Anaya Nolan
The right to protest income tax is a topic that has sparked much debate and activism, with a range of laws and arguments put forward. In the United States, the Sixteenth Amendment grants the federal government the power to collect income taxes, and tax protesters have challenged this amendment's validity and their obligation to pay taxes on various grounds. Some argue that being forced to disclose income information violates their Fifth Amendment right against self-incrimination, while others claim that the amendment was never properly ratified. Tax protesters often refuse to pay taxes or file returns, believing the income tax laws are invalid or do not apply to them. They engage in tax evasion strategies, and some have faced legal consequences for their actions. The movement has also spread to other countries, including Canada, where activists have adapted US-originated theories to challenge the legitimacy of their income tax laws.
| Characteristics | Values |
|---|---|
| Definition of Tax Protesters | "Those who refuse to pay income tax on the basis of some nonsensical legal argument that he or she does not owe tax." |
| Tax Protest vs. Tax Resistance | Tax protesters believe that tax laws are invalid or do not apply to them. Tax resisters accept that tax laws exist but choose not to comply due to moral or political opposition. |
| Examples of Arguments | Being forced to file an income tax return violates the Fifth Amendment right against self-incrimination. |
| The Sixteenth Amendment was never properly ratified. | |
| Wages are not income. | |
| Income taxes are voluntary. | |
| The Paperwork Reduction Act of 1980 removes the requirement to file tax returns. | |
| The Native American status exempts individuals from federal income tax laws. | |
| The "Black Tax Credit" allows African Americans to claim reparations for slavery on their tax returns. | |
| The right to file taxes is contingent on accepting Social Security and other government programs. | |
| Strategies | Refusal to pay taxes. |
| Schemes using onshore and offshore trusts to hide income. | |
| Violent attacks on IRS agents or property. | |
| Filing blank tax returns. | |
| Distributing tax protest literature. | |
| Legal Consequences | Prosecution by the government, resulting in heavy penalties, forced repayment of taxes, or jail time. |
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What You'll Learn
Tax resistance as a form of protest
Tax resistance is a form of protest that involves refusing to pay taxes due to opposition to the government, government policies, or taxation itself. It is distinct from tax protesters, who argue that the legal obligation to pay taxes does not exist or does not apply to them. Tax resistance is a form of direct action and can be considered civil disobedience if it violates tax regulations.
Tax resisters may accept that the law requires them to pay taxes but choose to resist anyway. They may refuse to pay taxes because they disagree with how the government spends the money, such as funding wars or other activities they consider immoral, unethical, or destructive. Some tax resisters may also refuse to pay taxes as a way to oppose specific government policies or even to overthrow the government.
There are various methods of tax resistance, some of which are legal and others that are not. Some individuals may reduce their taxable income by changing their lifestyle, such as taking up simple living or freeganism, or by using legal tax avoidance techniques. Others may refuse to pay a portion of their taxes and instead donate the money to charities or causes they support. In doing so, they demonstrate that their resistance is not selfish but rather a desire to contribute to the common good. Some tax resisters may engage in illegal tax evasion, such as working for cash-in-hand to avoid withholding tax.
Tax resistance has a long history, playing a role in the collapse of empires, including the Egyptian, Roman, Spanish, and Aztec. It has also been used as a form of protest in various social and political movements, such as campaigns for home rule, women's suffrage, and opposition to specific wars. In the United States, tax resistance has been employed by left-wing activists in reaction to the Vietnam War and by pacifists who oppose funding the military.
While tax resistance can be a form of civil disobedience, it is important to note that promoting or engaging in tax resistance schemes without a basis in law or fact is illegal. Individuals who promote or engage in such schemes may be subject to legal consequences, including criminal charges and imprisonment.
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The legality of tax protest
In the United States, the term "protest" in the context of taxation means a declaration by a taxpayer that they do not concede the legality or justice of the tax claim. Black's Law Dictionary defines a tax protest as a formal statement made by an individual when called upon by public authority to pay a sum of money, disputing the legality, justice, or amount of the claim. This allows the individual to preserve their right to recover or reclaim the amount paid. While taxes may be paid under "protest", the requirement to file a protest at the time of payment of an erroneous tax was abolished by Congress in 1924.
It's important to distinguish between tax protesters and tax resisters. Tax protesters deny the legal obligation to pay taxes, believing that tax laws are invalid or do not apply to them. In contrast, tax resisters acknowledge the legal requirement to pay taxes but refuse to do so as a form of protest against the government, its policies, or taxation itself. Tax resistance, if violating tax regulations, is considered civil disobedience.
While individuals have the right to protest tax assessments, the law draws a clear line between legitimate protests and illegal schemes. Courts have rejected arguments based on frivolous grounds, such as the Paperwork Reduction Act of 1980, which claims that individuals cannot be penalized for failing to file tax returns due to the absence of an OMB control number. Additionally, the Internal Revenue Code does not allow taxpayers to claim credits or deductions unless specifically provided for in the Code.
