Videos claiming that paying taxes is optional have been circulating on TikTok, with creators saying people can claim exempt status on their tax forms, stop submitting tax returns and avoid consequences for years.
“How is it possible that people are filing exempt and then not filing a tax return and not getting caught for this?” a person asked on Reddit’s r/tax after seeing such videos and reading comments from people claiming they hadn’t filed taxes in over a decade without getting caught.
Don’t Miss:
- Find out if your retirement plan is exposed to risks most investors overlook — get matched with a fiduciary adviser today.
- Think the biggest tech gains happen after an IPO? Click here to see why some investors are looking at opportunities before companies go public.
Why People Think They Can Get Away With It
“They’re also totally misinterpreting the word voluntary,” the original poster wrote. “Voluntary doesn’t mean that you don’t have to pay taxes or file. It means that you’re responsible for self-reporting this information!”
The discussion quickly filled with tax professionals, IRS workers and regular people explaining that the word “voluntary” has been twisted online for years. Multiple commenters said the phrase refers to the U.S. system of “voluntary compliance,” where taxpayers calculate and report what they owe themselves.
“The voluntary argument comes from a misread of a Supreme Court ruling that used that word in a specific legal context,” one commenter said. “It doesn’t mean what people think it means.”
“Voluntary in that context means self-assessed, not optional,” another person added.
Still, many in the thread acknowledged that some people do manage to avoid filing taxes for years, especially if they live largely outside the financial system or work cash-heavy jobs.
Trending: More Than Half of Americans Aren’t Prepared for Retirement — Including 62% of Gen Y
One commenter claiming to work for the IRS said some people can go years without filing as long as they avoid situations requiring proof of income.
“Most people can go their entire life without ever filing taxes,” the commenter wrote. “As long as you never need a mortgage or business loan, never go to college or have a child that needs to, and never need SSA benefits.”
Others said problems often begin once people try to buy homes, apply for loans, collect unemployment benefits or qualify for Social Security.
The Consequences Usually Catch Up
A recurring theme throughout the thread was that avoiding taxes is less about escaping forever and more about delaying consequences.
“The IRS will get to them eventually,” one commenter warned.
Several people shared personal stories about friends or relatives who ignored taxes for years before facing wage garnishments, liens, frozen bank accounts and massive penalties.
“The state is what came after me,” one commenter said after years of not filing. “Then when I filled out all those back returns, the state sent them to the IRS. It was a wild ride, definitely don’t recommend. Cost me a lot of money to make problems go away.”
See Also: Demand for Faster Diagnostics Is Surging — NASA- and NIH-Supported Space-Tested System Targets At-Home Lab-Quality Blood Testing
Commenters also pushed back against the idea that IRS staffing shortages make people immune from enforcement. Many explained that tax matching systems are heavily automated because employers and financial institutions still send W-2 and 1099 forms directly to the IRS.
“If you have a W-2 they will find you eventually,” …
This post was originally published here
