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agents. He persisted in his course of scurrilous threats against
the IRS. He did not turn over receipts in accordance with the
Court’s Standing Pretrial Order. At the time of trial,
respondent filed a Motion for Sanctions and Costs Pursuant to
I.R.C. Sec. 6673, setting out examples of petitioner’s failure to
cooperate in the determination of his correct tax liability and
his pursuit of frivolous arguments.
OPINION
Although prior to trial petitioner had pursued many of the
stale arguments common to tax protesters, at trial he had
“refined” his position to two arguments: First, petitioner
argues that he had no taxable “gain” at the end of any year
because, after paying for food, water, utilities, “mandatory
taxes” such as Social Security taxes and income taxes, recovery
of the cost of his education, and setting aside amounts for
future retirement and medical costs, he had little left. Second,
he had no “dominion” over the wages he received because, at the
end of the year, they had been spent on essentials.
Several passages from his testimony leave no doubt that
petitioner contends that he may deduct all of his personal
expenses, current and future, before paying tax on his wages:
I’m only relying on myself funding my own
retirement. Then deduct whatever, of course, cost I
owe to various persons and then whatever business
expenses, whatever other life expenses, you know, eat
food, drink water and then come up with my taxable real
income.
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Last modified: May 25, 2011