- Days left

This post was written as part of a series on tax excuses that don't work.

While we may all wish this one was true, it's not. Quite clearly, the Internal Revenue Service is a bona fide federal agency and has the authority to collect income taxes from us.

Tax protesters claim that in order for the Internal Revenue Service to be a real agency of the United States, it should have been created through an act of Congress. Because it was not created that way, it's just a private corporation and we don't have to cooperate with them. Or so they say.

Sorry... the Secretary of the Treasury has the authority to enforce tax laws and has the power to create an agency to help him. That agency just happens to be the IRS, and so long as the Secretary of the Treasury wants the IRS to exist, it can and will enforce income tax laws. So when IRS agents come knocking at your door, you better believe that they really are representatives of a Federal agency and they really do have the authority to collect taxes from you.

Tracy L. Coenen, CPA, MBA, CFE performs fraud examinations and financial investigations for her company Sequence Inc. Forensic Accounting, and is the author of Essentials of Corporate Fraud.


Increase your money and finance knowledge from home

Basics Of The Stock Market

Stock Market 101 - everything you need to know but were afraid to ask!

View Course »

How much house can I afford

Home buying 101, evaluating one of your most important financial decisions.

View Course »

TurboTax Articles

What is Form 1095-B: Health Coverage

Form 1095-B is a health insurance tax form which reports the type of coverage you have, dependents covered by your insurance policy, and the period of coverage for the prior year. This form is used to verify on your tax return that you and your dependents have at least minimum qualifying health insurance coverage. If you had a break in health care coverage for the tax year, you may have to pay an individual shared responsibility payment, also known as a tax penalty.

What is Form 1095-A: Health Insurance Marketplace Statement

If you bought health insurance through one of the Health Care Exchanges, also known as Marketplaces, you will receive a Form 1095-A which provides information about your insurance policy, your premiums (the cost you pay for insurance) and the people in your household covered by the policy.

What Are the Tax Penalties for Smokers?

This requirement for minimum essential coverage (MEC) under the Affordable Care Act applies to smokers and nonsmokers alike. If you're not covered by an employer's health plan and are a smoker, you can go to the health care marketplace to find MEC. If you're still unable to comply, you may have a penalty applied.

Tax Planning for Beginners

Your tax refund is based on how much tax you pay in excess of the tax you owe. Basic tax planning strategies aimed at reducing the amount of your taxable income may increase the gap and thus your refund. In some cases, these strategies benefit you in other ways, offsetting future costs for health care or providing for retirement. Though some aspects of tax law can be complicated, even a beginner can focus on taxable income reduction.

Affordable Care Act (Obamacare) Survival Guide For ALEs

A key feature of the Affordable Care Act (also known as Obamacare) is the way in which responsibility for affordable health care coverage is shared between stakeholders. Companies that employ 50 or more people may be considered "applicable large employers" or ALEs under the Affordable Care Act. ALEs have specific provisions when it comes to providing health insurance, and these provisions are being phased in from larger to smaller companies over time. The Internal Revenue Service (IRS) notes that less than 5% of employers are considered ALEs.

Add a Comment

*0 / 3000 Character Maximum