Kensai almost stumbles across an important truth

[Quixote]

In a thread on LH, Kensai, referring to the $5,000 penalty for filing a frivilous return based on a position which the Secretary has identified as frivolous, makes the following observation.

Anyone working on a 'response' to a 'frivolous' letter should read this.

He's right. They should know that sending one of the many frivolous responses favored by the Lostheads will almost certainly result in the penalty being assessed.

Unfortunately, in a series of posts I like to think of as Abbott and Costello Meet the IRC, Kensai and Submarine Veteran convince each other that there's nothing to worry about.

[fortinbras]

As part of the recent law increasing the penalties on frivolous returns, is a provision that, in response to a frivolous return the IRS will return same -- with a informative booklet about positions that have already been held frivolous -- to the taxpayer to give him opportunity and incentive to straighten things out. The IRS's pamphlet is available on the internet.

The recent amendment is Public Law 109-432, sec. 407, 120 Stat 2960-2962, Dec. 20, 2006
which added 26 USC sec 6702.

The IRS pamphlet listing many frivolous arguments is Notice 2008-14, which is available on a number of places on the internet.

[Demosthenes]

Welcome to Quatloos, fortinbras!

[Quixote]

As part of the recent law increasing the penalties on frivolous returns, is a provision that, in response to a frivolous return the IRS will return same -- with a informative booklet about positions that have already been held frivolous -- to the taxpayer to give him opportunity and incentive to straighten things out. The IRS's pamphlet is available on the internet.

The recent amendment is Public Law 109-432, sec. 407, 120 Stat 2960-2962, Dec. 20, 2006
which added 26 USC sec 6702.

The IRS pamphlet listing many frivolous arguments is Notice 2008-14, which is available on a number of places on the internet.

The Lostheads don't seem to realize the opportunity that policy gives them. Imagine a bank robber is caught with the loot as he exits the bank. The cops, before they slap on the cuffs, tell the robber that if he'll return the money to the bank in the next 5 minutes, they'll let him go. Who wouldn't return the money? Well, Lostheads, who instead of returning the money, would spend the next 10 minutes asking the cops to explain what specific action on their part the cops are objecting to, demanding that the cops read them their rights, and insisting that the cops define the words "return", "money" and "bank".

[Demosthenes]

Ummm, CKB, Fortinbras is kind of an long term expert in the "movement."

[The Observer]

I could tell he was an expert. His citation of the laws and notices on this thread and his posts on the other threads certainly show indications that he knows and is familiar with the kind of games that TPs play. In other words he is a natural born citizen of Quatloosia and didn't immigrate here like you did.

[grixit]

Surely there's material for at least one doctrinal thesis in the phenomenon of lateral kookiness transfer.