Legal Question in Tax Law in California

United States Code - Title 26

Has Title 26 of the United States Code been enacted into positive law?

If not, is there any law compelling someone to pay taxes on personal "wages" as apposed to corporate profit?


Asked on 9/08/99, 1:09 am

2 Answers from Attorneys

Re: United States Code - Title 26

Has Title 26 of the United States Code been enacted into positive law?

YES.

If not, is there any law compelling someone to pay taxes on personal "wages" as apposed to corporate profit?

Title 26, section 61 makes the wages for your personal services part of the gross income on which goes into the calculation of your tax liability.

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You are apparently falling prey to the preachings of an illegal tax protester who will encourage you (through deception and probably outright lies) not to pay taxes, will make some modicum of money telling you that, and will subject you to the very real risk of being heavily fined and maybe imprisoned. (There are several people who preached such nonsense who are in prison now, and there are even a number of their followers who are in prison as well. I personally know people just got TAGGED with big penalties and keep it to themselves out of embarassment.)

Don't fall for any of the so-called trust mills, either. They tell you that they will have you set up a trust or a special business entity that will allow you to deduct living expenses, pay yourself a salary that's not taxable, etc., all of which works if you don't file ANY tax return AND the IRS never finds out that you exist.

I'm a tax lawyer; my job is to reduce people's taxes and then even to battle the IRS when my position on an issue doesn't match that of the IRS. We're not friends. The tax law has grey areas within it that are legitimately subject to interpretation and we lawyers find loopholes and grey areas all over the place. But basically speaking, your wages are not really in that category, I'm sorry to say. Don't be a sucker.

Good luck.

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Answered on 9/09/99, 2:39 am
Lawrence Graves Coolidge & Graves PLLC

Re: United States Code - Title 26

This kind of argument is just going to cost you money. LOTS of it. Maybe jail time as well if you really push it.

For comprehensive treatment of "tax protester" arguments like the one that lies behind your question, please go to http://www.cilp.org/~maule/taxprot.htm

which was created by a tax law professor as a public service to people like you.

Best wishes.

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Answered on 9/09/99, 8:24 am


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