IRS Releases 2010 Edition of Frivolous Tax Arguments
Did someone tell you that filing taxes is voluntary? That only foreign-source
income is taxable? You better read about today's frivolous tax arguments.
By Michael Rozbruch
If you're receiving tax advice that sounds
otherworldly, it no doubt is.
Maybe someone finally told you that filing your
income tax return and paying taxes every year are
voluntary? You were a sucker all these year, filing
returns and paying taxes, weren't you?
Well, no. You'd be a sucker if you followed the advice
of whoever told you filing returns and paying taxes
are voluntary.
That's because this claim is among the better-known
frivolous tax arguments - the claims people make
to the IRS and in U.S. Tax Court as a way to avoid
paying taxes.
None of these arguments is backed by Constitutional
law or case law in any way, and these arguments
are regularly struck down in U.S. Tax Court and, in
some cases, result in prison for those who make such
arguments.
Yet, again and again, year after year, U.S. taxpayers
come to the government with these wild, otherworldly
claims.
For that reason, the IRS released its 2010 edition of
the most frequently used frivolous tax arguments.
Among them:
1.) Filing a tax return is voluntary: Proponents of
this argument point to use of the word voluntary on
an IRS form and in a U.S. Supreme Court decision
that stated "taxation is based upon voluntary
assessment and payment, not upon distraint." But
voluntary in these cases refers to taxpayer's initial
ability to determine the correct amount of their
taxation. Legally, anyone who has received more than
a statutorily determined amount of gross income is
obligated to file a return and pay taxes.
2.) Payment of tax is voluntary: Using a similar
argument as above, proponents say the payment of
taxes is also voluntary. The Internal Revenue Code
clearly disputes that argument, making it clear that
paying taxes is not voluntary.
3.) Taxpayers can reduce tax liability by filing
a "zero return": In this case, taxpayers show their
income as "$0" and employ one in a series of frivolous
arguments to support the claim that none of their
income is taxable.
4.) The IRS must prepare a tax return for
anyone who fails to file: Everyone is required to
file. Period. Those who cite this argument refer to a
legal mechanism that allows the IRS to determine a
taxpayer's income and tax liability in the event the
taxpayer does not file.
5.) Compliance with an administrative summons
issued by the IRS is voluntary: This is patently
false. The IRS has been statutorily authorized to
inquire about any person who may be liable to pay
revenue taxes, and U.S. District Courts can enforce,
and have enforced, IRS summonses.
The deadline to file your 2009 personal income tax
returns is approaching quickly.
Be sure you don't fall victim to a huckster pushing
one of today's many frivolous tax arguments.
Michael Rozbruch is a Certified Tax Resolution Specialist,
a member of the American Society of IRS Problem
Solvers and a Maryland CPA. You can contact him at
866-477-7762 to obtain a free subscription to his
newsletter titled The IRS Times & Inquirer.
