- Days left

Top Tax Excuses: Paying taxes is optional

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

Those opposed to paying federal income taxes often claim that the whole system is optional and they choose not to participate in it. They claim that there is no law requiring them to pay taxes and they demand that someone show them the law that requires them to pay income taxes.

Well, okay. Here's the law: Section 1 of the Internal Revenue Code. "There is hereby imposed on the taxable income of [insert status of taxpayer – single, married, etc] ..., a tax determined in accordance with the following table..."

Additional sections of the tax code elaborate on the requirement to file tax returns and pay taxes. Nowhere in the tax code is there anything about taxes being optional. And yes, the tax code is in fact the law of the land regarding taxes in the United States.

You should also note that you can't get out of paying taxes by saying that you don't understand what or how to do it. That doesn't wash with the IRS. Find a tax preparer.

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.

Learn about investing from the comfort of your own home.

Portfolio Basics

Take the first steps to building your portfolio.

View Course »

Investment Strategies

Learn the strategies you need to build a winning portfolio

View Course »

TurboTax Articles

Keeping Yourself Safe From Tax Scams Today

During tax time, there are numerous types of tax scams. These illegal schemes can result in the taxpayer being responsible for extra interest, penalties and possible criminal prosecution. Tax schemes and scams attempt to gain access to your financial information by email, telephone, fax or mail. They also may attempt to falsely collect tax you owe to the Internal Revenue Service. Using TurboTax ensures your financial information remains safe.

Health Care and Your Taxes: What's the Connection?

Your cost for Marketplace health insurance is based on the income you file on your tax return. Your reported income also determines your eligibility for the tax credits and penalties associated with Marketplace health coverage. Everyone has to have health insurance and by filing your taxes, you let the government know if you carry health insurance. The tax system acts as a way for the government to levy a penalty on those who don?t have it and to provide assistance, by means of a tax credit, to those who do.

Documents You Should Save for Tax Time

Settling your account with the Internal Revenue Service each year doesn?t need to be a frantic search for the information you need to file your tax return. Knowing what documents to have at your fingertips can help to reduce filing difficulties and possibly your tax bill.

Do The Math: Understanding Your Tax Refund

For most people, tax is collected by an employer at a rate that estimates your tax for the year. Your actual earnings and the deductions that you?re allowed to claim might cause you to pay too much tax, which leads the Internal Revenue Service to issue you a refund. "The idea behind a tax refund is quite simple," says James Windsor, a certified public accountant from Ann Arbor, Michigan. "When you pay more tax than you owe, the Internal Revenue Service returns the overpayment as your refund."

5 Tax Tips for Single Moms

If you?re a single mom filing your taxes, make use of tax credits and deductions that can help reduce your taxable income and reduce the amount of tax you pay. A number of strategies, credits and deductions can be used to reduce taxable income, and in some cases, allow tax refunds even if you didn?t pay in any taxes. When you use TurboTax, we?ll ask simple questions and handle these calculations for you.

Add a Comment

*0 / 3000 Character Maximum