WASHINGTON — The Internal Revenue Service today issued a notice that lists
four additional erroneous legal positions that taxpayers should refrain from
using as an excuse to avoid paying their taxes.
And freedom for all
An individual or group may not avoid paying their fair share of taxes by
making “frivolous” legal arguments such as those listed in this notice. The IRS
publicizes these frivolous claims to help taxpayers understand the law and avoid
penalties.
Notice 2008-14 lists positions identified as frivolous for purposes of the
penalty under section 6702 of the federal tax code for filing a frivolous tax
return or submitting to the IRS a frivolous request for a collection due process
hearing or application for an installment agreement, offer-in-compromise, or
Taxpayer Assistance Order.
Taxpayers who file a tax return or make a submission based on a position
listed in this notice are subject to a $5,000 penalty. This notice adds to the
positions listed in Notice 2007-30, 2007-14 I.R.B. 883. The positions that have
been added are found in paragraphs 9(g), 11, 14, and 25.
The four new frivolous claims pertain to the following:
-
Misinterpretation of the 9th Amendment to the U.S. Constitution regarding
objections to military spending.
-
Erroneous claims that taxes are owed only by persons with a fiduciary
relationship to the United States or the IRS.
-
A nonexistent “Mariner’s Tax Deduction” (or the like) related to invalid
deductions for meals.
-
Certain instances of misuse or excessive use of the section 6421 fuels
credit.
In 2006, Congress increased 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.
Notice
2008-14 along with additional information providing the
truth about frivolous arguments can be found on IRS.gov.
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