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How Not to Pay Taxes: Four Legal Ways to Not Pay US Income Tax Move outside of the United States. Establish a residence somewhere else. Move to one of the US territories. Renounce your citizenship.
Failure to File Your Taxes Can be Considered a Crime Failure to file your taxes is considered by the federal government to be a crime. Refusal to file your taxes can be considered a type of tax evasion. What then should you do if you dont have enough money to pay your taxes?
The Law: A taxpayer that has taxable income cannot legally avoid income tax by filing a zero return.
So the government would have to borrow a lot more money, and the spending would have to go way down. After that, the US economy would begin to go into the tank. So as painful as it is, if you wind up owing taxes, as Oliver Wendell Holmes said, thats the price of civilization.
So the government would have to borrow a lot more money, and the spending would have to go way down. After that, the US economy would begin to go into the tank. So as painful as it is, if you wind up owing taxes, as Oliver Wendell Holmes said, thats the price of civilization.
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The Law: There is no constitutional right to refuse to file an income tax return on the ground that it violates the Fifth Amendment privilege against self-incrimination.
If you filed on time but didnt pay all or some of the taxes you owe by the deadline, you could face interest on the unpaid amount and a failure-to-pay penalty. The failure-to-pay penalty is equal to one half of one percent per month or part of a month, up to a maximum of 25 percent, of the amount still owed.
If you dont pay the amount shown as tax you owe on your return, we calculate the Failure to Pay Penalty in this way: The Failure to Pay Penalty is 0.5% of the unpaid taxes for each month or part of a month the tax remains unpaid. The penalty wont exceed 25% of your unpaid taxes.
The Law: There is no constitutional right to refuse to file an income tax return on the ground that it violates the Fifth Amendment privilege against self-incrimination.
The Failure to Pay Penalty is 0.5% of the unpaid taxes for each month or part of a month the tax remains unpaid. The penalty wont exceed 25% of your unpaid taxes.

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