Opinion ID: 4469843
Heading Depth: 3
Heading Rank: 1

Heading: Against Swanson

Text: Federal Rule of Appellate Procedure 38 allows a court of appeals, after a separately filed motion and reasonable opportunity to respond, to award damages and single or double costs to an appellee if the court determines that the appeal is frivolous. Fed. R. App. P. 38; see also 28 U.S.C. § 1912 (authorizing an award of damages and single or double costs when a judgment is affirmed). We have previously warned appellants seeking to argue that their wages are not taxable income: “[T]hose who would litigate in this circuit are put on notice that they may be expected to have sanctions imposed against them if they continue to raise these sorts of frivolous contentions.” Hyslep v. United States, 765 F.2d 1083, 1084-85 (11th Cir. 1985). In Waters v. Commissioner, we awarded double costs plus reasonable attorneys’ fees against a pro se appellant who argued that his wages were not income. 764 F.2d 1389, 1389-90 (1985). In making the award, we noted that (1) it was “well established and long settled that wages are includable in taxable 6 Case: 19-11851 Date Filed: 01/07/2020 Page: 7 of 8 income”; (2) the notice of deficiency warned the taxpayer that his position was frivolous; (3) the Tax Court expressly found that the taxpayer’s position was frivolous and awarded damages; and (4) the Tax Court’s “opinion provided a detailed statement of reasons and citations of authority.” Id. at 1390. Swanson’s arguments regarding his salary were frivolous. He was forewarned about the frivolity of his position through (1) our prior precedent; (2) the Department of the Treasury’s statements in Notice 2010-33 and Rev. Rul. 2007-19; (3) four frivolous-return notices that Swanson received after submitting tax returns asserting this position; and (4) the district court’s express statement that his position was frivolous. In light of this record, Rule 38 sanctions are appropriate. In its motion, the Government requests a lump sum of $8000, and Swanson does not challenge either the amount of this sum or the use of lump sums in awarding sanctions. Accordingly, we grant the Government’s motion and award $8000 in sanctions.