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Yesterday, the IRS sent out a press release identifying 40 tax positions that will be eligible for the maximum $5,000 penalty. The penalty is not automatic but can be levied at the discretion of the IRS. The IRS also released four Revenue Rulings debunking several of the most prevalent tax protester freedom fighter arguments.

Most of the arguments revolve around two primary focii: that the 16th Amendment was not properly ratified or that wages are an equal exchange for labor and therefore non-taxable. If someone ever presents you with these arguments, or really any argument that says you can avoid taxes, run really fast. Courts do not take kindly to people making tax protester arguments, and neither does the IRS.

A virtual encyclopedia of tax protester freedom fighter arguments can be found at Daniel Evans’ Tax Protester FAQ. Mr. Evans has done a fantastic job of listing and debunking various tax myths. It’s a fantastic resource if anyone ever presents you with something that doesn’t seem right (or for fun casual reading if you’re a tax nerd like me).

IR 2007-61