William C. Stearman III - Page 4

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          the proceedings or instituted the proceedings primarily for                 
          delay.  A position maintained by the taxpayer is “frivolous”                
          where it is “contrary to established law and unsupported by a               
          reasoned, colorable argument for change in the law.”  Coleman v.            
          Commissioner, 791 F.2d 68, 71 (7th Cir. 1986); see also Hansen v.           
          Commissioner, 820 F.2d 1464, 1470 (9th Cir. 1987) (section 6673             
          penalty upheld because taxpayer should have known claim was                 
          frivolous).                                                                 
               Petitioner attached to his petition in docket No. 15561-04 a           
          six-page letter replete with tax-protester rhetoric, asserting              
          there is no such thing as an income tax and containing arguments            
          regarding the 16th Amendment.                                               
               On February 13, 2004, petitioner filed, in docket No. 20928-           
          03, a status report stating:  “Upon receipt of the Answer,                  
          Petitioner respectfully declines to animate the person, capacity            
          or usage proposed by Respondent, and he is content to await                 
          notice of any sua sponte activity relevant to this matter.”                 
               On November 18, 2004, in docket No. 20928-03, the Court                
          lodged respondent’s objection to petitioner’s request for                   
          admissions, which respondent attached to his objection.3  On                
          November 19, 2004, pursuant to Rule 90, the Court ordered                   




               3  We note that petitioner’s requests included:  “‘Taxpayer’           
          means fiduciary,” “‘United States’ is a federal corporation,” and           
          “‘UNITED STATES OF AMERICA’ is another federal corporation.”                




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