Not paying tax return interest due to religious grounds?

Question

Hello,

I am working with an individual who is amending her tax returns for 2011. It was her first time doing taxes, and as a result, she accidentally underreported figures on the return. However, she wants to amend her tax return now even though she'll have to pay more.

Obviously she will have to pay interest on this tax return. However, taking and paying interest is not allowed in her religion. (I have checked this. Muslims, in addition to many Christians and Jews, believe this. They believe that interest takes advantage of someone who is in need of financial support, on top of other reasons, which I think are pretty valid.)

It's not like she can't afford to pay the interest; fortunately she is well off. The interest amount is small. Is there any way for her to be able to pay this interest due to valid religious grounds? Is there anyone she can call or write to? I was searching online and it seems as if it has been done before due to, again, valid religious grounds. If it's possible, should she write anything about the interest on her tax return or attach something when she pays her taxes? Of course, if there is ABSOLUTELY no way around it, she'll have to pay it and is okay with that, but we want to at least try first.

Thanks!

P.S. For those who like to troll the yahoo answer boards, please no snarky remarks on her religious beliefs! I have checked and she makes all her payments (credit card, etc) WELL ahead of time to avoid interest. I believe she has the right to practice her religion, and she is obviously going to pay the interest if there is no way to avoid the interest even after talking to someone.

Answer 1

She can consider it a specifically calculated penalty for not paying the proper amount in the first place.

Answer 2

She's pulling your leg. Paying interest is not contrary to Islam, CHARGING interest is. Since the US is not a secular nation organized under the principals of Islam, it is not subject to that religious restriction.



I asked a similar question of a Muslim friend who was taking out a home mortgage loan. He did say that it was possible to finance a home without paying actual interest, however the way that it was structured was that he would only be a tenant legally until all payments were made. His Imam did encourage him to use one of the organizations that fund home purchases this way (mainly to keep the money within the Islamic community), but told him that he was not under any religious obligation to do so.



Even if there is a sect within Islam that bars payment of interest (there are probably as many Islamic sects are their are Christian sects) the US is not subject to religious restrictions on the collection or payment of interest so her objection may be noted but she still must pay the interest.



If she did have a serious objection to the payment of interest, she should have ensured that her taxes were paid on time to avoid that situation.

Answer 3

Like the "Bostonian..." fellow mentions about Islam,

for Jews the prohibition is against taking interest.

If a Jew finds himself in some situation where he would be expected to pay interest, it would be considered "hilul hashem" ("shaming god") to try to escape obligation by claiming that his religion prohibits it.



There are a number of ways to look at an IRS request for payment other than just "interest" --

it can be considered a penalty / a fine / a fee for the convenience of paying later... etc.

Answer 4

I am not aware of any exclusions for paying interest on religious grounds

in fact, that actually would probably be contrary to the Constitution, giving preference to a religion would definitely be in violation

Answer 5

There has never been an exception to any tax law for religion as it is not contrary to the 1st of 14th Amendment of law, freedom of religion.

Answer 6

there is no way around paying what she owes. what her religuous beliefs regarding taxes and interest

are aren't going to keep her out of jail.that argument will not fly anywhere.

Answer 7

She can whatever objections to paying interest that she wants to have but she will still have to pay it.

Answer 8

Not going to work, she will absolutley owe it.