Yesterday we talked about the frivolous return penalty that the IRS can assess against people that file a return taking the position that the tax system is illegal. The frivolous return penalty is $5,000.00 per year. Not only can the IRS assess the $5,000.00 penalty under the scenario discussed above, but the IRS can also assess the penalty if a position taken on a tax return has no legal basis. Such positions can include claiming unallowable deductions, using incorrect tax tables, submitting improper tax forms or protesting the use of your taxes for the military. Have you filed a return with the IRS that can be viewed as frivolous? Call us, we can help. Call us before the IRS calls you!
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