- 4 - “frivolous” return pursuant to Code Section 6702. * * * * * * * 10) In addition, don’t notify me that the IRS is “changing” my return, since there is no statute that allows the IRS to do that. B. Respondent’s 30-day Letter and Petitioner’s Response By letter dated September 2, 1999, respondent sent petitioner a 30-day letter proposing changes to his Form 1040 for 1997. Respondent’s cover letter advised petitioner that “The United States Supreme Court has consistently ruled that the income tax laws are constitutional.” By letter dated October 1, 1999, petitioner replied, essentially arguing that because he reported an income tax liability of zero on his 1997 Form 1040, no greater amount may ever be assessed against him. C. Respondent’s Deficiency Notice and Petitioner’s Response On November 5, 1999, respondent issued a notice of deficiency to petitioner. In the notice, respondent determined a deficiency in the amount of $14,972.20 in petitioner’s Federal income tax for 1997 and an accuracy-related penalty under section 6662(a) in the amount of $748.64.2 The deficiency in income tax was based on respondent’s determination that petitioner failed to 2 Insofar as petitioner’s ultimate tax liability was concerned, respondent gave petitioner credit for the amounts withheld from his wages and pension distributions. However, we note that the determination of a statutory deficiency does not take such withheld amounts into account. See sec. 6211(b)(1).Page: Previous 1 2 3 4 5 6 7 8 9 10 11 12 13 14 Next
Last modified: May 25, 2011