IRS Debunks Frivolous Tax Arguments
WASHINGTON — The Internal Revenue Service today released the 2010
version of its discussion and rebuttal of many of the more common
frivolous arguments made by individuals and groups that oppose
compliance with federal tax laws.
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.
The
document explains many of the common frivolous arguments made in recent
years and it describes the legal responses that refute these claims. 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.
www.irs.gov
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