Thursday, November 20, 2008

The Frivolous Tax Argument: Often Heard, Seldom Sold

At time, debtors in the tax resolution industry don't seem to understand the gravity of their situation. Since owing the IRS is a rarity, and talking about it with someone who knows what they are talking about is even rare, there is a lot of misinformation and excuses made for tax debt.

The biggest mistake people often make is not taking their debt seriously enough and submitting weak excuses why they should not have to pay, or shouldn't have to pay the full amount. To the IRS, these are considered "frivolous tax arguments."

The name sounds more innocuous that it is. Submitting frivolous tax arguments can hurt your case, a lot. It may disqualify you from certain resolution options, it may extend the time the IRS has to collect on you, it may make collections against you stronger, and it will surely piss off the IRS.

The Arguments
So, the first step in not submitting a frivolous tax argument is knowing what they are.

1. Arguing that the Federal Income Tax System is voluntary. Someone cannot be forced to file.
(Wesley Snipes took this route. Worked out pretty well for him, huh?)

2. Arguing the meaning of "income": "taxable" versus "gross."

3. Arguing the meaning of certain terms used in the IRS Manual:

4. Arguing through use on the Constitution:
5. Arguing through fictional legal claims:

To read more on frivolous tax arguments, see the IRS article: "Frivolous Tax Arguments in General"

Now that you know what the frivolous tar arguments are, you need to know what you stand to risk if you file one. Check back next week for "The Frivolous Tax Argument: What You Stand to Loose"

Further Reading:
Myth: Taxpayer is not a “citizen” of the United States, thus
Myth: Wages, tips, and other compensation received for personal service are not income, thus
Myth: Filing "Zero" Reduces Your Tax Liability

No comments: