IRS Debunks Frivolous Tax Arguments

From IRS.gov

IR 2010-18; “The Truth About Frivolous Tax Arguments” (http://www.irs.gov/newsroom/article/0,,id=219104,00.html)
IRS has issued a detailed, 80-page document discussing and rebutting many of the more common frivolous arguments made by individuals and groups that oppose compliance with federal tax laws. An accompanying news release reminds taxpayers that under Code Sec. 6702, the penalty for frivolous tax returns is $5,000, and applies when a person submits a tax return or other specified submission, and any portion of the submission is based on a position that IRS identifies as frivolous.
Detailed rebuttals. IRS's “The Truth About Frivolous Tax Arguments” responds to some of the more common frivolous “legal” arguments about the federal tax system. Each contention is briefly explained, followed by a discussion of the legal authority that rejects the contention.
The document covers these broad categories of frivolous arguments:
· 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.
RIA Research References: For penalties for frivolous income tax returns and specified frivolous submissions, see FTC 2d/FIN ¶ V-2551; United States Tax Reporter ¶ 67,024; TaxDesk ¶ 866,001.
Source: Federal Tax Updates on Checkpoint Newsstand tab 2/8/2010