- 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

How much house can I afford

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

View Course »

Introduction to Retirement Funds

Target date funds help you maintain a long term portfolio.

View Course »

TurboTax Articles

Rental Property Deductions You Can Take at Tax Time

Rental property often offers larger deductions and tax benefits than most investments. Many of these are overlooked by landlords at tax time. This can make a difference in making a profit or losing money on your real estate venture. If you own a rental property, the IRS allows you to deduct expenses you pay for the upkeep and maintenance of the property, conserving and managing the property, and other expenses deemed necessary and associated with property rental.

Add a Comment

*0 / 3000 Character Maximum