Before someone seriously believes this stuff about you don't have to file and pay taxes you should read what the IRS says about these arguments because this is what you're going to see if you ever have the unfortunate pleasure of meeting one of these guys:
http://www.irs.gov/Tax-Professionals/The-Truth-About-Frivolous-Tax-Arguments---Section-I
My BIL WAS a die hard Libertarian but his recent shakedown by the IRS for not filing the last 13 years of tax returns has brought him back to reality. I wouldn't recommend anyone that has had income to not file a tax return.
Please remember I did suggest to do your financial activity under pseudonym, and without an SSN tracking and tagging everything. Of course the IRS tries to UNlawfully enforce and PRESUME tax compliance on all regardless of whether it applies to them, that's why it's called the tax gestapo. People make it somewhat easy to be pursued when they put their assets right there in their name, right on the grid to be seized (with the click of a mouse), as clearly the business above described did. They also make it easy when they use IRS approved accountants, lawyers or other professionals who are already on the government's leash to 'defend' them if they run into problems. Guess which side those guys are
really on, when it comes to not having their license yanked? The feds, of course.
And of course they will use unsworn info reports like 1099s and W2s and such to create an
administrative or equitable case for tax liability, where a legal one does not exist. The IRS uses that paper trail, on its prejudicially worded forms, to make a party to appear to be under their jurisdiction, and to assess a liability whether the data is accurate or applicable. The issue is not "arguments," but the IRS providing
verified proof of claim of a correct, completed or lawful assessment, instead of the paper shuffle. They want everybody to just accept their determinations without proof of claim, because an accepted assessment is the heart of their power to misapply the tax code. What the business should have done is request that evidence formally through the IRS' own FOIA office in Philadelphia, and stood its ground while continuing to put the
burden of proof on the IRS to so disclose.
BTW, I
have sat in an IRS room and faced down tax attorneys, by NOT keeping my mouth shut because I represented myself (thus could not be ordered to be quiet, or legally rendered incompetent). Of course I have received scare letters, but when I have calmly demanded evidence of a correct, completed or lawful assessment (and made myself judgment proof beforehand), they have backed off. They back off because they CAN'T produce the verified proof, because their case relies on UNsworn, uncorrected and incomplete reports. Without that proof they have otherwise no basis to lawfully pursue you, because there is no positive law requiring you to pay or file. Stand your ground, make yourself judgment proof, and demand verified proof of claim.
And before someone seriously believes IRS scare rhetoric, and their artful misrepresentations of the tax honesty approach (e.g., they tend to abusively mis-characterize all contrary statements as "frivolous," including Supreme Court decisions, sworn affidavits, and admissions by their own current and former IRS officials), you should read this rebuttal to the unsworn IRS propaganda pamphlet:
http://sedm.org/Forms/PolicyDocs/friv_tax_rebuts.pdf