Charles A. Schneller - Page 2

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          discretion in allowing the collection action to proceed, and (2)            
          whether frivolous arguments advanced by petitioner warrant the              
          imposition by the Court of a section 6673(a) penalty.  We hold              
          that respondent did not abuse his discretion and that a penalty             
          under section 6673 is not warranted at this time.                           
                                     Background                                       
               At the time the petition in this case was filed, petitioner            
          resided in Kathleen, Georgia.                                               
               In the taxable year 2001, the year at issue, petitioner                
          earned income of approximately $70,000, mostly consisting of                
          wages he earned as an over-the-road driver for Frito-Lay North              
          America (Frito Lay).  Petitioner stipulated receiving this                  
          income.  Petitioner did not file a Form 1040, U.S. Individual               
          Income Tax Return, for the taxable year 2001.  Nor did petitioner           
          file Forms 1040 for the taxable years 2002 to 2004 even though              
          Frito Lay continued to report wages for those years.  Respondent            
          prepared a substitute for return (SFR).  The SFR reflected a                
          taxable income to petitioner of $72,182.  On August 4, 2003,                
          respondent issued a notice of deficiency to petitioner for 2001.            
          Petitioner thereafter filed a petition with this Court, which was           
          dismissed on March 29, 2004, because petitioner never perfected             
          the petition as directed of the Court.  In response to a notice             


               1(...continued)                                                        
          the Internal Revenue Code, as amended.                                      





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