Sue Taylor adopted the zero-income tax-protestor argument and filed tax returns accordingly, showing zero income. The court found that the IRS had properly used the bank deposits method to determine that Taylor owed taxes of $49,525 for 1999 and $39,717 for 2000.1

Taylor refused to cooperate with the IRS after she filed her zero return. Because she refused to cooperate, the law granted the IRS broad authority and great latitude in determining the tax liability. In this case, the IRS ... Log in to view full article.