1993 Tax Ct. Memo LEXIS 44 | Tax Ct. | 1993
MEMORANDUM OPINION
GOLDBERG,
In a notice of deficiency dated May 12, 1989, addressed to Frederick M. Fox and Michele B. Fox, a.k.a. Michelle B. Fox, respondent determined the following deficiencies in and additions to petitioners' Federal income taxes for the taxable years 1982, 1983, 1984, and 1985:
Taxable Year | ||
1982 | Deficiency | $ 775 |
Additions to Tax: | ||
Section 6653(a)(1) | 39 | |
Section 6653(a)(2) | 50 percent of the | |
interest due on the | ||
underpayment of $ 775 | ||
1983 | Deficiency | $ 10,864 |
Additions to Tax: | ||
Section 6653(b)(1) | 5,432 | |
Section 6653(b)(2) | 50 percent of the | |
interest due on the | ||
underpayment of $ 10,864 | ||
Section 6661(a) | 2,716 | |
1984 | Deficiency | $ 19,376 |
Additions to Tax: | ||
Section 6653(b)(1) | 9,688 | |
Section 6653(b)(2) | 50 percent of the | |
interest due on the | ||
underpayment of $ 19,376 | ||
Section 6661(a) | 4,844 | |
1985 | Deficiency | $ 25,784 |
Additions to Tax: | ||
Section 6653(b)(1) | 12,892 | |
Section 6653(b)(2) | 50 percent of the | |
interest due on the | ||
underpayment of $ 25,784 | ||
Section 6659(a) | 808 | |
Section 6661(a) | 5,773 |
1993 Tax Ct. Memo LEXIS 44">*45 One of respondent's determinations was that petitioners, for the taxable years listed below, failed to report the wage income received from the following employers on their joint Federal income tax returns:
Taxable Years | |||
Taxpayer-Employer | 1983 | 1984 | 1985 |
Frederick M. Fox-- | |||
American Airlines | $ 105,130 | $ 111,519 | $ 118,443 |
Michelle B. Fox-- | |||
Medical Associates | |||
Medical Group | 10,338 | 11,157 | 11,778 |
Total Unreported | |||
Wage Income | $ 115,468 | $ 122,676 | $ 130,221 |
In a second notice of deficiency dated May 12, 1989, addressed solely to petitioner Frederick M. Fox (hereinafter referred to as petitioner), respondent determined a deficiency in and additions to petitioner's Federal income tax for the taxable year 1986 as follows:
Deficiency | $ 28,196 |
Additions to Tax: | |
Section 6653(b)(1)(A) | 21,147 |
Section 6653(b)(1)(B) | 50 percent of the |
interest due on the | |
underpayment of $ 28,196 | |
Section 6659(a) | 1,626 |
Section 6661(a) | 5,694 |
With respect to the notice of deficiency for the taxable year 1986, one of respondent's determinations was that petitioner failed to report wage income he received from American Airlines in the amount of $ 122,399.
Frederick1993 Tax Ct. Memo LEXIS 44">*46 M. Fox and Michelle B. Fox filed a petition with this Court on August 7, 1989, at docket No. 19361-89, seeking a redetermination of the deficiencies in and additions to tax for the taxable years 1982, 1983, 1984, 1985, and 1986, as set forth in the two notices of deficiency dated May 12, 1989. In their Petition, par. 4.2, filed by counsel, petitioners alleged error with regard to respondent's determinations of unreported wage income for 1983, 1984, 1985, and 1986.
In the Answer, respondent denied the allegations contained in paragraph 4.2 of the Petition, and in paragraph 7 of the Answer further alleged facts upon which respondent relies to support the determinations of unreported income and fraud.
In the Reply to respondent's Answer filed solely by petitioner on December 8, 1989, he contended that: (1) He is not a "taxpayer" as defined in the Internal Revenue Code; (2) he has "rescinded" his Social Security number; (3) the signatures on the notices of deficiency are "legally invalid", since they are without a "genuine signature"; (4) Form 1040 does not apply to him because he is "a sovereign citizen and a resident of the Republic of the State of California, USA"; and (5) he "rescinds1993 Tax Ct. Memo LEXIS 44">*47 and revokes his signature on each and every Form 1040 that he unknowingly signed, therein committing an act of perjury by attesting to a status he was not legally qualified to hold and a jurisdiction to which he does not otherwise belong." Specifically, in his Reply petitioner admitted that: (1) During the taxable years 1983, 1984, 1985, and 1986, he was employed by American Airlines, par. 7.a; (2) he received the income determined by respondent but the amounts did not constitute "taxable income" because petitioner was not a "taxpayer" as defined in the Internal Revenue Code and, furthermore, the amounts determined to be income were "merely compensation for labor under a private contract with American Airlines", par. 7.b; (3) he did not include any of the income from American Airlines on his income tax returns because he was not required to do so, par. 7.c; and (4) he filed Forms W-4, Employee's Withholding Allowance Certificate, with his employer claiming he was exempt from income tax withholding.
