Eugene J. Monaghan - Page 4




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               Petitioner’s arguments are nothing more than tax-protester             
          rhetoric that has been universally rejected by this and other               
          courts.  We shall not painstakingly address petitioner’s                    
          assertions “with somber reasoning and copious citation of                   
          precedent; to do so might suggest that these arguments have some            
          colorable merit.”  Crain v. Commissioner, 737 F.2d 1417, 1417               
          (5th Cir. 1984).  Accordingly, we sustain respondent’s                      
          determination that these amounts are taxable as income.                     
          II. Additions to Tax                                                        
               A.  Section 6651(a)(1):  Failure To File                               
               Respondent determined that petitioner is liable for an                 
          addition to tax pursuant to section 6651(a)(1) for 1996.  Section           
          6651(a)(1) imposes an addition to tax for failure to file a                 
          return on the date prescribed (determined with regard to any                
          extension of time for filing), unless the taxpayer can establish            
          that such failure is due to reasonable cause and not due to                 
          willful neglect.  The taxpayer has the burden of proving that the           
          addition is improper.  Rule 142(a); United States v. Boyle, 469             
          U.S. 241, 245 (1985).3  Petitioner stated that he did not file a            


               3  The Internal Revenue Service Restructuring & Reform Act             
          of 1998, Pub. L. 105-206, sec. 3001, 112 Stat. 726, added sec.              
          7491(c), which places the burden of production on the Secretary             
          with respect to a taxpayer's liability for penalties and                    
          additions to tax in court proceedings arising in connection with            
          examinations commencing after July 22, 1998.  Petitioner does not           
          contend, nor is there evidence, that his examination commenced              
          after July 22, 1998, or that sec. 7491 is applicable in this                
          case.                                                                       




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