What This Letter Means

Letter 3175C is the IRS's Frivolous Correspondence Response. The IRS sends it after it receives correspondence that it considers frivolous. That usually means a letter claiming you aren't required to file or pay tax because of an argument the IRS has already rejected, such as "wages aren't income."

The letter tells you two things. Your position is frivolous. And further correspondence raising the same frivolous issues won't get a response.

Is There a Penalty?

Frivolous correspondence by itself generally is not subject to the frivolous return penalty. There is an important exception. Correspondence that is sent "in lieu of" a tax return, or that works as an informal refund claim, can be treated as a return and penalized.

The bigger risk comes next. A frivolous tax return carries a $5,000 penalty under Internal Revenue Code section 6702, on top of any tax, interest and other penalties. The IRS treats Letter 3175C as a warning and education. If you call about it, expect to be told not to file a frivolous return.

What to Do

  • Read the letter and keep it. It identifies the correspondence the IRS received.
  • Stop sending more of the same. Repeating the argument won't get a different answer. It builds a record that can be used against you later.
  • File any returns you owe based on your actual income. If you have unfiled years, getting them filed correctly is the way out.
  • Address any real tax issue separately. If you have a legitimate dispute about your account, raise it in writing on its own, without frivolous arguments mixed in.
  • Get help if you're in deep. If you followed a promoter's advice and now face unfiled returns, frozen refunds or penalties, a tax professional can help you correct course. You can authorize a representative with Form 2848.

If You Already Filed a Frivolous Return

That is a different and more serious problem, usually handled through Letter 3176C. Deal with it promptly.

If you received Letter 3175C and want to get your tax situation back on solid ground, call us at (813) 229-7100.