The Scope of IRS Jurisdiction

Being aware of how far and wide the reach of the IRS extends is a bit unclear, and there are some people who try to circumvent the law to avoid paying taxes. Tax "protesters" often attempt to dispute the jurisdiction of the IRS and the constitutionality. So you do not end up sufferingIRS problems in the future, you have to know the laws as a taxpayer. Let's take a look at the extent and jurisdiction of the Internal Revenue Service.

The authority given to legal bodies or political leaders to enforce punishment and address legal matters is known as jurisdiction. Movies or television shows dealing with crimes typically applies this term.

Since it has jurisdiction over all US taxpayers and those who earn income in the US, the IRS is a bit amorphous. It's absolutely possible to suffer IRS problems if you don't understand that you are a taxpayer, or that you have responsibilities to pay taxes.

Here is an excerpt from Title 26 of the Code of Federal Regulations which pertains to the IRS:

"The Internal Revenue Service is a bureau of the Department of the Treasury under the immediate direction of the Commissioner of Internal Revenue. The Commissioner has general superintendence of the assessment and collection of all taxes imposed by any law providing internal revenue. The Internal Revenue Service is the agency by which these functions are performed."

If you are a resident of the US, a non-resident earning money in the United States, a citizen living in foreign countries, or a citizen making money in foreign countries, the IRS has jurisdiction over you as a taxpayer. You'll suffer issues with the IRS if you don't pay taxes on capital gains, earnings, property, etc.

The IRS has no jurisdiction over some people. In this excerpt from the case of Economy Plumbing and Heating Co. vs. The United States, it explains that non-taxpayers are exempt from the IRS's rules and regulations:

"The revenue laws are a code or system in regulation of tax assessment and collection. They relate to taxpayers, and not to non-taxpayers. The latter are without their scope. No procedure is prescribed for non-taxpayers, and no attempt is made to annul any of their rights and remedies in due course of law. With them [non-taxpayers] Congress does not assume to deal, and they are neither of the subject nor of the object of the revenue laws."

You must find out if you are a non-taxpayer or not to avoid IRS issues. You can find out from your state's tax website or the IRS website.

To question the IRS's jurisdiction, tax protesters insist that the 16th Amendment providing Congress the power to collect taxes on income was not properly ratified. With a majority vote, the 16th Amendment was indeed ratified.

The IRS has no jurisdiction because it is not a government agency is another lofty argument. Actually, because the Secretary of Treasury has enforcement and administration power over the laws of internal revenue, the IRS was created. The IRS does have jurisdiction over taxpayers and arguments such as these will give people IRS problems.

Failure to pay taxes or report your income accurately can result in serious IRS problems. You're under IRS jurisdiction if you're a taxpayer.