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Someone informed me about a documentary that exposes the fact that there is a section of tax code that says you don't have to pay. Of course the government can take you to court and you have to spend money to defend yourself in court. But is this true? Does anyone know the name of the documentary?

2007-08-22 09:41:42 · 16 answers · asked by Bane 2 in Business & Finance Taxes United States

It is a section in the code, I'm not talking about people not paying it, to just not pay it, I'm talking about people who go to court with the government over wording the current tax code.

2007-08-22 09:54:25 · update #1

Wow, I never said once in my question that I did not want or wouldn't pay my taxes. I was imply asking if it was true and the name of the documentary....you people like to assume.

2007-08-23 02:53:22 · update #2

16 answers

The argument some tax protesters have made is that they had no Subtitle A income. Basically they are arguing that income tax is an excise tax for operating as a corporation and as an individual they have no obligation to pay income tax. You also see this argument in constitutional trust cases and sovereign citizen arguments. These arguments simply do not comply with US law. The IRS Code and Supreme Court decisions have made it clear that YES you MUST pay your income tax. The theories continue to circulate but they're the laughing stock of informed tax practitioners. You may organize your affairs in a manner which reduces tax liability but it usually makes much more economic sense to simply pay. For instance, if you genuinely have no income then you have no income tax but life with no income get pretty miserable awfully quickly. Remember, the Internal Revenue Code is law enacted by Congress and upheld by the Supreme Court, you simply must pay tax. There is room for disagreement though. For instance, the IRS Regulations are not law. They are the IRS interpretation of the code and they have been known to misinterpret (See Walton GRATs and Example 5). The problem is that if you wish to challenge the regulations you need a competent tax attorney and significant resources to handle the fight. The IRS has very good lawyers on staff and they will certainly oppose any challenge to their regulations. If you have real money at stake, have sought advise from a competent tax attorney, and are prepared to fight then you may challenge the regulations but even then it's unlikely you will succeed. The code is law and you MUST pay tax regardless of what the tax protesters may promote.

2007-08-23 06:15:28 · answer #1 · answered by Anonymous · 0 0

Well, you don't have to pay taxes, but if you don't you can be pretty much sure that the IRS will ask you where your tax return is for that year, and if you don't file one, they will prepare one for you, without any deductions except for standard deduction, and without any credits that you might be entitled to. If there really was a section in the tax code that says that people don't have to pay, don't you think that everyone would just stop paying taxes? I think the name of the documentary is called "1 easy lesson to end up in jail for tax evasion."

2007-08-22 17:13:08 · answer #2 · answered by Anonymous · 1 0

Yes, you have to pay.

There is a "documentary" out there done by a movie director (Aaron Russo) that owes the IRS about $5 million so his opinion is a bit slanted in one direction as you can imagine. Keep in mind that, just because someone calls something a "documentary" doesn't necessarily mean its the truth. Mr. Russo's movie contains misquotes, items taken out of context, and blatant lies. No legitimate accountant or lawyer givens it any credibility.

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Many people have gone to court over the wording in the Tax Code. Some have said that they are not a "person" as defined in the tax code or that they do not have "wages" or "employment" as definded in the tax code or that their "wages" are not "income" as used in the tax code. All of these people have one thing in common. They all have lost!

2007-08-22 16:51:13 · answer #3 · answered by Wayne Z 7 · 2 0

You do not have to pay taxes every year but you do have to file a tax form declaring you do not owe anything for the year. As for a document that says you don't have to pay your friend is full of it, if you didn't have to pay taxes then tax professionals would make sure no one did, not to mention the government would figure out pretty quickly their mistake in wording and amend the tax code so that you have to pay taxes. Without taxes the politicians don't get paid.

2007-08-22 16:51:51 · answer #4 · answered by dpanic27 3 · 0 0

It is not true that you do not have to pay taxes.
It is not true that there is a section of the tax code that says you do not have to pay taxes, if you are a human who makes more than a certain amount.
If you are a non-profit charity or you make less than your exemptions and deductions, then you do not have to pay income taxes.
It is true that there is a documentary, film, or movie that says that you do not have to pay taxes. The documentary, film, or movie is not true.

2007-08-22 16:57:33 · answer #5 · answered by StephenWeinstein 7 · 2 0

I've seen the documentary, it's called "America: Freedom to Fascism" and you have the message slightly mixed.

What it actually says is not that there is a section of code that says you don't have to pay, but that "There is no written law in the US Legal system stating that you are required to pay income tax."

You can find out more by looking on IMDB, which actually gives a great summary of the whole thing:

http://imdb.com/title/tt0772153/

2007-08-22 16:53:12 · answer #6 · answered by Vangorn2000 6 · 0 0

For the very latest info on not having to pay taxes, I suggest that you visit any major prison. They are full of guys and gals who are sure they have the facts to back their case against the government's right to take taxes. They are wrong and they are always found guilty by our court system.

2007-08-22 16:50:35 · answer #7 · answered by united9198 7 · 2 0

Yes you have to pay. The 16th amendment of the US Constitution is what created Taxes in the first place. What is the matter with you? You don't like living here then pay your fair share or moved to some other foreign land.

2007-08-22 19:29:27 · answer #8 · answered by Gary 5 · 0 0

No, you don't HAVE to pay taxes if you can arrange your affairs in such a manner. However, it is HIGHLY UNLIKELY that you will be able to arrange your affairs in such a way.

Below are a few reasons why you will probably end up paying taxes of some sort.

Income taxes can be avoided if you have a job and enough deductions. However, you will be subject to Social Security taxes.

If you own a home, you will be subject to property taxes.

If you purchase practically anything, you will be subject to sales tax.

2007-08-22 18:38:05 · answer #9 · answered by Steve 6 · 0 0

I wouldn't pursue it. The government has huge resources and will make sure you grasp the ultimate simplicity of the system: You are part of this country and must pay your fair share.

Any judge you appear in front of has heard lots of folks try to cleverly dodge their obligations. Probably folks way cleverer than us. And they lost the argument. They all lose the argument. Ask yourself: aren't I using streets and sidewalks, benefitting from a (relatively) crime-free existence, enjoying the protection of the fire department and police, and a military that defends us from attack? And if I were in difficult circumstances, does not my country have many avenues of help for me? Well, then, isn't it fair to ask you to chip in?

You may despise our president, our presence in the Mideast, our gun control laws, our tax laws or whatever, and if you do, I suggest you run for office to change things. But until you build your own country, help pay for ours.

2007-08-22 17:27:36 · answer #10 · answered by dave78m 1 · 1 0

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