Frivolous Tax Submissions Penalty increased substantially for 2007
Frivolous Tax Submissions
For tax returns filed after March 15, 2007, the penalty for filing a frivolous tax return is increased to $5,000. The $5,000 penalty also applies to other specified frivolous submissions made and issues raised after March 15, 2007.
Notice 2007-30, which will be published in Internal Revenue Bulletin 2007-14, contains a list of frivolous positions that will trigger the increased penalty amount.
It is worth noting that the penalty is in addition to any other penalty provided by law.