TAX COURT OPINION

Case: Richard Stanton Gieser
Docket Number: 10961-12L
Judge: Halpern
Opinion Type: bench
Filed: 06/25/2013
Pages: 7

ALS UNITED STATES TAX COURT WASHINGTON, DC 20217 RICHARD STANTON GIESER, Petitioner, v. COMMISSIONER OF INTERNAL REVENUE, Respondent ) ) ) ) ) Docket No. 10961-12 L. ) ) ) ) OR D E R Pursuant to Rule 152(b), Tax Court Rules of Practice and Procedure, it is 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 in the above case before Judge James S. Halpern at Los Angeles, California, containing his oral findings of fact and opinion rendered at the trial session at which the case was heard. In accordance with the oral findings of fact and opinion, an appropriate order and decision will be entered for respondent. Dated: Washington, D.C. June 25, 2013 (Signed) James S. Halpern Judge SERVED Jun 25 2013 Capital Reporting Company 3 1 2 Bench Opinion by Judge James S. Halpern May 15, 2013 3 Richard Stanton Gieser v. Commissioner 4 5 6 7 8 9 10 11 12 13 14 15 16 17 18 Docket No. 10961-12L THE COURT: The court has decided to render oral findings of fact and opinion in this case and the following represents the court's oral findings of fact and opinion. The oral findings of fact and opinion shall not be relied upon as precedent in any other case. This bench opinion is made pursuant to the authority granted by section 7459(b) of the Internal Revenue Code of 1986, as amended, and Rule 152 of the Tax Court Rules of Practice and Procedure. Unless otherwise indicated, all section references are to the Internal Revenue Code in effect for the years in issue, and all Rule references are to the Tax Court Rules of Practice and Procedure. 19 Petitioner resided in California at the time he filed 20 21 22 23 the petition. This case is before the Court pursuant to a petition filed under section 6330 (d) for review of determination (determination) made by respondent's 24 Office of Appeals (Appeals). Respondent has also 25 moved that we impose a penalty under section 6673. 866.488.DEPO www.CapitalReportingCompany.com 1 2 3 4 5 6 7 8 9 10 11 12 13 14 15 16 17 18 19 20 21 22 23 24 25 Capital Reporting Company 4 This case arises because of respondent's decision to proceed by levy to collect petitioner's unpaid income tax liabilities for 1998, 1999, 2003, and 2007, and petitioner's liability for civil penalties under section 6702 for frivolous tax returns for 2002 and 2003. Petitioner requested a hearing pursuant to section 6330 to review respondent's notices of intent to levy. In his request for hearing, petitioner claimed that he was "a nontaxpayer or person other than a taxpayer". By the determination, Appeals determined to proceed with collection by levy. Petitioner assigns error to the determination on the following grounds: 1. He is not a taxpayer as defined in sections 1313(b) and 7701(a) (Í). 2. He had no tax liability in the years mentioned. 3. He did not file frivolous returns. 4. There was no audit. 5. None of the IRS documents were signed under penalties of perjury. 6. He is not subject to levy. Petitioner bears the burden of proof. 866.488.DEPO www.CapitalReportingCompany.com Capital Reporting Company At trial, petitioner conceded that, during the years in issue, he had part time jobs, from which 5 he earned wages, but he argues that income from services subject to income tax means gain from someone selling petitioner's services but not compensation he received from selling his own services for wages or compensation. Gross income includes all income from 1 2 3 4 5 6 7 8 9 whatever source derived, including compensation for 10 services. Sec. 61(a) (1). Petitioner offers 11. unoriginal, tired, and meritless tax-protester type 12 13 14 15 16 17 18 arguments that this and other courts have universally rejected. See Wilcox v. Commissioner, 848 F.2d 1007 (9th Cir. 1988), affg. T.C. Memo.1987-225; Bigley v. Commissioner, T.C. Memo. 2010-29. We will not dignify petitioner' s arguments "with somber reasoning and copious citation of precedent; to do so might f5 suggest that these arguments have some colorable 19 merit." Crain v. Commissioner, 737 F.2d 1417 (5th 20 Cir.1984). 21 22 23 24 25 Petitioner cites us to Stapler v. United States, which we assume is Staples v. United States, F.Supp 737, 739 ( nna 1937), for the language: "Income is not a wage or compensation for any type of labor." The case contains no such 866.488.DEPO www.CapitalReportingCompany.com Capital Reporting Company 6 1 2 3 4 5 6 7 8 language . Petitioner claims that IRS materials received by him were required by section 6065 to be signed under penalties of perjury. Section 6065 is entitled "Verification of Returns" and applies to "any return, declaration, statement, or other document required to be made under any provision of the internal revenue laws or regulations". 9 Petitioner has failed to show that this provision 10 applies to any material received by him from the IRS. 11 Petitioner's claim is meritless. 12 13 14 15 16 17 18 19 20 21 22 23 24 Petitioner has failed to show that he raised the merits of his claim that he is not liable for the section 6702 penalties during his section 6330 hearing. He therefore cannot raise that issue here. See sec. 301.6330-1(f) (2), Q&A-F3, Proced. & Admin. Regs. In addition, our examination of the Forms 1040 that petitioner attempted to file for 2002 and 2003 show the three elements necessary to support a penalty under section 6702(a). The returns purport to be returns; they report wage income contradicting Forms W-2 issued to petitioner; underreporting taxable income and tax liabilities based on spurious Forms 4852, which has been recognized as frivolous. 25 E.g., Grunsted v. Commissioner, 136 T.C. 455 (2011). 866.488.DEPO www.CapitalReportingCompany.com Capital Reporting Company 1 2 3 4 5 6 7 8 9 10 11 12 13 14 15 16 17 18 19 20 21 22 23 In pertinent part, section 6673(a) (1) provides for a penalty of up to $25,000 if the taxpayer has instituted or maintained proceedings before the Tax Court primarily for delay or the taxpayer's position in the proceeding is frivolous or groundless. Petitioner's arguments that he is not a taxpayer and that he had no tax liability for the years in issue nonsense given that he received compensation for his serv1ces. His argument that none of the IRS documents were signed under the penalties of perjury is also nonsense. "The purpose of section 6673 is to compel taxpayers to think and to conform their conduct to settled principles before they file returns and litigate." Takaba v. Commissioner, 119 T.C. 285, 295 (2002) . "A taxpayer's position is frivolous if it is contrary to established law and unsupported by a reasoned, colorable argument for a change in the law." Goff v. Commissioner, 135 T. C. 231, 237 (2010) . Petitioner's nonsensical arguments are, within that definition, frivolous. Moreover, we suspect that, in part, petitioner brought this proceeding in order to delay the collection of income tax due and owing. 24 Principally for making frivolous arguments, we impose 25 upon him a penalty under section 6673(a) (1) of 866.488.DEPO www.CapitalReportingCompany.com Capital Reporting Company 8 1 2 3 $5, 000. We shall enter an order and decision ordering and deciding that respondent may proceed 4 with collection for the years in issue, that petitioner is liable for the section 6702 penalties for 2002 and 2003, and that petitioner is liable for a $5,000 penalty under section 6673(a) (1). THIS CONCLUDES THE COURT'S ORAL FINDINGS OF FACT AND OPINION IN THIS CASE. (Whereupon, at 10:11 a.m., the above- entitled matter was concluded.) 5 6 7 8 9 10 11 12 13 14 15 16 17 18 19 20 21 22 23 24 25 866.488.DEPO www.CapitalReportingCompany.com