East Orange, New Jersey based CR Pro Tax says that there are a number consumers following ill-advised tax strategies. Clinton Robinson with the New Jersey tax agency says that when it comes to taxes, consumers should be very careful about who they trust.
"There is some remarkably bad and wrong and hazardous-to-your-health information out there that despite being repeatedly debunked just will not go away," says Robinson. "Some of those ideas are clearly erroneous, but others can snag even very bright people."
Robinson says that consumers might want to consider the case of Carter White Rae, a dentist in Michigan. Rae followed some bad advice and ended up with a bill from the government for over half a million dollars, plus a 45-month jail sentence.
"Remember," Robinson states. "You may be a logical person, but tax law is not always logical. Even if something makes sense to you or sounds like it's the way the law should work, it may still be completely wrong."
Robinson states that consumers need a qualified tax agent in their corner, and should consult with their agent before they take any action, particularly those that seem too good to be true. He urges those in the area to reach out to his team at www.crprotax.com to learn more.
Robinson points out that the most dangerous tax strategies are the ones that lead consumers to believe they do not have to pay any tax at all. Known in IRS lingo as "tax protestor" arguments, they claim that by virtue of little-known quirks in the law or because of never-correctly-ratified amendments, taxpayers can somehow sidestep all U.S. tax requirements.
No matter how intricate those arguments can be, they all suffer from the same problem, according to Robinson. He says that the IRS and courts reject them. The government has already ruled against them, and if taxpayers use one of those arguments, the government will eventually catch up with them and demand its money. It's a question of when, not if.
The filing of a tax return or the payment of federal income tax is voluntary. Taxpayers can reduce their federal tax liability by filing a "zero return" that reports zero income and zero tax liability. The taxpayer isn't a "person" under the tax law and therefore isn't subject to federal income taxes.
"The IRS believes that tax protestor claims are "frivolous" and will have no mercy on you if you rely on one to avoid paying taxes," says Robinson. "The courts tend to agree and uphold those penalties - and sometimes impose prison time as well."
Robinson says that there are ways to spot bad or illegitimate tax advice, and that consumers should pay strict attention to tax laws when dealing with a new agency or agent. Those interested in learning more can visit the agency online at www.crprotax.com.
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Contact CR PRO TAX:
CLINTON ROBINSON
973-675-2515
CLINTON@CRPROTAX.COM
464 CENTRAL AVE EAST ORANGE, NJ 07018
