Henry Link - Page 9

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          taxpayer exercises ordinary business care and prudence and is               
          nevertheless unable to file on time, then the delay is due to               
          reasonable cause.  Petitioner did not timely file tax returns               
          during the years in issue because he believed that his pension              
          income was a nontaxable exchange of equal value for his labor and           
          that filing income tax returns is merely voluntary.  Petitioner’s           
          misguided interpretations of the Constitution and other typical             
          tax protester arguments are not reasonable cause.  See Yoder v.             
          Commissioner, T.C. Memo. 1990-116.  Accordingly, we hold that               
          petitioner is liable for the addition to tax under section                  
          6651(a)(1) for taxable years 1998 through 2002.                             
               Section 6673(a)(1) provides that this Court may require the            
          taxpayer to pay a penalty not in excess of $25,000 whenever it              
          appears to this Court:  (a) The proceedings were instituted or              
          maintained by the taxpayer primarily for delay; (b) the                     
          taxpayer’s position is frivolous or groundless; (c) or the                  
          taxpayer unreasonably failed to pursue available administrative             
          remedies.  Respondent has moved that the Court impose a penalty             
          in the instant case because petitioner admitted at trial that he            
          received the amounts in dispute but argued his pension income was           
          nontaxable “labor property” and that our “Marxist” tax system is            
          voluntary.  Petitioner received several warnings that this Court            
          could impose a penalty if petitioner persisted in raising                   
          frivolous arguments.  Despite being warned, petitioner                      






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