The Nis Family Trust - Page 7




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                  the matter.  The following facts were submitted to the                               
                  IRS in April of 1999:                                                                
                        1.    “It does not appear that the United States                               
                              and the State of California (each a body                                 
                              politic with their respective governments)                               
                              are under any legal obligation to protect our                            
                              property and ourselves;                                                  
                        2.    That although I may have accepted some                                   
                              commercial  benefits, it does not appear that                            
                              the tax in question bears a fiscal relation                              
                              to those benefits;                                                       
                        3.    In addition, regardless of the fact that some                            
                              commercial benefits may have been accepted,                              
                              it does not appear that any obligation to pay                            
                              any particular tax in return was ever                                    
                              disclosed.”                                                              
                  Factually, this case is distinguished from cases such                                
                  as United States v. Sloan, 939 F.2d 499 and similar                                  
                  cases because the presumption of Cook v. Tait, 265 U.S.                              
                  47 has been overcome due in part to statutes such as 50                              
                  U.S.C. � 1520 as enacted in 1976.                                                    
                  The IRS has not disputed these facts.  Therefore,                                    
                  petitioner brings only an issue of law before the                                    
                  court.                                                                               
                  The legal conclusion drawn from the above facts is that                              
                  no liability could have been incurred regardless if                                  
                  income was earned or not because of a lack of                                        
                  consideration, see also State of Wisconsin, et al. v.                                
                  J.C. Penney Company, 311 U.S. 435, and Complete Auto                                 
                  Transit, Inc. v. Brady, 430 U.S. 274.                                                
                  Respondent filed answers to the amended petitions on                                 
            September 24, 1999.  In each answer, respondent denied making                              
            errors in his adjustments.                                                                 
            Consolidation                                                                              
                  By motion filed November 23, 1999, respondent moved to                               
            consolidate these cases for trial, briefing, and opinion (the                              
            motion to consolidate).  We ordered petitioners to make any                                





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