likely to work.
The IRS recently released its annual The Truth About Frivolous Tax Arguments report, which outlines not only the most popular arguments people have presented over the years to avoid paying their taxes, but also the policy statements and inevitable tax court decisions the government has used to debunk them.
"Anyone who contemplates arguing on legal grounds against paying their fair share of taxes should first read the 84-page document," the IRS said in a statement.
Taxpayers' contentions have run the gamut over the years. Whether you're arguing that you don't have to pay your taxes based on moral grounds or because only "employees" of the government are subject to federal income tax, though, it's likely to cost you a significant amount of time and a decent sum of money.
Back in 2006, Congress increased the penalty for frivolous tax returns to $5,000 from $500. The penalty is applied when a person submits a tax return and any portion of the submission is based on a position the IRS identifies as frivolous. Filers typically present forms that indicate they have no income or tax liability, also known as a "zero return." Their reasons for not paying usually come up in tax court when the filers try to contest an audit or lien.
Those who were planning a dispute can find the full report on the agency's website, but MainStreet highlighted some of the main contentions disputed in federal courts and now considered frivolous by definition.
Contention: Taxpayers can refuse to pay income taxes on religious or moral grounds.
The IRS says taxpayers have frequently used the First Amendment to argue that they don't have to pay taxes because it is against their moral or religious beliefs, since it says that "Congress shall make no law respecting an establishment of religion, or prohibiting the free exercise thereof; or abridging the freedom of speech, or of the press; or the right of the people peaceably to assemble, and to petition the Government for a redress of grievances." The Supreme Court has frequently asserted that saying your religious beliefs are in conflict with the payment of taxes provides no basis for refusing to pay, though.
Contention: Paying taxes violates the Fifth Amendment.
The Fifth Amendment to the Constitution says a person shall not be "deprived of life, liberty, or property, without due process of law." This might sound like a sound argument if the law hadn't already decided it is well within the government's rights to charge residents to live here. According to the IRS, the Supreme Court stated in Brushaber v. Union Pacific R.R., 240 U.S. 1, 24 (1916), that "it is ... well settled that [the Fifth Amendment] is not a limitation upon the taxing power conferred upon Congress by the Constitution."
Contention: Taxes are a form of servitude in violation of the 13th Amendment.
Residents have argued that paying taxes is a form of servitude, which is problematic, since the 13th Amendment prohibits slavery (as well as the imposition of involuntary servitude). Courts have consistently found that paying taxes is not considered forced servitude, though, calling the claim "clearly unsubstantial and without merit," as well as "far-fetched and frivolous."
Keep in mind that the IRS does have payment plans available for taxpayers who find themselves significantly impaired financially. In fact, the IRS recently made changes to its lien system, the main way the agency penalizes people who can't pay their taxes on time.
Americans have tried just about everything to get out of paying their taxes, the Internal Revenue Service says, but very few of these excuses are likely to work.
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"Anyone who contemplates arguing on legal grounds against paying their fair share of taxes should first read the 84-page document," the IRS said in a statement.
| More from MainStreet.com • 9 Unexpected Tax Deductions • What a Second Marriage Does to Your Money • The Hidden Costs of Bad Credit |
Back in 2006, Congress increased the penalty for frivolous tax returns to $5,000 from $500. The penalty is applied when a person submits a tax return and any portion of the submission is based on a position the IRS identifies as frivolous. Filers typically present forms that indicate they have no income or tax liability, also known as a "zero return." Their reasons for not paying usually come up in tax court when the filers try to contest an audit or lien.
Those who were planning a dispute can find the full report on the agency's website, but MainStreet highlighted some of the main contentions disputed in federal courts and now considered frivolous by definition.
Contention: Taxpayers can refuse to pay income taxes on religious or moral grounds.
The IRS says taxpayers have frequently used the First Amendment to argue that they don't have to pay taxes because it is against their moral or religious beliefs, since it says that "Congress shall make no law respecting an establishment of religion, or prohibiting the free exercise thereof; or abridging the freedom of speech, or of the press; or the right of the people peaceably to assemble, and to petition the Government for a redress of grievances." The Supreme Court has frequently asserted that saying your religious beliefs are in conflict with the payment of taxes provides no basis for refusing to pay, though.
Contention: Paying taxes violates the Fifth Amendment.
