The IRS Says These Arguments Don’t Work For Not Filing Taxes
Tax return season is over, but that doesn’t necessarily mean that everyone that should have filed taxes did file taxes by the 15th.
Some people and some businesses didn’t file for good reasons, and some didn’t file for flimsy reasons.
According to the IRS, these reasons are the most popular of the really bad reasons (the flimsy reasons) to not file your taxes:
Actually, no one is a “U.S. citizen” – all of us are citizens of the state we live in, not the federal government, and therefore, we don’t have to pay federal taxes.
Nope, there is no choice; the 14th amendment says you are a citizen of both the state where you reside, and the United States. It’s not either/or.
Income gained from exchanging labor for money is not taxable; it’s just reimbursement for the value of time, so wages and other income are technically not taxable.
Wrong. Gross income is all taxable, not matter what the source, and the only exemptions are the ones the IRS says are exemptions. People who made taxable income who adhere to this approach usually file returns showing zero income (called zero returns) so they are in legal compliance with the requirement to file a return, but that is not going to work.
You don’t have to pay taxes – even the IRS says taxes fall into the category of “voluntary compliance”.
Uh, no. That phrase just means that you get to do your own return and determine how much you owe, instead of the federal government doing it for you. The requirements to file a return and pay any taxes owed are not voluntary, and a few sections of the tax code are crystal clear on this.
Technically, the IRS is responsible for doing everyone’s taxes, and if they don’t fulfill their responsibility in this area, then you get a free pass and you owe no tax.
Technically, this is a fantasy. The IRS does sometimes do tax returns for people, but this is almost always because someone has not filed taxes for a long time. This isn’t a good situation; you don’t want the IRS doing your tax returns, believe me. You will almost always pay the maximum for every year you didn’t file, and, there will be penalties and fines added to that.
Yes – All of these reasons have been offered up in courts in different court cases as legal justification for not paying taxes for decades, and each defendant has lost their case against the federal government as the case is adjudicated.
It’s now after the deadline for both business and personal tax returns to have been filed as this goes to press, and if you didn’t file, regardless of the reason you didn’t file, we can still help you.
Call us at Sareen and Associates – we will make things right. We are tax experts, and have 5 CPAs and 5 EAs on our staff of tax gurus. It’s not too late – call us!