frivolous tax arguments

40 days of Frivolous Tax Arguments: Federal Reserve Notes are not income

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Here the jokers are saying that our money isn’t legit, so it’s not really money, so it can’t be taxed. Really? Well I wonder what they do when they go to the grocery store? Do they use *gasp* money???? The truth is that Congress can call something money if they want to. The Constitution says … Read more 40 days of Frivolous Tax Arguments: Federal Reserve Notes are not income

40 days of Frivolous Tax Arguments: Only foreign-source income is taxable.

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The argument that there is no law that allows the government to impose a tax on income from within the United States is plain wrong. The tax rules say that all people in the United States, have to pay tax on income inside and outside the United States. There are provisions to prevent double taxation, … Read more 40 days of Frivolous Tax Arguments: Only foreign-source income is taxable.

40 Days of Frivolous Tax Arguments: Wages, Tips, and Other Compensation Received For Personal Services Are Not Income.

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How funny. In America, almost everything is “income.” That’s just how things work. Heck… you can’t even win a prize without that being income. About the only thing that is not income is a gift or an inheritance, but even those are easily taxed by our government.

The heart of the argument against wages being income is that there is no taxable gain when you “exchange” your labor for money. They claim that you actually have a “basis” in your labor (kind of like it has inherent value) and you can exchange it for the fair market value of wages without a profit. No profit or gain means no taxation, to those who argue against income taxes.

Read more40 Days of Frivolous Tax Arguments: Wages, Tips, and Other Compensation Received For Personal Services Are Not Income.

40 days of Frivolous Tax Arguments: Compliance with an administrative summons issued by the IRS is voluntary.

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IRS sends taxpayer an administrative summons. Taxpayer claims that responding and complying is voluntary. Not so. A summons is a command to appear, testify, and produce documents, and the IRS is authorized to issue one. The district courts will enforce the summons, if necessary. And yes, there can be criminal penalties.

40 days of Frivolous Tax Arguments: The IRS must prepare federal tax returns for a person who fails to file.

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Supporters of this bogus theory say that it’s the IRS’s responsibility to prepare and file a tax return for them if they don’t file. But the tax law really says that if someone doesn’t file their return, the IRS can prepare their return (i.e. make up numbers for the person). It doesn’t say that the … Read more 40 days of Frivolous Tax Arguments: The IRS must prepare federal tax returns for a person who fails to file.

40 days of Frivolous Tax Arguments: Taxpayers can reduce their federal income tax liability by filing a “zero return.”

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This one is at least a little creative. File a tax return showing no taxable income, and your taxes are zero. That would work if you really have no income. But since most of us have W-2s and 1099s and such, that “zero income” return is actually false… and you really do owe taxes. Don’t … Read more 40 days of Frivolous Tax Arguments: Taxpayers can reduce their federal income tax liability by filing a “zero return.”

40 days of Frivolous Tax Arguments: Payment of tax is voluntary.

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Like yesterday’s bunk, this false assertion relies upon the idea that taxes are voluntary. Again, the concept that our tax system is based upon voluntary assessment and payment. But that doesn’t mean that taxes are voluntary all together. It means that taxpayers give up their information and tell the IRS how much they’re supposed to … Read more 40 days of Frivolous Tax Arguments: Payment of tax is voluntary.

40 days of Frivolous Tax Arguments: The filing of a tax return is voluntary.

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This one is good. The tax protesters say that they don’t have to file income taxes because it’s a voluntary system. And they volunteer to NOT file taxes. Part of what fuels this misconception that taxes are voluntary is a Supreme Court decision which said “[o]ur system of taxation is based upon voluntary assessment and … Read more 40 days of Frivolous Tax Arguments: The filing of a tax return is voluntary.

40 days of Frivolous Tax Arguments

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Because I just can’t get enough of the Internal Revenue Service and our messed up American tax system, I’m going to treat my readers to 40 days of “frivolous tax arguments.” Settle down…. I’ll still be posting all of my regular fraud news and topics. This is just a bonus for the next (very painful) … Read more 40 days of Frivolous Tax Arguments