Washington (March 12, 2003) -- Thirty-eight persons who attempted to delay tax collections by pursuing frivolous court cases ended up with $126,000 in penalties during the last two years, according to the Internal Revenue Service. The Tax Court may impose sanctions of up to $25,000 on those who misuse their right to a court review of IRS collection procedures merely to stall their tax payments.The IRS Restructuring and Reform Act of 1998 introduced various taxpayer rights related to tax liens or levies, including the right to seek judicial review. While an appeal is pending, the IRS usually may not enforce collection.

The Court has repeatedly stated that frivolous cases waste its limited resources and delay the resolution of other taxpayers’ genuine controversies. As a consequence, it is levying increasingly severe penalties on those pursuing such cases.

"Taxpayers have rights that they should invoke when appropriate," said IRS Chief Counsel B. John Williams. "But those who would abuse those rights to stall tax collections should realize that they may incur substantial penalties."

-- Electronic Accountant Newswire staff

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