Is The Income Tax Really Legal?

The Liberty Team
Jul 6
3 min read

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Is the income tax really legal?

International Taxation Experts — CPA Dallas-Fort Worth Metro Area

Is The Income Tax Really Legal?

As we've just celebrated our great nation's 249th birthday, and as we prepare to celebrate America at 250, it seemed like a great time to address a lingering questions.

While we admit, paying income taxes is not our favorite thing in the world. We also must admit that the IRS is not our favorite institution in the world either.

Every year, numbers of Americans suggest and claim that the federal income tax is unconstitutional or illegal. These arguments often pop up online, in fringe tax protestor circles, or among those frustrated with the IRS. But are they true?

Here are the most common claims.

Claim 1: The 16th Amendment Was Never Properly Ratified

Some argue that the 16th Amendment—passed in 1913 to authorize a federal income tax—was never legally ratified by enough states. This claim has been repeatedly struck down by the courts. In Brushaber v. Union Pacific Railroad Co. (1916), the U.S. Supreme Court confirmed the amendment's validity. Even though, if the Supreme Court were to revisit this very issue, we wouldn't complain.

Claim 2: Wages Aren’t “Income”

Another theory claims that personal wages or salaries aren’t "income" and thus aren’t taxable. However, courts have consistently ruled otherwise. The Internal Revenue Code defines gross income broadly to include wages, salaries, commissions, and bonuses. In other words, Section 61 defines everything as income unless it's specifically "excluded;" and unfortunately, wages are not specifically excluded under IRC Section 61.

Claim 3: Filing a Tax Return Is Voluntary

This comes from a misunderstanding of IRS language. While the system relies on voluntary compliance, filing and paying taxes is legally required under Section 6012 of the Internal Revenue Code. Not filing can and will result in civil and criminal penalties. This is not an area where you want to test the IRS. Trust us when we say that they're undefeated on this one.

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Claim 4: The IRS Has No Legal Authority

Some claim the IRS isn't a legitimate government agency. In fact, the IRS is a bureau of the Department of the Treasury, established through legislation and recognized by the federal government and courts. While we may not agree that the IRS does have legal authority, unfortunately, the Courts do and those individuals that have challenged this notion over the years have lost miserably.

The Bottom Line

While it's easy to get frustrated with the complexity of the tax code and the mind boggling actions of the Internal Revenue Service, arguing that the income tax is illegal won't hold up in court—and often leads to serious penalties.

While we don't like the IRS any more than you, until the day comes when it's abolished, paying our taxes is still something we're required to do (something about rendering unto Caesar comes to mind).

The good news though; you don't have to do it alone. Contact us at Liberty Tax Defenders and Horton and Dennis, LLC to guide you through all of your tax needs.

Cheers!

The Liberty Team

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