If you receive income but file a zero tax return for that year, you will be liable for IRS tax penalties for tax deficiency.

In addition, if you argue that you are (for unqualified reasons) exempt from income tax, you will be charged with the frivolous position penalty in addition to the IRS tax penalties that you would incur from unpaid taxes.

CCH (http://tax.cchgroup.com) reports:

Individual Subject to Tax on Income, Additions to Tax and Tax Protestor Penalties

An individual who received wages, other compensation from his employer and business income but filed a zero return for the year in issue was liable for tax deficiencies. His purported return showed his wages and business income, but he reported his adjusted gross income as zero and his total tax as zero. The IRS had properly determined that all of the individual’s income was includible under Code Sec. 61.

The taxpayer was also liable for the failure to file and pay penalty because he presented no evidence that such failure was due to reasonable cause. He was liable for the frivolous position penalty because he brought the proceeding to delay the payment of income tax he owed and his argument that he was exempt from income tax was frivolous and contrary to established law.

Avoid harsh IRS tax penalties.  If you find yourself at odds with the IRS but are innocent of the charges, you are entitled to seek a professional tax attorney’s representation.

Don’t fight the IRS alone–you can contact our team of experts for a free consultation. Call us at 866-IRS-PROBLEMS (1-866-477-7762) or visit our website at www.TaxResolution.com

More advice on how to choose a tax attorney.

More Tax Help, IRS News and Tax Relief Tips:

1. Why the IRS Picks on Small Businesses and How to Avoid Triggering an Audit
2. How to Negotiate an IRS Installment Agreement and Set Up a Payment Plan for Your Tax Debt
3. KLOS Tax Tip #44: Individuals Get a Tax Break - But Get Tax Help if You Owe Back Taxes!
4. IRS Asserts Position on Tax Protesters: Sanctions Imposed for Advancing and Maintaining a Frivolous Argument
5. Lawmakers Pressure the IRS to Strengthen Collection Efforts to Close the Yearly $345 Billion Tax Gap

Tags: Back Taxes, delinquent tax returns, filing false federal tax return, Free Tax Consultation, i need tax help, IRS audits, IRS debt, IRS problem solver, irs problems, Michael Rozbruch, reasonable cause, tax attorney, tax audit, tax cheat

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