In Bad Economy, Tax Enforcement and Convictions of Tax Defiers Are on the Rise
I recently blogged about how frivolous arguments topped the IRS Dirty Dozen list of most common tax schemes. And in this bad economy, there will be more individuals maintaining frivolous arguments for not paying their taxes.
While many Americans were paying their taxes on April 15, there’s a group of citizens known as tax defiers, deniers or protesters who cite many different reasons refusing to pay their income taxes.
Their frivolous arguments include:
* Income tax is illegal
* The 16th Amendment, which allowed Congress to collect income taxes, was never ratified.
* Paying taxes should be voluntary.
* Only D.C. residents or federal employees are subject to the tax laws.
Defiers often refuse to submit tax returns or file them with bogus information about their earnings (sometimes listing their income as zero.
A recent Washington Post article highlighted a revered Washingon D.C. detective who claimed exemption from his income taxes.
While protesters call the tax system illegal, the IRS disagrees and tax enforcement and convictions are on he rise year over year. And in this recession, individuals will find adopting arguments to not pay their taxes more enticing than ever.
According to the Washington Post, the IRS received more than 10,000 frivolous arguments last year and more than 90,000 pieces of related correspondence. The Justice Department has stepped up enforcement against tax defiers, and the IRS has referred more cases for criminal prosecution: 132 cases in fiscal 2008, up from 74 the previous year and 80 in 2006. The Justice Department also has filed about 100 civil lawsuits since 2001 asking judges to block defiers from promoting or selling related tax-preparation products.
Even though April 15 is behind us, it is important to keep in mind the consequences of not filing your tax returns. It’s not to late to file your delinquent taxes!
** If you have unfiled tax returns or other IRS problems, contact our specialized staff of tax attorneys, CPAs, EAs and tax professionals. Visit the Tax Resolution Services web site for a free tax relief consultation or call us at 866-IRS-PROBLEMS.
More Tax Help, IRS News and Tax Relief Tips:
- Obama Proposes Doubling Tax Law Enforcement Budget and Seeks $400 Million Funding Boost for IRS Enforcement Activities
- Obama’s Efforts to Eliminate Loopholes and Bolster IRS Compliance Fall Short of Closing Tax Gap
- Is there a Double Standard for Delinquent Taxpayers and Tax Cheats That Favors Powerful Individuals?
- Income Tax Relief Advice for the 35 Million Taxpayers Currently in Trouble with the IRS
- No Income Tax Rate Increase Until 2011 But Expect Increased IRS Audits of Tax Returns in Near Future
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