Common reasons people say they don’t have to pay income tax

On Behalf of | Apr 27, 2018 | Income Tax

Wouldn’t it be great to not pay taxes? No one wants to pay, but it is hard to get out of it. It does not stop some people in Connecticut and elsewhere from saying that they should not have to pay income tax. Believe it or not, every year the Internal Revenue Service deals with a number of people making arguments against paying taxes. Here are some of the most commonly used arguments and the reasons why they do not work.

Argument number one is: voluntary compliance. This term is used in IRS publications, but it is not what it sounds like. Voluntary compliance does not mean one gets to decide he or she will volunteer to pay taxes. It simply means one gets to figure out and file taxes by oneself.

Argument number two is: income is not really taxable. Some people try to claim that wages earned are not taxable as they are a reimbursement for their time. Unless one earns income in a way that is legally exempt, one has to pay taxes on all gross income.

Argument number three is: the IRS is responsible for preparing and collecting taxes. The main role of the IRS is to collect taxes. In very few cases does this government entity file a person’s taxes.

Finally, argument number four is: only a citizen of the state of residence. Some people may try to avoid paying federal taxes by claiming that they are only citizens of their state of residence and not citizens of the country. Despite actual citizenship status, if one works in the United States, one has to pay taxes to the federal government and one’s state of residence.

Paying income tax can be a burden for many Connecticut residents. Failing to pay will only increase that burden when one has to pay fines and interest on top of what is already owed. Those who are facing tax struggles can turn to legal counsel for help minimizing any negative consequences that may accompany failing to file and pay taxes on time.

Source: nerdwallet.com, “The IRS Isn’t Having Any of These Reasons to Not Pay Taxes“, Tina Orem, Accessed on April 25, 2018

CATEGORIES
ARCHIVES

Archives

RECENT POSTS