Taxes are Illegal?

The man sitting across my desk had been a client for years. He had come in to tell me that he would not be using my services ever again.

“Why?”, I asked.

He had found a lawyer who had told him that income and social security taxes were illegal. All my former client needed to do was file some forms with the government and he would effectively “untax” himself.
“Anyone can do it,” my client told me. “It is just that the government has everyone believing that taxes are required. All you need to do is file the proper forms, and you won’t ever have to pay taxes again. And it is perfectly legal.”

Unfortunately I never saw him again so I have no idea how the whole scheme worked. But every year I have people tell me that taxes are illegal, or unconstitutional, or only for corporations. And every year I tell them that the IRS has said over and over again that taxes are legal, and constitutional, and for everyone with income.

I was looking at a website today, that will sell you a package to “untax” yourself for the small sum of $700. The package will include all the forms you need to send to the government so you will never have to pay income taxes or social security taxes again.

Judging from the page and pages of double speak, the main argument of this website, is that paying taxes is voluntary. They also state that the 16th amendment was never properly ratified, and that wages are not taxable because they are not defined as “income” in the IRS tax code.

Before you fall for this type of scam, please take a moment to read what the IRS has to say about these frivolous tax arguments(pdf file).

If you don’t like reading IRS documents I’ll sum it up for you here. Taxes are legal, the 16th amendment was properly ratified, and wages are income under the law. You can’t avoid taxes by declaring you are not a citizen, by filing any type of “untaxing” paperwork, or by submitting a zero income tax return.

If you choose to use any of these arguments on your tax return the IRS can impose a $5,000 penalty for preparing a frivolous tax return in addition to any other fines or penalties that may be due for underpayment of tax and failing to file a tax return.

The Top Tax Protester, Where Is He Now?

Irwin Schiff is arguably the most prominent tax protester in the United States. He is the author of two books, has presented seminars and appeared on national television promoting his ideas about the legality of the income tax. Most if not all of the tax protester arguments you will hear today originated with Irwin Schiff.

Today Irwin Schiff is a guest of the United States government, serving over 12 years for his 2005 conviction for filing false tax returns, assisting in the preparation of false tax returns filed by other taxpayers, conspiring to defraud the United States, and income tax evasion. He has also been ordered to pay over $4 million in back taxes, fines and penalties.

If You Told People The Truth About Income Taxes You Would Be Out Of A Job

I can’t tell you how many times I have had people tell me that I must know that paying taxes is illegal, and the only reason I don’t tell people is that I would be out of a job. If only it were true. The truth is, if I knew a way that people could legally earn income without paying taxes, I would be more than happy to share it with all my customers, and I am sure they would be more than happy to pay for that information. In fact, I would be the most popular tax adviser in my state.

Net Fool’s Blog Contest

Net Fool Contest Banner

Tax Season is finally over and to celebrate I am going off topic today. The Net Fool is having a contest and I signed up as a sponsor! I am only one of many, this contest has so many prizes offered that everyone who enters should win something! Prizes include cash, blog reviews, advertising and much more. In fact, there is over $4,500 being offered in cash and prizes! For a complete list of prizes keep reading. To enter the contest click on the banner above and read the post at The Net Fool.

I’m going to run my own little side contest here in conjunction with the Net Fool Contest. Leave a comment on this post and I will give 10 random commentors 10 Entrecredits each! Make sure I know your Entrecard ID!

Now for the prize list…it’s huge!

Continue reading “Net Fool’s Blog Contest”

Theme Changes

Please bear with me while I work on changing my theme. I think it is time for an upgrade, and I have a few things I would like to try out. Sorry for the inconvinience, I’ll try and finish up quick. Hopefully things will look lots better when I am done!

Edit: Despite crashing the forum and having it down for a day, I am happy with the changes being made! I now have a theme that I like for the blog, and one that works well for me for the forum.  What would really be nice now is to have them customized so they match.  If anyone out there is talented enough to modify the themes I have so that they at least share the same colors, (more blue than the blog, less blue than the forum!) PM me in the forum. Maybe we could work something out.

I Love My Readers! Who Are You?

Happy Valentine’s Day!

A little off topic today, and I’m doing a little duel tasking today. I need some time to prepare a nice dinner for my Valentine tonight! Here is a post from my personal blog that I would like to share here also!

I have been trying to think of a way to thank all my readers this Valentine’s Day, and to let you know how much I appreciate you. It just wouldn’t be practical to send chocolates, or flowers, or cards. I could send e-cards but that might be a little spammy. So I thought and thought and then I thought some more. I wanted to make sure whatever it was went to my readers, and not those who were just passing through. That’s why this paragraph is a little long and wordy!

So I finally came up with an idea, it’s not much, but it fits my budget! I am giving away links, to everyone who wants one. Here is how it will work. This blog is a do-follow blog and I have Comment Luv installed. That means if you comment on a post you get a link back to your blog plus, comment luv adds a link back to your last post. And of course they are all do-follow links.

Now usually I just delete comments that I feel are blatant self-promotion, but on this post I am welcoming it! I’d like it if you would tell me a little bit about who you are, but if you are in a hurry go ahead and make a one word comment, or no comment. You could even include another link to your blog. (Only one please)

Now only a few restrictions. This is a PG-13 blog so if your site is adult, gambling, or adult pharms, than I’m going to have to say sorry, this offer doesn’t apply to you. And if you like my idea, feel free to copy it. Just please be nice and provide a link back to this post.

Come On In and Join the Discussion!

I want to spend a moment and encourage all of you to take a moment and check out my forum. In the forum we talk about all things relating to money and business.

Here are some examples of the discussions going on.

Yuppy wrote a wonderful post on those quick tax loans.

…Want your money today? If approved for the Instant Refund Anticipation Loan (IRAL), you can get your $200 tax refund check today for only $77.23! (This includes a $20 check processing fee, and a $27.28 finance charge at 481% APR.) Oh, did I forget to mention that you will also have to pay a $29.95 Refund Account Fee? …

Click here to read Yuppy’s post.

Phidippides had an interesting experience with Google Adsense.

A warning if you are trying to gain money by putting ads on your web site. I had Google Adsense on a few of my sites, one of which was really popular at a particular point in time. I had gained a decent amount of money that Google should have paid out. When it came time to pay, though, I got a letter from Google claiming that I had somehow violated the terms of service. I appealed that decision but they maintained that I had broken some rule. All the money that I had earned in my account? Poof!

Click here to read Phidippides’ post.

I am also going to start a board just for Entrecard discussion. There does seem to be a lot to talk about, and if I really like your post, I might just buy you a beer!

Click here to enter the forum.

Entrecard and Taxes?

entrecard image

I’ve just recently become involved with Entrecard. Entrecard is a networking site for bloggers that involves “dropping” your card on websites and having cards dropped on yours. Sort of like the calling cards of old. I have found Entrecard to be a great marketing tool and it has already brought tons of traffic to my site.

Thanks to Entrecard I have also found plenty of interesting sites that I might never have found otherwise! I’ll be featuring some of them in another post, in my newly added Off-topic category!

Now on to taxes. At Entrecard you earn “credits” (some are now calling them entrecredits) by dropping your card on sites, and by selling ads on your site. You can then use those credits to buy ads on other sites. Simple enough so far. But a whole economy is springing up where people are buying and selling other goods and services using entrecredits. Today people are selling advertising, web consulting, and even cookie recipes using entrecredits. That brings up an interesting question, are these taxable events? Do the sellers need to report taxable income when all they have received are entrecredits? The answer is a surprising probably! Continue reading “Entrecard and Taxes?”