Wilson D. Watson - Page 23




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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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