All true no doubt, but I want to see the results of people that have successfully won out with their claims of being a Sovereign entity unbound by equity contracts. I want to learn of the fate of anyone that quit paying their income tax because of the evidence that it only applies to federal workers.
I'll tell you the secret. Or at least what has worked for me and others.
There is nothing in the law that says you have to report anything to the IRS. They are technically a foreign entity (District of Columbia).
Most people prepay their taxes by having it withheld from their paycheck. There is nothing in the law that says it has to be done this way. You can tell your HR department that you wish to handle your taxes on your own and to not withhold from your check. They might look at you sideways but it's your right.
Where people get into hot water is when they continue to report their income and decide not to pay what they "owe".
The moment you submit that filing is the moment you become liable. If you lie about how much you made in order to pay less taxes, you are liable, because you contracted with them and did so dishonestly. If you try to argue with what they calculated based on what you reported, then you are being belligerent and a court may hold you in contempt.
I've never heard of a case where someone got their door busted down for not reporting their income.
I really wish people would understand this because if we all just demanded an end to tax withholding, the government's funds would immediately dry up. They wouldn't make it to next week, let alone next year.
How do you not report? As 1099 everyone that writes me a check surely reports it. And all the IRS has to do is ask a bank to see my account. If I file once, have I forever waived my 5th amendment?
I was talking about tax withholding as a W-2 employee. It's different for 1099.
As 1099 there is no tax withholding, but you are expected to report according to what type of entity the payment is going to. I'm not sure if it's different for LLCs vs sole proprietors, but if you pay employees, there is a payroll tax, which is a liability for the employer. My understanding is that the payroll tax is what gets split between the employee and employer and withheld as "income tax". It's not a law, it's just employers spreading out the loss by making employees share the burden.
The only reason that is done (in my opinion) is so that when people go to file their tax report, they are asking for their money back because they overpaid. So instead of the "tax bill" being a literal bill that you have to pay, you are incentivized to file in order to get a refund. If you prepay through withholdings all year and then don't file, no problem, the government is happy to keep your money.
But why give the government an interest-free loan?
How do you not report? As 1099 everyone that writes me a check surely reports it.
I'm not a CPA so I don't want to say anything inaccurate, but what does it matter if your checks get reported? The liability doesn't exist until you file and report your full accounting to determine profits and losses. As an LLC I don't know if there are reporting requirements, there might be. I only know as a W-2 employee you can exercise your right to collect your entire check with no withholding. Whether you report it is up to you.
If I file once, have I forever waived my 5th amendment?
All true no doubt, but I want to see the results of people that have successfully won out with their claims of being a Sovereign entity unbound by equity contracts. I want to learn of the fate of anyone that quit paying their income tax because of the evidence that it only applies to federal workers.
I'll tell you the secret. Or at least what has worked for me and others.
There is nothing in the law that says you have to report anything to the IRS. They are technically a foreign entity (District of Columbia).
Most people prepay their taxes by having it withheld from their paycheck. There is nothing in the law that says it has to be done this way. You can tell your HR department that you wish to handle your taxes on your own and to not withhold from your check. They might look at you sideways but it's your right.
Where people get into hot water is when they continue to report their income and decide not to pay what they "owe".
The moment you submit that filing is the moment you become liable. If you lie about how much you made in order to pay less taxes, you are liable, because you contracted with them and did so dishonestly. If you try to argue with what they calculated based on what you reported, then you are being belligerent and a court may hold you in contempt.
I've never heard of a case where someone got their door busted down for not reporting their income.
I really wish people would understand this because if we all just demanded an end to tax withholding, the government's funds would immediately dry up. They wouldn't make it to next week, let alone next year.
Disclaimer: Not a lawyer, not tax advice, YMMV.
How do you not report? As 1099 everyone that writes me a check surely reports it. And all the IRS has to do is ask a bank to see my account. If I file once, have I forever waived my 5th amendment?
I was talking about tax withholding as a W-2 employee. It's different for 1099.
As 1099 there is no tax withholding, but you are expected to report according to what type of entity the payment is going to. I'm not sure if it's different for LLCs vs sole proprietors, but if you pay employees, there is a payroll tax, which is a liability for the employer. My understanding is that the payroll tax is what gets split between the employee and employer and withheld as "income tax". It's not a law, it's just employers spreading out the loss by making employees share the burden.
The only reason that is done (in my opinion) is so that when people go to file their tax report, they are asking for their money back because they overpaid. So instead of the "tax bill" being a literal bill that you have to pay, you are incentivized to file in order to get a refund. If you prepay through withholdings all year and then don't file, no problem, the government is happy to keep your money.
But why give the government an interest-free loan?
I'm not a CPA so I don't want to say anything inaccurate, but what does it matter if your checks get reported? The liability doesn't exist until you file and report your full accounting to determine profits and losses. As an LLC I don't know if there are reporting requirements, there might be. I only know as a W-2 employee you can exercise your right to collect your entire check with no withholding. Whether you report it is up to you.
It's by year, so no, every year is a new leaf.