U.S. District Court Dismisses Taxpayer’s Frivolous Return Challenge for Failure to Pay Assessment

The U.S. District Court for the District of New Jersey upheld the dismissal of the taxpayer’s lawsuit challenging the IRS’s rejection of his frivolous tax return, granting the Government’s motion to dismiss with prejudice. Taxpayer, an individual, filed a Form 1040 for tax year 2022 claiming zero income and requesting a $9,223 refund based on the frivolous position that wages are not income. The IRS rejected the return as frivolous and sent Taxpayer a letter warning of a $5,000 penalty if he did not withdraw the return within thirty days, which Taxpayer refused to do. The taxpayer then filed suit ...