In a Reply filed on January 25, 1990, by counsel for petitioner Michelle B. Fox (Ms. Fox), in response to matters raised by respondent's affirmative allegations contained in the Answer, 1993 Tax Ct. Memo LEXIS 44">*48 Ms. Fox admitted that: (1) During the taxable years 1983 1984, and 1985, she was employed by Medical Associates Medical Group, par. 7(e); (2) while employed by Medical Associates Medical Group, she earned $ 10,338, $ 11,157, and $ 11,778 for the taxable years 1983, 1984, and 1985, respectively, par. 7(f); and (3) she claimed that she was exempt from income tax withholding on her Form W-4, Employee's Withholding Allowance Certificate, filed with her employer, par. 7(i).
In a notice of deficiency dated April 26, 1990, addressed solely to Frederick M. Fox, respondent determined the following deficiency and additions to tax for the taxable year 1987 as follows:
Deficiency | $ 32,226 |
Additions to Tax | |
Section 6653(a) | 1,611 |
Section 6653(b) | 24,170 |
Section 6654(a) | 1,741 |
Section 6659 | 1,133 |
In the notice of deficiency, one of respondent's determinations was that Frederick M. Fox failed to report $ 135,618 of wages received from American Airlines on his Federal income tax return for 1987. Thereafter, on July 23, 1990, counsel for petitioner filed a Petition with this Court at docket No. 16560-90 seeking a redetermination of the deficiency in and additions to tax for 1987. 1993 Tax Ct. Memo LEXIS 44">*49 In his Petition, par. 4.2, petitioner alleged error with regard to respondent's determination of unreported wage income from American Airlines in 1987.
In the Answer, respondent denied the allegations contained in paragraph 4.2 of the Petition, and in paragraph 7 of the Answer further alleged the facts which respondent relies on to support the determination of unreported income and fraud. In the Reply filed by petitioner on November 7, 1990, he again repeated his contentions contained in the Reply filed on December 8, 1989, in docket No. 19361-89 and also added that under the Paperwork Reduction Act of 1980,
Respondent filed the subject motions for partial summary judgment pursuant to
The gist of petitioner Frederick M. Fox's claims is that he 1 is not a taxpayer. These contentions are wholly without merit. As explained in
Compensation for labor or services, paid in the form of wages or salary, has been universally, held by the courts of this republic to be income, subject to the income tax laws currently applicable. We recognize that the tax laws bear heavily on all persons engaged in gainful activity, and recognize the right of a taxpayer to minimize his1993 Tax Ct. Memo LEXIS 44">*52 taxes by all lawful means. But Romero here is not attempting to minimize his taxes; instead he is attempting willfully and intentionally to shift his burden to his fellow workers by the use of semantics. He seems to have been inspired by various tax protesting groups across the land who postulate weird and illogical theories of tax avoidance, all to the detriment of the common weal and of themselves.
The foregoing language in
An income tax return must be filed by all individuals receiving gross income in excess of certain minimum amounts.
Petitioner in his opposition to respondent's motion for partial summary judgment in each case states:
Since I was born politically free (that is a direct, immediate and equal holder of the sovereignty of New York State and,
Petitioner argues 1993 Tax Ct. Memo LEXIS 44">*54 that because he is not a citizen within the meaning of the
Petitioner's
Petitioner's arguments are no more than stale tax protester contentions long dismissed summarily by this Court and all other courts which have heard such contentions.
Based on the record, we find that in these cases there is no genuine issue as to any material fact relating to the issue of whether petitioners' wages are taxable income in the years in question. Therefore, respondent's motions for partial summary judgment will be granted.
To reflect the foregoing,
Footnotes
1. Petitioner Michelle B. Fox did not appear at the hearing held in San Diego, California, on June 15, 1992, so we will not speculate as to the nature of any argument she may wish to advance. We assume that she has abandoned this case.↩