(Published April 13, 2009)
Is it a mere coincidence that the "IRS" is just one letter away from a synonym of anger? Because "ire" is just one of the many feelings that the IRS evokes.
No one likes to pay taxes, but we do it. We may grumble and groan about it, but we do it. However, there are some who go beyond grumbling and groaning. A group on Long Island, NY, reportedly held its own "Boston tea party" earlier this month by dumping two boxes labeled "tea" into the Long Island Sound as a tax protest.
Then there are those individuals who try to get out of paying taxes. Although their beef is between them and the IRS, tax-protesting individuals often get their employers involved. For example, an employee may file a W-4 claiming an exemption from withholding and 99 allowances, which an employer should not honor. And when the IRS catches up with these employees, lock-in letters are sent to their employers, which trigger a cumbersome process for the company.
These employees have plenty of reasons supporting their belief that they have the right not to pay or that being forced to pay is against the law. Unfortunately for them, none of them are valid. Here are some common arguments, and what the IRS has to say about them.
"Filing tax returns is voluntary." What's voluntary is the taxpayer gets to determine the correct amount of tax, rather than have the government do so.
"Paying taxes is voluntary." Section 1 of the Internal Revenue Code clearly imposes a tax on the taxable income of individuals, estates, and trusts.
"Wages, tips, and other compensation received for personal services are not income" or "The 16th Amendment did not authorize a tax on wages and salaries, but only on gain or profit." "Gross income" means all income from whatever source derived, including compensation for services, unless the taxpayer can establish that it is specifically exempted or excluded.
"Only foreign-source income is taxable." A Treasury Regulation specifically states that the liability for incomes taxes applies "whether the income is received from sources within or without the United States."
"Only employees of the federal government are subject to federal income tax." The term "employee" includes any officer, employee, or elected official of the United States, a state, or any political subdivision thereof. The use of the term "includes" is a term of enlargement, not of limitation. Federal employees and officials are a part of the definition of "employee," which generally includes private citizens.
"The collection of federal income taxes constitutes a 'taking' of property without due process of law, which violates the 5th Amendment." The Constitution does not conflict with itself by conferring a taxing power, but then taking that power away with limitations of the due process clause.
"Filing returns or providing financial information violates the 5th Amendment protection against self-incrimination." There is no constitutional right to refuse to file an income tax return on the ground that it violates the 5th Amendment.
"Compelled compliance with federal tax laws is a form of servitude in violation of the 13th Amendment." Involuntary servitude prohibited by the 13th Amendment refers to slavery, not the payment of taxes.
Gloria Ju
Editor in Chief
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