In Uncategorized on 03/16/2015 at 17:34

Might be a great name for a pub, if I ever open one (not likely).

But today’s T. C. Memos yield a good examplar of the jolly rounder: Michael Balice, 2015 T. C. Memo. 46, filed 3/16/15. Judge Lauber gets this one.

When Mike petitioned Tax Court, he resided at a Federal correction facility at Fort Dix, NJ. My patient readers will recall that I paid Fort Dix, NJ, a short visit in 1969, but it wasn’t to any correctional facility thereat; I emerged unscathed, with a DD214 in my hot little hand (and if you don’t know what a DD214 is, consider yourself lucky).

Back to business. Setting the stage, “Petitioner marketed … products that purported to enable individuals to avoid taxation of their income by use of sham ‘trusts.’ Practicing what he preached, petitioner employed these trusts himself. He reported no income from sale of his tax evasion products to others, and he did not file a Federal income tax return for either year. He was convicted of tax crimes and is currently incarcerated.” 2015 T. C. Memo. 46, at p. 2.

Is Mike dissuaded? No!

“The IRS reconstructed petitioner’s income on the basis of his bank deposits, pepared [sic] for each year a substitute for return (SFR) that met the requirements of Section 6020(b), and sent petitioner a notice of deficiency determining the deficiencies and additions to tax…. Respondent has moved for summary judgment under Rule 121, contending that there are no disputed issues of fact and that he is entitled to judgment as a matter of law. Petitioner has responded to this motion by contending (among other things) that he is not subject to IRS deficiency procedures and that wages are not ‘income’ because they result from the exercise of his ‘irrefutable right to work.’” 2015 T. C. Memo. 46, at pp. 2-3.

Mike is a true disciple of Richard Lovelace (1617-1657). “Stone walls do not a prison make, nor iron bars a cage”, especially when one can emit therefrom argy-bargy in the form of “…a 129-page ‘Memorandum at Law on Federal Income Taxation and the Personal Federal Income Tax.’ This document contains the usual gibberish embraced by tax protesters.” 2015 T. C. Memo. 46, at p. 7.

Surprise, surprise, summary J for IRS.

Of course Mike has been on the Tax Court pitch before. Back in 2005, he starred in 2005 T. C. Memo. 161, and got shown the Section 6673 yellow card.

This time, post-warning. post-conviction and post-further-protester-blather and discovery shenanigans, Judge Lauber has had it with Mike: He gives Mike a 25K Section 6673 frivolity chop.

Wanna bet Mike moves for reconsideration?


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