I got trapped by the jury duty system and had to appear in person at the courthouse, so while I am waiting, I decided to review the frivolous tax arguments.  It’s that time of year that scammers start up with the various frivolous tax arguments, and just ask Wesley Snipes.

It is surprising how many software people work in one of the many tax related software businesses, are self-employed, or have a small business.  If you are like me, you may run into people with crazy tax ideas that are frivolous.  If you are a student (as I hope many of the readers are), you should also take a look at this IRS.GOV information, directly from the IRS, it will help you understand a few of the scams that are out there that you need to avoid.  Also, it should give you feel that accounting software requires a CPA, and you likely need to attend at least one tax seminar in your career, and not a “free” seminar.

Oh sure it is boring, but maybe if Wesley Snipes had seen this, he wouldn’t have gotten into trouble with the IRS.

If you are student who is thinking about software development of Windows Phone 7, you might be making a little money from the sell of your phone app, web site or others.  In this case you should become familiar with some of the related tax issues, ESPECIALLY, if anyone tells you some of the tall tales that the IRS

The Truth About Frivolous Tax Arguments (this is really a government site)

The Meaning of Income: Taxable Income and Gross Income

  • If you are an entrepreneur, then this is likely one of the reasons you need to have your taxes done by a CPA

The Voluntary Nature of the Federal Income Tax System

  • Biggest source of not paying your taxes scams

The Meaning of Certain Terms Used in the Internal Revenue Code

  • If you are reading this link, definitely need a CPA

Constitutional Amendment Claims

  • The closing deal for income tax scams, if you think any of these work, spend money on a real tax lawyer, it will be money well spent

So bottom line: CPA serve a purpose, at tax time they can be a big help in defining your business and can even provide services that may save you money.  They can help you make sure your central journal is set-up correctly, provide guidelines for employees, and help you set-up a retirement fund.  As to the tax loopholes, they will help you understand that these tax loopholes have been for the most part closed.