Frivolous Filing Penalty

[Demosthenes]

Just thought you all might like to know that the House passed HR 5970 on Saturday by a vote of 230 to 180. The following was one of the smaller provisions.

Frivolous tax submissions (sec. 6702 of the Code)

Present Law
The Code provides that an individual who files a frivolous income tax return is subject to a penalty of $500 imposed by the IRS (sec. 6702). The Code also permits the Tax Court 89 to impose a penalty of up to $25,000 if a taxpayer has instituted or maintained proceedings primarily for delay or if the taxpayer’s position in the proceeding is frivolous or groundless (sec. 6673(a)).

Explanation of Provision
The provision modifies the IRS-imposed penalty by increasing the amount of the penalty to up to $5,000 and by applying it to all taxpayers and to all types of Federal taxes. The provision also modifies present law with respect to certain submissions that raise frivolous arguments or that are intended to delay or impede tax administration. The submissions to which the provision applies are requests for a collection due process hearing, installment agreements, offers-in-compromise, and taxpayer assistance orders. First, the provision permits the IRS to disregard such requests. Second, the provision permits the IRS to impose a penalty of up to $5,000 for such requests, unless the taxpayer withdraws the request after being given an opportunity to do so. The provision requires the IRS to publish a list of positions, arguments, requests, and submissions determined to be frivolous for purposes of these provisions.

Effective date.−
The provision applies to submissions made and issues raised after the date on which the Secretary first prescribes the required list of frivolous positions.

89 Because in general the Tax Court is the only pre-payment forum available to taxpayers, it deals with most of the frivolous, groundless, or dilatory arguments raised in tax cases.

[Big Al]

I bet somebodies panties got wet when they heard that!

[Big Al]

I bet somebodies panties got wet when they heard that!

[David Merrill]

I was searching for the right words...

[David Merrill]

Interesting the selectivity of the threads with this problem:

[David Merrill]

Entering note to Webmaster about it...

[weishaupt1776]

I agree with the penalty

Either you fill out the form to the "T" like a good U.S. Citizen/Indivdual/resident/person should

OR

You don't file

Can't have it both ways

For wanting it both ways, you deserve the 5G penalty

[David Merrill]

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It looks to me that without due process, the IRS has no right to be charging a penalty at all.

There is a process with papers in place that constitute that the accusing IRS agent is properly declaring any Return frivolous. Demosthenes knows this I am sure. However in here excitement over this stuff, she is likely to know a lot more than any IRS agents. When you try finding this paperwork behind a "frivolous" claim, the IRS is strangely silent!


Regards,

David Merrill.

Once again, the provision to increase the penalties did not pass the Senate vote.

[David Merrill]

Originally Posted by Demosthenes

Just thought you all might like to know that the House passed HR 5970 on Saturday by a vote of 230 to 180. The following was one of the smaller provisions.

That is misdirection then Demosthenes. You told us that the House of Representatives passed this action but failed to let us know that it was not going into law? I told folks at a suitors' meeting yesterday that the "frivolous" penalty could easily be $5K instead of $500. I can broadcast a retraction easily enough but now I will be remembering you for that Demosthenes.

Up to now I have believed the information you bring to the table is on its face basically correct. And it is true what you say above (I believe). But you spun it to rub our noses in it and Fool me once, shame on you; Fool me twice, shame on me. You are a bad imitation of me on Quatloos Demo; http://www.quatloos.com/Tax-Forums/v...c.php?p=135620 As far as I am concerned, being the backstabbing snitch you are, http://www.americansovereign.com/new...ber/sleuth.htm now you have no credibility in bringing forth factual information. Thank you for bringing that out Submarine Veteran.


Regards,

David Merrill.