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Tax Defense Network: Fraud of Frivolous Tax Arguments – Part II

It might be that sometimes you are not informed about the various policies of the IRS when filing your return, or you might be a victim of bad advice. As the IRS comes across various frauds in tax filing and hear the taxpayer’s arguments on filing false claims, taxpayers are now informed about the many frivolous arguments that do not hold ground. Tax Defense Network fraud investigation lends the information for the second part of this series.

1. Tax Defense Network: Fraud and Federal Reserve Notes

Some taxpayers try to minimize their tax liability by asserting that Federal Reserve Notes are not a valid currency, and therefore they cannot be included in tax returns. It is a fact that Federal Reserve Notes cannot be exchanged for gold or silver, but this does not mean that they cannot be taxed.

The court has on several occasions rejected the argument that Federal Reserve Notes are not taxable. The United States Constitution states Congress’ power to declare the form of legal tender, and Congress has declared Federal Reserve Notes legal tender and taxable dollars.

2. Tax Defense Network: Not a Citizen Fraud

Some taxpayers argue that because they have the citizenship in a particular state of the U.S., they are not citizens of the United States and are therefore outside federal income tax laws. There are many variations of this argument. Some taxpayers say they are born citizens of a particular state and have rejected the citizenship of the United States.

Whatever the argument, the law clearly states that all persons who were born or naturalized in the United States are citizens of the United States and of the state where they live. That means simultaneous state and federal citizenship for all citizens of the United States.

The argument that you are only the citizen of a state is considered frivolous by the courts and has been uniformly rejected.

3. Tax Defense Network: IRS Is Outside the United States

To evade taxes, some people argue that the IRS is not an agency of the United States because it was not created by an act of Congress and has no right to collect taxes.

Again, this is a misleading argument. The U.S. Supreme Court cleared in the Donaldson vs. United States case that the Internal Revenue Service is organized to carry out the broad responsibilities of the Secretary of the Treasury for the administration and enforcement of the internal revenue laws.

The IRS is a lawful body because it was created through congressional mandated power and has the right to collect taxes from the citizens of the United States.

Tax Defense Network fraud busters can be a useful tool in filing your tax returns safely and successfully this tax season. After all, it is best to take help from professionals who have been dealing in tax issues for years. There might be too much information on the Internet about federal taxes, but it is only the accurate, authentic and easy-to-understand advice that helps in the end.

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