Sarah A. Bland-Barclay and Francis Barclay - Page 6




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               On November 9, 2000, petitioners filed a motion to dismiss             
          on the ground that the period of limitations for assessment under           
          section 6501 and section 301.6501(a)-1, Proced. & Admin. Regs.,             
          had expired.  At the call of the trial calendar in Baltimore on             
          November 27, 2001, the Court heard arguments on the motion to               
          dismiss, and, after due consideration, denied petitioners’                  
          motion.  The case was then set for trial on November 30, 2001.              
               At trial, and subsequently in brief, petitioner continued to           
          argue that this case should be dismissed for lack of jurisdiction           
          because as citizens of the Maryland Republic petitioners are                
          exempt from the Federal income tax law, that the United States              
          Constitution forbids taxation of compensation received for                  
          personal service, and that the Commissioner is without authority            
          to act absent self-assessment and voluntary compliance.                     
          Specifically, petitioner argues that all income reported on the             
          Forms W-2, with the exception of income received from Defense               
          Finance and Accounting Service, an agency of the Federal                    
          government, does not constitute gross income subject to Federal             
          income tax, and, therefore, petitioners are entitled to a refund.           
               This Court and Federal courts across the nation have                   
          repeatedly rejected the argument that wages do not constitute               
          income and that reporting and paying income taxes is strictly               
          voluntary.  Woods v. Commissioner, 91 T.C. 88, 90 (1988).  We               
          find petitioners’ arguments baseless and wholly without merit.              






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