- 5 - determining petitioner’s Federal income tax. Petitioner contends that such a determination is one that must be made by the judicial branch of Government and in particular by an Article III judge. Apparently, petitioner’s premise is that the disregarding of his entities for tax purposes is tantamount to the dissolution of the entities. Petitioner’s position is without foundation or support. For purposes of Federal income taxation, respondent may make determinations disregarding the form of the transaction and/or that income may not be assigned to another and/or that an entity may be ignored or disregarded. See Lucas v. Earl, 281 U.S. 111 (1930). These principles have been extant for more than 70 years. Petitioner has concocted a theory by which he attempts to attack collaterally the authority of the Commissioner to make such determinations. In light of established precedent, we find petitioner’s theory and reasoning to be wholly without support and frivolous. Petitioner advances the same reasoning in his argument that Judges of this Court are without authority and/or subject matter jurisdiction to make decisions regarding trusts or other entities. This Court is statutorily authorized and empowered to make decisions regarding petitioner’s income tax liability and whether respondent’s determination to disregard an entity in that context is in error. Petitioner, however, has not chosen toPage: Previous 1 2 3 4 5 6 7 8 Next
Last modified: May 25, 2011