How to avoid ALL taxes on your high W2 income

[Michael Plaks]

Some of y'all keep searching for the magic bullet. Your search is over. 

This is one of my all-time favorite Tax Court cases. Two high-salaried W2 employees filed a tax return with $0 income, attaching this creative argument:

"I am a private-sector worker, not an “employee” as defined in IRC 3401(c) and IRC 3121. I worked with a private-sector company, not a federal employer as defined in IRC 3401(d). I did not engage in “trade or business” as defined in USC Section 7701(a)(26)."

Result: $10,000 penalty each for filing a frivolous tax return. By the way, repeatedly so. Must be slow learners. Strangely, they reside in Texas, not Florida.  https://www.ustaxcourt.gov/Ust...