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What you don't know about the U.S. Income Tax.

This reply is because of something that you posted about the U.S. Income Tax. I know what you don't know because I have spent an enormous amount of time actually reading the U.S. Income Tax laws. (I'll save you some time if you are willing to admit to yourself that  you don't know what you don't know about the U.S. Income Tax laws.)

One of my pet peeves is folks I loosely categorize as being in any Pro-Liberty group who complain about the U.S. Income Tax laws. Laws they have NEVER read. I will guide you to the laws you need to read.

This is a rhetorical question: Why do you believe you are required to file an IRS Form 1040 every year? I, like you, used to file that return every year. That is until I read the actual information hidden in plain sight.


This command is on page 23 of the 2023 Form 1040 instructions :

Foreign-Source Income
You must report unearned income, such as interest, dividends, and pensions, from sources outside the United States unless exempt by law or a tax treaty. You also must report earned income, such as wages and tips, from sources outside the United States.
If you live and work in any of the 50 States united does this command order you to report your payroll payments? It is my opinion that this instruction is designed to make you think your domestic pay must be reported.

Disclosure, Privacy Act, and Paperwork Reduction Act Notice is on page 107 of the 2023 Form 1040 instructions :

Our legal right to ask for information is Internal Revenue Code sections 6001, 6011, and 6012(a), and their regulations. They say that you must file a return or statement with us for any tax you are liable for. Your response is mandatory under these sections.

Do you think you must file a return or statement for any tax you are NOT liable for? Doesn't this raise the question, Where would I be made liable? This word "liable" is very important in tax law.

Who is made liable for Subtitle A Income Taxes?

TITLE 26 - INTERNAL REVENUE CODE
Subtitle A - Income Taxes
CHAPTER 4 - TAXES TO ENFORCE REPORTING ON CERTAIN FOREIGN ACCOUNTS

Sec. 1474. Special rules
(a) Liability for withheld tax
Every person required to deduct and withhold any tax under this chapter is hereby made liable for such tax and is hereby indemnified against the claims and demands of any person for the amount of any payments made in accordance with the provisions of this chapter.
TITLE 26 - INTERNAL REVENUE CODE
Subtitle A - Income Taxes
CHAPTER 3 - WITHHOLDING OF TAX ON NONRESIDENT ALIENS AND FOREIGN CORPORATIONS                    
Subchapter B - Application of Withholding Provisions

Sec. 1461. Liability for withheld tax
Every person required to deduct and withhold any tax under this chapter is hereby made liable for such tax...

Did you notice that the only folks made liable for Subtitle A Income Taxes are the folks required to withhold Income Taxes from foreigners?


What are the penalties for NOT filing a return or statement?

Title 26-INTERNAL REVENUE CODE
Subtitle F-Procedure and Administration
CHAPTER 75-CRIMES, OTHER OFFENSES, AND FORFEITURES
Subchapter A-Crimes
PART I-GENERAL PROVISIONS

§7201. Attempt to evade or defeat tax
Any person who willfully attempts in any manner to evade or defeat any tax imposed by this title or the payment thereof shall, in addition to other penalties provided by law, be guilty of a felony and, upon conviction thereof, shall be fined not more than $100,000 ($500,000 in the case of a corporation), or imprisoned not more than 5 years, or both, together with the costs of prosecution.

Can you willfully attempt to evade or defeat any tax you are not liable for (not required to pay)?

Title 26-INTERNAL REVENUE CODE
Subtitle F-Procedure and Administration
CHAPTER 75-CRIMES, OTHER OFFENSES, AND FORFEITURES
Subchapter A-Crimes
PART I-GENERAL PROVISIONS

§7203. Willful failure to file return, supply information, or pay tax
Any person required under this title to pay any estimated tax or tax, or required by this title or by regulations made under authority thereof to make a return, keep any records, or supply any information, who willfully fails to pay such estimated tax or tax, make such return, keep such records, or supply such information, at the time or times required by law or regulations, shall, in addition to other penalties provided by law, be guilty of a misdemeanor and, upon conviction thereof, shall be fined not more than $25,000 ($100,000 in the case of a corporation), or imprisoned not more than 1 year, or both, together with the costs of prosecution. In the case of any person with respect to whom there is a failure to pay any estimated tax,

Can you willfully fail to file a return, supply information or pay a tax you are not liable for (not required to pay)?

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