This is NOT a Tax Protest
2. Fair Market Value---Reducing gross income because of declining value of dollar. The gross income is listed on the face of the return and there is a large adjustment to income which makes adjusted gross income small enough for standard deduction to eliminate taxable income. The adjustment to gross income is on Schedule D, Schedule of Capital Gains and Losses, or Form 2106, Employee Business Expenses, for Form 1040.
3. Gold/Silver Standard---Any return with a statement that only gold or silver backed currency can be taxed.
4. Blank Form 1040/1040A---These generally fall into two categories. In one category the individual files a return with only a name and address, and possibly signature,a nd Form(s) W-2 is attached. This scheme is usually verified upon correspondence with the taxpayer. In the second category the individual files a return similar to the Porth type return, i.e. the lines contain "object", "Fifth Amendment", etc., with the exception that Form(s) W-2 is attached. In both instances, the return could or could not list marital status and/or exemptions.
5. Non-Payment Protest---Non-Payment or underpayment of tax based upon some type of protest statement written or attached to the return.
6. Protest Adjust---This is similar to Non-Payment Protest, in that the return contains specific unallowable items (e.g., deductions,exclusions, etc.) identified to some type of protest.
7. Mail Order Ministries---Individual receives income from non-religious sources and declares that it is non-taxable because of "vow of poverty". This scheme also involves returns where the individual includes all or substantially all of gross income as a contribution deduction on Schedule A of Form 1040. Some individuals will complete Form 1040 and then take an unusually large contribution deduction on Schedule A of Form 1040, normally 50% or more of the adjusted gross income.
8. Protester Letters and Cards---The receipt of letters and cards (without tax return) protesting the use of taxes for war, defense and/or other government spending policies, and indicating that this will affect their reporting and payment of taxes.
9. Family Estate Trust---The trusts are filed on Forms 1041. Terms such as "family", "equity pure", "prime", or "constitutional" are used in the title of the trust. Income is from "wages" or "Contract" sources and deductions are for personal living expenses, such as housing, medical, auto, child care, interest or taxes. Generally, an individual will establish a trust, give his/her wages or other income to the trust, and the trust pays for the expenses of the individual. The expenses claimed as administrative expenses of the trust, resulting in the individual paying no tax and the trust paying little or no taxes.
10. W4---Excessive Overstatement of Allowances---This scheme is usually employed in conjunction with one of the other schemes mentioned above. The claiming of excessive allowances is usually directed towards eliminating withholding of Federal taxes from wages.
11. Forms 843 and Amended Returns--- Some individuals are filing Form 843 Claims and/or Amended Form 1040 (1040X) returns to obtain a total refund on all taxes paid in prior years, even though returns have not been filed for the prior years.
Now you tell me which of these defined categories of "Tax Protest Schemes" it is, that applying the law properly would fall into ? The IRS won't say, can YOU.
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Last Update: 02/21/97
Web Author: The Disciples of Truth
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