Quote Originally Posted by Freed Gerdes View Post
the Internal Revenue Code (found in Title 26) requires the filing of an income tax return only if you have taxable income, and as you point out, income redeemed in public money is not taxable, thus no return is required........
..................unless you have lawful money to be returned.

Frivolous arguments: The IRS is not a big fan of these, so if you're tempted to say that you don't owe taxes because they're voluntary or you didn't get due process or some other goofy argument, it won't work.


The "zero wages" lie: In this fraud, the taxpayer submits a Form 4852 (a substitute W-2) or a "corrected" Form 1099 to make their income look lower and avoid paying taxes. The IRS takes a dim view of this and could hit you with a $5,000 penalty.

http://news.yahoo.com/39-pay-taxes-n...opstories.html

So let them audit you..........

The Internal Revenue Service is tracking down people who may be shorting the tax man by understating their income, exaggerating tax breaks and skipping out on other tax liabilities. And it isn’t just the rich and famous that agents are going after. Six percent of the IRS audits conducted on individuals in 2012 were for people who made between $200,000 and $1 million, according to IRS data.
http://finance.yahoo.com/news/7-ways...123014838.html