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the examination of petitioners’ 1997 tax return.
At the time the petition was filed, petitioners resided in
Tacoma, Washington. In their petition, petitioners dispute the
entire amount of the deficiency and penalty for 1997. Further,
they state that the Commissioner’s determination is erroneous
based on the following: (1) Time is a right, not a privilege;
thus, the exchange of time is not a taxable transaction; (2)
petitioners are not liable for the additions to tax; and (3)
respondent’s determinations in the notice of deficiency are
arbitrary and capricious.
The facts upon which petitioners rely as a basis for the
assigned errors are as follows: (1) The Internal Revenue Code
(Code) does not contain a provision including “time reimbursement
transactions” as taxable wages, salaries, or gross income; (2)
time is a right that Congress cannot tax, because Congress can
only tax a privilege; (3) Congress did not supply petitioners
with an entry visa or green card; therefore, Congress has no
control over petitioners’ time; and (4) since time is transferred
in return for money, the transaction is a reimbursement or equal
exchange of property and is not a taxable transaction.
Respondent filed the subject motion to dismiss on March 13,
2000. By order dated March 15, 2000, the Court: (1) Directed
petitioners to file, on or before May 5, 2000, an Amended
Petition which complies with our Rules; and (2) calendared
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