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petitioner is liable for an addition to tax under section 6654(a)
for failing to pay estimated tax in 2001.
At the conclusion of the trial, respondent filed a motion
for sanctions pursuant to section 6673. In his brief, respondent
reiterates his position that petitioner’s positions are frivolous
and groundless and that the Court should impose sanctions.
II. Filing Requirement/Deficiencies
The law imposes a Federal tax on the taxable income of every
individual. Sec. 1. Gross income for the purpose of calculating
taxable income is defined as “all income from whatever source
derived”. Sec. 61(a). Section 6012(a) requires a taxpayer to
file a tax return in each taxable year in which that taxpayer’s
gross income exceeds a certain threshold amount.3 In this case,
petitioner's gross income exceeded the filing threshold for each
of the 5 taxable years at issue.4 As a result, petitioner was
required to file a Federal income tax return for each of the 5
taxable years at issue. Petitioner’s arguments to the contrary
are incomprehensible and frivolous.
3 That threshold amount is generally equal to the sum of
the exemption amount and the applicable standard deduction. Sec.
6012(a)(1)(A).
4 Petitioner had single filing status for the 1998 taxable
year and married filing separate status for the 2000-2003 taxable
years. Thus, the relevant threshold amounts in this case are
$6,950, $2,800, $2,900, $3,000, and $3,050, respectively.
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Last modified: March 27, 2008