Frivolous tax arguments are amusing, however the IRS penalty is not

When it comes to frivolous tax arguments, the IRS hears new ones yearly. On an annual basis, the IRS releases an updated list of frivolous tax arguments made by people attempting to keep away from paying federal income taxes. Most working class individuals would laugh at some of the frivolous tax arguments individuals come up with, but the IRS isn’t amused. Source of article – Frivolous tax arguments are amusing, but the IRS penalty is not by MoneyBlogNewz.

Don't try and cheat taxes

The IRS just released a 2011 annual report called the Truth about Frivolous Tax Arguments. 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 many 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 many people that say they aren't a "person" as the Internal Revenue Service define it in their argument. Some say that it is voluntary to pay taxes or that it’s unconstitutional. To some working class individuals, military income is exempt and only foreign income is taxable. In accordance with estimates, many try to stay away from paying taxes yearly. In fact, about 10,000 individuals will do this in the U.S. Several try to file frivolous tax return arguments. These people will get a $5,000 IRS penalty. An IRS penalty up to $25,000 is given to any taxpayers that take this argument to court. There have been several injunctions filed by the Department of Justice for these tax arguments. Since 2000, there have been 455 corporations and individuals filed against.

Popular, and hopeless, tax evasion scenarios

There have been claims that paying taxes violates the fifth amendment, that it’s against ones religion or that it’s against the 13th amendment, the IRS explained. "Paying taxes is against my religion" is one courts just rule against. The Fifth Amendment states a person shall not be "deprived of life, liberty, or property, without due process of law.” However the law gives the government authority to collect taxes from U.S. citizens. Then there is the 13th Amendment argument that paying taxes is servitude. Courts reject this also.

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