What do you know about filing a return that says that Income Tax is Illegal.
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david ingram replies:
Not an awful lot. I stay away from Corporation Sole and other tax free claims that keep on arising in the Unitesd States and Canada and I presume ion other countries as well although i have never heard of a Mexican or English, Australian or new Zealand claim. However, if you do file a return and make such a claim, it is called a frivolous return and on Mar 15, 2007, the penalties went from $500 to $5,000 according to IR 2007-61 which I have reproduced below.
They list 40 or so things that can get you the $5,000 fine so you might want to take a look. If one 'pursues' the frivolous claim in court, the penalty goes to $25,000.
