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Any form of classified taxable income must be reported, and although this may seem involuntary, the action of filing taxes is prompted by individual free will.
Filing taxes is described as being a voluntary action, but its origins are uncertain, likely from a variety of resources and situations. The Form 1040 Instruction booklets use the term ‘voluntary’, but this does not mean that participating in the filing of taxes is voluntary. In light of this expression, many people have taken their opposition against this proclaimed voluntary action to the highest tax courts and have summarily found themselves facing steep fines and imprisonment. Individual taxpayers’ claims refute the necessity of voluntary action and make misinformed assertations that are eventually disproved by the Internal Revenue Service and government courts. These inappropriate contentions are subject to legal punishment and provide an example of dishonesty among some taxpayers.
The term voluntary, or voluntary compliance, refers to taxpayers’ abilities to calculate their own tax liability, rather than having the government do this for them. Of course, if what you report is disputed, then the IRS will calculate your liability for you and demand you pay the difference plus penalty and interest. Similarly, the description as voluntary refers to the voluntary compliance with the tax code that is evident by tax reporting and paying. Cooperation is described as the honest and accurate filing of annual tax returns. Any form of classified taxable income must be reported, and although this may seem involuntary, the action of filing taxes is prompted by individual free will. Further, accurate identification and information is required when completing income tax return forms.
As stated in the tax codes and laws, any taxpayer who has received more than a statutorily determined amount of gross income in a given tax year is obligated to file a return for that tax year. This means that with whatever taxable income is received and whatever kind of employment it is received through must be noted and used to file a tax return for that year. Many taxpayers participate in a form of tax fraud in order to reduce their income tax liability. This liability corresponds with the amount of taxable income that a recipient obtains during the tax year. In turn, these dishonest filers report no income and therefore no tax liability despite the existence of both. Filing a so-called zero-return while receiving a taxable income is considered an illegal action. Likewise, another method of manipulation is exhibited when taxpayers intentionally provide false information on their W-2 tax filing forms. The wrongful and inappropriate filing of taxes demonstrates dishonesty and noncompliance with the law which becomes problematic for the economy. Paid taxes are apportioned to different government institutions like police and firefighting units and to resources like the maintenance of road conditions.
A reported dispute, as mentioned above, is managed by the Internal Revenue Service, commonly called the IRS. Further, any taxpayer who fails to file a tax return will be penalized in a civil court or face criminal liability charges. In these instances, the IRS will prepare the tax returns on behalf of the individual. Another common contention against the IRS is the false belief that an administrative summons can be ignored and avoided. However, the IRS is authorizes to summon a taxpayer to appear in court to testify and provide documentation of taxable income. Many individuals also assert that any financial compensation received by an individual for a personal provided service is not taxable. However, taxable income includes any wages, salaries, bonuses, commissions, and tips received in exchange for any provided service, whether personal or professional.
Whether you agree with the taxation system or not, this is the current implemented law and the IRS is a collection agency that has an extraordinary power evident in the established tax codes and laws. The law compels individuals to voluntary file income taxes and provide verifiable personal information by threatening government penalization. Tax evasion and nonpayment can result in fines and often times imprisonment. Despite the establishment of these existing codes and laws, many senseless taxpayers search for loopholes in the system. They often suggest that taxation is not a mandatory responsibility since it is described as being voluntary. However, this is obviously a misinformed assumption. Taking a senseless tax argument to the courts is hence not recommended; history has demonstrated that the IRS has little tolerance for facetious oppositional tactics and prevails as the authoritative contender. Further, actively resisting and disregarding the law identifies an individual as a criminal whose taxes will continue to require monitoring and verifying in the future. Below is a link to the IRS guidance on and evidence against past frivolous tax arguments.
