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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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