Lonnie R. Lowman - Page 3

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          In response to respondent's request that petitioner admit that he           
          received wages from the U.S. Postal Service during the years                
          1993, 1994, and 1995 in the amounts of $50,366, $45,454, and                
          $47,681, respectively, petitioner argued that Federal Reserve               
          notes do not represent money and also denied the requested                  
          admission "for want of [the] meaning of '$'."2  Upon request for            
          admission that petitioner had failed to file income tax returns             
          for the years 1993, 1994, and 1995, petitioner responded by                 
          stating that he was not required to file income tax returns.                
               The arguments presented by petitioner have been rejected               
          repeatedly over the years and are entirely without merit.  It is            
          well settled that wages received in exchange for services                   
          rendered constitute taxable income, Beard v. Commissioner, 82               
          T.C. 766, 770 (1984), affd. per curiam 793 F.2d 139 (6th Cir.               
          1986), and that Federal Reserve notes constitute legal tender               
          which must be reported on a taxpayer's Federal income tax return.           
          United States v. Weir, 679 F.2d 769, 770 (8th Cir. 1982).  The              
          constitutional claim asserted by petitioner is equally without              
          merit and warrants no further discussion.  See McCoy v.                     


               2Petitioner also denied respondent's request that he admit             
          receipt of interest income, income tax refund, dividend income, a           
          distribution from a retirement plan, and capital gain income for            
          the years in issue "for want of [the] meaning of the term '$'."             
               Generally, a party's evasive or incomplete response to                 
          requests for admission is treated as a failure to respond.  Rules           
          90, 104(d); see, e.g., Cochrane v. Commissioner, 107 T.C. 18, 23-           
          24 (1996).                                                                  




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