§6702 Frivolous Tax Submissions

Summary

If you file something that looks like a tax return but is missing the information needed to check it, or is clearly wrong on its face, you owe a $5,000 penalty when the filing is based on a position the IRS has listed as frivolous or is meant to delay or block tax enforcement. The same $5,000 penalty applies to frivolous versions of certain other requests, like hearing requests about liens or levies, installment payment plans, offers in compromise, and taxpayer assistance orders. If the IRS notifies you that your submission is frivolous and you withdraw it within 30 days, that penalty does not apply. The IRS must publish and update a list of positions it considers frivolous. It can reduce a penalty if doing so would help tax compliance. These penalties stack on top of any other penalties you owe.