Best Tax Preparation Services in Chattanooga, TN

Why Do I Have to Pay Taxes? The short answer is, because it's the law. That is the truth, but lets dive deeper. 1. The united States Constitution, Article 1, Section 8, Clause 1, states, "The Congress shall have the Power to lay and collect Taxes, Duties, Imposts and Excises to pay the Debts and provide for the common Defense and general Welfare of the United States. 2. The Sixteenth Amendment to the Constitution, ratified on Febrary 3, 1913, states, "The Congress shall have the power to lay and collect taxes on income, from whatever source derived, without regard to any census or enumeration." 3. Congress used the power granted by the Constitution and Sixteenth Amendment, and made laws requiring all individuals to pay tax. 4. Congress has delegated to the IRS the responsibility of administering the tax laws-known as the Internal Revenue Code (the Code) and found in Title 26 of the United States Code. Congress enacts these tax laws, and the IRS enforces them. 5. Sources of taxable income are identified in the Code under Section 61, Gross Income Defined. The list of sources under this section is not all inclusive. 6. Section 6702 of the Code authorizes the IRS to impose a $5,000 penalty against persons who submit frivolous tax returns or other documents.