A tax protester is an individual who refuses to pay taxes or file tax returns based on the belief that tax laws are unconstitutional, illegal, or invalid. These individuals often cite fringe legal theories that claim the government does not have the authority to impose taxes on citizens. Despite these beliefs, tax protester arguments have been repeatedly rejected by the courts, and the IRS considers such positions to be frivolous.
Common tax protester arguments include:
- Claiming that income tax is voluntary or only applies to certain groups of people.
- Asserting that wages are not taxable income.
- Arguing that the IRS does not have the legal authority to collect taxes.
The IRS actively targets tax protesters and imposes significant penalties for failing to comply with tax laws. Consequences for engaging in tax protester activities include:
- Civil penalties for filing frivolous returns or failing to file.
- Criminal charges for tax evasion, which can result in fines and imprisonment.
- Frivolous return penalties, which can be as high as $5,000 per return.
Taxpayers are advised to avoid adopting tax protester arguments, as they have no legal basis and can lead to severe financial and legal repercussions.