TAX COURT OPINION

Case: Rhonda S. Broadnax
Docket Number: 3225-07
Judge: Colvin
Opinion Type: bench
Filed: 04/18/2008
Pages: 5

UNITED STATES TA)(COURT Washington, D. C . 2021 7 RHONDA S . BROADNAX, Petitione r v . Docket No . 3225-07 COMMISSIONER OF INTERNAL REVENUE , Respondent . $; 7J t / CAL . - STAT . 1 JUD GE FILE S O R D E R Pursuant to Rule 152(b), Tax Court Rules of Practice 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 of the transcript of the trial of the above case before Judge Thomas B . Wells at Columbia, South Carolina, on March 21, 2008, containing his oral findings of fact and opinion rendered at the conclusion of trial . In accordance with the oral findings of fact and opinion, decision will be entered for respondent . (Signed) Thomas B. Wells Judge Dated : Washington, D . C . April 18, 2008 SERVED APR 2 2 2008 2 1 Bench Opinion by Judge Thomas B . Wells 2 March 21, 200 8 3 Broadnax v . Commissioner Docket No . 3225-07 4 THE COURT : The Court has decided to render 5 oral findings of fact and opinion in this case and the 6 following represents the Court's oral findings of fact 7 and opinion . The oral findings of fact and opinion 8 shall not be relied upon as precedent in any other 9 case . 10 This is the case of Rhonda S . Broadnax , 11 Petitioner, versus Commissioner of Internal Revenue, 12 Respondent, docket number 3225-07 . This bench opinion 13 is made pursuant to the authority granted by Section 14 7459(d) and Rule 152 . 15 All section references are to the Internal 16 Revenue Code as in effect for the year in issue, and 17 all rule references are to the Tax Court Rules o f 18 Practice and Procedure . 19 Respondent determined a deficiency against 20 Petitioner for her 2004 taxable year in the amount of 21 $1,337 and an addition to tax under 6%51(a)(1) in th e 6 22 amount of $547 . Respondent concedes the negligence 23 penalty should be reduced to $334 .25 . Respondent has 24 also moved for a penalty against Petitioner unde r 25 Section 6673 . Heritage Reporting Corporation (202) 628-4888 3 1 None of the facts have been stipulated . At 2 the time the petition was filed, Petitioner was a 3 resident of Danielsville, Georgia . 4 In general, Respondent's determinations i n 5 the notice of deficiency are entitled to a presumption 6 of correctness, and Petitioner bears the burden o f 7 rebutting that presumption by a preponderance of the 8 evidence . Welch v . Helvering , 290 U .S . 111 (1933) ; 9 Rule 142(a) . Petitioner has neither claimed nor me t 10 the requirements of Section 7491(a), and therefore, 11 the burden of proof remains on Petitioner . 12 In the instant case, Petitioner has offered 13 no credible evidence that shows that Respondent' s 14 determinations, including the concessions noted, are 15 incorrect . Accordingly, we find the Petitioner has 16 failed to carry her burden of proof . Petitioner's 17 contentions are wholly without merit . Consequently, 18 we sustain Respondent's determinations of tax in full . 19 As to the addition to tax, Petitioner bears 20 the burden of proof . Rule 142(a) . Under Sectio n 21 7491(c), Respondent must produce evidence that it is 22 appropriate to impose a penalty . However, Petitioner 23 has the burden of proof . Higbee v . Commissioner , 116 24 T .C . 438, 446 (2001) . 25 The record shows that Respondent has met his Heritage Reporting Corporatio n (202) 628-4888 4 1 burden of production to show that it is appropriate to 2 impose the addition to tax in the amount conceded b y 3 Respondent . Petitioner did not testify and failed to 4 offer any credible evidence on this issue . 5 Consequently, we sustain Respondent on the addition to 6 tax in the amount conceded by Respondent . 7 Respondent has moved for a penalty unde r 8 Section 6673 . Section 6673(a)(1) provides that thi s 9 Court may require the taxpayer to pay a penalty not in 10 excess of $25,000 when it appears to this Court that 11 the proceedings were instituted or maintained by the 12 taxpayer primarily for delay or the taxpayer' s 13 position is frivolous or groundless . 14 Petitioner is no stranger to this Court . In 15 docket number 21747-04L, a collection action case in 16 this Court involving the collection of liabilitie s 17 concerning Petitioner's 1998, 1999, 20001and 200 1 18 taxable years, Petitioner was ordered to pay a $5,000 19 penalty under Section 6673 for maintaining frivolous 20 and groundless positions and instituting the 21 proceedings for delay . 22 Despite having been warned repeatedly that 23 her positions were frivolous and groundless , 24 Petitioner continues to advance such positions . For 25 example, in the instant case, Petitioner filed a Heritage Reporting Corporatio n (202) 628-4888 5 1 document with the Respondent entitled, "Affidavit of 2 Income Tax Non-liability," falsely claiming that she 3 received no wages or income, and she also falsely 4 claimed withholding in the amount of $850 on the Form 5 1040Z she filed with Respondent for taxable year 2004, 6 which, in fact, was withholding for Social Securit y 7 and Medicare taxes . 8 Additionally, Petitioner has a case at 9 docket number 10788-07L, another collection cas e 10 involving Petitioner, instituted for the purpose of 11 delay and in which Petitioner raises frivolous an d 12 groundless arguments . Accordingly, we shall impose a 13 penalty on Petitioner in the amount of $10,000 . See 14 Howard v . Commissioner , T .C . Memo 2001-291 . 15 To reflect the foregoing, decision will be 16 entered for Respondent, reflecting a reduced penalty 17 in the amount of $334 .25 as conceded by Respondent and 18 a penalty under Section 6673 in the amount of $10,000 . 19 The foregoing represents the Court's oral findings of 20 fact and opinion in this case . This concludes thi s 21 case . Thank you . 22 (Whereupon, at 10 :32 a .m, the bench opinion 23 in the above-entitled matter was concluded . ) 2 4 25 Heritage Reporting Corporation (202) 628-4888