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Tax evasion penalties
In the United States, tax protesters are those who refuse to pay income tax based on the belief that the federal income tax is unconstitutional, invalid, or does not apply to them. Tax protesters are different from tax resisters, who refuse to pay taxes as a protest against a government or its policies, or due to a moral opposition to taxation.
Tax evasion and fraud occur when an individual or business intentionally underpays or fails to meet their tax obligations. The Internal Revenue Service (IRS) is responsible for investigating alleged federal tax crimes, including tax evasion and fraud. Tax evasion cases may be pursued by the government either civilly or criminally, with federal prosecutors often pursuing criminal charges against those they believe have committed tax fraud.
It is important to note that there are opportunities for prefiling intervention, where the government may be persuaded to negotiate a plea deal with the defendant prior to charging them in federal court. Demonstrating early and complete acceptance of responsibility can lead to a more lenient sentence from the federal judge.
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Tax protest as a movement
The tax protest movement, originating in the 1950s and 1960s, is the oldest right-wing anti-government movement in the United States. It is a key component of the extreme right-wing "patriot" movement, which includes the better-known militia and sovereign citizen movements. The movement has also spread to Canada, where it is known as the Detaxer movement, and other Commonwealth countries.
Tax protesters refuse to pay taxes or file tax returns because they believe that the federal income tax is unconstitutional, invalid, or voluntary. They often raise frivolous legal arguments, such as claiming that the Sixteenth Amendment to the Constitution was not properly ratified or that being forced to file an income tax return violates the Fifth Amendment privilege against self-incrimination. Some tax protesters refuse to file tax returns or file returns with no income or tax data supplied. They may also advocate for illegal tax evasion schemes, such as claiming false exemptions or working for cash-in-hand only.
The term "tax protest" can be defined as a declaration by a payer that they do not concede the legality of a tax claim they are paying. At common law and under earlier tax statutes, the filing of a protest at the time of payment of an erroneous tax was required for the payer to recover a refund later on.
Tax protesters are distinct from tax resisters, who refuse to pay taxes as a protest against a government or its policies, or due to a moral opposition to taxation. Tax resisters may accept that a law commands them to pay taxes but still choose not to, whereas tax protesters believe that the tax laws do not apply to them. Examples of tax resistance campaigns include the Salt March led by Mahatma Gandhi and the Women's Tax Resistance League, which promoted women's suffrage.
The US government has taken steps to counter the growing tax protest movement, including implementing a nationwide program to identify and investigate tax protesters. Courts have uniformly rejected the arguments put forth by tax protesters, and the Department of Justice has initiated the National Tax Defier Initiative to address the issue.
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Tax protest theories
In the United States, tax protest theories have a large and organized following, with some groups actively recruiting new members. These theories are also not unique to the US, with similar arguments arising in other countries, including Canada. The US tax protest movement includes prominent groups and individuals, each with their own ideas about the illegitimacy of income taxes. While they may disagree on the specifics, they often unite against the IRS. Notable figures in the movement include Irwin Schiff, author of "The Federal Mafia", and Lynne Meredith, who runs a group called We the People.
Tax protesters raise a variety of arguments, often constitutional or statutory in nature. Some claim that the Sixteenth Amendment, which removed the requirement for income taxes to be apportioned, was never properly ratified, or that it is unconstitutional. Others argue that being forced to file an income tax return violates the Fifth Amendment privilege against self-incrimination. There are also statutory arguments, such as the claim that the income tax is constitutional, but the statutes enacting it are ineffective or misapplied. Still, others argue that Federal Reserve Notes and other relevant currencies do not constitute cash or income.
Some protesters have put forth legal arguments, such as the inability to pay taxes for nuclear weapons development due to the Nuremberg Principles, or that they cannot be penalised for failing to file tax returns under the Paperwork Reduction Act of 1980. These arguments have been uniformly rejected by courts. The Seventh Circuit Court of Appeals has stated that the "tax protestor movement's claim that there is no legal requirement to pay federal income tax" is "wholly defective and unsuccessful".
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Frequently asked questions
In the United States, the term "protest" as applied to a tax generally means "a declaration by a payer, esp. of a tax, that he does not concede the legality of a claim he is paying".
Tax protesters are people who "refuse to pay taxes or file tax returns out of a mistaken belief that the federal income tax is unconstitutional, invalid, voluntary, or otherwise does not apply to them under one of a number of bizarre arguments".
Tax resisters may accept that some law commands them to pay taxes but they still choose not to pay them. They may refuse to pay tax because of opposition to the government that is imposing the tax, or to government policy, or as opposition to taxation in itself.
Tax protesters raise a number of different kinds of arguments, including constitutional arguments, such as claims that the Sixteenth Amendment to the Constitution was not properly ratified or that it is unconstitutional generally, or that being forced to file an income tax return violates the Fifth Amendment right against self-incrimination.
