Recently, a taxpayer in New York challenged the assessment of additional income tax, stating that: “There is no law requiring me to pay taxes. Therefore I do not have a debt. Please grant me $1,500 for the years of inconvenience.” He also attached a copy of the Thirteenth Amendment to the U.S. Constitution (Prohibition against slavery). By dismissing the suit as “frivolous,” the court was empowered to assess an additional penalty of $500 which it chose to do in addition to upholding the Tax Division’s assessment.
While this may be a bit comical, frivolous law suits are no joke. Contact your local SALT professional to learn more about this case and others that might be deemed frivolous.