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Frivolous Tax Arguments

Frivolous Tax Arguments

Many people are so keen on not allowing Uncle Sam to get a penny of their money through taxes and engage in certain practices to achieve their goals. One such method is the frivolous tax argument, which refers to unreasonable claims utilized to support fraudulent tax returns. The IRS curates an extensive list of frivolous tax arguments from taxpayers who file frivolous returns to avoid paying taxes.


Some of the most commonly utilized frivolous tax arguments include: 

  • Federal income taxes are unconstitutional 

  • Wages are not taxable income. 

  • Paying income tax is voluntary.

  • Taxpayers are citizens of states and exempt from federal income taxes. 

  • I am not paying taxes on religious grounds. 

  • Foreign source income is the only taxable income. 

  • Employees who work for the government are the only ones subject to federal income tax. 

  • The IRS is not an agency of the U.S.A.

  • Filing taxes and paying returns are voluntary acts to the government. 

  • Taxpayers should receive a sum of their social security taxes paid throughout their lifetime. 


These excuses are also known as “Tax myths” that enter the IRS “Dirty Dozen” list, highlighting some of the most common tax scams seen during filing seasons. Tax filing seasons are the most prevalent times when such claims are made, and in some cases, the taxpayers are deceived by scammers who persuade them to file these claims with the promise that they can get some money from their taxes. 

The IRS already knows about these excuses and keeps its list updated, which means there is nothing new or surprising to them hence the reason they don’t hesitate to flag such claims when they see them. 

The only way to ensure that you can get deductibles from your taxes is to uncover laws that provide such deductibles with peculiar tax returns, and who knows, you might save a lot of money through legal means. This realization is why articles like this are so timely because the internet is replete with false information on remitting taxes that get unsuspecting taxpayers into trouble. 

Many taxpayers have tried to use some of these arguments and failed in court, and numerous law cases show how wrong the views can be. But the tax protesters and promoters of such frivolous tax continue to use them, and there are some consequences. 


The consequences of frivolous tax arguments 

Some taxpayers get criminal and civil penalties for utilizing frivolous tax arguments, and the civil liability for filing a frivolous tax return is set at $5,000. The penalty can be assessed when a submitted document expresses a silly position. 

Individuals can also face additional tax penalties when they fail to report their income, file returns, or pay taxes based on frivolous tax arguments, including: 


  • Interests on unpaid taxes 

  • A failure to pay a penalty of about 0.5% due to taxes monthly 

  • Civil fraud penalties 

  • Failure to file penalty of 15% monthly


You will also have a backlog of unpaid taxes that needs to be paid, and if for some reason you feel like the frivolous arguments are real, you will be vulnerable to stiff penalties. The taxpayers that rely on frivolous arguments and scam schemes can face criminal prosecution for attempting to evade taxes, and in some cases, they may be convicted of a felony. 

To avoid the mix-up caused by frivolous tax arguments, you may have to continue reading materials like this to learn more about taxes and your responsibilities as a taxpayer. Always consult an expert if you are unsure and avoid the promoters of a frivolous scheme who may try to convince you to make ridiculous claims.


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Unifirst Financial & Tax Consultant
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