April 9, 2010 12:00 am

IRS List of Frivolous Positions Updated

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 use of Form 1099-OID to create an obligation on the part of the government to make a monetary payment to the taxpayer
  • A claim for a refund that is obviously false because it exceeds the taxpayer’s income as reported on the return or supporting documents
  • A claim for refund based on the advance earned income credit as reported on the employer’s Form 941, Employer’s Quarterly Federal Income Tax Return, where the only entry is the amount of wages, tips, or other compensation; other lines for reporting tax withholding and other amounts are left blank
Source: Notice 2010-33
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Tax Glossary

Separate return

Return filed by a married person who does not file a joint return. Filing separately may save taxes where each spouse has separate deductions, but certain tax benefits require a joint return.

More terms