Here’s a post from the National Association of Tax Professionals, that says it as well as I think I can.  Most of these arguments are good for a chuckle or two.  It continually amazes me how people can put forth these ideas and appear to sincerely believe them.  But, I guess that is all a testament to human nature, greed, and that we tend to believe what we want to hear.   — FM

Lawsuit-Happy Tax Protesters Tax
the Legal System

The
Verdict – Pay What You Owe

National
Association of Tax Professionals (NATP) Appleton, WI – Paying taxes violates the
first amendment (or the fifth or thirteenth or fifteenth…); I am a citizen of my
state, not of the United States; the war goes against my religious beliefs so my
taxes should not fund it; if I don’t file a tax return, the government is
responsible for filing for me; because I am disabled or a minority, I am exempt
from paying taxes; my assets are in a trust not subject to taxation. All of
these arguments to protest paying taxes, plus many more, have floated around for
years, and every year there’s a new twist on the old story. Currently there are
over 40 general categories of tax evasion arguments, none of which are
successful. Instead, buying into these false ideas is a good way to lose
money.

The courts have
little patience for those who avoid paying their fair share of taxes, but they
see plenty of cases. The outcomes are almost always the same – defendants must
pay the taxes they owe and often with civil penalties of 20 to 75 percent of the
underpaid tax and fines of up to $25,000. Some evaders are imprisoned. Yet every
year a new crop of tax evaders think they have the magic reason, legitimate
grounds, to not pay, and they clog the court system with frivolous cases.

“Taxpayers
need to avoid being taken in by groundless theories suggesting that they don’t
have to pay taxes or file returns,” said IRS Commissioner Mark W. Everson. “The
truth about these frivolous arguments is simple: They don’t
work.”

Bruce Hicks,
a professional NATP tax preparer at Freedom Income Tax in Nashville, TN says,
“Friends, family, and your golf buddies, despite meaning well, are the worst
sources of information on your taxes. As a tax professional a lot of my time is
spent debunking the myths that people have heard from others. Another problem is
that promoters of these tax evasion schemes will take a percentage of your
refund (if they prepared the return) and then disappear when the IRS shows up.”

“Remember,
your fair share does not mean ‘overpaying’ your taxes because you do not claim
‘legitimate’ deductions, etc. Rather, it means taking every deduction,
deferment, etc. that is legitimately available to you,” adds NATP professional
preparer Ken Morales of Lexington, KY. “Our taxation system is a self-imposed
system, where the taxpayer is expected to avail themselves of every tax benefit.
There is a difference between tax savings and tax evasion, one being
legitimately avoiding tax, the other illegally evading taxes. Your professional
tax preparer is trained, and in many instances has years of experience, to
properly advise you on this difference. And, the bottom line is that the
taxpayer is responsible for his or her tax return and the facts contained
therein.”

According to NATP
member Doug H. Moy, Lake Oswego, OR, who is a consulting specialist in
estate/gift taxation and planning, abusive trust tax shelters rank high on the
IRS list of “Dirty Dozen” tax scams. “The proliferation and use of sham trusts
in estate planning is remarkable in view of the fact that not one single
taxpayer who has used a sham trust has prevailed against the
government.”

If you bought
into a scheme to hide your income from the government, no matter how legitimate
the method may have sounded, seek the help of a professional tax preparer and
make things right. There is no defense to not fulfill your obligations to the
government. Don’t get taken in by falsehoods; pay your fair share and really
think about what those tax dollars buy for you and your family. If you have any
questions about the tax system or for help in legally minimizing your tax
burden, consult a professional tax preparer who is an expert that keeps up on
tax law changes year-round.