TAX COURT OPINION

Case: Ryan Charles Minnig
Docket Number: 22864-18
Judge: Kerrigan
Opinion Type: bench
Filed: 03/30/2020
Pages: 6

20 SD UNITED STATES TAX COURT WASHINGTON, DC 20217 RYAN CHARLES MINNIG, Petitioner(s), v. ) ) ) ) ) Docket No. 22864-18. COMMISSIONER OF INTERNAL REVENUE, Respondent ) ) ) ORDER 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 Kathleen Kerrigan at Denver, Colorado, containing her 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, decision shall be entered for respondent. (Signed) Kathleen Kerrigan Judge Dated: Washington, D.C. March 30, 2020 SERVED Mar 30 2020 3 1 2 3 4 5 6 7 8 9 Bench Opinion by Judge Kathleen Kerrigan March 9, 2020 Ryan Charles Minnig v. Commissioner Docket No. 22864-18 THE COURT: The Court has decided to render in this case the following as its oral Findings of Fact and Opinion, which 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 10 Revenue Code and Rule 152 of the Tax Court Rules of 11 Practice and Procedure. Unless otherwise indicated, all 12 section references are to the Internal Revenue Code in 13 effect for the tax year in issue, and all Rule references 14 are to the Tax Court Rules of Practice and Procedure. All 15 monetary amounts are rounded to the nearest dollar. 16 17 By notice of deficiency dated August 22, 2018, respondent determined a deficiency of $17,493 for 2014, 18 additions to tax pursuant to section 6651(a)(1) for $1,574 19 and section 6651(a)(2) for $3,586, and a penalty pursuant 20 to section 6662(a) for $3,499. Respondent has conceded 21 the section 6651(a)(2) addition to tax and the section 22 23 6662(a) penalty. Trial in this case was conducted in Denver, 24 Colorado, on March 9, 2020. Petitioner represented 25 himself. Respondent was represented by Jeri L. Acromite. A stipulation of facts was admitted into evidence along with the attached exhibits. We find the following facts: 4 Findings Petitioner resided in Colorado when he timely filed his petition. During 2014 petitioner was an employee of Lat-Lon, LLC. Lat-Lon, LLC issued petitioner a Form W-2, Wage and Tax Statement, reporting wages of $102,313 for 2014. Petitioner submitted a Form 1040, U.S. 1 2 3 4 5 6 7 8 9 10 Individual Income Tax Return, that he signed and dated 11 November 24, 2015. His return reported zero income. 12 Petitioner filed a motion to dismiss for lack of 13 jurisdiction, and this Court has denied the motion. 14 15 16 OPINION Generally, the Commissioner's determinations in a notice of deficiency are presumed correct, and the 17 taxpayer bears the burden of proving those determinations 18 19 erroneous. Rule 142(a)(1); Welch v. Helvering, 290 U.S. 111, 115 (1933). In unreported income cases such as this, 20 the Commissioner must establish some evidentiary 21 foundation connecting the taxpayer with the income- 22 Producing activity or demonstrating that the taxpayer 23 actually received unreported income. See United States v. 24 McMullin, 948 F.2d 1188, 1192 (10th Cir. 1991); 25 Weimerskirch v. Commissioner, 596 F.2d 358, 361-362 (9th (9733406-2250|operationsøeraibers.net www.escribers.net Cir. 1979), rev'g 67 T.C. 672 (1977). The requisite evidentiary foundation is minimal and need not include direct evidence. See Banister v. Commissioner, T.C. Memo. 2008-201, aff'd, 418 F. App'x 637 (9th Cir. 2011). 5 If the Commissioner introduces some evidence that the taxpayer received unreported income, the burden shifts to the taxpayer, who must establish by a preponderance of the evidence that the deficiency was arbitrary or erroneous. See Hardy v. Commissioner, 181 1 2 3 4 5 6 7 8 9 10 F.3d 1002, 1004 (9th Cir. 1999), aff'g T.C. Memo. 1997-97. 11 Respondent met the burden of production as to the 12 unreported income determined in the notice of deficiency. 13 Respondent produced a Form W-2. 14 Gross income generally includes all income from 15 whatever source derived, including wages. Sec. 61(a); 16 Commissioner v. Glenshaw Glass Co., 348 U.S. 426, 429-430 17 (1955); sec. 1.61-2(a)(1), Income Tax Regs. The United 18 States Supreme Court has held consistently that Congress 19 defined gross income to exert the "'the full measure of 20 21 22 23 24 25 its taxing power.'" Commissioner v. Glenshaw Glass Co., 348 U.S. at 429 (quoting Helvering v. Clifford, 309 U.S. 331, 334 (1940)). We do not need to discuss petitioner's frivolous and groundless arguments. See Heisey v. Commissioner, T.C. Memo. 2002-41, slip op. at 4, aff'd, 59 F. App'x 233 (J7334002250|operationseescribersmet!www.escribersaet (9th Cir. 2003). We shall not painstakingly address Petitioner's assertions "with somber reasoning and copious citation of precedent; to do so might suggest that these 6 arguments have some colorable merit." Crain v. Commissioner, 737 F.2d 1417, 1417 (5th Cir. 1984). Accordingly, we sustain the deficiency determined by respondent. The Commissioner bears the burden of production with respect to a taxpayer's liability for additions to 1 2 3 4 5 6 7 8 9 10 tax, requiring the Commissioner to come forward with 11 sufficient evidence indicating that the imposition of 12 additions to tax is appropriate. See sec. 7491(c); Higbee 13 v. Commissioner, 116 T.C. 438, 446 (2001). Once the 14 Commissioner satisfies the burden of production, the 15 taxpayer must come forward with persuasive evidence that 16 the Commissioner's determination of additions to tax is 17 18 incorrect or that the taxpayer has an affirmative defense such as reasonable cause. See Rule 142(a); Higbee v. 19 Commissioner, 116 T.C. at 446-447. 20 Section 6651(a)(1) authorizes the imposition of 21 an addition to tax for failure to timely file a return. 22 Petitioner filed his return after April 15, 2015. 23 Petitioner did not show reasonable cause and is liable for 24 the addition to tax pursuant to section 6651(a)(1). 25 Petitioner's frivolous arguments do not establish reasonable cause. 7 See McGowan v. Commissioner, T.C. Memo. 2006-154, slip op. at 5. A decision will be entered for respondent. This concludes the Court's oral Findings of Fact and Opinion in this case. (Whereupon, at 4:30 p.m., the above-entitled matter was concluded.) 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 r ners