Skip to Content

Are you prepared for Wrath of the Lich King? WoW Insider has you covered!

Top Tax Excuses: Filing a tax return is optional

Filed under: Tax

This post was written as part of a series on tax excuses that don't work.

Tax protesters claim that the filing of income tax returns is optional. They say that there is not a requirement to file a tax return. So if you want to avoid paying taxes, just don't file a tax return and you're off the hook.

Not so fast. This lie is based upon an incorrect interpretation of what a "voluntary" tax system is, which is mentioned in some IRS instruction booklets. A voluntary system under the tax laws of the United States doesn't mean that paying taxes is voluntary.

It means that taxpayers "volunteer" their information to the IRS, including how much income they have and the resulting tax due. However, taxpayers are obligated to provide this information. The IRS gives us a chance to correctly report the numbers, and they may later go in and do clean-up via an audit or other inquiry.

But the use of the word "voluntary" doesn't mean you don't have to report your income to the IRS. You do.

Tracy L. Coenen, CPA, MBA, CFE performs fraud examinations and financial investigations for her company Sequence Inc. Forensic Accounting, and is the author of Essentials of Corporate Fraud.

Reader Comments (Page 1 of 1)

WalletPop Highlights

Featured Galleries

Shades of Chrome
Venus Swimwear Styles
Time for a HOG?
Cash from your basement and backyard
Feed Your Family for Less
Vacation Destinations via Flickr photographers
Groceries: Where is your food budget seeing the biggest hit?
The best way to sell Girl Scout Cookies
Brand new items at thrift store prices
Budgeting for Baby: Seven things to prepare yourself for life as an at-home parent
Outlet Stores Going Upscale
Bargain Store Savvy: To Thrift or Not To Thrift?
Grocery prices going up, going up, going up...
Four Ways to Travel for Free--Really
Ten Most-Hated Money-Saving Tips
Things that you don't need to spend money on

 

What's your home worth? Find out now!

(format: Springfield, OH)
AOL Real Estate

Latest from BloggingStocks

Weblogs, Inc. Network