Janet A. Phillips - Page 4




                                        - 4 -                                         
          tax, and requested a refund of the $3,573.81 in Federal income              
          tax that had been withheld.  To that return, petitioner attached            
          a document teeming with frivolous tax-protester arguments,                  
          including, inter alia, the following:  (a) No section of the                
          Internal Revenue Code makes her liable for income tax; (b) no               
          section of the Internal Revenue Code requires that income taxes             
          be paid on the basis of a return; and (c) the “Privacy Act                  
          Notice” contained in the Form 1040 booklet does not require her             
          to file a return.  Respondent did not recognize petitioner’s                
          “zero return” as a valid Federal income tax return for 2004.                
          On May 1, 2006, respondent issued the aforementioned notice                 
          of deficiency.5  Petitioner then filed a timely petition with               
          this Court.  A trial was held on March 5, 2007, in Knoxville,               
          Tennessee.                                                                  
                                       OPINION                                        
          I.  Whether Petitioner Had Unreported Income                                
               As a general rule, the Commissioner’s determination of a               
          taxpayer’s liability for an income tax deficiency is presumed               
          correct, and the taxpayer bears the burden of proving that the              
          determination is improper.  See Rule 142(a); Welch v. Helvering,            
          290 U.S. 111, 115 (1933).  Although section 7491(a) may shift the           


               5 Petitioner was allowed a standard deduction for 2004 in              
          the notice of deficiency.  In addition, for her 2003 taxable                
          year, petitioner had a tax liability, which is relevant to her              
          liability for an addition to tax under sec. 6654(a) for the 2004            
          taxable year.                                                               





Page:  Previous  1  2  3  4  5  6  7  8  9  10  11  12  Next 

Last modified: March 27, 2008