- 10 -
The uncontroverted evidence produced by respondent persuades us
that petitioner earned and is taxable on unreported self-
employment income of $11,438 from the Liberty Foundation during
1993. At trial, petitioner relied on various tax protester type
arguments. For example, petitioner argues that (1) The income
tax is an excise tax on certain licensed activities, and she was
not engaged in a taxable activity; (2) she was not required to
pay income or self-employment tax because subtitles A and C do
not apply to citizens of the 50 States and only apply to
residents of Washington, D.C., and U.S. territories and
possessions; (3) income earned within the 50 States is exempt
from tax under section 911 as foreign earned income;7 and
(4) respondent has no authority delegated by the Secretary of
Treasury to assess and collect subtitle A tax in the 50 States.
Petitioner also contends that the two IRS letters were from the
U.S. Department of the Treasury (Treasury Department), which
appeared on the letterhead with the IRS, and not from the IRS.
Petitioner maintains that in the 1994 letter, the Treasury
7 Petitioner does not meet the limited exclusion from gross
income under sec. 911. Solomon v. Commissioner, T.C. Memo. 1993-
509, affd. without published opinion 42 F.3d 1391 (1994). An
individual qualified for the sec. 911 exclusion is a U.S. citizen
whose tax home is a foreign country, and who meets the bona fide
residence test, or resides in a foreign country for a qualifying
period. Sec. 911(d)(1). Moreover, "foreign earned income"
includes amounts received from sources within a foreign country
as earned income for services performed by such individual. Sec.
911(b)(1)(A).
Page: Previous 1 2 3 4 5 6 7 8 9 10 11 12 13 14 15 Next
Last modified: May 25, 2011