Filing income tax returns bears moral implications

Some of the many offenses against the Seventh Commandment include theft, borrowing without the intention of repayment, accepting bribes, not paying just wages in a reasonable time, passing counterfeit money, forgery, usury, wasting time at work, engaging in unlawful strikes, excessive gambling, cheating, plagiarism, violation of copyright laws, and failure to pay one’s taxes.
 
With tax season upon us, now is a time to rectify any injustice we may have committed regarding our taxes.

All of those in legitimate authority over us must be honored and respected for the office they hold, and this obliges paying all taxes lawfully imposed by their authority. The Lord likewise affirmed the importance of rendering our due to lawful governments when He answered the question on whether it was lawful to pay taxes to Caesar:

[They asked him,] “Is it lawful for us to give tribute to Caesar, or not?” But he perceived their craftiness, and said to them, “Show me a coin. Whose likeness and inscription has it?” They said, “Caesar’s.” He said to them, “Then render to Caesar the things that are Caesar’s, and to God the things that are God’s” (Luke 20:22-25).

The Jews at the time of our Lord often clashed with the pagan Roman authorities. But even with their errors, our Lord affirmed that dues must nevertheless be paid to them.
 
U.S. tax law differentiates between tax avoidance and tax evasion. Tax evasion is a crime and a sin. By failing to pay our lawfully established taxes, we rob federal, state, and/or local governments of the revenue they need to protect their citizens, maintain their infrastructure, provide aid to those in need, and a host of other issues. While it is undoubtedly true that some government funds are used for sinful purposes, the majority is at least morally neutral if not morally positive.

Tax evasion can take various forms. It can be as simple as grossly overestimating our charitable contributions on Schedule A, failing to pay taxes on unreported income received in cash, paying employees “under the table” to reduce payroll taxes, or setting up tax shelters in other jurisdictions.
 
Tax avoidance, by contrast, is morally permissible and even incentivized by the government. Take retirement planning, for instance. The use of 401(k) plans, IRAs, 529 college savings plans, and other programs often provide tax benefits by incentivizing individuals and businesses to save for the future. Everyone from CEOs to recent college graduates should be filing their taxes and engaging in routine tax planning to take all reasonable and earned deductions and credits as appropriate. Tax avoidance is acceptable and allows individuals to keep more of their money to support their families, charitable giving, and leisure.
 
With sins against the Seventh Commandment, more is required than merely listing our sins in the confessional and expressing our sorrow for them. The Seventh Commandment requires restitution, as affirmed in the Catechism of the Catholic Church.
 
If you feel you may have sinned in the past regarding taxes, mention it to a priest, and ask his advice on how you may make restitution. Often this can take the form of making a charitable contribution to the Church for the amount you would have otherwise paid in taxes if filing a timely amended return is not possible. Ask his advice and make it a point in the future to heed our Lord’s command to give Caesar what is rightfully Caesar’s — while utilizing all lawful incentives of the tax code, of course.

MATTHEW PLESE
is a certified public accountant based out of Chicago. He is the president of CatechismClass.com and the author of The Roman Catechism Explained for the Modern World, published in November 2022.