An Income Tax Grab-Bag
The following is a grab-bag of federal income tax topics that may be helpful in educating yourself about the American tax system.
Tax Levies
Who can be the subject of an income tax levy?
Levy may be made upon the accrued salary or wages of any officer, employee, or elected official, of the United States, the District of Columbia, or any agency or instrumentality of the United States or the District of Columbia . . .
This does not apply to most Americans.
Reasonable Doubt
In income tax court cases where there is doubt as to culpability, who is favored?
Spreckels Sugar Refining Co. v. McClain, 192 U.S. 397 (1904)
Keeping in mind the well settled rule that the citizen is exempt from taxation unless the same is imposed by clear and unequivocal language, and that, where the construction of a tax law is doubtful, the doubt is to be resolved in favor of those upon whom the tax is sought to be laid . . .
Gould v. Gould, 245 U.S. 151 (1917)
In the interpretation of taxing statutes it is the established rule not to extend their provisions, by implication, beyond the clear import of the language used, or to enlarge their operations so as to embrace matters not specifically pointed out. Doubts are resolved against the government.
Who is Liable?
The donor or giver of the monetary gift is liable for the tax, not the recipient.
The Tax Code specifically identifies who is liable for tax.
Self-Assessment
Who assesses income tax?
Lyddon Company v. United States, (1958)
When one files a tax return showing taxes due, he has, presumably, assessed himself and is content to become liable for the tax, and to pay it either when it is due according to the statute, or when he can get the money together.