The IRS has released its annual publication of The Truth about Frivolous Tax Arguments, which extensively discusses some of the 'frivolous arguments' some individuals make to reduce (or eliminate) their tax burden and the legal responses and penalties related thereto:
....
Anyone who contemplates arguing on legal grounds against paying their fair share of taxes should first read the 80-page document, The Truth about Frivolous Tax Arguments.
.... It will help taxpayers avoid wasting their time and money with frivolous arguments and incurring penalties.
Congress in 2006 increased the amount of the penalty for frivolous tax returns from $500 to $5,000. The increased penalty amount applies when a person submits a tax return or other specified submission, and any portion of the submission is based on a position the IRS identifies as frivolous.
IRS highlighted in the document about 40 new cases adjudicated in 2009. Highlights include cases involving injunctions against preparers and promoters of Form 1099-Original Issue Discount schemes and injunctions against preparers and promoters of false fuel tax credit schemes.
To view the original press release, please click here.
Posted by Joshua Hock, Associate Editor, Wealth Strategies Journal
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