While many people debate the legitimacy of taxes and tax return, the position of the Internal Revenue Service based upon the statutes and upon the related legal precedents in case law is that these and similar tax protest arguments are frivolous and, if used by taxpayers as a basis for failure to timely file tax returns or pay taxes, may subject those taxpayers to penalties. On its internet web site, the IRS states:Some [people] assert that they are not required to file federal tax returns because the filing of a tax return is voluntary. Proponents point to the fact that the IRS itself tells taxpayers in the Form 1040 instruction book that the tax system is voluntary. Additionally, the Supreme Court’s opinion in Flora v. United States, 362 U.S. 145, 176 (1960), is often quoted for the proposition that “our system of taxation is based upon voluntary assessment and payment, not upon distraint.” The Law: The word “voluntary,” as used in Flora and in IRS publications, refers to our system of allowing taxpayers to determine the correct amount of tax and complete the appropriate returns, rather than have the government determine tax for them. The requirement to file an income tax return is not voluntary and is clearly set forth in Internal Revenue Code §§ 6011(a) , 6012(a) , et seq., and 6072(a). See also Treas. Reg. § 1.6011-1(a). Any taxpayer who has received more than a statutorily determined amount of gross income is obligated to file a return. Failure to file a tax return could subject the noncomplying individual to criminal penalties, including fines and imprisonment, as well as civil penalties. As stated in the Arkansas District Court case of United States v. Rempel: “It is apparent …that the defendants have at least had access to some of the publications of tax protester organizations. The publications of these organizations have a bad habit of giving lots of advice without explaining the consequences which can flow from the assertion of totally discredited legal positions and/or meritless factual positions.”As a tax consultant for a national tax resolution firm, Effectur, Inc., my direct experience with tax payers who protest, is basically this: while the taxpayer is arguing with IRS over the legitimacy of tax and their ability to collect it, IRS can simply take the money they are owed by the filing of liens, levies against bank accounts, wages and other assets. I am also personally perplexed by the rationing of individuals who are benefited by the taxes paid by other tax payers. Consider, depending on where you live, some of what tax dollars actually pay for…..highways, police, fire and rescue, medical care for the elderly, the building of schools and institutions of higher learning, the list is endless. I doubt there are many working people who don’t believe they are taxed too much, from every direction. The bottom line, if IRS decides you owe them money and have followed the processes set forth by IRS code, you will pay. We help thousands of clients each year, resolve their tax debt and become compliant with IRS guidelines. If you have a tax debt or other issue with IRS, visit our web-site at www.Effectur.com.
