The Cost of Frivolous Tax Cases

March 7, 2012

Since the passage of the 16th Amendment in 1913, the income tax has been a major means of funding the Federal Government and a cause of headaches for many Americans. 

Every year, thousands of “taxpayers” scorn that title by making all kinds of claims that they think will excuse them from paying taxes.

These claims have been detailed in a new IRS report called The Truth About Frivolous Tax Arguments.   It shows how many different kinds of twists some people will try.

Among challenges to the tax laws are: 

  • The IRS is not an agency of the United States.
  • Filing a tax return is voluntary.
  • Paying taxes is voluntary.
  • Income taxes are a form of servitude which violates the 13th Amendment abolishing slavery.
  • A person can reject their “citizenship” and, thereby, not have to pay taxes.
  • A person can refuse to pay taxes because it’s against their religious beliefs.
  • Taxes constitute the taking of personal property without due process.

None of these claims and many other contentions have ever held up in court and they wind up costing the taxpayer more.

The penalty for filing these frivolous lawsuits reach up to several thousands of dollars levied on top of the taxes owed.  There may also be late penalties and interest that add to the total.

So, no matter how uncomfortable, for now a familiar adage applies when it comes to paying federal income taxes:  “Pay now or pay more later.”

At McRuer CPAs, it is our mission to make certain you pay only the taxes you owe.  Contact us now to help you with all your tax preparation and planning needs.