It may seem obvious that we do, but check out this video: http://video.google.com/videoplay?docid=-4312730277175242198&q=freedom+to+fascism It shows and gives many interviews to "prove" that there is no federal law requiring us to pay income tax...but then i found: US Code Title 26, subchapter A of Chapter 61 US Code Titile 26, Subtitle F, Chapter 64, Subchapter A, Section 6301 "Collection Authority "The Secretary shall collect the taxes imposed by the internal revenue laws." May also want to read Subsection 7202, "Willful failure to collect or pay over tax" Any person required under this title to collect, account for, and pay over any tax imposed by this title who willfully fails to collect or truthfully account for and pay over such tax shall, in addition to other penalties provided by law, be guilty of a felony and, upon conviction thereof, shall be fined not more than $10,000, or imprisoned not more than 5 years, or both, together with the costs of prosecution. and Subsection 7203, "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, this section shall not apply to such person with respect to such failure if there is no addition to tax under section 6654 or 6655 with respect to such failure. In the case of a willful violation of any provision of section 6050I, the first sentence of this section shall be applied by substituting “felony†for “misdemeanor†and “5 years†for “1 yearâ€. subsection 7201"Attempt to evade or defeat tax" It states: 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. I want to know what's going on, and anyone with a good explanation please respond! Thank you.
U.S. Constitution: Sixteenth Amendment Sixteenth Amendment - Income Tax The Congress shall have power to lay and collect taxes on incomes, from whatever source derived, without apportionment among the several States, and without regard to any census or enumeration.
Don't even try it. A lot of people have had their lives ruined because they believe they were not required to pay income tax.
There are some people who say that the income tax is illegal because of the way it was put into effect--basically that they didn't follow the right procedure to amend the constitution. However, legal or not, it isn't recommended to stop paying income tax. There are too many ways to minimize your taxes without risking going to jail to make it worth trying.
Read the constitution. You can argue that the right procedure wasn't followed all day long, but it's there and therefore it's law. If people didn't pay their taxes, how would cities pay for schools, roads, traffic lights, cops, parks, public hospitals, and so on?
You can either choose to put a big target on your ass and thumb your nose at the IRS, OR--you can fly underneath the radar. Having done method one already and getting my ass shot off in the process, I prefer method number two!
I've seen websites dedicated to telling people how to avoid paying taxes. Usually, they are run by so-called "experts" who brag about the way that they have avoided paying taxes for years. Well, sooner or later these big guys are bagged and made an example of by the I.R.S. Like death, you won't escape paying taxes. You can minimize your burden, but the emphasis for anyone running a business is to build that business up without worrying about taxes. If you get to be that big of an operation, then hire an accountant who can then help you save money on taxes.
...and the number one way to avoid taxes is... ...Start a corporation! EVERYTHING is a write off just about!
That's not true. Also, you get into double taxation by starting a corporation (corp taxes and personal income taxes). By starting a LLC, you can get the best of both worlds, but you'll still pay taxes (of course).
Yes, you need to pay income taxes. The income tax we made legal around the time of WWI, and many people have not been happy about it since then. That people don't want to pay it, however, doesn't mean they don't have to pay it.
With an LLC you will still pay taxes and, depending on the state where you set up your LLC, you will pay an annual fee for the LLC. I pay a fee to the state and to my local town. Still, I prefer the arrangement that an LLC provides.
Actually, unless you need a holding company, the "S" corp is the best model, and no, there is not double taxation with an S corp because it passes taxes through to the owners depending on net income for that year. If you are stupid about your taxes then you will pay regardless of whether or not you have a corporation. Proper planning and utilization of assets will greatly reduce your tax liability. I have had sufficient deductions that I have not had to pay any taxes for four years now. Learn more about corporations and taxation and you'll be better off.
How true. And their second book or website about why you don't need to pay taxes is often written from jail or while doing "community service".
Sometimes yes, but there are certain things that can be deducted as a C Corp that can't be deducted as an S Corp. You have to spend some time coming up with a plan first and then determining how you want to structure things for your best benefit. You need a tax adviser, but if you want to save the most you are going to have to invest some time in learning about corporate structure yourself. If you know what you are doing you can create a structure that allows you to move as much money as possible from the corporation into your pocket at the lowest tax rate possible. For example, lets say you run a travel site where you post reviews about different travel destinations. Most people would recognize that your travel would be tax deductible to the corporation, but if you really read the tax law you'll see that there is a maximum daily rate that you can be reimburse for travel. This means if the government says you can be reimbursed up to $100 for every night spent in a certain location, your business can pay you that amount and it is tax free to you. So you spend 10 days in Detroit doing research for your site. I think the maximum per diem rate for Detroit for lodging is $100, so the government says you as an individual can be reimbursed $1000 to cover your lodging expenses there. If you stayed with friends and it only cost you $200 you can still get the full $1000. This means you've moved $800 from the corporation into your pocket in a way that is tax deductible to the corporation, but not taxable to you. By reading the tax law carefully you can ways like this one to drastically lower your tax liability. This is much better than trying to not pay taxes. The IRS gives you plenty of legal ways to lower your tax liability. You just have to understand the law.
This argument over whether the United States or Canada has the constitional and/or legal authority to collect income taxes has been going on for decades. In the 1970's people went to jail over this. They went to jail in the 1980s and in the 1990s and are still going to jail today. If you do not want to pay income tax, move to a country which does not collect income tax. If you do not want to move, organize yourself so as to minimize the taxes you need to pay. Registering a business to handle any websites you operate can reduce and/or eliminate the taxes payable on that income. If you cannot afford an accountant, sign up for an HR Block course and do income tax next spring. You earn some extra money and learn plenty about lowering tax liability without incurring criminal liability. Do not waste your time on such websites on such debates. In the end, you will lose.
anyone that works e.g. teachers, doctors have to pay income tax, that is the law of every country. There may be a different name in some countries but trust me, they arn't going to let you work without paying tax lol
What most do not understand that their federal income taxes are used simply to pay the interest on the federal debt. So in 1913 the US government created a private run bank and slapped the name federal on it and gave them the power to print money in the name of a fractional reserve banking system. Do away with the Federal Reserve, do away with the federal debt and then there is no need for federal personal tax on labor. Of course someone will go grab the IRS's distrubution of collected income tax and claim their money goes to pay important federal projects. Of course you never realize the slight of hand that has taken place where where other taxes and levys are redistributed to make the appearance of the need (other than the need to line private bankers deep pockets in paying interest on money that was created out of thin air anyways) for a federal income tax on labor. Think about one thing, the IRS and the Federal Reserve came into existence in the same time frame. They are connected and needed only to keep the other alive. This country (if you live in the USA) did just fine as a country and kept their debt to a very manageable amount paying private bond owning citizens instead of corporate banking cartels the interest. A good read on this is "The Creature From Jeykel Island." by Edward Griffen. And yes paying income tax to fund the federal debt interest paid out to a private banking cartel is required as long as ignorance reigns supreme and people are unwilling to fight for their Constitutional rights because they remain scared.