- 4 - Commissioner’s burden of production is to produce evidence that it is appropriate to impose the relevant penalty, addition to tax, or additional amount. Higbee v. Commissioner, 116 T.C. 438, 446 (2001). The Commissioner, however, does not have the obligation to introduce evidence regarding reasonable cause. Id. at 446-447. Gross income means income from whatever source derived including compensation for services and unemployment compensation. Sec. 61(a)(1); George v. Commissioner, T.C. Memo. 2006-121. At trial, petitioner’s contentions consisted of nothing but frivolous tax protester arguments. Petitioner repeatedly asked what section of the Internal Revenue Code required him to pay tax. Petitioner testified that he worked for Sprint, Janus, and Merrill Lynch, that he earned wages from each of those employers, and that he applied for unemployment compensation. Petitioner further testified: “I’m assuming, in hindsight, that I must have been paid.” Petitioner disputed, however, that he ever received income. When respondent asked petitioner how he supported himself, petitioner testified: “I worked for a company that paid me wages that were not part of any income as I know income.” Petitioner’s argument that there is no Code section requiring him to pay tax has been rejected by every court that has addressed the issue and is the type of frivolousPage: Previous 1 2 3 4 5 6 7 Next
Last modified: May 25, 2011