- Days left

Ever met anyone who thought he didn't have to pay income taxes? Maybe he tried to argue taxes are unconstitutional and there are legitimate ways to avoid paying them.

Don't believe it. Wesley Snipes believed it, and found himself in quite a bit of legal trouble. He's been acquitted of the most serious criminal charges, but that doesn't mean he won't have to pay his taxes. The IRS still intends to go after him for income taxes on tens of millions of dollars, and the interest and penalties associated with those taxes won't be cheap.

This week brings news that Nicholas Cage is joining the ranks of famous tax cheats. The IRS alleges he used his business, Saturn Productions, to write off $3.3 million in personal expenses (all those jet trips and limos) and says he owes $814,000 in taxes and penalties. Cage argues the expenses are all security needs.

You may not have a business you can run personal expenses through. But if you've found a "tax protester" who is selling a kit that will help you "legally" avoid taxes, don't fall for it, or you might end up in a world of legal trouble of your own.

Here are the top ten tax lies. These are excuses tax protesters say you can use to legally avoid paying income taxes. The only problem? They're completely wrong:

The IRS is not an agency of the United States

Wages aren't really income

Income tax laws are unconstitutional

Providing tax information is self-incrimination

My religion prohibits me from paying taxes

A taxpayer isn't really a person

If you're not a citizen, you don't have to pay taxes

You owe no taxes if you file a zero return

Paying taxes is optional

Filing a tax return is optional

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

Economics 101

Intro to economics. But fun.

View Course »

Banking Services 101

Understand your bank's services, and how to get the most from them

View Course »

TurboTax Articles

Video: Tax Guidelines About Gifting

Note: Some of the content of this video applies only to taxes prepared prior to 2012. It is included here for reference only. Find out the tax guidelines about gifting with help from TurboTax in this video on tax tips.

Video: What are Income Tax Rates?

Note: The content of this video applies only to taxes prepared for 2010. It is included here for reference only. Income tax rates change depending on both the amount of money you make and how you made it. Find out about income tax rates with help from TurboTax in this video on tax tips.

Video: How To Reduce Errors on Your Tax Return

Did you know that errors on your tax return can affect the amount of your tax bill and the amount of time it takes to get a refund? Fortunately, TurboTax helps you avoid errors AND be sure you're getting all the tax deductions and credits you deserve.

Does Your Company Need to File Form 1095-B?

A company is responsible for filing IRS Form 1095-B only if two conditions apply: It offers health coverage to its employees, and it is "self-insured." This means that the company itself pays its employees' medical bills, rather than an insurance company. A company that doesn't meet both conditions won't have to deal with Form 1095-B. Its employees might still receive a 1095-B, but from their insurer, not the employer.

Video: Who Qualifies for an Affordable Care Act Exemption (Obamacare)?

The Affordable Care Act requires all Americans to have health insurance or pay a tax penalty. But, who qualifies for an Affordable Care Act exemption? Find out more about who qualifies for an exemption from the Affordable Care Act tax penalty, how to claim an exemption on your tax return and how the Affordable Care Act may affect your taxes with this video from TurboTax.

Add a Comment

*0 / 3000 Character Maximum