Argument 44

[LPC]

In a couple of threads on Lost Horizons, denizens who have received notices of frivolous return penalties are puzzling over information they've received that refer to "argument 44." I was curious, so I did some research and figured out the answer, and since they won't let me post there, I'll post the answer here.

If you look at the Internal Revenue Manual section 4.10.12.1.1 (11/09/2007), there is a list of frivolous arguments from A to Z and from AA to AR. Argument AR is:

Zero Wages on a Substitute Form: Taxpayer generally attaches either a substitute Form W-2, Form 1099, or Form 4852 that shows "$0" wages or no wage information. A statement may be included indicating the taxpayer is rebutting information submitted to the IRS by the payer. Entries are usually for Federal Income Tax Withheld, Social Security Tax Withheld, and/or Medicare Tax Withheld. An explanation on the Form 4852 may cite "statutory language behind IRC 3401 and IRC 3121" ,or may include some reference to the company refusing to issue a corrected Form W-2 for fear of IRS retaliation.

That's obviously a description of the "CtC method."

And if you start with "A" equaling 1, then "Z" would be 26, "AA" would be 27, and "AR" would be 44.

[Nikki]

And all of the "argument 44" filings get directed to the special Hendrickson unit in Ogden.

I don't understand why the LoserHeads keep insisting that the IRS isn't paying any attention to their filings and letters.

[Famspear]

And all of the "argument 44" filings get directed to the special Hendrickson unit in Ogden.

I don't understand why the LoserHeads keep insisting that the IRS isn't paying any attention to their filings and letters.

Maybe the Propeller Heads think that the IRS isn't reeeeeeeeaaaaaallllllllly paying attention to them unless the IRS is "paying attention" in just the right way -- e.g., "hey IRS don't call it "argument 44" - instead you have to call something like the "argument that the U.S. federal income tax does not apply unless the tax is imposed in connection with receipts proceeding from voluntary activities in combination with the federal government, either as a worker, investor, office-holder or relief beneficiary" -- [gasp, out of breath, need air..] -- argument. Pete and his Preposterously Pontificating Propeller Heads all believe you gotta say it in just the right way........

[Nikki]

Maybe the Propeller Heads think that the IRS isn't reeeeeeeeaaaaaallllllllly paying attention to them unless the IRS is "paying attention" in just the right way -- e.g., "hey IRS don't call it "argument 44" - instead you have to call something like the "argument that the U.S. federal income tax does not apply unless the tax is imposed in connection with receipts proceeding from voluntary activities in combination with the federal government, either as a worker, investor, office-holder or relief beneficiary" -- [gasp, out of breath, need air..] -- argument. Pete and his Preposterously Pontificating Propeller Heads all believe you gotta say it in just the right way........

Did you cheat and read ahead to Weston's comment?

So the member LPC at Quackloss realized that “And if you start with "A" equaling 1, then "Z" would be 26, "AA" would be 27, and "AR" would be 44.”, proving of course that although they are inept and corrupted they still manage to prove some usefulness… at least once in awhile, anyway.

Though he/she is wrong about one thing: “That's obviously a description of the "CtC method."”

No it only seems that way because most of us that file CtC, just happen to not earn any income, such as from interest, stocks, bonds, etc. Those that do not like it, well you can thank your Founding Fathers for creating the Declaration of Independence, thereby establishing inalienable rights, such as earning a living, raising your brood, actually enjoying the freedom and liberty we so adamantly proclaim to exist, etc., M’kay!

Sort of makes you wonder why they left this out of Notice 2008-14 though, eh?

Also, sort of makes you wonder how such an erudite legal scholar missed this part of Notice 2008-14: "Returns or submissions that contain positions not listed above, which on their face have no basis for validity in existing law, or which have been deemed frivolous in a published opinion of the United States Tax Court or other court of competent jurisdiction, may be determined to reflect a desire to delay or impede the administration of Federal tax laws and thereby subject to the $5,000 penalty."

If you add the proceeding language to the Court's opinions in Pete's and acolytes' cases; stir well; and allow to cool you end up with an automatic routing of CtC educated returns and all follow-up correspondence to Ogden Utah.