IRS Frivolous Tax Argument

As most practitioners know using a frivolous argument against the IRS is not always the best idea. In TC Memo 2016-140, Batsch v. Commissioner presents one of the best:

"And let me make a couple of more comments just to get them on the record, Your Honor. And basically the point that we’re getting at is we are not subject to the jurisdiction of the United States. I don’t know how that’s even possible. We was not born--the United States as described in the law and according to that, be it right or wrong, these laws are what we based the (inaudible) that we are not subject to. And we can’t find one where we are subject to because according to this and--and according to what we are as people that is a citizen of the several states, not of what we see as being defined as the United States or the state--the term United States when you used in a geographical sense includes the state of--I mean it--it’s just the-- where Congress has its exclusive jurisdiction. Congress does not have exclusive jurisdiction within the States."

For the record, the taxpayers were born in Missouri and Texas. Unsurprisingly, the court upheld the IRS 6020(b) substitute for returns.


Relevant Cite: TC Memo 2016-140