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from tax because he is a member of the Seneca nation, which is
part of the unconquered Iroquois Confederacy, and he is still
living on unconquered original land. He contends that he is not
a U.S. citizen and that the U.S. Constitution states “Indians not
Taxed”.
Native Americans are subject to the same Federal income tax
laws as are other U.S. citizens unless there is an exemption
explicitly created by treaty or statute. Squire v. Capoeman, 351
U.S. 1, 6 (1956); Estate of Poletti v. Commissioner, 99 T.C. 554,
557-558 (1992), affd. 34 F.3d 742 (9th Cir. 1994); see Allen v.
Commissioner, T.C. Memo. 2006-11; see also Rev. Rul. 2006-20,
2006-15 I.R.B. 746. Any exemption must be based on the clear and
unambiguous language of a statute or treaty. Squire v. Capoeman,
supra; see Allen v. Commissioner, supra. Petitioner has not
shown that any treaty or statute specifically exempts any of his
compensation. See George v. Commissioner, T.C. Memo. 2006-121.
Respondent also determined an addition to tax because
petitioner did not file his 2001 return. Respondent’s burden of
production under section 7491(c) is satisfied by our finding that
no return was filed in 2001. To avoid the addition to tax for
failure to file, petitioner has the burden of proving that the
failure to file did not result from willful neglect and was due
to reasonable cause. See United States v. Boyle, 469 U.S. 241,
245 (1985). To prove reasonable cause, a taxpayer must show that
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Last modified: May 25, 2011