Tax Court Finds Taxpayer Liable and Threatens Penalties for Frivolous Claims

The Tax Court held that a taxpayer was liable for unpaid taxes stemming from Social Security benefits and pension distributions and additions to tax for failing to to timely file a return.  The taxpayer argued that the IRS employee handling his case did not have proper authority to sign and issue the notice of deficiency.  The Tax Court dismissed those claims and further warned the taxpayer that making frivolous arguments can result in additional penalties.

See Dennis Bowers v. Commissioner, T.C. Memo. 2014-130 (June 26, 2014).

Posted by David Song, Associate Editor, Wealth Strategies Journal