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Revision as of 00:33, 5 August 2026

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The courts have generally held that direct taxes are restricted to taxes on people (variously called capitation, poll tax or head tax) and property. (Penn Mutual Indemnity Organization. v. C.I.R., 227 F.2d 16, 19-20 (3rd Cir. 1960).) Various other taxes are typically called "indirect taxes," basically because they tax an event, rather than person or property as such. (Steward Machine Co. v. Davis, 301 U.S. 548, 581-582 (1937).) What seemed to be a straightforward limitation on the power of the legislature based on the subject of the tax proved inexact and unclear when applied for income tax, which is certainly arguably viewed either as a direct or an indirect tax.

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But risk doesn?t stop with mere financial penalization. Punishment can even add up to being added too jail and being instructed to pay fines to the federal government if evasion is blatantly transfer pricing curved.

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