How Far Does IRS Jurisdiction Extend?

Because the jurisdiction of the IRS is greatly misunderstood many Americans routinely dispute the power of the IRS and paying taxes. To understand IRS issues in the future, it is best to have a consultant who has researched these matters in depth and understands the TRUE jurisdiction of the Internal Revenue Service and its limitations.

The authority given to legal bodies or political leaders to enforce punishment and handle legal situations is known as jurisdiction. The term is normally heard on TV shows or movies about crimes.

The IRS is a bit more amorphous because it has jurisdiction over all the taxpayers in the United States, as well as those who earn any income in the US. IF, AND THAT IS A BIG IF you are a tax payer and you fail to deal with the to pay taxes as a taxpayer, you’ll absolutely encounter IRS issues.

Here’s an excerpt from Title 26 of the Code of Federal Regulations which relates to the IRS:

“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.”

As I said earlier the IRS has jurisdiction over you IF as a taxpayer and a United States citizen. If you fall into this category and earn money or reside in foreign countries, a non-resident earning money in the US, or a resident of the United States you are liable to pay federal income tax. If you don’t pay taxes on property, earnings, capital gains, etc., you’ll suffer the IRS’s wrath

As explained in this paragraph from Economy Plumbing and Heating Co. against the US, non-taxpayers are excluded from the jurisdiction of the IRS:

“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.”

Our consulting firm can help you understand whether you are a tax payer as defined in the federal tax code and help you avoid IRS problems as a result.
Several arguments are regularly made by tax protesters that try to negate the jurisdictional powers of the IRS. A few imply that the 16th Amendment was never ratified properly, so the IRS is unconstitutional. The 16th Amendment gives Congress the authority to lay and collect taxes on income, and it was, in fact, properly ratified by the needed three-fourth’s majority of states. Understanding WHO it applies to is the real trick, however.

Some Americans have argued that the IRS has no jurisdiction because it’s not a government agency. Actually, because the Secretary of Treasury has enforcement and administration authority over the laws of internal revenue, the IRS was started. As already stated the IRS does have jurisdiction over taxpayers and arguments such as these will bring you problems with them.

For tax payers, failure to pay taxes or declare your income accurately can lead to serious issues with the IRS issues. However, most Americans have unknowingly volunteered into the tax system and don’t even know it and there is a way to get out as well.

Would you like to learn more and see if you are eligible to opt out of the federal tax system? Email us at for more information and be sure to visit our website at

Leave a Reply