T.C. Memo. 1998-57
UNITED STATES TAX COURT
RANDAL W. HOWARD, Petitioner v.
COMMISSIONER OF INTERNAL REVENUE, Respondent
Docket No. 20474-90. Filed February 11, 1998.
Randal W. Howard, pro se.
Rachael J. Zepeda, for respondent.
MEMORANDUM OPINION
COUVILLION, Special Trial Judge: This case was heard
pursuant to section 7443A(b)(3)1 and Rules 180, 181, and 182.
In separate notices of deficiency, respondent determined the
following deficiencies in petitioner's Federal income taxes and
additions to tax:
1
Unless otherwise indicated, section references are to
the Internal Revenue Code in effect for the years at issue. All
Rule references are to the Tax Court Rules of Practice and
Procedure.
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Additions to Tax
Sec. Sec. Sec.
Year Deficiency 6651(a)(1) 6653(a)* 6654(a)
1987 $3,858 $ 964.50 $192.90 $208.36
1988 5,298 1,324.00 265.00 339.00
* For 1987, the addition to tax is under sec. 6653(a)(1)(A)
and, additionally, under sec. 6653(a)(1)(B) for 50 percent of the
interest due on the underpayment of $3,858. For 1988, the
addition to tax is under sec. 6653(a)(1).
The issues for determination are: (1) Whether petitioner is
liable for the deficiencies in tax based upon amounts reported by
payers as having been paid to petitioner during the years in
question, and (2) whether petitioner is liable for the additions
to tax.
Some of the facts were stipulated. Those facts, with the
annexed exhibits, are so found and are incorporated herein by
reference. At the time the petition was filed, petitioner's
residence was in the State of Arizona.
In the notices of deficiency, respondent determined, based
upon information reported by payers, that petitioner earned the
following income during the years in question:
1987 1988
Family Life Broadcast $16,799 $19,938
Arizona Central (interest) 73 12
Grace Broadcasting -- 1,600
Total $16,872 $21,550
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Petitioner filed an income tax return for 1987 on August 16,
1994, in which he reported zero income and a zero tax liability.
On the signature line of the return, above his signature, there
appear the words "Under Protest" with an asterisk referencing a
footnote: "See attached statement of Randal W. Howard."
Attached to the return is a Form 1099-MISC issued by Family Life
Broadcasting System, as payer, and Randal W. Howard, as
recipient, of $16,799.90 for "nonemployee compensation". The
return also includes a Schedule D, Capital Gains and Losses, in
which petitioner identified the $16,799.90 as an amount received
for his "labor", and as to which petitioner claimed a cost or
basis of $16,799.90 and zero capital gain. The footnoted
statement referred to on petitioner's tax return consists of five
typewritten pages wherein petitioner disclaims any liability for
Federal income taxes. On the same date, petitioner filed a 1988
income tax return that included a Form 1099-MISC from the same
payer for nonemployee compensation of $19,938.51. That document
contains the same references and attached statements as the 1987
return.
In the written statement attached to petitioner's returns,
as well as in his petition, petitioner alleges classic protester
arguments such as: He was born "without" the United States in
Passaic County, New Jersey; he is not a citizen or resident of
the United States or the State of Arizona, even though his
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permanent, personal, place of abode is in Arizona; he is not a
"taxpayer within the meaning of the Code"; the issuances of the
notices of deficiency to petitioner are invalid because various
delegation orders in the structure of the Treasury Department
were never promulgated in the Federal Register, and numerous
other nonsensical allegations that have absolutely no legal
merit. None of the allegations address the adjustments relating
to petitioner's income or expenses for the years at issue.
The case was calendared for trial, and, at the commencement
of the session, when the case was called from the calendar,
petitioner appeared for trial. At the conclusion of the calendar
call, the Court announced the date and time that petitioner's
case would be heard. Petitioner signed a stipulation of facts,
which he left with counsel for respondent. At the time set for
trial of the case, petitioner failed to appear to present
additional evidence. The stipulation of facts was submitted into
evidence, and the Court declared for the record that petitioner
had rested his case. Respondent offered no witnesses or other
documentary evidence, whereupon the Court declared the record of
the case closed, and the case was taken under advisement.
The determinations of respondent in a notice of deficiency
are presumed correct, and the taxpayer bears the burden of
proving that the determinations are in error. Rule 142(a); Welch
v. Helvering, 290 U.S. 111, 115 (1933). The only evidence
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presented by petitioner consisted of the written stipulation of
facts that included a statement of his residence at the time the
petition was filed, statements acknowledging receipt of the
various items respondent determined were income, and copies of
the purported income tax returns filed by petitioner with
respondent for the 2 years in question. The stipulation contains
no evidence or other information that would establish anything
other than the fact that petitioner received taxable income
during the years in question, and that the deficiencies
determined by respondent are based on such income. The written
statements attached to petitioner's income tax returns, which
were included in the stipulation, as well as petitioner's
allegations in his pleadings, lead the Court to the conclusion
that petitioner's case is baseless and, in essence, fails to
state a case.2 Petitioner presented to the Court nothing more
than tax protester rhetoric and legalistic gibberish, which have
absolutely no merit and deserve no further attention from this
Court. Suffice it to say that petitioner has not sustained his
burden of proof, and the Court sustains respondent on all issues.
Decision will be entered
for respondent.
2
Respondent did not elect to file a motion to dismiss
for failure to state a claim upon which relief can be granted
under Rule 40.