Another way to look at the value of my inquiry letter to the IRS: the stated mission of IRS is to assist "taxpayers" in understanding their tax obligations. But IRS has no obligation to assist non-taxpayers to understand anything. I am asserting in my letter essentially that I am not a taxpayer. By failing to respond to me, and refusing to offer any assistance, IRS is helping to establish a prima facie case that it agrees I am not a "taxpayer".

On the other hand, if I file a 1040, I am asserting essentially that I am a "taxpayer" by use of the form, even if I claim on the return not to be liable for any tax, due to LMR or whatever argument. By signing the 1040 I am giving IRS the right to treat me as a taxpayer, and threaten the frivolous penalty in a 3176C letter in order to "assist" me in understanding my obligations as a taxpayer.

The failure of IRS in a 3176C form letter to explain what exactly is frivolous about my return, yet demanding in the 3176C letter that I "correct" my return suggests a contract exists, by which I am presumed to already know what it is I am supposed to do, and therefore what I have done wrong, and what needs to be done to "correct" the return. This indicates that filing a 1040 itself causes them to presume I am a "taxpayer".

Filing a 1040 to claim you are not obligated to IRC is a bit like volunteering to join the army, then refusing to do what you are told because it was voluntary to join. This would be a frivolous argument because the joining itself is the only voluntary part. Once you agree to contract, you are obligated, as with any contract. One cannot argue from inside that contract that one is not obligated simply because one could have chosen not to enter that contract. Of course you could have chosen not to enter that contract. But the point is, you did!! You have to be careful about what you put your signature on. As they say on one of the new Arrested Development episodes, "Don't sign, and you'll be fine." If you want to tell IRS you are not under contract with them, don't sign one of their taxpayer forms in order to do it. That's my point.