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:
Casualty losses such as from a storm, in areas declared by the President to warrant federal assistance. An election may be made to deduct the loss in the year before the loss or the year of the loss.