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income taxes

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income taxes

Postby david » Monday October 31st, 2005 1:36 am MST

What is IRS's Claim of Right used for?Could you cite specific cases which ruled that income tax can't be applied to gross reciepts of US citizens? Thank you,David

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Re: income taxes

Postby Admin » Tuesday November 1st, 2005 3:10 pm MST

:h: David:

It is not IRS’ Claim of Right it is the taxpayers. If a taxpayer has a Claim of Right, which is at least the right a person has to exchange their property for its value without incurring a tax liability. For example if you have the right to exchange your labor for its value without incurring a tax liability then you have a claim of right. If you are a taxpayer and you have that right then you could file a Claim of Right information return to show you have incurred no tax liability for that exchange.

As to cases that so ruled, the key case on that matter is Brushaber v. Union Pacific R. Co., 240 U.S. 1 (1916).

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