Stephen V. Talmage - Page 16

          extent of its fair market value minus the amount (if any) paid              
          for the property.  In attempting to equate his wages with                   
          property for which he has a tax cost, petitioner's argument is              
          nothing more than a variation of the wages-are-not-income claim             
          frequently advanced by tax protesters, and it is completely                 
          without merit.  Gammon v. Commissioner, T.C. Memo. 1996-4;                  
          Santangelo v. Commissioner, T.C. Memo. 1995-468.  Cf. Crow v.               
          Commissioner, T.C. Memo. 1995-584.  Petitioner's argument fails             
          for the same reason that other protesters' arguments fail; the              
          worker's cost for his services--and thus his basis--is zero, not            
          their fair market value.                                                    
               We will therefore deny petitioner's motion for summary                 
          judgment and grant summary judgment to respondent.                          
          Issue 2. Section 6673 Penalty                                               
               Respondent has also moved that we impose a penalty against             
          petitioner under section 6673(a) of $25,000 or such other amount            
          as we deem appropriate because petitioner's positions are                   
          frivolous and groundless and he instituted and maintained this              
          proceeding primarily for delay.                                             
               We have imposed section 6673 penalties on taxpayers who have           
          made frivolous tax protester arguments.  Coleman v. Commissioner,           
          791 F.2d 68, 72 (7th Cir. 1986) (wages not income), affg. an                
          Order of this Court; Granzow v. Commissioner, 739 F.2d 265,                 
          267-268 (7th Cir. 1984) (wages not income), affg. per curiam 3              
          decisions, (i) an Order of this Court, (ii) Basic Bible Church v.           

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