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“Denial and disclaimer makes unclear whether petitioner had an
‘honest and reasonable intent to supply the information required
by the tax code.’”
In Lange v. Commissioner, T.C. Memo. 2005-176, the taxpayer
attached a cover letter to the front of his Form 1040, which
contained a statement that was virtually identical to the
statement inserted into the margin on each page of petitioner’s
1999 Form 1040. The taxpayer in Lange also attached a “protest
document” to his Form 1040, which contained many of the arguments
made in the protest document attached to petitioner’s 1999 Form
1040: E.g., he is not an individual as that term is used in
sections 1 and 3, private sector employees should not be taxed at
the same rate as Government employees, and only Government
employment is subject to taxation. In Lange, we determined that
such arguments are frivolous and that the taxpayer’s Form 1040
did not “represent an honest and reasonable attempt to satisfy
the requirements of the tax law” thereby failing to satisfy part
3 of the four-part test under Beard v. Commissioner, 82 T.C. 166
(1984), affd. 793 F.2d 139 (6th Cir. 1986).
The attachment to the 1998 Form 1040 is different from the
attachment to the 1999 Form 1040. Principally, it constitutes an
argument that petitioner, a self-proclaimed “private independent
contractor”, received no income subject to employment taxes from
his employer, Watson, Inc. As part of that attachment, in the
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Last modified: November 10, 2007