Taxation Laws

Are Federal Reserve notes -- commonly known as paper money -- just "obligations" and therefore exempt from taxes? And does the U.S. Constitution say gold and silver are the only form of "lawful money" to be used in paying debts? No, neither of those claims are true. The Constitution does not specify any particular form of currency, and under federal…

Does the student loan forgiveness program announced by the Biden administration on August 25, 2022, treat canceled student debt as taxable income? No, that's not true. Although debt cancellation is usually considered taxable, the Biden student debt relief falls under the American Rescue Plan, which exempts most student debt relief from taxation through the end of 2025. The claim appeared…

Can you declare yourself not a U.S. citizen to avoid paying taxes to the IRS? No, that's not true: The U.S. Constitution and the Internal Revenue Code clearly define citizenship and how a "person" is defined for tax purposes. The tactic is used by several groups, including the "sovereign citizen" movement. The FBI calls its followers "anti-government extremists who believe…

Are Internal Revenue Service (IRS) income taxes voluntary? No, that's not true: The duties to file a tax return and pay federal income taxes owed are not voluntary. The requirements are enshrined in the Internal Revenue Code as well as relevant case law. The claim appeared in a Facebook post (archived here) published on March 27, 2021. The title of…