Taking Another Look At The Hazards Of Filing Form 1099
“Acrimony in litigation is not at all unusual, and advisers may find clients who want to “turn in” the opposition in a case to the IRS. This case serves as a cautionary tale about the risks of doing so”. Both sides complained to the IRS about the other and nothing good is likely to come of that. Still, much as I think some of Mr. Waldman’s behavior might have been unwise, I don’t see the reporting as fraudulent.
The “Hey Hey Just Don’t Pay” Tax Strategy
I find this situation demoralizing. I believe that making an effort to be reasonably tax compliant (Perfection is impossible unless your situation is pretty simple) is one of the duties of good citizenship. I also used to believe that it was prudent even for people who are of the “taxation is theft” school of thought. I am doubtful of the latter now. It is still too risky for my taste, but I can’t make the argument that scofflaws are being reckless.
Follow Me
Over and over again courts have said that there is nothing sinister in so arranging one’s affairs as to keep taxes as low as possible. Everybody does so, rich or poor; and all do right, for nobody owes any public duty to pay more than the law demands: taxes are enforced exactions, not voluntary contributions. To demand more in the name of morals is mere cant.