Can a Person Legally Refuse to Pay Income Taxes? What Happens If You Try Opting Out

Every year, millions of Americans file their tax returns, paying their fair share to the IRS. But did you know there's a growing movement of people who believe you don't actually have to pay income taxes? They claim there’s a legal way to avoid it, pointing to specific laws, definitions, and even parts of the Constitution. Some believe that knowing the fine print and understanding certain rights as a “natural-born human” could let them skip paying taxes altogether.

On the other side, the IRS sees this viewpoint as more myth than fact. From their perspective, it’s a risky interpretation of the law at best, with no real basis. So, can you actually avoid paying taxes legally, or is this idea just an illusion? Let's dig in.

The Argument for Opting Out of Taxes

At the heart of this belief is the idea that if you’re not defined as a “taxpayer” by certain legal standards, then you’re not subject to income tax laws. Advocates say that when you examine the legal definitions, you might find that tax laws don’t apply to you as a natural-born citizen. They argue that these laws were mainly written for entities like corporations or government employees.

One key section these supporters often cite is Title 26, United States Code 7806. It mentions that the placement, title, or caption of the Internal Revenue Code should not determine its legal impact. To them, this means the tax code is more like a guideline than a strict law. In reality, however, this section is about interpreting the law based on its substance—not dismissing its authority. So, while it might sound compelling, courts haven’t backed this claim.

Another common claim? The US Treasury only accepts “voluntary gifts or bequests” from people under Title 31, which some interpret as implying that taxes are voluntary. They argue that forcing people to pay taxes is a form of “involuntary servitude,” which they believe goes against the Constitution. Yet, the courts have repeatedly ruled that paying taxes is a legal obligation, not involuntary servitude—even if it may feel that way to some.

The IRS’s View on These Claims

Supporters of this “opt-out” theory often argue they’re not “taxpayers” by law, so they don’t have to file. The IRS, however, disagrees. They’ve made it clear that arguments like the “revocation of election” are, in their words, frivolous. In their view, no one can “opt out” of paying taxes based on the current laws. The IRS considers the word “voluntary” in the tax system as referring to the process of self-assessment, not an option to decline participation.

The IRS’s publications lay out their stance against what they call “frivolous tax arguments” in detail. They’ve even issued warnings about fines—up to $5,000—for those filing tax returns based on these arguments, and in extreme cases, they’ve pursued criminal charges. So, it’s clear that the IRS isn’t open to interpretations that might allow people to skip taxes.

For example, some people argue they’re not “persons” as defined by the tax code, and so they shouldn’t be subject to tax laws. But the code defines a taxpayer as any person subject to an internal revenue tax, covering just about everyone. The IRS has warned against this interpretation and backed it up with case law.

So, Can You Really Opt Out?

The appeal of opting out is understandable. For many, taxes can be a big burden, and the idea of keeping more of what you’ve earned is tempting. There’s a whole movement, known as the Sovereign Citizen Movement, that champions this idea, promoting the belief that people can declare themselves free from federal and state rules. But while this belief has its followers, it often ends in legal troubles.

The IRS, backed by the courts, maintains that if you earn income within the United States, you’re bound by the tax code. The courts have consistently dismissed arguments about “opting out” or “revoking taxpayer status” as legally flawed. They’ve even jailed people promoting these ideas.

The Risks and Realities of Opting Out

The potential “reward” of opting out is clear: you’d avoid paying taxes. But the risk? There are significant consequences—steep fines, interest on unpaid taxes, and even jail time. The IRS has been firm in penalizing those who try to challenge the system.

So, why do these arguments persist? Part of the appeal comes from the complex, confusing nature of the tax code itself. For those frustrated with the system, it’s easy to be drawn to legal-sounding arguments that promise a way out. Some may feel distrust toward government and see “opting out” as a form of financial freedom.

A Balanced View

Despite the growing number of people who believe in the opt-out movement, it’s essential to approach it with caution. Whether you like the tax laws or not, they’re the rules we live by. Questioning authority is healthy, but when it comes to taxes, the law is clear. If you’re ever considering this path or have questions, consult with a professional to understand the risks and realities.

At the end of the day, while we may wish for a way to avoid paying taxes, the IRS and the courts have been very clear. The tax code applies to all US citizens, and there are serious consequences for ignoring it. Taxes keep the country running, and while it’s okay to ask questions, it’s best to base your decisions on facts, not wishful thinking.

So, what are your thoughts? Have you come across these arguments before? Are they convincing, or just wishful thinking? Let us know your thoughts in the YouTube video comment section! See you!