T.C. Memo. 1999-330

UNITED STATES TAX COURT

STEVEN AND JEAN L. LIDDANE, Petitioners v.

COMMISSIONER OF INTERNAL REVENUE, Respondent

STEVEN J. LIDDANE, Petitioner v.

COMMISSIONER OF INTERNAL REVENUE, Respondent

Docket Nos. 3181-98, 3182-98. Filed October 1, 1999.

Steven J. and Jean L. Liddane, pro se.

Gerald W. Douglas, for respondent.

MEMORANDUM OPINION

COHEN, Chief Judge: Respondent determined deficiencies,

additions to tax, and an accuracy-related penalty in petitioners'

Federal income taxes as follows:
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 Additions to Tax and Penalty, I.R.C.

 Sec. Sec. Sec. 

Year Deficiency 6651(a)(1) 6654 6662(c)

Steven and Jean L. Liddane

1993 $ 9,854 $ 667 $ 78 $ 533

1994 9,333 2,333 480 1,867

Steven J. Liddane

1995 $14,690 $3,673 $797 --

All section references are to the Internal Revenue Code in effect

for the years in issue. All of the facts have been stipulated,

and these cases were submitted for decisions pursuant to Rule

122, Tax Court Rules of Practice and Procedure.

Petitioners resided in Oregon at the time that they filed

their petitions. During the years in issue, petitioner Steven J.

Liddane was employed by Transaero, Inc. Steven J. Liddane

received wages from his employment with Transaero, Inc., in the

amounts of $63,112 in 1993, $62,216 in 1994, and $65,900 in 1995. 

Petitioners received $33 in interest income from Midlantic

National Bank in 1993.

Petitioners did not file timely Federal income tax returns

for 1993, 1994, or 1995. Petitioners filed joint Forms 1040 for

1993 and 1994 no earlier than September 1995. No return was

filed for 1995. On the untimely Forms 1040 for 1993 and 1994,

petitioners inserted zeros in each line for income, deductions,

credits, and calculation of tax owing. They did not report on
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those returns the wage income or interest income received during

1993 or 1994.

Petitioners had a prior case before this Court, docket No.

15738-96, involving their tax liability for 1992. In Liddane v.

Commissioner, T.C. Memo. 1998-259, filed July 14, 1998, the Court

rejected petitioners' frivolous arguments that they were not

liable for Federal income tax and imposed a penalty of $2,500

under section 6673.

These cases were submitted on February 1, 1999, and

respondent moved for a penalty under section 6673 in the amount

of $10,000, citing petitioners' prior case and pointing out that

petitioners are raising and asserting here the same frivolous

arguments for nonpayment of taxes that were rejected in the prior

case. Nonetheless, petitioners filed a brief in which they

reasserted the same partially incomprehensible but thoroughly

frivolous arguments that they are not liable for Federal income

taxes on the income that petitioners received in 1993, 1994, and

1995. They argue that income taxes are voluntary, that wages are

not taxable, and that the statutory notices are invalid for

failure to cite legal authority imposing income taxes on

petitioners.

Petitioners' various arguments were addressed in T.C. Memo.

1998-259, and there is no reason to repeat that analysis here. 

Petitioners have stipulated the amounts of their interest income
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and of wage income received for Steven J. Liddane's services

during the years in issue, and they have raised no dispute as to

the computation of the tax on that income. Petitioners have

provided no reason why the additions to tax and accuracy-related

penalty should not be imposed. Because petitioners have pursued

the same frivolous claims in the face of the Court's prior

opinion, and for the reasons set forth in T.C. Memo. 1998-259, a

penalty under section 6673 in the amount of $10,000 in each

docketed case will be awarded.

Appropriate orders and

decisions will be entered.