The IRS Jurisdiction’s Scope

There are some people who attempt to avoid paying taxes by walking around the law because they do not know how far and wide the IRS extends. Tax “protesters” often try to question the jurisdiction of the IRS and the constitutionality. So you don’t end up suffering IRS issues in the future, you should be aware of the laws as a taxpayer. Let us take a look at jurisdiction and the reach of the Internal Revenue Service.

A word normally heard on movies, jurisdiction gives leaders the power to enforce punishment when handling legal situations.

You will encounter problems if you’re a taxpayer and do not understand your responsibility to pay taxes. The IRS has jurisdiction over all US taxpayers and those who make income in the US.

Here’s an excerpt from Title 26 of the Code of Federal Regulations which relates to the IRS:

“The Internal Revenue Service is a bureau of the Department of the Treasury under the immediate direction of the Commissioner of Internal Revenue. The Commissioner has general superintendence of the assessment and collection of all taxes imposed by any law providing internal revenue. The Internal Revenue Service is the agency by which these functions are performed.”

So the IRS has jurisdiction over all taxes in all states that provide revenue for the country, as well as over US citizens residing in foreign countries or who make money in foreign countries and non-residents who make money in the US. IRS problems can ensue if you are in one of these categories and do not pay taxes on earnings, property, capital gains, and more.

There are those who don’t fall under the jurisdiction of the IRS. To show that non-taxpayers are exempt from the regulations and rules of the IRS is this paragraph from the Economy Plumbing and Heating Co. against The US case:

“The revenue laws are a code or system in regulation of tax assessment and collection. They relate to taxpayers, and not to non-taxpayers. The latter are without their scope. No procedure is prescribed for non-taxpayers, and no attempt is made to annul any of their rights and remedies in due course of law. With them [non-taxpayers] Congress does not assume to deal, and they are neither of the subject nor of the object of the revenue laws.”

You can find out if you are a non-taxpayer and avoid IRS problems by checking your state’s tax website  or the IRS website.

Tax protesters imply that the 16th Amendment that gave Congress the power to collect taxes on income wasn’t officially ratified, questioning the jurisdiction of the IRS. The 16th Amendment was indeed ratified with a majority vote.

Another argument is that the IRS is not a government agency at all, and hence, has no jurisdiction or authority over anybody. This is a ridiculous argument because the Secretary of the Treasury has power to maintain and enforce internal revenue laws. The IRS was created because of this power. Arguments like these can lead honest people to encounter serious IRS issues. Taxpayers are in fact under the jurisdiction of the IRS.

You are under the jurisdiction of the IRS as a taxpayer. Inaccurate reporting of income and failure to pay taxes will give you serious IRS issues.

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