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"The Truth About Frivolous Tax Arguments" is a recent IRS publication that addresses some of the more common frivolous "legal" arguments made by individuals and groups that oppose compliance with federal tax laws. Each contention is briefly explained, followed by a discussion of legal authority that rejects it. A final section explains the penalties the courts may impose on those who pursue tax cases on frivolous grounds.

The following are the contentions discredited:

* The filing of a tax return is voluntary;

* Payment of tax is voluntary;

* Wages, tips, and other compensation received for personal services are not income;

* Only foreign-source income is taxable;

* Federal Reserve Notes are not income;

* The taxpayer is not a "citizen" of the United States and thus not subject to federal income tax laws;

* The "United States" consists only of the District of Columbia, federal territories, and federal enclaves;

* The taxpayer is not a "person" as defined by the Internal Revenue Code and thus is not subject to federal income tax laws;

* The only "employes" subject to the federal income tax are employees of the federal government;

*Federal income taxes constitute a "taking" of property without due process of law, violating the Fifth Amendment;

* Taxpayers do not have to file returns or provide financial information because of the protection against self-incrimination in the Fifth Amendment;

* Compelled compliance with federal income tax laws is a form of servitude in violation of the Thirteenth Amendment;

* The Sixteenth Amendment to the U.S. Constitution was not properly ratified and thus the federal income tax laws are unconstitutional;

* The Sixteenth Amendment does not authorize a direct nonapportioned federal income tax on U.S. citizens;

* The IRS is not an agency of the United States;

* Taxpayers are not required to file a federal income tax return because the instructions and regulations associated with the Form 1040 do not display an Office of Management and Budget control number as required by the Paperwork Reduction Act;

* African Americans can claim a special tax credit as reparation for slavery and other oppressive treatment;

* Taxpayers are entitled to a refund of the social security taxes paid over their lifetime; and

* An "untaxing' package or trust provides a way of legally and permanently avoiding the obligation to file federal income tax returns and pay federal income taxes.

There are many legitimate ways to reduce your tax liability without resorting to these frivolous positions and risking a variety of civil and criminal penalties.DON'T GO THERE!!

 



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