Why Tax Protestors lose -
Group One & Group Two - Which Are You ?
I get a great many contacts
from tax protesters.
The contacts are in two groups.
Group #1 want me to cite technical support for their claim that they are immune from federal taxation either under the Constitution or the Internal Revenue Code. I always tell Group #1 that I know of no case that a tax protester has won - indeed, they lose on that issue when it is litigated. I advise them that if they protest their tax liability, any property or income they receive will be subject to IRS collection. I advise them to comply with the Internal Revenue Code - the law passed by Congress and supported by our judicial system.
Group #2 are tax protesters who want to reform and join the main
stream of tax compliant citizens. Some them have moved frequently to stay one
step ahead of IRS Revenue Officer. Predictably, most of them have no property of
any consequence and modest sources of income. Due to the reporting requirements
of the Internal Revenue Code, it is difficult to earn income without a social
security number - it is required for wages, dividends, and interest. The IRS can
find protesters, the location of their assets, and the amount of their income
from these reporting requirement. Obviously, the protesters lose their property
and their income to the IRS to pay for their tax liability. The IRS is
authorized by law to file a tax return for a taxpayer if the taxpayer does not
file a tax return. The IRS prepared return includes all deposits to a bank
account as income and does not provide for itemized deductions because there is
no substantiation for the deductions.
There is a solution for Group #2 protesters - I help them with an Offer in Compromise. Miracle of miracles, Congress has written law that says, in substance, if you cannot afford to pay your tax liability, you only have to pay an amount that you can afford to pay. In application, the IRS approves an Offer in Compromise if it is equal to or more than the amount that the IRS can collect from a taxpayer. If the taxpayer has no assets and no excess income, he is uncollectible, and an Offer of a nominal amount could qualify as a "good Offer" that the IRS must accept under the law. The law is designed to give taxpayers, overburdened with a tax liability that they can never discharge, the ability to settle that tax liability in an amount that they can afford to pay. The tax policy followed by Congress on this matter is to provide taxpayers with a "fresh start" so that they can be compliant with the tax law and current in payments of their tax liability in forward years. It happens that tax protesters can avail themselves of an Offer in Compromise if they reform and give up their tax protesting. An accepted Offer will eliminate the tax liability, penalties, and interest. After an Offer is accepted, all liens will be removed. The taxpayer whose Offer is accepted must stay current for five years in order to prevent reinstatement of the tax settled by the Offer.
After an Offer is accepted, the taxpayer can earn excess income, save it and invest it without fear of levy. The taxpayer can purchase property and keep it without fear of seizure by the IRS. And a taxpayer can thereafter provide security for himself and his family.
|IRS Fact Sheet 98-9|
|Illegal Tax Protestors Subject To IRS Enforcement Action|
Let's Get Your Taxes Back On Track !!
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