TAX COURT OPINION

Case: William Edward Benison
Docket Number: 939-10
Judge: Colvin
Opinion Type: bench
Filed: 02/16/2011
Pages: 7

RM UNITED STATES TAX COURT WASHINGTON, DC 20217 WILLIAM EDWARD BENISON, Petitioner, v. ) Docket No. 939-10 COMMISSIONER OF INTERNAL REVENUE, Respondent. O R 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 petitioner and to respondent a copy of transcript of Kroupa on January 27, 2011, containing her oral and opinion rendered after the conclusion of trial. the trial of the pages of the above case before Judge Diane L. transmit the to findings of fact In accordance with the oral findings of fact and opinion, decision will be entered for respondent. (Signed) Diane L. Kroupa Judge Dated: Washington, D.C. February 16, 2011 SERVED Feb 23 2011 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 2 Bench Opinion by Judge Diane L. Kroupa Benison v. Commissioner Docket No. 939-10 January 27, 2011 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. These oral findings of fact and opinion shall not be relied upon as precedent :ba any other case. This bench opinion is made pursuant to the authority granted by section 7459(b) and Rule 152. All section references are to the Internal Revenue Code as amended and in effect for 2006, the year at issue, and all Rule references are to the Tax Court Rules of Practice and Procedure. Mr. Benison appeared pro se, and Ashley Vaughan appeared on behalf of Respondent. FINDINGS OF FACT Certain facts have been stipulated. The stipulation of facts the parties filed, with accompanying exhibits, is incorporated by this reference. The facts are so found. Petitioner has been working as a turbo engine technician for General Electric for 15 years. He received $70,978 in wages from GE in 2006 and had Heritage Reporting Corporation (202) 628-4888 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 3 Federal income t'ax withholding creditä of $6,140. Petitioner failed to file a Federal income tax return for 2006 Respondent prepared a substitute for return and issued Petitioner a statutory deficiency nótice. Respondent determined a $12,208 deficiency in Petitioner' s Federal income 'tax for 2006, a $1, 365.30 late filing addition" under section 6651(a) (1) , an $849.52 late payment addition under section 6651(a) (2) , and a $245.86 estimated tax addition under section 6654. Petitioner timely filed a petition. Petitioner raised several arguments in his petition. He wrote, "National debt INTEREST violates e Amendment 13, slavery or, involuntary servitude except punishment for arime." Respondent's counsel sent Petitioner a letter requesting any documents or information Petitioner had to support his position. The letter also cautioned Petitionet that his arguments he asserted in the petition were frivolous and that if Petitioner continued to raise these types of arguments, he could be liable for a penalty under section 6673, which authorizes the Tax Court to impose a penalty up to $25, 000 whenever it appears that proceedings have been instituted or maintained by the taxpayer primarily for delay, or that the taxpayer' s Heritage Reporting 'Corporatiòn (202) 628-4888 2 3 4 5 6 7 8 9 10 11 12 13 14 15 16 17 18 19 20 21 22 23 24 25 4 position is frivolous or groundless. Respondent' s counsel met with Petitioner before trial and learned that Petitioner argues that Congress, not the . IRS, is the only entity authorized to collect tax. Petitioner continued to advance the same arguments asserted in the petition. Respondent's counsel-again warned Petitioner that he was at-risk of having the penalty asserted against him. «At trial, the Court also warned Petitioner that it would impose the penalty if he made arguments challenging our Federal tax system. OPINION This is an interesting- case. Petitioner admits he received taxable income in 2006 and admits he failed to file a return. In fact, he still hasn't filed a return for 2006. Insteali, Petitionèr disputes which branch of government he has to pay. He makes numerous arguments for why he does not have t o þay the Internal Revenue Service or the Department of Treasury. He appears to argue that the tax is unlawful because only Congress has the authority to collect taxes. We perceive no need to refute Petitioner' s arguments with somber reasoning and . conspicuous citation of precedent ; tb do aso might suggest that these arguments have some colorable Heritage Reporting -Corporation (202) 628-4888 2 3 4 5 6 7 8 9 10 11 12 13 14 15 16 17 la 19 20 21 22 23 24 25 5 merit. Crain v. Commissioner, 737 F.2d 1417, 1418 ($th Cir. 1984) . Moreover, the constitutionality of our income tix system, including the role played within that system by the IRS, has long been established. _d. We therefore sustain the deficiency determined in Respondent's statutory notice. We now focus on the additions to tax. An addition to tax is imposed if a taxpayer fails to file a timely Federal income tax return. Sec. 665.1(a) (1). The record reflects that Petitioner failed to file a Federal income tax return by the prescribed due date for 2006 and lias, e in fact, failed to file one as of t·oday. He failed to present any explanation. Accordingly, Petitioner is liable for the addition to tax under section 6651(a) (1) for 2006. Next, we address the late payment addidion to tax imposed under section 6651(a) (2) for the late payment of tax shown as due on the substitute for return that Respondent prepared for Petitioner. Petitioner has failed to pay the amount shown on the substitute for return~ and is therefore liable for this addition- Finally, we - address the -addition to taxi under section 6654(a) for failure to pay estimated tax. There are certain mechanical exceptions to the Heritage Reporting Corporation- (202) 628-4$88 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 6 addition to tax under section 6654 that Petitioner has failed to prove. Consequently, Petitioner is liable for the addition to tax under section 6654(a) for failure to pay estimated tax for 2006. We now address whether it is appropriate to impose a penalty against Petitioner under section 6673. Respondent recommends that the penalty be $1,500 because this is the first time Petitioner has challenged the Federal tax system. In this proceeding now before the Court, Petitioner has asserted groundless arguments. Petitioner's tactics have consumed valuable Government resources. These tactics should not be condoned. They damage the integrity of the Federal tax litigation system because of the time and attention the Court and Respondent must devote to these arguments deprives other taxpayers with genuine controversies. See Abrams v. Commissioner, 82 T.C. 403, 412 (1984). We are mindful that Petitioner is representing himself and may not be familiar with all the Court's rules and procedures. Pro se status, however, is not a license to litter the dockets of the Federal courts with ridiculous allegations concerning the Code. Parker v. Commissioner, 117 F.3d 785 (5th Cir. 1997). Heritage Reporting Corporation (202) 628-4888 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 7 The entire record reflects that Petitioner instituted or maintained this proceeding primarily, if not exclusively, as a protest against the Federal income tax system, : and this proceeding merely continues Petitioner' s refusal to acknowledge and satisfy his tax obligations. We are convinced that no purpose would be served in repeating all that has been said about Petitioner's misguided arguments. To reflect the foi-egoing, decision will be entered for Respondent, and an appropriate order will be issued granting Respondent' s oral motion to impose a $1,500 penalty against Petitioner under section 6673 for 2006. This concludes the Court'as oral findings of fact and opinion in this case. (Whereupon, at 10 - 31 a - m. the bench opinion in the above-entitled matter was concluded.) / // / // // / / Heritage Reporting Corporation (202) 628-4888