Your Tax Liability  Presented by Alvin Brown and Associates, tax attorney, formerly with the Office of the Chief Counsel of the Internal Revenue Service. Call (888) 712-7690 for all IRS tax issues, problems and emergencies. Protect yourself from IRS intimidation, errors, and penalties Email at: info@irstaxattorney.com of interest to taxpayers and consultants Offers In Compromise  Interest Abatement Tax Refunds Tax Levy Tax Liens Tax Liens - Suing the IRS Appeals Taxpayer Rights New Tax Legislation IRS Statute of Limitations Information Seizures and IRS Enforcement Department of Justice Criminal Tax Manual Tax Fraud Trust Fund Penalties IRS Tax Code and Regulations IRS Installment Agreements Tax Court Taxpayer Advocate and Problem Resolution Tax Audits Tax Penalties IRS Collection Freedom of Information Taxpayer Privacy Innocent Spouse Relief Employee-Independent Contractor Issues IRS Employee Misconduct Banruptcy and Offers in Compromise Why Tax Protesters Lose Federal Courts IRS Maunal Write Your Congressman |
Why Tax Protestors Lose
This information is intended as technical information of use to consultants and individuals doing research. For information on tax assistance, click here. |
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IRS Fact Sheet 98-9 | ||
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Illegal Tax Protestors Subject To IRS Enforcement Action | ||
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I get a great many contacts from tax protesters. The contacts are in two groups. Group #1 want me to cite technical support for their claim that they are immune from federal taxation either under the Constitution or the Internal Revenue Code. I always tell Group #1 that I know of no case that a tax protester has won - indeed, they lose on that issue when it is litigated. I advise them that if they protest their tax liability, any property or income they receive will be subject to IRS collection. I advise them to comply with the Internal Revenue Code - the law passed by Congress and supported by our judicial system. Group #2 are tax protesters who want to reform and join the main stream of tax compliant citizens. Some them have moved frequently to stay one step ahead of IRS Revenue Officer. Predictably, most of them have no property of any consequence and modest sources of income. Due to the reporting requirements of the Internal Revenue Code, it is difficult to earn income without a social security number - it is required for wages, dividends, and interest. The IRS can find protesters, the location of their assets, and the amount of their income from these reporting requirement. Obviously, the protesters lose their property and their income to the IRS to pay for their tax liability. The IRS is authorized by law to file a tax return for a taxpayer if the taxpayer does not file a tax return. The IRS prepared return includes all deposits to a bank account as income and does not provide for itemized deductions because there is no substantiation for the deductions. There is a solution for Group #2 protesters - I help them with an Offer in Compromise. Miracle of miracles, Congress has written law that says, in substance, if you cannot afford to pay your tax liability, you only have to pay an amount that you can afford to pay. In application, the IRS approves an Offer in Compromise if it is equal to or more than the amount that the IRS can collect from a taxpayer. If the taxpayer has no assets and no excess income, he is uncollectible, and an Offer of a nominal amount could qualify as a "good Offer" that the IRS must accept under the law. The law is designed to give taxpayers, overburdened with a tax liability that they can never discharge, the ability to settle that tax liability in an amount that they can afford to pay. The tax policy followed by Congress on this matter is to provide taxpayers with a "fresh start" so that they can be compliant with the tax law and current in payments of their tax liability in forward years. It happens that tax protesters can avail themselves of an Offer in Compromise if they reform and give up their tax protesting. An accepted Offer will eliminate the tax liability, penalties, and interest. After an Offer is accepted, all liens will be removed. The taxpayer whose Offer is accepted must stay current for five years in order to prevent reinstatement of the tax settled by the Offer. After an Offer is accepted, the taxpayer can earn excess income, save it and invest it without fear of levy. The taxpayer can purchase property and keep it without fear of siezure by the IRS. And a taxpayer can thereafter provide security for himself and his family. |
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Brought to you by Alvin Brown and Associates, attorney at law, former Supervisory Manager and Tax Attorney-Advisor, Internal Revenue Service, Office of Chief Counsel, Internal Revenue Service. Email: info@irstaxattorney.com. |
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