Is the Tax Code Legal

[dennisbell]

Massachusetts: A friend went to jail for heading up a group to avoid paying taxes because he said the tax code was not legal. I know there are a lot of groups out there who agree.

Believing that to be true, I have not filed a return in 20 years. and that was before I was married. Over the years I've received W2's from various employers but my social security number is under my maiden name. The Soc. Security office has sent me notices saying that they do not have me under my now married name, but I've ignored those notices, unsure what to do.

I've had various temp jobs and have been living off equity monies from property my family owned, whreby they died and my name was on the deed. My husband hasn't worked in 20 years and I'm the sole support. I've made some money here and there and now I stand to make substantial money in real estate.

If the tax code is indeed legal, I want to come clean. How far back will the iRS go? Is there any statute of limitations? Will I open a can of worms by filing after 20 yrs? What about bank statements?

I'm 63 yrs old and have property assets. I plan on putting everything in a family trust. Will that avoid attachments? Thank you for your advice.

 

[pishtosh]

There's actually a few situations here. If you were due a refund for those years you didn't file, then nothing will come of the situation. You aren't required to file a return if you don't owe the IRS anything, you would simply file to get your money back.

On the other hand, if you were to owe money in those previous years, then they can go back quite a ways, being that it technically qualifies as tax evasion. In this case, get an attorney and have them contact the IRS on your behalf.

Go to this website to learn more about tax scams:

www.taxes.com/tax_scams.html

 

[hexeliebe]

You aren't required to file a return if you don't owe the IRS anything, you would simply file to get your money back.

EXCUSE ME? Are you practicing to be stupid or do you come by it naturally?

Poster, there is sufficient state, federal and Supreme Court decisions relating to the legality of the tax code. To put it briefly, the following is the comonality of all these decisions:

The following persons must file a 1040 American income tax return for a tax year:

American citizens (even if they are already Canadian residents);
Landed immigrants (green card holders);
People residing more than 183 days in the United States during this year.


There is nothing about how much was earned, whether or not you should file if you receive a refund or not, or any other provisions in the tax code that will allow you to go 20 years (much less one year) without filing a return.

The Soc. Security office has sent me notices saying that they do not have me under my now married name, but I've ignored those notices, unsure what to do.

And that was not very intelligent.

I've had various temp jobs and have been living off equity monies from property my family owned, whreby they died and my name was on the deed. My husband hasn't worked in 20 years and I'm the sole support. I've made some money here and there and now I stand to make substantial money in real estate.

So, you've had unreported income for which you own not only back taxes, but penalities and interest.

How far back will the iRS go? Is there any statute of limitations? Will I open a can of worms by filing after 20 yrs? What about bank statements?

Usually only three years, but they CAN go back to the very beginning.

I'm 63 yrs old and have property assets. I plan on putting everything in a family trust. Will that avoid attachments? Thank you for your advice.

This will no more save your assets as if you hid them under a bed.

Your first step is to contact an attorney and see if they can negotiate with the IRS for a reduction in your penalities and interest for the income you have received over the past three years.

By the way, it doesn't matter if you received income in your maiden name. Did you forget there is a marriage license with both your names on it somewhere?

 

[pishtosh]

Whether you have to file a tax return depends, in part, on your filing status, age, and gross income. You will hear the filing status, age, and amount of gross income that would require you to file.

Single, under 65, and your gross income was at least $7,800.
Single, 65 or older, and your gross income was at least $8,950.
Married, filing a joint return, you and your spouse were both under 65, and your gross income was at least $15,600.
Married, filing a joint return, one spouse is 65 or older, and your gross income was at least $16,550.
Married, filing a joint return, both you and your spouse were 65 or older, and your gross income was at least $17,500.
Married, filing a separate return, and your gross income was at least $3,050, regardless of your age.
Head of household, under 65, and your gross income was at least $10,050.
Head of household, 65 or older, and your gross income was at least $11,200.
Qualifying widow or widower with a dependent child, you were under 65, and your gross income was at least $12,550.
Qualifying widow or widower with a dependent child, you were 65 or older, and your gross income was at least $13,500.


wow, look at that, a whole list of situations that restrict one's obligation to file a tax return... those are the numbers for 2003 of course, and i'll let you find the past years

again, with the information supplied, i'm assuming that she did not owe taxes from simple jobs that only w2's were issued from... if you do not file a tax return, is the IRS going to assess penalties based upon the amount of money they owed you? nope, sorry pal, they won't.

 

[hexeliebe]

assuming

You seem to do a lot of that. The only problem PAL, is that there is no assuming in the law.

Something you fail to grasp.

 

[dennisbell]

Thanks for your quick replies. Perhaps a little BIO on me will help with a solution.

In 20 yrs we've moved our residence 11 times therefore I've never received any notices for the IRS. I also went through a legal name change twice.

I don't have any refunds coming because I've always been basically self employed in businesses that have failed. I funded these businesses with borrowed money from my now deceased brother, my now deceased father and my now deceased husband's mother.

I have a mentally disturbed husband who "cannot" work because of phobias therefore, I'm sole provider.

I took care of my elderly father for 10 years until he died in 1999 (he lived with us) using the balance of his money for living expenses and his care. In 1996 I remortgaged the family home whereby my father had placed my name on the deed.

My family also owned a "mortgage free" vacation home which had been neglected over 15 yrs and was in need of serious repair. (my name also on the deed) I used some of the borrowed money for repairs and to pay off back RE taxes. I sold it 2 years later for $75,000. With the $75,000 I paid off the mortage owed on the family home which left a balance of $15,000.

With that I bought a used car and opened up a thrift shop which barely survived. I sold it 3 yrs later for no profit. I never filed any return in the 3 yrs. it was open although I had an accountant prepare the forms; just never sent them in.

The family home is now vacant and has been for over a year and since it had a lot of equity built up, I bought my present residence for cash (interest payments are $600 mo.) in 2001

Since my present residence had no mortgage, I drew out equity and purchased an investment home 6 months ago which I owe $188,000.

All these years we have lived and purchased on BORROWED MONEY, not income. Yes, I have worked some temp jobs which I was given W2's which never amounted to more than $5,000 a year.

I got my license as a realtor in January and have large credit card debts in order to start up the business. I would like to file a 1099 this year for money earned last year.

I know it must sound complicated but plan on coming clean this year. We are preparing to sell all 3 properties and move to Florida to retire. I'm not a dumb woman, but that doesn't mean I am not capable of doing dumb things. "Smart people do dumb thngs.....why? Because they think they can get away with it."

 

[pishtosh]

thanks for the unabridged version ...

since now you seem to have posted all the facts, i won't have to assume... you need to get a lawyer and discuss the situation... get together any financial documents from the time period in question, as well as any personal info such as addresses, etc... you and your lawyer will contact the IRS to hopefully get a payment arrangement, depending on the amount you owe, and how negligible they think you were in not paying owed taxes...

if it were just simple w2's, again, it probably wouldn't have been worth mentioning, but with all the extended facts in view, you've got quite a bit of work to do...