There are and have been many famous pairings in our society–Abbott and Costello, Laurel and Hardy, Sonny and Cher, bacon and eggs, death and taxes.
There are also certain couples that just don’t go quite seem at ease together–oil and water, positive and negative magnetic poles, elephants and mice.
Add to that list of opposites that do not go together frivolity and taxes. Death and taxes, yes. Frivolity and taxes, no.
Earlier this year, the Internal Revenue Service put out a very interesting mini-treatise on the wide array of frivolous tax arguments that taxpayers have made in the past. The title of this IRS publication is “The Truth About Frivolous Tax Arguments.” You can find it at the IRS website (http://www.irs.gov/newsroom/article/0,,id=97322,00.html).
There are 43 frivolous arguments set forth in the IRS’s publication. Some of them you have probably heard, but many of them will probably be new to you. For example, some taxpayers have actually claimed that the IRS is not an agency of the United States. Not surprisingly, that argument was unsuccessful.
For tax practitioners, “The Truth About Frivolous Tax Arguments” makes fascinating reading, and the summaries of cases in which the arguments have been made makes a good legal source. Just in case, you have a client who does not believe you when you say that his or her particular argument has no legal basis, you can always show them where someone else has already tried the same argument without success.
Particularly helpful is the listing and discussion of the possible sanctions that can be made against taxpayers (and their counsel) for making frivolous arguments in the context of a tax dispute.
“The Truth About Frivolous Tax Arguments” may not make the bestseller lists, but most tax professionals would likely find it interesting reading.