TAX TIP OF THE MONTH
Do We Really Have to Pay Taxes?! (Part 2)
Below is a second part of the IRS’ answers to false contentions regarding taxes:
CONTENTION: “Payment of Tax is Voluntary.” Some argue that they are not required to pay federal taxes because our system of taxation is based upon voluntary assessment and payment.
THE LAW: The requirement to pay taxes is not voluntary and is clearly set forth in section 1 of the Internal Revenue Code, which imposes a tax on the taxable income of individuals, estates and trusts as determined by the tables provided by the IRS in that section of tax law. Failure to pay taxes could subject the non-complying individual to criminal penalties. The obligation to pay tax has also been outlined in section 6151. This was upheld by the Eighth Circuit Court of Appeals in the case of United States vs. Drefke (1983), which stated: “when a tax return is required to be filed, the person so required shall pay such taxes to the internal revenue officer with whom the return is filed at the fixed time and place.”
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