IRS Identifies 40 Frivolous Positions To Avoid

Recently the Internal Revenue Service issued an article detailing 40 frivolous positions that taxpayers should avoid when completing their tax returns. These positions have no basis in tax law or have been determined frivolous by tax or federal courts. If any frivolous positions are contained in a tax return, taxpayers could face a fine for filing a frivolous tax return. In 2006 congress increased the penalty from $500 to $5,000 for persons submitting tax returns that are deemed frivolous by the IRS. One of the frivolous positions includes false arguments that wages are not taxable income, among various others. For more details visit the IRS’s official website.