Frivolous Tax Argument- The Filing of a Tax Return is Voluntary
A number of taxpayers have asserted and claimed that they are not required to file federal tax returns because the filing of a return is voluntary. Such proponents state that the IRS itself tells taxpayers in the Form 1040 instruction book that the tax system is voluntary. Further, proponents often cite Flora v. U.S., 362 U.S. 145, 176 (160), “our system of taxation is based upon voluntary assessment and payment, not upon distraint.”
The word “voluntary” as used in Flora, and in IRS Publications refers to the system allowing taxpayers initially to determine the correct amount of tax and complete the appropriate returns, rather than allowing the government to determine the amount of tax from the outset.
The requirement to file a tax return is not voluntary and is clearly established in Section 6011(a), 6012(a) and 6072(a).
Any taxpayer who has received more than the statutorily determined amount of gross income is obligated to file a return. Failure to file a tax return could subject the non-complying individual to criminal penalties, including fines and imprisonment. In August 2005, the Justice Department announced that Royal Lamarr Hardy was sentenced to 156-month prison term for selling a tax evasion scheme called “Reliance Defense” that incorrectly asserted the income tax laws were voluntary.
In looking at case law, in Helvering v. Mitchell, the U.S. Supreme Court stated that, “in assessing income taxes, the Government relies primarily upon the disclosure of the taxpayer of the relevant facts in the annual return. To ensure full and honest disclosure, to discourage fraudulent attempts to evade tax, Congress imposes either civil or criminal sanctions.” The court in United States v. Gerads, stated, “any assertion that the payment of income taxes is voluntary is without merit.
From the current case law, it is well established that the filing of a tax return is not voluntary and that each taxpayer who has received a certain amount of income is responsible for filing their individual income tax return.
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