The Constitution of the United States provides a number of protections. One of the protections outlined in the Fifth Amendment is the right against self incrimination. This right has led some taxpayers to question whether the protection can be invoked when asked by the Internal Revenue Service (IRS) to file taxes.
When would a taxpayer consider invoking the protections of the Fifth Amendment against filing taxes? There have been a handful of cases involving taxpayers making this attempt. In most cases, the taxpayer has voiced concerns that the information disclosed in the filing could result in criminal charges. This could include concerns of underreported income or previously undisclosed foreign assets. As such, the taxpayer argues that he or she should be able to invoke the right against self incrimination to support refraining from filing taxes.
Is this argument successful? In most cases, the court does not find in favor of the taxpayer making this type of argument. One of the first cases using this argument was made in 1927. In that case, the court essentially stated that it was “too bad if disclosing illegal income opened up [the taxpayer] to prosecution.”
A report by Forbes outlines a more recent attempt. The taxpayer contended that he was unable to file his taxes for the 2006 tax year because he was in the midst of an audit for the time spanning from 1999 to 2005. His argument was based on the contention that he feared prosecution by the IRS based on information he would have provided in his 2006 filing. Ultimately, the court rejected his claim.
Should taxpayers consider claiming Fifth Amendment protections when filing taxes? Generally it is not a good idea to claim the right against self incrimination when filing taxes. This move can result in additional penalties from the IRS.
However, answering questions posed by the IRS can be difficult. If you have concerns, it is wise to seek the counsel of an experienced tax attorney to better ensure your interests are protected. With offices in Cleveland, Ohio and Chicago, Illinois, the experienced tax attorneys at Robert J. Fedor, Esq., L.L.C. represent businesses and individuals who are in trouble with the IRS in any of the fifty states or abroad. We can help you determine the best course of action in a situation like this.
