- 7 - Other than his testimony, petitioner has not offered any evidence to substantiate his asserted vow of poverty. Even assuming petitioner took such a vow, his argument fails. Merely taking a vow of poverty does not necessarily exempt a taxpayer from Federal income taxes, including self-employment taxes. This Court has held that when “secular services are rendered by individuals, income received by them in an individual capacity and not on behalf of a separate and distinct principal is taxable to the individuals.” Yoshihara v. Commissioner, T.C. Memo. 1999-375; Stephenson v. Commissioner, 79 T.C. 995 (1982), affd. 748 F.2d 331 (6th Cir. 1984); McGahen v. Commissioner, 76 T.C. 468, 478-479 (1981), affd. without published opinion 720 F.2d 664 (3d Cir. 1983); see also sec. 1.1402(c)-5(a)(2), Income Tax Regs. Petitioner has offered nothing to support that any of the income he received was received on behalf of a separate and distinct principal. It is also patently obvious that the telephone services petitioner provided were secular. Accordingly, we find that petitioner is liable for Federal income taxes on the compensation he earned and on the interest and dividend income he received. 3(...continued) assert at trial or on brief that income assigned to the Universal Christian Church qualified for a charitable deduction under sec. 170. Additionally, petitioner did not establish there was a transfer of funds to a religious charity.Page: Previous 1 2 3 4 5 6 7 8 9 10 Next
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