Don’t Read at Your Own Risk

The man who knows how to read and doesn’t is no better off than the man who cannot read. In order to understand the argument against paying federal income tax, we must read the law. The first question we must ask is: What is income? The answer to the question is not what most people may assume, that is, according to the legal definition. One of the most important court cases on this subject was in 1906.

O'Keefe v. City of Somerville, 190 Mass. 110, 76 N.E. 457, 458 (1906):

“. . . cannot levy an excise tax upon the business of a husbandman or an ordinary mechanic”.

The court ruled that the business or labor of an ordinary person was not subject to tax. 

The next question we must address is: Who is liable to pay income tax?

Following the commands of the federal Privacy Act, the IRS is required to give a notice (contained in the Privacy Act Notice or Notice 609) of the various laws that require persons to supply information. The IRS Privacy Act Notice states: 

Our legal right to ask for information is Internal Revenue Code sections 6001, 6011 and 6012(a), and their regulations. They say you must file a return or statement with us for any tax you are LIABLE for.

To determine whether one must file a federal income tax return, one needs to study these three sections of the Code. 

Section 6001. Notice or regulations requiring records, statements, and special returns.

Every person liable for any tax imposed by this title, or for the collection thereof, shall keep such records, render such statements, make such returns, and comply with such rules and regulations as the Secretary may from time to time prescribe. Whenever in the judgment of the Secretary it is necessary, he may require any person, by notice served upon such person or by regulations, to make such returns, render such statements, or keep such records, as the Secretary deems sufficient to show whether or not such person is liable for tax under this title. 

This is pretty simple. If a person is liable to pay a tax, they must keep records related to their liability.

Section 6011. General requirement of return, statement, or list. 

(a) General rule.

When required by regulations prescribed by the Secretary any person made liable for any tax imposed by this title, or with respect to the collection thereof, shall make a return or statement according to the forms and regulations prescribed by the Secretary. Every person required to make a return or statement shall include therein the information required by such forms or regulations.

Thus, the "general requirement" for making a tax return is that, first, one must be liable for a tax. But WHO is LIABLE for the federal income tax? The federal income tax is found in subtitle A of the Internal Revenue Code and consists of sections 1 through 1563. You may download any version of the entire Internal Revenue Code here.  The only section of the Internal Revenue Code that makes anyone "liable" for the federal income tax is as follows:

Section 1461. Liability for withheld tax.

Every person required to deduct and withhold any tax under this chapter is hereby made liable for such tax and is hereby indemnified against the claims and demands of any person for the amount of any payments made in accordance with the provisions of this chapter.

This party is the withholding agent for nonresident aliens and foreign corporations; see § 1441 and  § 1442.  Withholding agents may be individuals, corporations, estates, trusts, political organizations, homeowners associations, etc. These are the parties who are required to make federal income tax returns pursuant to § 6012:

Section 6012. Persons required to make returns of income.

(1)(A) Every individual having for the taxable year gross income . . .

Individuals who have “taxable” income are required to file returns.

A couple of relevant court cases:

Bothke v. Fluor Engineers & Constructors, 713 F.2d 1405, 1414 (9th Cir. 1983)

Second, the taxpayer must be liable for the tax. Id. Tax liability is a condition precedent to the demand. Merely demanding payment, even repeatedly, does not cause liability.

Botta v. Scanlon, 288 F.2d 504, 508 (2nd Cir. 1961)

However, a reasonable construction of the taxing statutes does not include vesting any tax official with absolute power of assessment against individuals not specified in the statutes as persons liable for the tax without an opportunity for judicial review of this status before the appellation of ‘taxpayer’ is bestowed upon them and their property is seized and sold.

The income of majority of Americans is not taxable and they are not liable to pay federal income tax.