Enrolled Agent Exam [Part 3] 32, Frivolous Submissions and Badges of Fraud

This podcast is made by Ran Chen, who holds an EA license, Insurance and Securities licenses (Series 6, 63, 65), and the CFP® designation. He is passionate about opening access to high-quality exam preparation resources and helping learners prepare more effectively for professional certification exams.

In this episode you will learn:

- How to identify common frivolous tax arguments tested on the EA exam, such as 'wages are not income.'

- The critical difference between negligence (20% penalty) and civil fraud (75% penalty), which hinges on intent.

- Key examples of 'badges of fraud' that indicate a taxpayer's willful intent to deceive, like keeping two sets of books or concealing assets.

- A practitioner's duties under Circular 230 when a client insists on taking a frivolous position.

- The specific civil penalty for filing a frivolous return ($5,000) and how it differs from fraud or negligence penalties.

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