TAX COURT OPINION

Case: Kurt S. Rowe
Docket Number: 27368-08
Judge: Colvin
Opinion Type: bench
Filed: 01/20/2010
Pages: 4

UNITED STATES TAX COURT WASHINGTON, DC 2021 7 KURT S . ROWE, Petitioner v . ) Docket No . 27368-08 . COMMISSIONER OF INTERNAL REVENUE , Respondent O R D E R Pursuant to Rule 152(b), Tax Court Rules of Prac ice 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 o the transcript of the trial of the above case before Judge James S . Halpern at Tampa, Florida on December 16, 2009, containing his oral findings of fact and opinion rendered at the conclusion of trial . In accordance with the oral findings of fact and opinion, an appropriate order and decision will be entered . (Signed) James S . Halpern Judg e Dated : Washington, D .C . January 20, 2010 SERVED JAN 212010 3 1 Bench Opinion by Judge James S . Halper n 2 KURT S . ROWE 3 Docket No . 27368-08 December 16, 200 9 4 THE COURT : The Court has decided to render ora l 5 findings of fact and opinion in this case, and the following 6 represents the Court's oral findings of fact and pinion . 7 The oral findings of fact and opinion shall not be 8 relied upon as precedent in any other case . 9 This bench opinion is made pursuant to the 10 authority granted by section 7459(b) of the Internal Revenue 11 Code of 1986, as amended, and Rule 152 of the Tax Cour t 12 Rules of Practice and Procedure . 13 Unless otherwise indicated, all section references 14 are to the Internal Revenue Code in effect for the year in 15 issue, and all Rule references are to the Tax Court Rules o f 16 Practice and Procedure . 17 By notice of deficiency dated August 4, 008 , 18 respondent determined a deficiency of $2,484 in petitioner 19 Federal income tax for 2006 . 20 The Court has deemed stipulated paragrap s 2 21 through 7 of respondent's stipulations of facts . hose 22 stipulated paragraphs, with attached exhibits, ar e 23 incorporated herein by this reference . Petitioner bears the 24 burden of proof . Rule 142(a) . Petitioner was emp oyed by 25 Ardaman & Associates, Inc . during 2006 and receive $6,50 3 Heritage Reporting Corporation (202) 628-488 8 4 1 from it during 2006, and it withheld tax of $636 . 2 Petitioner was employed by the County of Manatee, 3card o f 3 County Commissioners, during 2006 and received $23,735 from 4 it during 2006, and it withheld tax of $2,688 . In the 5 notice of deficiency, respondent identified $6,503 an d 6 $23,735 as having been reported to him as taxable ages . I n 7 the petition, petitioner claimed he had'no tax liability fo r 8 2006 . Petitioner . submitted a Form 1040, U .S . Indi~idua l 9 Income Tax Return, for 2006, on which he reported axable 10 income of $3 .73 . 11 Section 61(a) defines gross income as "a 1 income 12 from whatever source derived", including compensat on for 13 labor . Petitioner earned and received income as d termined 14 by respondent in the notice of deficiency . Respondent did 15 not err in determining a deficiency based on petitioner's 16 failure to report these receipts from Ardaman & As ociates , 18 Section 6673 ( a)(1) of the Internal . Reven e Code 19 authorizes the Court to impose a penalty of not in excess of 20 $25 , 000 when proceedings are instituted or maintained by the 21 taxpayer primarily for delay or the taxpayer ' s pos tion is 1 22 frivolous or groundless . Petitioner's filings in his cafe S 9 -23 are replete with frivolous arguments and groundles claims . 24 For instance, in the amended petition, petitioner claim s 25 that respondent "has no valid reasonable belief, wit h Heritage Reporting Corporation (202) 628-4888 5 1 respect to Ardaman & Associates, Inc ., that petiti 2 engaged in any activity for which an act of Congre 3 made him liable for a tax ." Also : "With respect 4 & Associates, Inc ., petitioner denies performing a 5 in, on or in connection with any ship, vessel or a 6 any registry" . Further : "Commissioner has no vali 7 reasonable belief, with respect to Board of County Commissioners, that petitioner engaged in any acti ity fo r 9 which as act of Congress has made him liable for a tax ." It 10 is settled that compensation for services is taxable income . 11 Sec . 61(a) ; "The purpose of section 6673 is to com e l 12 taxpayers to think and to conform their conduct to settled 13 principles before they file returns and litigate ." Takaba 14 v . Commissioner , 119 T .C . 285, 295 (2002) . Petiticner has 15 made frivolous arguments and groundless claims, an we can 16 see no reason for this proceeding other than to de a y 17 collection of a tax rightfully owed . We shall impose a 18 penalty on petitioner under section 6673(a)(1) of $2,000 . 19 This concludes the Court's oral findings of fact 20 and opinion in this case . 21 An appropriate order and decision will be entered . 22 (Whereupon, at 9 :20 a .m ., the bench opini n wa s 23 concluded .) 2 4 25 Heritage Reporting Corporation (202) 628-4888