minusonebit |
12-13-2007 05:33 AM |
IRS Ups the Ante: Filing a "Frivolous Tax Return", Penalty Now $5K
It used to be that striking out the information above where you sign on your 1040 would get you a $500 fine. One of my favorite things to do used to be to write things like "Paid Under Protest" on my returns, or on my checks. The IRS really DOES NOT like that and last year they threatened me with a $500 fine if I did it again this year. I fully intended to do it again, but now I am not sure if its worth it.
Under the "Whats New" section of IRS Publication 17, there are two new, short little sections:
Quote:
Frivolous tax submissions.
The IRS has published a list of positions that are identified as frivolous. The penalty for filing a frivolous tax return is $5,000. Also, the $5,000 penalty will apply to other specified frivolous submissions. See chapter 1.
Filing erroneous claim for refund or credit.
You may have to pay a penalty if, after May 25, 2007, you file an erroneous claim for refund or credit. See chapter 1.
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Then you go down and you find this:
http://i7.tinypic.com/6oesuqh.jpg
http://i8.tinypic.com/8e7sswh.jpg
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