The IRS released its list last week of 40 positions not to take on your federal income tax return because they have been deemed frivolous or fraudulent. The penalties for filing income tax returns based on a frivolous position increased last year from $500 to $5,000, plus interest and additional penalty.
Over the next month, I’ll post those positions as per the IRS notice, beginning with my favorite:
23. A taxpayer is allowed to buy or sell the right to claim a child as a qualifying child for purposes of the Earned Income Tax Credit.
Psst, remember: This is a list of positions NOT to take!!
