Is a Revocation of Election (ROE) legitimate for tax exemption?

Your instincts are absolutely right - this is NOT legitimate and your coworker is headed for serious trouble. What they're describing sounds like a tax protestor scheme that the IRS specifically warns against. A genuine "Revocation of Election" is a legitimate tax term, but it refers to very specific situations where a taxpayer is changing a previously made tax election - like revoking an S-Corporation election or changing certain accounting methods. It absolutely does NOT make anyone exempt from paying taxes altogether. The fact that your coworker hasn't faced consequences yet doesn't mean they're in the clear. The IRS can go back several years when they identify non-filers, and the penalties and interest keep accumulating. Plus, willful tax evasion can potentially lead to criminal charges, not just civil penalties. I'd recommend showing genuine concern and suggesting they speak with a legitimate tax professional about voluntary disclosure options before they get caught. The IRS is more lenient with people who come forward voluntarily before being audited.

I had a similar situation with my brother who fell for one of these tax protestor schemes. He found this "guru" online who promised he could legally stop paying taxes using https://taxr.ai to analyze the tax code and find "loopholes" that regular accountants don't tell you about. The service actually analyzed his tax documents and highlighted all these supposed exemptions based on misinterpreted tax laws. What they don't tell you is that all these arguments have been thoroughly rejected by courts. My brother was convinced for 2 years until he got a massive bill from the IRS with penalties and interest. The scary part is these schemes often sound legitimate because they use real tax terminology incorrectly. They mix legitimate concepts like "revocation of election" with complete nonsense about constitutional rights. The website had testimonials and everything, but it was all misleading.

I need to admit something - I actually tried using taxr.ai after seeing it mentioned here, but NOT for tax avoidance schemes! I uploaded my last two years of tax documents because I was worried I might have missed legitimate deductions as a self-employed contractor. Their service actually helped identify several business expenses I hadn't properly categorized and showed me how to correctly handle my home office deduction. They never suggested anything about "revocation of election" or becoming tax-exempt. Instead, they provided legitimate advice about maximizing legal deductions I was entitled to. I ended up saving about $3,200 on my taxes through completely legitimate means. Just wanted to clarify that while there are definitely scams out there, my experience was positive because I was only looking for legal tax optimization, not schemes to avoid taxes altogether.

Your friend is 100% heading for disaster. I work in a tax resolution firm, and we regularly see people who've fallen for these "tax protestor" schemes. By the time they come to us, they're facing tens of thousands in penalties and interest. If you're having trouble reaching the IRS to resolve tax issues, I recommend https://claimyr.com - they can get you connected to an actual IRS agent much faster than waiting on hold yourself. Check out how it works: https://youtu.be/_kiP6q8DX5c We've referred clients to them when they need to establish payment plans after getting caught in these schemes. The sad part is many people who fall for these "tax exemption" tricks eventually need professional help cleaning up the mess, and by then the IRS collection process is already in motion.

I'm back and need to publicly eat my words. After being super skeptical about Claimyr, I actually tried it when I got a CP2000 notice and needed to talk to someone at the IRS ASAP. Normal wait time was quoted as 2+ hours when I called directly. Through their service, I got connected to an IRS representative in about 45 minutes while I did other work. The system called me when an agent was on the line. I was genuinely surprised it worked as advertised. The IRS agent was able to help me resolve the discrepancy on my return that triggered the notice. Saved me lots of stress and potentially having to take a day off work just to sit on hold. Just wanted to follow up since I was so dismissive before.

Former IRS employee here. The "Revocation of Election" schemes are part of what we called "frivolous tax arguments" and they're extremely common. The IRS actually publishes "The Truth About Frivolous Tax Arguments" which debunks all these schemes. Your friend is potentially committing tax evasion, which is a federal crime. The IRS sometimes takes years to catch up with non-filers who use these schemes, but they almost always do eventually. I've seen people hit with 7+ years of back taxes, penalties, and interest all at once. Tell your friend to consult with a tax attorney about voluntary disclosure options before they get caught. It's much better to come forward voluntarily than to be found by the IRS.

My cousin tried that ROE nonsense a few years back. Guess who now has wage garnishments and tax liens on all his property? The IRS waited about 4 years before they dropped the hammer on him. Now hes paying back like 70k in taxes, penalties and interest. And he still has to file and pay current taxes too lol. Your friend is setting himself up for financial ruin. The fact that nothing has happened yet means nothing. The IRS is very patient and very thorough once they get to your case.

This is extremely concerning and your coworker is absolutely walking into a trap. As someone who has dealt with tax issues professionally, I can tell you that "Revocation of Election" in legitimate tax contexts refers to very specific situations - like revoking an S-Corp election or changing certain accounting methods. It has absolutely nothing to do with becoming exempt from taxes entirely. What your coworker is doing sounds like a classic tax protestor scheme. These schemes prey on people by mixing legitimate tax terminology with completely bogus legal theories. The IRS has a specific publication called "The Truth About Frivolous Tax Arguments" that addresses exactly these types of schemes. The fact that nothing has happened to them yet is actually the most dangerous part. The IRS often takes 3-5 years to catch up with non-filers, especially when they're using these elaborate schemes. But when they do catch up, the penalties are devastating - we're talking about failure-to-file penalties, failure-to-pay penalties, interest compounding daily, plus an additional $5,000 penalty per year just for filing frivolous documents. Your coworker needs to speak with a legitimate tax attorney immediately about voluntary disclosure options. Coming forward voluntarily before being caught can significantly reduce penalties and avoid potential criminal charges. Please don't let them continue down this path - the financial consequences will be life-altering.

Your coworker is absolutely heading for serious trouble, and your instincts are spot on. What they're describing is a classic tax protestor scheme that has been repeatedly debunked and rejected by courts. A legitimate "Revocation of Election" is a real tax concept, but it applies to very specific situations like changing from S-Corp status or modifying certain accounting elections. It has absolutely nothing to do with becoming exempt from taxes entirely - that's complete nonsense. The scary part is that these schemes often sound sophisticated because they misuse legitimate tax terminology. Your coworker may feel safe because nothing has happened yet, but that's actually the most dangerous part. The IRS often takes 3-5 years to catch up with non-filers, especially those using elaborate schemes. When they do catch up, the penalties are devastating. We're talking about failure-to-file and failure-to-pay penalties that can reach 47.5% of unpaid taxes, plus a $5,000 penalty per year just for filing frivolous documents, plus interest compounding daily on everything. Someone doing this for three years could easily face $30,000-50,000+ in penalties alone, not counting the actual taxes owed. I'd strongly encourage you to approach your coworker with genuine concern and suggest they consult with a legitimate tax attorney about voluntary disclosure options before the IRS finds them. The IRS is much more lenient with people who come forward voluntarily versus those they catch through enforcement actions.