Spotted this gem today in Tax Notes…
“The Court sees no need to further respond to petitioner’s arguments with somber reasoning and copious citations of precedent, as to do so might suggest that his argument possesses some degree of colorable merit.”
Tax Analysts Web Services: Tax Notes Today
Petitioner attached to each return a two-page signed typewritten statement containing classic tax protester statements such as that no section of the Internal Revenue Code establishes an income tax liability; that his return was not being filed voluntarily but was being filed in order to avoid prosecution for failure to file a return; that, in the Ninth Circuit of the Federal Appellate Court system, a tax return (Form 1040) with all zeros on the return constitutes a valid return; and that he had zero income because there is no reference in the Internal Revenue Code for the taxation of wages, salaries, or compensation for personal services, along with several other arguments of this nature. Petitioner also attached to his returns the Forms W-2, Wage and Tax Statement, that had been issued by his employer.
Petitioner filed identical petitions in response to each notice of deficiency, alleging:
“Income tax is based on voluntary compliance and self-assessment income is not defined in the IRC. “Income” is defined by the Supreme Court as “Gains and profits derived from corporate activities”. I never received a “Statutory” Notice Demand for payment. I am not “Statutorily Liable” for “Income” tax. I was never granted an administrative hearing as per due process. No IRS agent ever produced a “Delegation of Authority” to change my 1040 or assess any deficiency.”
The Court rejects entirely petitioner’s allegations and the same arguments he made at trial. Section 61(a)(1) defines gross income to include all income from whatever source derived, including, but not limited to, compensation for services rendered, whether such services are for a corporation, an individual, or in a self-employed activity. Petitioner’s protester arguments have been heard on numerous occasions by this Court, as well as other courts, and have been consistently rejected. The Court sees no need to further respond to petitioner’s arguments with somber reasoning and copious citations of precedent, as to do so might suggest that his argument possesses some degree of colorable merit. See Crain v. Commissioner, 737 F.2d 1417 (5th Cir. 1984). In short, petitioner is a taxpayer subject to the income tax laws, and he is liable for income tax on the compensation and other income paid to him during the years in question, none of which was questioned or denied. His arguments are rejected.