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Petitioner initially filed a timely Form 1040, U.S.
Individual Income Tax Return, for 1999 on which she reported a
$133 loss on her Schedule C, Profit or Loss From Business, from
her Nature’s Herb & Tea Garden business and a $3,964 Schedule E
loss. The Schedule E loss arose from her membership in Miroyal,
LLC (Miroyal) from which she reported income of $1,190 and her
membership in National Land Bank, LLC (National Land Bank) from
which she reported a loss of $5,154 for a net loss from the two
entities combined of $3,964. Adding this alleged loss to the
$133 loss from Schedule C resulted in a negative adjusted gross
income of $4,098 and no taxable income.
Petitioner adopted an aggressive approach to Federal income
taxation when she filed her Form 1040 for 2000. That approach
utilizing discredited protester arguments resulted in
petitioner’s timely filing of a Form 1040 for 2000 which reported
“0” amounts on all relevant lines of the tax return.4 In June
2001, petitioner filed a Form 1040X, Amended U.S. Individual
4 Petitioner included with her Form 1040 for 2000 a letter
entitled: “Asseveration of Claimed Gross Income”, claiming, among
other things, that she did not have gross income or “any items of
gross income from any taxable sources listed by the Secretary”.
With her Form 1040X, Amended U.S. Individual Tax Return, for
1999, petitioner submitted similar letters and made similar
statements that she did not earn any income taxable under sec.
861. Petitioner, as managing member of Miroyal and National Land
Bank, submitted similar documents with Miroyal’s and National
Land Bank’s Forms 1065 for the 2000 taxable year and National
Land Bank’s amended Form 1065 for its 1999 taxable year. The
Court deems petitioner’s claims to be frivolous and will not
discuss the issue any further in this report. See Woods v.
Commissioner, T.C. Memo. 2006-38.
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