The Fifth Amendment to the Constitution says a person shall not be "deprived of life, liberty, or property, without due process of law." This might sound like a sound argument if the law hadn't already decided it is well within the government's rights to charge residents to live here. According to the IRS, the Supreme Court stated in Brushaber v. Union Pacific R.R., 240 U.S. 1, 24 (1916), that "it is ... well settled that [the Fifth Amendment] is not a limitation upon the taxing power conferred upon Congress by the Constitution."
Contention: Taxes are a form of servitude in violation of the 13th Amendment.
Residents have argued that paying taxes is a form of servitude, which is problematic, since the 13th Amendment prohibits slavery (as well as the imposition of involuntary servitude). Courts have consistently found that paying taxes is not considered forced servitude, though, calling the claim "clearly unsubstantial and without merit," as well as "far-fetched and frivolous."
Keep in mind that the IRS does have payment plans available for taxpayers who find themselves significantly impaired financially. In fact, the IRS recently made changes to its lien system, the main way the agency penalizes people who can't pay their taxes on time.
Have you ever tried making an argument to the IRS against paying your taxes?
Have you ever tried making an argument to the IRS against paying your taxes?
- Yes4%
- No92%
- I plan to.4%
2,112 Comments
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0 users liked this comment Please sign in to rate this comment up. Please sign in to rate this comment down. 0 users disliked this commentrobert Report Abusei would not mind paying tax's at all ..but the issue i have is i have worked at the same place for 18 years i bring home around 85 a year after tax's i have a wife and 3 kids ..but ppl all around me live for the most part better or the same who are on every gov plan you can think of ..welfare food stamps disibility and so on ...some of these ppl i am sure need help but i see a lot of them sucking the gov. tit ...and it just seems like if the ppl giving out all these checks should have to really get to the bottom of ...do they really need it or are they just lazy....thanks
- 0 users liked this comment Please sign in to rate this comment up. Please sign in to rate this comment down. 0 users disliked this commentdavid Report Abuse
I once told the IRS that I made no income on my watermelon and fried chicken stand, because Tyrone ate all my watermelons and fried chicken one night.
- 0 users liked this comment Please sign in to rate this comment up. Please sign in to rate this comment down. 0 users disliked this commentSynopsisav Report Abuse
Big D wrote: Last year I had an emergency and I took out a loan on my retirement as a last resort. Can someone please explain why I should have to pay taxes on my own money when I've already paid most of it back?
In general, you don't have to pay taxes on a loan. However, since there is no obligation to pay back a retirement loan, it is not a true loan in the sense of the word. And since money placed there was allowed to be deposited and grow tax free, that is why you have to pay it back. However, if you take a standard loan, including against your life insurance policy, an after tax annuity, or a CD, you generally do not pay taxes.
Note, I am not a tax professional, just stuff I remember. - 0 users liked this comment Please sign in to rate this comment up. Please sign in to rate this comment down. 0 users disliked this commentDwight Watts Report Abuse
SENSORSHIP!!!! GO FIGURE
- 0 users liked this comment Please sign in to rate this comment up. Please sign in to rate this comment down. 0 users disliked this commentThomas Report Abuse
It was the Spanish that actually came here before the white settlers; the Spanish came for gold and destroyed the Mayans and the Incans! Wise up Shahska!
- 0 users liked this comment Please sign in to rate this comment up. Please sign in to rate this comment down. 0 users disliked this commentArchangel Report Abuse
Taxes are too paid by folks who worked for the federal Government
The only taxes that can be taken from you is "Income" Income is money earn from capital gains off the stock Market, The IRS which is a Franchise like McDonalds, knows tham well that they can not tax your Pecuniary wages, Pecuniary wages are wages earn from Jobbing, not working, for work man ship, is exactly what the word means, Man or woman work on your ship, the ship is the vessel called the body, your soul is the pilot if you have one, Taxes, Insurance, bills are all a lie to Keep the society from achieving their last step towards their evolution, and worst then these is the @#$%, called the drivers license, which is an excise tax and has nothing to due with your god, or higher spirit given right to travel to and from on this earth, The IRS is not mandatory, and whoever tells they are tell them to show you where Wake up America.... The only money is silver moons, and golden suns, gold and silver, if you think, if many of you still due that study the constitution, and not the @#$% corporate policies, and by law and codes, that the corporations of what is know called states have implemented, its not a black, white, purple, or green thing, its a humin thing, due your research i dare Ya.. The Rabbit hole is deep.... - 0 users liked this comment Please sign in to rate this comment up. Please sign in to rate this comment down. 0 users disliked this commentDont Be Dense Report Abuse
Well it looks like theres a new gas tax about to hit us soon..F'in theives..
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