!DOCTYPE html> Tax Pert | Frivolous Tax Arguments | A Tax Consulting Site

The IRS warns against using common frivolous tax arguments made by those who oppose compliance with federal tax laws.

Examples of frivolous tax arguments include contentions that taxpayers can refuse to pay taxes on religious or moral grounds by invoking the First Amendment; that the only “employees” subject to federal income tax are employees of the federal government; and that only foreign-source income is taxable.

The penalty for taking one of these positions on a tax return is $5,000; additional penalties may also apply, including criminal prosecution. You can read more at the IRS’ 2016 version of “The Truth about Frivolous Tax Arguments.”