- 4 - Mrs. Runkle operated the Canyon Kennel as a sole proprietorship since its inception in 1988 through at least 1995. She provided dog and cat kenneling and grooming services through Canyon Kennel. She maintained a checking account and was responsible for paying the Canyon Kennel’s bills and collecting its income. Filing of Tax Returns & American Institute Philosophy Petitioners timely filed their Federal income tax returns for all years before 1990 and paid the related taxes due. On February 25, 1991, petitioners applied for a $25,000 home equity loan line of credit with Garrett State Bank to pay their taxes for 1990.2 Petitioners timely filed a joint return for 1990 showing a tax liability of $13,467, which they paid with the loan proceeds from Garrett State Bank. In the fall of 1991, petitioners attended a seminar sponsored by the American Institute for the Republic (American Institute) at which it promoted its “untaxing” program. The American Institute purported to advise petitioners how to “opt out of the system of paying taxes” and provided petitioners with letters to send to respondent’s Service Center and agents in petitioners’ effort to “opt out” of the taxing system. 2Mr. Runkle showed his monthly gross income as $6,000 in the home equity loan application and showed his monthly net income as $4,500. Mrs. Runkle showed her monthly gross income as $1,731 and her monthly net income as $1,298.25.Page: Previous 1 2 3 4 5 6 7 8 9 10 11 12 13 14 15 16 17 18 19 20 Next
Last modified: May 25, 2011