Happy post-Tax Day everybody! I hope for most of you, this means a big sigh of relief and a weight off your shoulders. However, if you didn’t have enough money to pay your taxes or have not yet filed, do not despair just yet. There’s still plenty ways you can get tax help to stay out of IRS trouble and keep those penalties low.
Last week I sat down with Russ & Sully of the Big Biz Show to talk about the Dirty Dozen of 2011. So if you haven’t seen this yet, check it out:
1) Filing a Tax Return Is Voluntary: It isn’t. You have a legal obligation to file your taxes and pay them every year. If you’re not doing this because you “don’t feel like it,” that will surely invite IRS trouble.
2) The Zero Return: I’ve seen some of these when I work with my clients. This is basically a scam that has become increasingly common over the years. Taxpayers list zero for wages earned on tax returns, and if questioned, claim their income is not taxable. When questioned, the consumer will claim that they’re not a “person” as defined in the Internal Revenue Code.
3) The IRS Is Not an Agency of the United States: This conspiracy theory claims the IRS is a private company.
4) The IRS Must File Your Return: If you don’t file your return, the IRS is obligated to file one for you. At least, that’s the claim. It’s untrue. The IRS will file a return based on all your 1099s and W-2s and file you as married filing separate even if you’re married with 6 kids. They will file you without any considerations for expenses—such as if you have a business or if you have stock trades. They tax you based on your 1099B without the basis. And that’s what they do to grab your attention for failure to file. So don’t make the mistake of thinking that the IRS is doing your homework for your benefit–they’re not.
5) Wages for Services Are Not Taxable: Some claim that a service has a market value that is equal to the compensation received. So if the service provided has a market value of $100, and payment received is $100, then there’s no taxable income since the transaction is a wash. A good logic trick, right? Trouble is, it’s a frivolous argument.
6) Only Foreign Income Is Taxable: Others will claim income earned in the United States isn’t taxable.
7) Federal Reserve Notes Are Not Income: A common argument claims U.S. currency is not taxable. This is a common argument that US currency is not taxable. Now, today it is. But hopefully they won’t drop the US dollar as the world currency reserve and change that.
8 ) Citizenship Claim: To avoid income taxes, some claim they have rejected U.S. citizenship in favor of state citizenship and are therefore not subject to U.S. income taxes. No matter how you tweak it, being a citizen of California also means you’re a citizen of the United States, which means: you need to pay your taxes.
9) The Person Argument: Related to the citizenship claim, the person argument maintains that the taxpayer is not a person, as defined by the Internal Revenue Code. The claim is that the “person” is an entity and that an entity per the Internal Revenue Code are the only ones that are supposed to pay tax (also wrong).
10) Federal Employees: Only federal employees are subject to federal income taxes, or so this argument claims. It’s untrue.
11) Plead the Fifth: Some taxpayers will not file returns by claiming Fifth Amendment privilege against self-incrimination. This has no basis in law.
12) Sixteenth Amendment Loophole: This argument is based on the premise that all federal income tax laws are unconstitutional because the Sixteenth Amendment was not officially ratified or because the State of Ohio was not properly a state at the time of ratification. It is, of course, a frivolous argument.
There’s a difference between people who cannot afford to pay their taxes but want to stay out of IRS trouble and those who just flat out refuses to pay taxes on principle. If you’re a struggling law-abiding citizen who just happen to come across rough economic times, we’re here to help you.
Even if you don’t have any money to pay, just send in your return with a check for $5. This will save you large failure-to-file penalty right off the bat. Then come in and talk to our tax relief experts and tax attorneys, who can help get you set up with an IRS payment plan.
Tax Resolution Services is a team of expert tax attorneys, CPAs, and Certified Tax Resolution Specialists. We’re here to help you with your IRS tax problems. Give us a call today at (888) 699-7630 for a free tax relief consultation or visit www.TaxResolution.com.
More Tax Help, IRS News and Tax Relief Tips:
- Tax Help: Brian Compton Shares 7 Secret Weapons For Taxpayers to Fight the IRS on Big Biz Show
- IRS Help and Income Tax Relief for Individuals and Businesses Unable to Meet Tax Obligations
- Tax Resolution Services, Co., Helps Taxpayer Resolve $150K in Back Taxes and Receive IRS Refund
- Last Minute IRS Tax Relief Tips for Filing 2009 Tax Returns and Resolving Back Taxes
- IRS Tax Relief Tips on Facebook-TRS Educates Taxpayers While Saving Them Time and Money
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