Form 1040 with all zeroes is not a valid return.

• Author: Fiore, Nicholas J.
• Position: Procedures & Administration

At issue are official Forms 1040 filed by approximately 250 persons. On each of the returns, taxpayers have completed the Forms 1040 by entering the number "0" for every line of the return, except for the amount of tax withheld, the amount of the overpayment and the amount to be refunded. Additionally, these taxpayers have attached materials to the Forms 1040 that present constitutional objections to the requirement that they pay Federal income tax. Finally, the taxpayers have added additional language to the jurat in the form of a stamp, which appears above the jurat and states, "Without prejudice U.C.C. 1-207." Taxpayers have neither obliterated the jurat nor altered any of its existing language.

These Forms 1040 and attachments impede the IRS's ability to process returns in an efficient and consistent manner. The issue is whether they should be treated as "income tax returns."

Analysis

Under Sec. 6011, when required by regulations prescribed by the Secretary, any person made liable for any tax imposed by this title, or with respect to the collection thereof, shall make a return or statement according to the forms and the regulations prescribed. Every person required to make a return or statement shall include the information required by such forms and regulations. Regs. Sec. 1.6012-1 identifies individuals required to make returns of income.

Regs. Sec. 6012-1(a)(6) prescribes Form 1040 as the form for making the return required of an individual.

Congress has given the Service discretion to prescribe by regulation forms of returns and has made it the duty of the taxpayer to comply. It thus implements the system of self-assessment that is so largely the basis of the American scheme of income taxation. The purpose is not only to get tax information in some form but also to get it with such uniformity, completeness and arrangement that the physical task of handling and verifying returns may be readily accomplished.

There is a four-part test for determining whether a defective or incomplete document is a valid return: First, there must be sufficient data to calculate tax liability; second, the document must purport to be a return; third, there must be an honest and reasonable attempt to satisfy the tax law requirements; and, fourth, the taxpayer must execute the return under penalties of perjury.

This generally accepted formulation of the criteria for determining a valid return is known as the "substantial compliance" standard. If a defective...