-2-
approximately $630.77.1 Currently, the case is before the Court
on respondent’s motion for summary judgment under Rule 121 and to
impose a penalty under section 6673. Petitioners responded to
respondent’s motion by way of a general objection.
We shall grant respondent’s motion for summary judgment and
shall impose a $2,000 penalty against petitioners. Unless
otherwise noted, section references are to the applicable
versions of the Internal Revenue Code. Rule references are to
the Tax Court Rules of Practice and Procedure.
Background
On April 15, 1998, petitioners filed a joint 1997 Federal
income tax return in which they reported no wages, other income,
or tax liability. They entered zeros on every line of the
return, but for the lines related to “Federal income tax withheld
from Forms W-2 and 1099." Petitioners claimed on the return a
refund of $13,681.74 for withheld taxes. They attached to the
return a declaration stating in part that “this return is not
being filed voluntarily,” that petitioners “had ‘zero’ income
according to the Supreme Court’s definition of income”, and that
petitioners “can only swear to having ‘zero’ income in 1997.”
Petitioners included with their return three 1997 Forms W-2,
Wage and Tax Statement. The first Form W-2 was from TEXMO Oil
1 We use the term “approximately” because this amount was
computed before the present proceeding and has since increased on
account of interest.
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Last modified: May 25, 2011