TAX COURT OPINION

Case: Ernest J. McDade
Docket Number: 28950-07
Judge: Colvin
Opinion Type: bench
Filed: 10/21/2008
Pages: 7

UNITED STATES TAX COURT WASHINGTON , D .C . 2021 7 ERNEST J . MCDADE, Petitioner , v . COMMISSIONER OF INTERNAL REVENUE , Respondent . O R D E R Docket No . 28950-0 7 s rv _c i f GA STAT . I JUDGE S Pursuant to Rule 152(b), Tax Court Rules of Practice and Procedure, it i s ORDERED that the Clerk of the Court shall transmit herewith to petitioner and to respondent a copy of the pages of the transcript of the trial of the above case before Judge Diane L . Kroupa at Boise, Idaho on September 8, 2008, containing her oral findings of fact and opinion rendered after the conclusion of trial . In accordance with the oral findings of fact and opinion, an appropriate order of dismissal and decision will be entered granting respondent's Motion To Dismiss For Failure To State A Claim Upon Which Relief Can Be Granted . (Signed) Diane L. Kroupa Judg e Dated : Washington, D .C . October 21, 2008 SERVED OCT 21 Z0M 1 Bench Opinion by Judge Diane L . Kroupa September 8, 200 8 2 McDade v . Commissioner Docket Number 28950-0 7 2 3 THE COURT : The Court has decided to render 4 oral findings of fact and opinion in this case, an d 5 the following represents the Court's oral findings of 6 fact and opinion . The oral findings of fact an d 7 opinion shall not be relied upon as precedent in any 8 other case . 9 This bench opinion is made pursuant to the 10 authority granted by section 7459(b) of the Internal 11 Revenue Code and Rule 152 of the Tax Court Rules o f 12 Practice and Procedure . All section references are to 13 the Internal Revenue Code, and all rule references are 14 to the Tax Court Rules of Practice and Procedure . 15 Ernest McDade appeared pro se, and John 16 Davis appeared on behalf of respondent . 17 This case is before the Court o n 18 respondent's Motion to Dismiss For Failure To 1a Sete Upon M)h,ch tZet ;ef ecan be Grctr ec! 19 -Crain filed February 1, 2008 . This case involves an 20 $87,784 deficiency against petitioner for the tax year 21 2005 as well as a $19,127 .70 late-filing addition 22 under section 6651(a)(1), a $7,226 .02 late payment 23 addition under section 6651(a)(2) and a $3,397 .60 24 addition for failure to pay estimated taxes for the 25 tax year 2005 . This case was consolidated for tria l Heritage Reporting Corporation (202) 628-4888 3 1 purposes only with the collection review matter s 2 regarding tax liabilities against petitioner for the 3 tax years 1999 through and including 2004 at Docket 4 Number 4928-07L . 5 FINDINGS OF FAC T 6 The record establishes or the parties do not 7 dispute the following facts : 8 Petitioner resided in Idaho at the time he 9 filed the petition in this case . 10 Petitioner was a construction worker until 11 1999 when he retired . While he was an employee, his 12 employer withheld Federal and State income taxes from 13 his wages . After he retired, petitioner purchased an 14 18-wheeler semi truck to carry livestock . Mos t 15 importantly, petitioner stopped filing Federal income 16 tax returns when he retired . In fact, petitioner has 17 not filed a tax return since 1999, including a return 18 for 2005, the year at issue in this case . 19 In response to the deficiency notice dated 20 November 5, 2007, that was issued to petitioner , 21 petitioner filed a petition with this Court o n 22 December 14, 2007, that does not contain any specific 23 allegations . Instead, petitioner provides law an d 24 legal conclusions that this Court and other courts 25 have found to be frivolous . For example, petitioner Heritage Reporting Corporatio n (202) 628-4888 4 1 challenges the authority the Internal Revenue Service 2 (the IRS) has over him to demand from him and t o 3 obligate him to file tax returns, claiming that he is 4 exempt from taxation as a Native American, a Western 5 Shoshone Tribe member . 