Opinion ID: 403348
Heading Depth: 1
Heading Rank: 1

Heading: facts

Text: 4 The taxpayer is (and was for the years in question) a resident of Elizabeth, Pennsylvania. For the years 1972 through 1976, the taxpayer failed to file timely federal income tax returns. Prior to those years, the taxpayer had filed income tax returns jointly with his wife, Janet R. Raley. 4 5 John Raley worked for United States Steel Corporation for each of the years in question. In 1973, and for each year thereafter, Raley supplied Form W-4E, Exemption from Withholding, to his employer. On each form Raley claimed that he had not incurred any federal income tax liability during the immediately prior year and that he did not anticipate any such liability for the then-current year. United States Steel stopped withholding federal income tax from Raley's income for the years 1973 through 1976. 6 Throughout this period (and for the following two years), Raley sent numerous letters concerning his refusal to pay the federal income tax to the Internal Revenue Service, the Secretary of the Treasury, various other high ranking federal officials, and to his employer. These letters included the following statements: 7 As I told you last year and the year before, I am no longer going to contribute voluntarily to your boss Mr. Rockefeller's establishment of a New World Order. Toward that end, I have filed form W4E of the unconstitutional Internal Revenue Service with my employer, stopping the unconstitutional confiscation of my property to be turned over to you and your fellow conspirators. 8 Letter to Treasury Secretary William E. Simon, March 5, 1976; Govt. Ex. H. 9 After all, my refusal to file the form 1040 only clouds the real issue, which is my refusal to pay 25 percent (or any percent) of my income to the International conspirators who have taken over our federal government. 10 Letter to the Internal Revenue Service, October 28, 1975; Govt Ex. S. 11 Hence, I will never again contribute voluntarily so much as one cent to the Federal Government, so long as it continues its destruction of the United States Constitution. 12 Letter to Treasury Secretary William E. Simon, April 3, 1975; Govt Ex. AB. 13 Of course you are wasting your time-I am never again voluntarily going to give the IRS one cent. 14 Letter to the Internal Revenue Service, February 19, 1975; Govt Ex. R. 15 On April 21, 1976 and May 3, 1976, Raley filed purported amended returns for the tax years 1972 and 1973. The returns were devoid of any information concerning the taxpayer's income. The taxpayer cited the United States Constitution and the Privacy Act as the basis for his failure to provide any information as to his income for the years in question. 16 On April 26, 1977, a grand jury returned an indictment against Raley charging him with willfully failing to file an individual income tax return for the years 1973 and 1974 5 and willfully submitting a false withholding exemption certificate with his employer for the tax year 1975. 6 Raley pled guilty to the charge of willful failure to file a return for the tax year 1974 and was convicted on November 23, 1977. 17 On June 15, 1979, the Commissioner issued a notice of deficiency for the tax years 1972 through 1976. In addition, as set forth supra, civil fraud penalties and other costs were assessed. The tax court upheld the assessments of liability. This appeal followed.