When it comes to frivolous tax arguments, the IRS hears new ones yearly. Probably the most popular unsubstantiated claims made by taxpayers annually are compiled into a compendium by the IRS. Certain arguments the IRS considers frivolous might draw a chuckle, but they may also draw a heavy fine.
Why you should not cheat on your taxes
The Truth about Frivolous Tax Arguments is an annual report the IRS has just released for 2011. The document was 87 pages long. It described several tax evasion scenarios that have been popular. The people would often get penalties based on the arguments which were integrated in the document. It also had the official legal policies used by the government to argue these cases. The philosophical, semantic, religious and moral reasons not to pay taxes are usually incorporated. These spread on the Internet to anybody hoping to evade paying taxes.
The cost of frivolous tax arguments
An argument some have is that they are not a "person." This is in accordance with the IRS definition. The taxes are unconstitutional, some argue. Others say it’s voluntary because of this. To some working class individuals, military income is exempt and only foreign income is taxable. According to estimates, several make an effort to keep away from paying taxes yearly. In fact, about 10,000 people will do this in the U.S. Many try to file frivolous tax return arguments. These individuals will get a $5,000 IRS penalty. Taxpayers who go to court with their frivolous arguments can receive an IRS penalty up to $25,000. Since the 2000 tax year, the Department of Justice has filed injunctions against more than 455 corporations and individuals for frivolous tax arguments.
Not valid tax arguments, courts say
The IRS said there are three very popular arguments. These include that paying taxes is against the 13th Amendment, that it is against the Fifth Amendment and that it is against one's religion. "Paying taxes is against my religion" is one courts just rule against. The Fifth Amendment says a person shall not be "deprived of life, liberty, or property, without due process of law.” Still, the government can collect from U.S. citizens. This is part of the law. The 13th Amendment outlaws slavery, however the claim that paying taxes is servitude has been consistently rejected by courts.
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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