- 25 -
petition with the bankruptcy court on April 23, 2004. Petitioner
had been receiving correspondence from respondent for many years
regarding his growing tax liabilities and was sent respondent’s
Final Notice of Intent to Levy on November 28, 2002,
approximately 1 year and 5 months before petitioner filed his
petition with the bankruptcy court. Between November 28, 2002,
and his Appeals hearing almost a year later on November 12, 2003,
petitioner repeatedly raised his frivolous section 861 argument
instead of cooperating with respondent. After receiving a notice
of determination on November 19, 2003, notifying him that
collection was imminent, petitioner instituted proceedings with
this Court on December 16, 2003, in an attempt to delay
collection, stating that he did not have taxable income because
“26 CFR Section 1.863-1(c) clearly states what sections to use to
determine one’s taxable income.” Four months after filing his
petition with this Court, but before trial, petitioner filed his
petition with the bankruptcy court on April 23, 2004. Petitioner
now argues that his tax liabilities, which he previously argued
he did not owe under section 861, were discharged by the
bankruptcy court’s July 27, 2004, order.
On the basis of the record in the instant case, we are
convinced that petitioner instituted proceedings with this Court
to delay collection, repeatedly advanced his frivolous section
861 argument, despite being warned it was frivolous, and failed
Page: Previous 7 8 9 10 11 12 13 14 15 16 17 18 19 20 21 22 23 24 25 26 NextLast modified: May 25, 2011