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nick rosado tax attorney with your quick tax tip weve discussed the irs return review program this computer algorithm screens filed returns prior to issuance of refunds looking for identity theft refund fraud and frivolous tax returns if the irss computer system flags the tax return as for bliss or one that potentially raises one of the 46 arguments that the irs classifies as frivolous in irs notice 2010-33 and seeks some tax credit or deduction from such argument the return will be voted to the irss frivolous return program agents within that unit will review any flag returns theyll then determine if the return raises an identified frivolous position or perhaps a potentially new frivolous position if the irs determines that a return is frivolous the irs will issue letter 3176c warning that the submission is frivolous and that a penalty of five thousand dollars will be imposed if the return is not rescinded or a correct return is not filed within 60 days