T.C. Memo. 2000-4
UNITED STATES TAX COURT
LOY ROBERT BOST III, Petitioner v.
COMMISSIONER OF INTERNAL REVENUE, Respondent
Docket No. 8259-99. Filed January 6, 2000.
Loy Robert Bost III, pro se.
Steven M. Webster, for respondent.
MEMORANDUM OPINION
POWELL, Special Trial Judge: Respondent determined a
deficiency in petitioner’s 1996 Federal income tax in the amount
of $4,434.
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The issue is whether wages and a pension distribution are
taxable under section 61.1 Petitioner resided in Hickory, North
Carolina, at the time the petition was filed.
Respondent determined that petitioner received wages of
$31,808 and a pension distribution of $1,270 from a so-called
section 401(k) retirement account during 1996, and petitioner has
stipulated these facts. Petitioner raises two arguments. First,
he contends that this Court does not have jurisdiction to resolve
the matter. We have frequently stated that the predicates to our
jurisdiction are that a valid notice of deficiency is mailed to
the taxpayer at his last known address and a timely petition is
filed in this Court. See secs. 6612, 6213, Rule 13; see also
Monge v. Commissioner, 93 T.C. 22, 27 (1989); Pyo v.
Commissioner, 83 T.C. 626, 632 (1984). That jurisdiction is in
personam. See Freytag v. Commissioner, 110 T.C. 35, 39 (1998).
In this case a valid notice of deficiency was mailed to
petitioner at his last known address, and petitioner timely filed
a petition in this Court. This Court, therefore, has
jurisdiction.
Petitioner’s second argument is that wages or compensation
for labor and the pension distribution are not taxable income.
1
Section references are to the Internal Revenue Code in
effect for the year in issue, and Rule references are to the Tax
Court Rules of Practice and Procedure.
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This argument is frivolous. See secs. 61, 72, 402(a); see also
Rowlee v. Commissioner, 80 T.C. 1111, 1119-1122 (1983).
Respondent asks that a penalty be imposed under section
6673. That section provides, inter alia, that if it appears to
this Court that “the taxpayer’s position * * * is frivolous or
groundless”, the Court may impose a penalty in an amount not in
excess of $25,000. Sec. 6673(a). This Court cautioned
petitioner at the calendar call and at the trial that the
positions he espoused were frivolous and warned him of the
provisions of section 6673. Petitioner did not heed these
warnings. We therefore award a penalty to the United States
against petitioner in the amount of $1,500.
An appropriate order and decision
will be entered.