Tax season isn’t exactly a party for anyone, but Americans know they have to file their tax returns. Not doing so can lead to serious trouble. However, one lawyer has decided to take a stand by refusing to pay her federal income taxes this year as a form of protest against the US government.
In a TikTok video, Rachel Cohen shared that she hesitates to hand over thousands of dollars to a government that she feels uses that money against its own people. As a way of demonstrating her discontent, she plans to skip her federal tax payments and is ready to face the potential fallout.
A lawyer prepares for the fallout of not paying federal taxes as a government challenge.
“I’m Rachel, and I won’t be paying federal income taxes this year,” Cohen stated in the video. She mentioned that she had filed her taxes recently and moved the $880 she owes into a high-yield savings account instead.
Cohen elaborated that her choice stems from a belief that the government uses taxpayer money to create what she describes as “concentration camps” for people in her community and beyond. This statement appears to reference an uptick in ICE raids happening nationwide. She clearly expresses her refusal to fund these actions with her taxes.
Despite acknowledging that many warned her about the penalties, she maintains her stance. “I know that,” she said, indicating that openly discussing her decision could amplify any potential consequences. There’s a possibility of being charged if federal income tax isn’t paid.
Cohen also looked into the implications of intentionally withholding taxes. She discovered that penalties for not filing taxes accumulate more rapidly and become pricier than those for simply not paying them. The fines for failing to file develop much faster compared to penalties for unpaid taxes.
In her investigation, she learned that, if found guilty, the worst-case scenario could involve a one-year sentence for a federal misdemeanor, along with a fine of up to $25,000.
“If I had to choose between giving the government $9,000 to fund a concentration camp or risking a federal misdemeanor, I’d definitely prefer not to take that risk,” she reflected.
Cohen reasons that if someone has those feelings in a hypothetical situation, they likely feel the same way in reality. As she moves forward with her decision, it appears she’s not alone in this protest.
Yet, there’s a caution here—she might be underestimating the severity of the fines.
As per FindLaw, there’s a distinct legal line between tax evasion, often a misdemeanor, and tax fraud, which is a criminal offense. Tax fraud usually involves intentional deceit against the IRS, such as submitting a false return. In contrast, tax evasion occurs when a taxpayer intentionally avoids paying the full amount owed, making it always a criminal violation—this could involve nonpayment or underpayment of taxes.
If the IRS determines she willfully skipped payments, she could face a maximum of five years behind bars and a fine of up to $250,000. It’s crucial to mention that neither of these offenses includes simple mistakes on a tax return; the IRS typically identifies and rectifies those.
What Cohen shared, as well as all discussions related to tax law, shouldn’t be taken as legal advice. Consulting a tax professional is always wise for any questions about laws or penalties—particularly if considering withholding taxes as a form of protest.
There’s a movement among American taxpayers opting to withhold their payments in protest.
According to The Guardian, Lincoln Rice, who leads the National Wartime Tax Resistance Coordination Committee, indicated that more people are choosing to withhold federal taxes during the second term of President Donald Trump. As Cohen pointed out, the IRS enforces various penalties for failing to file versus failing to pay taxes.
Rice mentioned that certain methods of tax resistance may be illegal, and anyone attempting these must be ready for the risks associated with civil disobedience. However, many taxpayers are still considering this route, especially given that taxes constitute 13% of American federal income, with a notable portion funding military operations and law enforcement agencies like ICE.
Tax resistance has historical roots, dating back to the Boston Tea Party in 1773, where colonists rebelled against British taxation on tea. It seems that an increasing number of individuals are now pursuing direct forms of protest, just like Cohen, albeit with an awareness of the potential fallout.
