- 5 - 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.Page: Previous 1 2 3 4 5 6 7 8 9 Next
Last modified: May 25, 2011