Certain arguments made by taxpayers in the past have been determined to have no validity in the law and, thus, are deemed to be “frivolous.” As such those who continue to advance them can be subject to a penalty of $5,000. There is an IRS list of 46 frivolous arguments. New to the list are the following:
The tax on the investment income in excess of $1,700 (may change after 2007) of a child under age 18, based on the parents’ marginal tax rate and computed on Form 8615.