Americans have tried many arguments claiming not to be responsible for complying with the tax laws or subject to them. The IRS recently published its annual Truth About Frivolous Tax Arguments report, which discusses both the most popular arguments people have made over the years to avoid paying their taxes, but also the policy statements and inevitable tax court decisions the government has used to refute 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. Click link to read full report.
Given the number of people who were filing frivolous returns claiming reasons not to be subject to the tax code in 2006, Congress increased the penalty for frivolous tax returns to $5,000 from $500. Filers typically present tax forms that show zero income or tax liability. Their reasons for not paying usually come up in tax court when the filers try to contest an audit or lien.
The arguments below are now considered frivolous by definition as they have repeatedly been heard and decided in the same manner.
Tax filer argument: refusal to pay income taxes on religious or moral grounds.
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.
Tax filer argument: 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." The Supreme Court however 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."
Tax filer argument: Taxes are a form of servitude in violation of the 13th Amendment.
Courts have repeatedly ruled that paying taxes is not considered forced servitude, calling the argument "clearly unsubstantial and without merit," as well as "far-fetched and frivolous."
Source: Yahoo News by Mainstreet.
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