Frivolous Tax Arguments

The IRS recently released a new list of Frivolous Tax Arguments.  This list shows all the ways people try to avoid paying their tax bills.  The problem is that most have been disproved in court many times.  In 2006, the U.S. Congress increased the penalty for filing a tax return with one of these or some other frivolous argument from $500 to $5000!  Is it really worth the risk?

I recommend reading through this document just so you are aware if anyone tries to pull one of these on you.  Many of these arguments are so ridiculous that they could be used in late night comedy programs.  Sometimes even tax preparers attempt these unfortunately.  If that is the case, you know it is time to find a new one.  Many times, water cooler conversations with fellow employees lead to a mistaken belief that some position is legitimate when it is in fact already in this document.

Some of the more famous ones are:

-The tax system is voluntary
-My income does not fall under the definition that requires taxation
-The United States consists of only DC, territories and enclaves.

In short, these claims simply don’t work.  If you don’t like the tax laws the way they are, contact your Congressman or woman.  They write the laws that the IRS enforces.  If enough support is garnered from people wanting a change, Congress will listen.  If they don’t, they don’t win at the next election cycle.  There are many legal ways to reduce taxable income.  Talk to your tax preparer before filing any returns yourself.  They can help you find the hidden legal deductions for your situation.