Continuing the list of 40 positions not to take on your federal income tax return because they have been deemed frivolous or fraudulent according to IRS:
3. A taxpayer’s income is excluded from taxation when the taxpayer rejects or renounces United States citizenship because the taxpayer is a citizen exclusively of a State (sometimes characterized as a “natural-born citizen” of a
“sovereign state”), that is claimed to be a separate country or otherwise not subject to the laws of the United States. This position includes the argument that the United States does not include all or a part of the physical territory of the 50 States and instead consists of only places such as the District of Columbia, Commonwealths and Territories (e.g., Puerto Rico), and Federal enclaves (e.g., Native American reservations and military installations), or similar arguments described as frivolous in Rev. Rul. 2004-28, 2004-1 C.B.
624, or Rev. Rul. 2007-22, 2007-14 I.R.B. ___.
Psst, remember: This is a list of positions NOT to take!!
