Patrick J. McGowan - Page 2

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               Year      Deficiency     Sec. 6651(a)(1)     Sec. 6654                 
          1997        $1,991           $497.75          $106.50                       
          2002         7,666            479.50            N/A                         
          Unless otherwise indicated, all section references are to the               
          Internal Revenue Code, as amended, and all Rule references are to           
          the Tax Court Rules of Practice and Procedure.  The issues we               
          must decide are:                                                            
               1.   Whether petitioner received $6,531 in wages from Sprint           
          Management Co. (Sprint) and $13,526 in wages from Janus Service             
          Corp. (Janus) during taxable year 1997.1                                    
               2.   Whether petitioner received $47,074 in wages from                 
          Merrill Lynch, Pierce, Fenner, & Smith Inc. (Merrill Lynch) and             
          $2,534 in unemployment compensation from the Colorado Division of           
          Unemployment and Training (unemployment compensation) during                
          taxable year 2002.                                                          
               3.   Whether petitioner is liable for an addition to tax               
          under section 6651(a)(1) for failure to file tax returns for                
          taxable years 1997 and 2002.                                                


               1At the conclusion of trial, respondent moved to amend the             
          pleadings to conform to the record in order to assert an addition           
          to tax under sec. 6651(f)(1) for fraudulent failure to file for             
          taxable year 1997 based on petitioner’s admission that he claimed           
          nine personal exemptions on his Forms W-4, Employee’s Withholding           
          Allowance Certificate.  Although petitioner’s actions and                   
          testimony clearly show that he is a tax protester, the record               
          fails to persuade us by clear and convincing evidence that                  
          petitioner’s actions were fraudulent.  Sec. 7454(a); Rule 142(b);           
          Clayton v. Commissioner, 102 T.C. 632 (1994).  Accordingly,                 
          respondent’s motion will be denied.                                         




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