6 OPINION 7 We are asked whether to dismiss this cas e 8 for petitioner's failure to state a claim . A petition 9 for redetermination of a deficiency filed unde r 10 section 6213(a) shall contain clear and concis e 11 assignments of each and every error that the taxpayer 12 alleges to have been committed by the Commissioner in 13 the determination of the deficiencies and th e 14 additions to tax and/or penalties in dispute . Rule 15 34(b)(4) . In addition, the petition shall contai n 16 clear and concise lettered statements of the facts on 17 which the taxpayer bases the assignments of error . 18 Rule 34(b)(5) . 19 The petition filed in this case does no t 20 satisfy the requirements for a proper petition as to a 21 redetermination of a deficiency under Rule 34(b)(4 ) 22 and (5) . There is neither assignment of error nor 23 allegation of fact in support of any justiciable 24 claim . The absence in the petition of specifi c 25 justiciable allegations of error and of supporting Heritage Reporting Corporatio n (202) 628-4888 5 1 facts permits this Court to grant respondent's motion . 2 See rule 123 ; Klein v . Commissioner ; 45 T .C . 30 8 3 (1969) ; White v . Commissioner , T .C . Memo 1981-609 . 4 Rather, the petition contains nothing but 5 frivolous and groundless arguments . Specifically , 6 petitioner wrote that "I am a citizen of the Western 7 Shoshone Nation, a sovereign nation, and according to 8 the Supreme Court of the United States, I am a ward of 9 the United States Government . Therefore, I don' t 10 believe that the Government has the right to tax me in 11 any way ." At the hearing on respondent's motion, the 12 Court asked petitioner to provide a specific statute 13 or treaty upon which petitioner relies to claim that 14 he is not subject to Federal income tax . It is well- 15 settled that Native Americans, or American Indians, as 16 U .S . citizens, are subject to the Federal income taxes 17 unless an exemption is created by treaty or statute . 18 For such an exemption to be valid, it must be base d 19 upon clearly expressed language in a statute o r 20 treaty . Allen v . Commissioner , T .C . Memo . 2006-11 , 21 22 affd 204 Fed . Appx . 564 (7th Cir . 2006) (citing Squire v . Capoeman , 351 U .S . 1, 6 (1956)) . 23 Petitioner argued that he is exempt from 24 taxation under the Treaty of 1863 . Petitione r 25 admitted, however, that the treaty can't be the right Heritage Reporting Corporatio n (202) 628-4888 6 1 document, because income taxes did not exist in 1863 . 2 Under the circumstances, we see no need to catalo g 3 petitioner's arguments and painstakingly address them . 4 As the Court of Appeals for the Fifth Circuit ha s 5 remarked : "We perceive no need to refute thes e 6 arguments with somber reasoning and copious citation 7 of precedent ; to do so might suggest that thes e 8 arguments have some colorable merit ." Crain v . 9 Commissioner , 737 F .2d 1417 (5th Cir . 1984) . 10 The petition does not contain any 11 assignments of error with respect to respondent's 12 determination of additions to tax under sections 13 6651(a)(1), 6651(a)(2) and 6654(a) . Any issue not 14 raised in the pleadings is deemed conceded . Rule 15 34(b) ; see Funk v . Commissioner , 123 T .C . 213 (2004) . 16 Therefore, the additions to tax under section s 17 6651(a)(1), 6651(a)(2), and 6654 (a) are deeme d 18 conceded and respondent has no burden of production 19 under section 7491(c) with respect to these issues . 20 Because the petition fails to state a claim 21 upon which relief can be granted, we shall grant 22 respondent's motion that the case be dismissed . 23 To reflect the foregoing, decision will be 24 entered for respondent and an appropriate order will 25 be issued granting respondent's Motion to Dismiss for Heritage Reporting Corporatio n (202) 628-4888 IV U 1 Failure to State a_Cl im , filed February 1, 2008, as l&por~ W ►~, ~c1~ i~el ~~ Can be Gran-~- d 2 to the year 2005 . 3 This concludes the Court's oral findings of 4 fact and opinion in this case . 5 (Whereupon, at 3 :48 p .m ., the bench opinion 6 in the above-entitled matter was concluded . ) 7 8 // 9 10 11 12 13 / / 14 15 16 17 18 19 20 / / 21 22 23 24 25 // Heritage Reporting Corporation (202) 628-4888