Dixon v. Commissioner

1986 T.C. Memo. 563, 52 T.C.M. 1076, 1986 Tax Ct. Memo LEXIS 46
CourtUnited States Tax Court
DecidedNovember 24, 1986
DocketDocket No. 34839-84.
StatusUnpublished

This text of 1986 T.C. Memo. 563 (Dixon v. Commissioner) is published on Counsel Stack Legal Research, covering United States Tax Court primary law. Counsel Stack provides free access to over 12 million legal documents including statutes, case law, regulations, and constitutions.

Bluebook
Dixon v. Commissioner, 1986 T.C. Memo. 563, 52 T.C.M. 1076, 1986 Tax Ct. Memo LEXIS 46 (tax 1986).

Opinion

RAYMOND F. DIXON, Petitioner v. COMMISSIONER OF INTERNAL REVENUE, Respondent
Dixon v. Commissioner
Docket No. 34839-84.
United States Tax Court
T.C. Memo 1986-563; 1986 Tax Ct. Memo LEXIS 46; 52 T.C.M. (CCH) 1076; T.C.M. (RIA) 86563;
November 24, 1986.
Raymond F. Dixon, pro se.
Roslyn G. Taylor, for the respondent.

PATE

MEMORANDUM OPINION

PATE, Special Trial Judge: This case was heard pursuant to the*48 provisions of section 7456(d) [redesignated as sec. 7443A by the Tax Reform Act of 1986, Pub. L. 99-514, 100 Stat.    ] and Rules 180, 181 and 182. 1

Respondent determined the following deficiency in and additions to petitioner's Federal income tax for the year 1982:

Deficiency$5,923.00
Additions to Tax
sec. 6653(a)(1)296.16
sec. 6653(a)(2)*
sec. 6661(a)592.00

In addition, respondent asks this Court to award damages to the United States under section 6673.

Petitioner filed a timely Federal income tax return for the year 1982 reporting thereon wages of $24,298.83 and deducting therefrom $19,773.83 as the cost of his labor. On a notice of deficiency dated July 19, 1984, respondent disallowed the deduction for petitioner's labor, allowed deductions for sales taxes and income taxes and computed the tax using rates applicable to persons married filing separately.

Petitioner filed a timely*49 petition with this Court on October 9, 1984. 2 He resided in Hopkins, South Carolina at the time his petition was filed. He was married in 1982 but did not file a joint return with his wife.

Petitioner does not dispute that he received the income that he included on his income tax return as filed. However, he now contends that he does not owe any tax because (1) the income tax laws are unconstitutional; (2) an individual is not required to file a return; (3) the cost of supplying his labor to earn his wages is deductible; (4) wealthy persons and corporations pay little or no tax, and therefore, it is unfair for him to be taxed at a much higher rate; and (5) his constitutional rights were violated when he was not provided with free legal counsel to represent him before this Court. 3 These arguments have been rejected by this and other courts on innumerable occasions. Nevertheless, we briefly address each of them in turn.

*50 The Federal income tax laws are constitutional. Since the ratification of the Sixteenth Amendment, it is immaterial with respect to income taxes whether the tax is a direct or indirect tax. Brushaber v. Union Pac. R.R. Co.,240 U.S. 1 (1916). See Hayward v. Day,619 F.2d 716 (8th Cir. 1980).

There is no doubt that petitioner was required to file an income tax return for the year 1982 and that he was required to pay taxes on his wages. See secs. 1, 61, 6011, 6012(a)(1)(A), and 7701(a)(1); sec. 1.6012-1, Income Tax Regs.; Rowlee v. Commissioner,80 T.C. 1111 (1983), and the cases cited therein. Further, petitioner may not deduct the $19,723.83 as the cost of his labor. Deductions are a matter of legislative grace and may be taken only when specifically allowed by Congress. White v. United States,305 U.S. 281 (1938); Helvering v. Independent Life Ins. Co.,292 U.S. 371, 381 (1934). We can find no statutory authority for such a deduction. Reading v. Commissioner,70 T.C. 730, 734 (1978), affd. 614 F.2d 159 (8th Cir. 1980).

Petitioner further argues that he should*51

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Related

Brushaber v. Union Pacific Railroad
240 U.S. 1 (Supreme Court, 1916)
Welch v. Helvering
290 U.S. 111 (Supreme Court, 1933)
Helvering v. Independent Life Insurance
292 U.S. 371 (Supreme Court, 1934)
New Colonial Ice Co. v. Helvering
292 U.S. 435 (Supreme Court, 1934)
White v. United States
305 U.S. 281 (Supreme Court, 1938)
Deputy, Administratrix v. Du Pont
308 U.S. 488 (Supreme Court, 1940)
Nelson W. Hayward v. Irl E. Day
619 F.2d 716 (Eighth Circuit, 1980)
Knoll v. C.I.R
735 F.2d 1370 (Ninth Circuit, 1984)
Cupp v. Commissioner
65 T.C. 68 (U.S. Tax Court, 1975)
Reading v. Commissioner
70 T.C. 730 (U.S. Tax Court, 1978)
Sydnes v. Commissioner
74 T.C. 864 (U.S. Tax Court, 1980)
Rowlee v. Commissioner
80 T.C. No. 61 (U.S. Tax Court, 1983)
Abrams v. Commissioner
82 T.C. No. 29 (U.S. Tax Court, 1984)
Ginter v. Southern
611 F.2d 1226 (Eighth Circuit, 1979)

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Bluebook (online)
1986 T.C. Memo. 563, 52 T.C.M. 1076, 1986 Tax Ct. Memo LEXIS 46, Counsel Stack Legal Research, https://law.counselstack.com/opinion/dixon-v-commissioner-tax-1986.