The IRS has recently issued an 80-page document entitled, “The Truth About Frivolous Tax Arguments”, discussing some of the common frivolous tax arguments made by individuals and groups whom oppose federal tax laws. The IRS has also released a news article which reminds taxpayers that under Code Sec. 6702, the taxpayer would be responsible for paying $5,000 should that person submit a tax return or any specified submission, that the IRS deems frivolous.
We will briefly outline the major topics covered in the document:
- Various contentions that: the federal income tax system is voluntary; terms in the Code such as taxable income, gross income and “the taxpayer” are improperly defined; and payment of taxes is unconstitutional. Other arguments in the category have fictional legal bases, for example, that IRS isn’t an agency of the U.S., or that taxpayers are entitled to the refund of social security taxes paid over their lifetime.
- Frivolous arguments in collection due process cases brought under Code Sec. 6320 or Code Sec. 6330 , including various contentions that assessments are invalid, or that the statutory notice of deficiency, notice of federal tax lien or statutory notice and demand is invalid.
- Contentions that the Tax Court isn’t authorized to decide legal issues, or that IRS personnel don’t have the authority to seize property in satisfaction of unpaid taxes, or that IRS employees lack credentials.
A final section of IRS’s frivolous tax arguments document explains in detail the penalties that courts may impose on those who pursue tax cases on frivolous grounds, and cites scores of cases rejecting various frivolous arguments and imposing penalties.
