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determined that petitioner’s income was taxable income.
Petitioner contends that the IRS does not have the “jurisdiction
to levy Taxes on Micmacs.” Citing the “Watertown Treaty of
Alliance” (Watertown Treaty), petitioner argues that the treaty
“signed between the MicMac Nation and the United States
Government was entered into by two Sovereign Nations” and that
nothing in the treaty states that they have to pay taxes.
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 the Watertown Treaty specifically exempts any of his
compensation. See George v. Commissioner, T.C. Memo. 2006-121.
Respondent determined additions to tax under section
6651(a)(1) for the years in issue. Section 6651(a)(1) provides
for an addition to tax of 5 percent of the tax required to be
shown on the return for each month or fraction thereof for which
there is a failure to file, not to exceed 25 percent. The
addition to tax for failure to file is not imposed if it is shown
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