TAX COURT OPINION

Case: Lavan James
Docket Number: 18995-09
Judge: Colvin
Opinion Type: bench
Filed: 11/16/2010
Pages: 6

UNITED STATES TAX COURT WASHINGTON, DC 20217 LAVAN JAMES, Petitioner, v. COMMISSIONER OF INTERNAL REVENUE, Respondent ) ) ) ) ) ) ) ) O R D E R Docket No. 1899$-09. Pursuant to Rule 152 (b) , Tax Court Rules of Practice and Procedure, it is ORDERED that the Clerk of the Court shall transmit herewith the ' to petitioner and to respondent a copy of transcript of Michael B. Thornton at .Houston, Texas, on October 25, 2010, containing his oral conclusion of the hearing in the above case before Judge the pages of the trial. f.indings of fact and opinion rendered at the In accordance with the oral findings of fact and opinion, decision will be entered for respondent . (Signed) Michael B. Thornton Judge Dated: Washington, D.C. November 16, 2010 SERVED OV 1 8 2010 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 Bench Opinion by Judge Michael B. Thornton October 25, 2010 Lavan James v. Commissioner Docket No. 18995-09 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. Except as otherwise provided by Rule 152(c) of the Tax Court Rules of Practice and Procedure, the oral findings of fact and opinion shall not be relied upon as precedent. This Bench Opinion is made pursuant to the authority granted by Section 7459(b) and Rule 152. Section references are:to the Internal Revenue Code in effect for the taxable years at issue. Rule references are to the Tax Court Rules of Practice and Procedure. All dollar amounts are rounded to the nearest dollar. This case was tried on October 25, 2010, in Houston, Texas. Petitioner Lavan James tried his case pro se. Adam P. Sweet represented respondent. Respondent determined a $4,690 deficiency in petitioner's 2006 Federal income tax and determined that petitioner was liable for additions to tax under sections 6651(a) (1), 6651(a) (2), and 6654. The issues for decision in this case are: (1) Whether petitioner 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 has a deficiency of $4,690 in his 2006 Federal income tax; (2) whether petitiioner is liable for $1, 817 of additions to tax pursuant to sections 6651(a) (1), 6651(a) (2), and 6654; and (3) whether petitioner is liable for a penalty pursuant to section 6673 (a) (1) (B) . Findings of Fact. In 2006, petitioner received $22, 567 of nonemployee compensation from Clear Perfection, Inc.,'as reported on a Form 1099. Petitioner did not file a Federal isncome tax return for 2006 or pay any portion of his 2006 Federal tax liability. Discussion. Throughout these proceedings, petitioner has presented frivolous and meritless arguments, including: (1) The Internal Revenue Code does not impose an income tax on petitioner and (2) respondent was not authorized to issue petitioner a notice of deficiency or collect taxesa Petitioner's assertions have been rejected by this Court and other "courts and "We perceive no need to refute these arguments with somber reasoning and copious citation of precedent; to do so might suggest that these arguments have some colorable merit . " Crain v . Commis sioner , */37 F . 2d 1417 (5th Cir . 1984). 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 5 Section 6651(a) (1) imposes an addition to tax for failure to file a return by the date prescribed, unless petitioner shows that the failure to file was due to reasonable cause and not willful neglect. Section 6651(a) (2) imposes an addition to tax for failure to timely pay the amount of tax shown on a return, unless petitioner shows that the failure to pay was due to reasonable cause and not willful neglect. Section 6654(a) imposes an addition to tax on an underpayment of a required installment of individual estimated tax. Respondent bears the burden of production with respect to petitioner's liabilities for these -additions to tax. Sec. 7491(c). Once respondent meets the burden of pžoduction, petitioner bears the burden of proving he is not liable for the additions to tax. See Higbee v. Commissioner, 116 T.C. 438, 447 (2001). Respondent has met his burden of production by showing that petitioner failed to file a 2006 Federal tax return, that respondent prepared a substitute for reference for 2006 that met the requirements of Section 6020(b), and that petitioner failed to make a: required annual payment under Section 6654(a). 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 Petitioner has presented no evidence showing 6 his failure to file pay the tax impösed, or pay estimated tax was due to reasonable cause. We thei-efore sustain respondent' s determination that petitioner is liable for additions to tax under sections 6651(a) (1) , 6651(a) (2) , and 6654. Under section 6673 (a) (1) (B) this Court may, on its own initiative, require a taxpayer to pay a penalty if the taxpayer's positions is "frivolous or groundless." We have imposed section 6673 penalties on taxpayers who have made frivolous tax protestor arguments. See, e.g. Sandvall v. Commissioner, 898 F.2d 455, 459 (5th Cir. 1990), affg. T.C. Memo. 1989- 56 and T.C. Memo. 1989-189. As we have repeatedly advised petitioner, his arguments are frivolous . Respondent has also warned him of the possibility of sanct-ions. Petitioner has persisted in making these frivolous arguments despite being warned by both respondent and this Court that doing so may lead to þenalties. He has wasted the time and resources of t-he Court and of respondent . We shall, therefore, require petitioner to pay a penalty under section 6673(a) (1) of $1,000. Decision will be entered for respondent . This concludes the Court's findings of fact 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 and opinion in this case . (Whereupon, at 12 : 31 p . m. , the bench opinion in the above-entitled matter was concluded.) 7 // // // // / H / / // // // // // // // // / // // // // Heritage Reporting Corporation (202) 628-4888