Business & Finance Taxes

The Long Arm of IRS Jurisdiction

There are certain people who try to avoid paying taxes by circumventing the law because they don't know how far and wide the IRS reaches.
The IRS constitutionality and jurisdiction are usually questioned by tax "protesters.
" As a taxpayer, you need to know the laws, so you don't end up suffering from IRS issues in the future.
Let's take a look at the extent and jurisdiction of the Internal Revenue Service.
A term normally heard on movies, jurisdiction provides leaders the authority to enforce punishment when addressing legal situations.
The IRS is a bit more amorphous since it has jurisdiction over all the taxpayers in the United States, as well as those who make any income in the United States.
If you fail to understand that you have obligations to pay taxes as a taxpayer, you'll definitely have IRS issues.
The Code of Federal Regulations, Title 26 speaks about the IRS: "The Internal Revenue Service is a bureau of the Department of the Treasury under the immediate direction of the Commissioner of Internal Revenue.
The Commissioner has general superintendence of the assessment and collection of all taxes imposed by any law providing internal revenue.
The Internal Revenue Service is the agency by which these functions are performed.
" If you're a resident of the US, a non-resident earning money in the US, a citizen residing in foreign countries, or a citizen earning money in foreign countries, the IRS has jurisdiction over you as a taxpayer.
You will encounter issues with the IRS if you don't pay taxes on capital gains, earnings, property, etc.
As stated in this excerpt from Economy Plumbing and Heating Co.
vs.
the US, non-taxpayers are excluded from the jurisdiction of the IRS: "The revenue laws are a code or system in regulation of tax assessment and collection.
They relate to taxpayers, and not to non-taxpayers.
The latter are without their scope.
No procedure is prescribed for non-taxpayers, and no attempt is made to annul any of their rights and remedies in due course of law.
With them [non-taxpayers] Congress does not assume to deal, and they are neither of the subject nor of the object of the revenue laws.
" You can determine if you are a non-taxpayer and avoid IRS problems by visiting your state's tax websiteor the IRS website.
To discredit the IRS's jurisdiction, tax protesters insist that the 16th Amendment providing Congress the power to collect taxes on income was not properly ratified.
With a majority vote, the 16th Amendment was in fact ratified.
The IRS has no jurisdiction because it's not a government agency is another ridiculous argument.
Actually, because the Secretary of Treasury has enforcement and administration power over the laws of internal revenue, the IRS was created.
Arguments such as these will give people IRS problems because the IRS does have jurisdiction over taxpayers.
Failure to pay taxes or report your income accurately can lead to serious IRS problems.
You are under IRS jurisdiction if you are a taxpayer.


Leave a reply