I could be wrong, but I believe there are penalties if you end up owing too much. If that's not the case, then it's a great plan.
I don't believe the feds allow that.
At least that's what I plan to do. As far as I can tell it's legal. As long as you pay the taxes on or before the 15th of April then I don't think they can do anything.
First of all, self-employed people are required to pay their taxes on a quarterly basis. And second, if you are significantly under-withheld, the feds can assess a penalty.
I would get some better tax advice before departing on the course of action you are proposing here.
I agree and sympathize with you but you should check this out with a tax accountant. Depending on how much you make, you could by liable for IRS penalties if you earn a certain amount over last year's income. I was on the treadmill with the IRS for years with estimated taxes that I had to pay up-front for the current tax year because my prior year's income was not fully paid until April 15th.
(No Answers, No Taxes) by Robert L. Schulz, Chairman, We The People Congress
Presented at Freedom Drive 2002, The National Mall, Washington DC November 14, 2002
Acknowledgement: Bob Schulz wishes to acknowledge and thank Anthony Hargis for his fine research paper, "The Lost Right, Redress of Grievances." (undated). Bob's speech draws heavily on that research and the underlying documents.
The founding fathers, in an act of the Continental Congress in 1774, said, "If money is wanted by Rulers who have in any manner oppressed the People, [the People] may retain [their money] until their grievances are redressed, and thus peaceably procure relief, without trusting to despised petitions or disturbing the public tranquility."
This very American Right of Redress of Grievances Before Taxes is deeply embedded in our law.
The founding fathers could hardly have used words more clear when they declared, "the people . . . may retain [their money] until their grievances are [remedied]."
By these words, the founding fathers fully recognized and clearly stated: that the Right of Redress of Grievances includes the right of Redress Before payment of Taxes, that this Right of Redress Before Taxes lies in the hands of the People, that this Right is the People's non-violent, peaceful means to procuring a remedy to their grievances without having depend on -- or place their trust in -- the government's willingness to respond to the People's petitions and without having to resort to violence.
Before going further, I'd like to clarify two points: first, the question we are dealing with here is not whether the government has the power to tax, but whether the government is abusing its constitutionally limited power to tax; and second, there is the question of whether the government is using the tax revenue to effect other abuses of its authority.
The founding fathers were well acquainted with the fact that government is the enemy of Freedom, that those wielding governmental power despise petitions from the People; the representatives of the People, in a popular assembly, seem sometimes to fancy that they are the People themselves and exhibit strong symptoms of impatience and disgust at the least sign of opposition from any quarter.
The founding fathers knew that it was possible for the institutions of the Congress, the Executive and the Courts to someday begin to fail in their duty to protect the people from tyranny. They knew that unless the People had the right to withhold their money from the government their grievances might fall on deaf ears and Liberty would give way to tyranny, despotism and involuntary servitude.
The First Amendment to the United States Constitution states clearly and unambiguously, "Congress shall make NO law . . . abridging . . . the right of the people . . . to petition the government for a redress of grievances."
While some Rights are reserved with qualifications . . . (continued)
This is a real eye opener!