Brian G. Takaba - Page 4




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               1996.  Petitioner was a citizen of the United States                   
               for 1996, and continues to be a citizen of the United                  
               States to the present.                                                 
               In granting the motion for summary judgment, we rejected               
          petitioner’s arguments that he (1) did not receive any wages (as            
          defined by section 3401(a)) or gross income from any source that            
          could be included as taxable income, thereby making his income              
          exempt from taxes, and (2) is not required to file a Form 1040,             
          U.S. Individual Income Tax Return, because that form (for 1996)             
          does not have an Office of Management and Budget approval number            
          and is therefore a bogus form he is allowed by law to ignore                
          without penalty.                                                            
               With respect to the motion for damages, we set forth the               
          provisions of section 6673(a)(1) (reproduced infra), and stated:            
                    A taxpayer's position is frivolous "if it is                      
               contrary to established law and unsupported by a                       
               reasoned, colorable argument for change in the law.                    
               * * * The inquiry is objective.  If a person should                    
               have known that his position is groundless, a court may                
               and should impose sanctions."  Coleman v. Commissioner,                
               791 F.2d 68, 71 (7th Cir. 1986); see also Hansen v.                    
               Commissioner, 820 F.2d 1464, 1470 (9th Cir. 1987)                      
               (trial court's finding that taxpayer should have known                 
               that claim was frivolous allows for section 6673                       
               penalty); Booker v. Commissioner, T.C. Memo. 1996-261.                 
                    This Court has imposed penalties on taxpayers for                 
               making arguments similar to those made by petitioner.                  
               See Aldrich v. Commissioner, supra; McCart v.                          
               Commissioner, supra; Liddane v. Commissioner, T.C.                     
               Memo. 1998-259; Wesselman v. Commissioner, T.C. Memo.                  
               1996-85; see also Buchbinder v. Commissioner, 999 F.2d                 
               542 (9th Cir. 1993) (sanctions for frivolous appeal).                  








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