Tax Guru-Ker$tetter Letter

Thursday, November 02, 2006

Frivolous Appeals Penalties

Subject: Questions for research project

Dear Tax Guru,

I’m a lawyer doing research on taxes. I was reading your site a the part that says that an IRS agent can fine someone $10,000 for stating that “income taxes are not constitutional. These are all bogus arguments that will earn anyone mentioning them in the presence of an IRS employee an automatic $10,000 fine.”

What is your authority for this statement? I find it difficult to believe this is true. Please help?

I was referring to the Frivolous Appeal (Section 6673) penalty, which is frequently assessed against people who waste the IRS's and Tax Court's time using the same kind of idiotic tax protestor arguments that have long been settled.

The actual amounts of each penalty occasionally vary from $500 to $25,000 per instance, depending on the mood of the IRS or Tax Court authority, as well the level of belligerence in the attitude of the idiot tax protestor they are dealing with at the time.

If you scan reports of Tax Court cases, such as in many of the tax blogs, you will see this penalty constantly referred to. It is anything but rare.

I hope this helps.

Kerry Kerstetter

- posted by Kerry M. Kerstetter, MBA~CPA~ATP~ATA @ 11/02/2006 10:21:00 AM Send this post: