In Uncategorized on 03/14/2019 at 16:05

The frivols get a break today, Pi Day.

First, Robert Wesley, 2019 T. C. Memo. 18, filed 3/14/19. Rob is back before Judge Albert G (“Scholar Al”) Lauber. The last time Robert got chopped for frivolity to the extent of $7500. Back then Robert “…had made ‘baseless allegations of fraud against respondent’ and had submitted to the settlement officer a purported amended return for 2010 showing zero gross income and zero tax due.  In support of this ‘zero return’ he cited ‘irrelevant Code sections and IRS regulations’ and alleged that he had no obligation to file an income tax return because ‘he is not dead and is not * * * an executor of an estate.’” 2019 T. C. Memo. 18, at pp. 2-3. Robert may have forgotten the $2500 chop he got back in 2002.

Judge Scholar Al hasn’t forgotten.

But IRS conceded the 10% Section 72(t) addition, and the nontaxability of $737 in miscellaneous income. Judge Scholar Al isn’t quite so forgiving, but he’ll let it go. “We do not believe that respondent was obligated to concede the inapplicability of the section 72(t) additional tax or the nontaxability of $737 in miscellaneous income.  For purposes of deciding this case, however, we will give effect to these concessions and to respondent’s agreement to abate the portion of the 2012 tax attributable to those amounts.  We assume that further abatements may be required with respect to self-employment tax and for portions of the sections 6651 and 6654 additions to tax.” 2019 T. C. Memo. 18, at p. 16, footnote 4.

Ultimately, Robert catches a break.

“Petitioner has raised many frivolous arguments during this litigation.  We sanctioned him on two prior occasions for advancing frivolous arguments, and in this case we repeatedly warned him to desist from doing so.  We struck from his amended petition 10 paragraphs containing frivolous arguments, yet he persisted in advancing those very same arguments in discovery motions and at trial.  He has wasted considerable resources of the IRS and this Court.

“Given this track record, we believe petitioner to be deserving of a very severe sanction.  But because respondent (rather generously) made several concessions in this case, petitioner by filing his petition has secured some relief despite his own worst efforts.  We will accordingly require him to pay in this case a penalty of only $10,000.” Order, at p. 20.

So do a Rule 155 beancount.

Ex-Ch J Michael B (“Iron Mike”) Thornton has an off-the-bencher designated hitter for Keith William Brown, Docket No. 5817-18, filed 3/14/19. KW only gets a yellow card for stating in his petition that “…as his basis for disagreeing with the determination in the notice of deficiency, petitioner states: ‘irreconcilable differences’. And for the facts upon which he relies: ‘the facts are many and span a period of 37 years, beginning in 1981’.” Order, transcript page 6.

And of course the deficiency in the SFR IRS gave KW at no extra charge is sustained.  And the additions for nonfiling, nonpayment and underwithholding are sustained as well. KW’s arguments on that score are frivolous, but ex-Ch J Iron Mike only warns KW against trying this tack again.

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