How Far Does IRS Jurisdiction Go?

Because IRS jurisdiction is a little unclear, protesters typically attempt to dispute the power of the IRS to avoid paying taxes. To avoid suffering IRS problems in the future, have a look at how wide the jurisdiction of the Internal Revenue Service reaches.

The authority given to legal bodies or political leaders to enforce punishment and address legal situations is known as jurisdiction. The word is typically heard on television shows or movies dealing with crimes.

You'll encounter issues if you're a taxpayer and don't understand your obligation to pay taxes. Those who make income in the United States and US taxpayers are all under IRS jurisdiction.

The IRS, according to Title 26 of the Code of Federal Regulations:

"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."

So the IRS has jurisdiction over all taxes in all states that give revenue for the country, as well as over US citizens living in foreign countries or who earn money in foreign countries and non-residents who earn money in the US. If you fail to pay taxes on capital gains, property, earnings, and more and you are in one of these categories, IRS problems will happen.

There are people who do not fall under the jurisdiction of the IRS. In this excerpt from the case of Economy Plumbing and Heating Co. against 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 can figure out if you are a non-taxpayer and avoid IRS issues by checking your state's tax website or the IRS website.

Tax protesters insist that the 16th Amendment that provided Congress the authority to collect taxes on income wasn't officially ratified, discrediting the jurisdiction of the IRS. With a majority vote, the 16th Amendment was in fact ratified.

The IRS having no jurisdiction because it is not a government agency is another argument. This is a frivolous argument because the Secretary of the Treasury has authority to administer and enforce internal revenue laws. Because of this power, the IRS was made. Arguments such as these can lead honest people to have serious IRS problems. Taxpayers are in fact under the jurisdiction of the IRS.

IRS problems result from failure to accurately report income or pay taxes. You're under IRS jurisdiction if you're a taxpayer.