Or. Admin. Code § 150-316-0652

Current through Register Vol. 63, No. 12, December 1, 2024

Section 150-316-0652 - Frivolous Return Penalty

(1) A $250 penalty shall be assessed if a taxpayer takes a "frivolous position" in respect to preparing the taxpayer's return. A return is considered frivolous if a taxpayer does not provide information on which the substantial correctness of the self-assessment may be judged or if the return contains information that on its face indicates that the self-assessment is substantially incorrect.

(2) Some additional examples where a "frivolous position" is considered to have been taken include but are not limited to:

(a) An argument that wages or salary are not included in taxable income. This can occur when the taxpayer alters lines on the return to recharacterize wages or salary as nontaxable or takes deductions on Schedule C equal to income and characterizes the deductions as the total of business expenses or cost of goods sold.

(b) An argument that the law directs "taxpayers" to file a return and they aren't a taxpayer.

(c) An argument that by filing a return their rights of nonself-incrimination under the Fifth Amendment to the United States Constitution will be violated. An example of this is when a taxpayer writes "object" or "object - self-incrimination" in the amount columns or across the face of the return.

(d) An argument that requiring a taxpayer to file a return violates their right to prohibition of involuntary servitude provided in the Thirteenth Amendment to the United States Constitution.

(e) Submitting a return that may show an address, be signed and have W-2's attached but has zeros, object, Fifth Amendment or self-incriminating written in the columns or on the face of the return.

(f) An argument that the tax system is discriminatory.

(g) An argument that the taxpayer's right to free speech as provided by the First Amendment to the United States Constitution has been violated by requiring a return or by providing the information required on the return.

(h) An argument that a check which can only be redeemed in Federal Reserve Notes is not taxable income. The taxpayer's argument is that only gold and silver can be taxed and that Federal Reserve Notes are not income because they can't be redeemed for gold or silver. Also, that the Federal Reserve Notes should be considered accounts receivable that do not have to be reported as income until they are paid in gold or silver.

(i) An argument that a graduated tax is unconstitutional.

(j) Taking unauthorized deductions or credits based on a percentage of the national debt used for defense (war tax) or abortions.

(k) Taking unauthorized deductions or credits based on the declining value of the dollar to reflect the difference between the face value and the fair market value of Federal Reserve Notes.

Or. Admin. Code § 150-316-0652

RD 4-1988, f. 5-25-88, cert. ef. 6-1-88; Renumbered from 150-316.992(5), REV 66-2016, f. 8-15-16, cert. ef. 9/1/2016

Stat. Auth.: ORS 305.100

Stats. Implemented: ORS 316.992