Germain v. Commissioner

1983 T.C. Memo. 220, 45 T.C.M. 1374, 1983 Tax Ct. Memo LEXIS 564
CourtUnited States Tax Court
DecidedApril 25, 1983
DocketDocket No. 23382-81
StatusUnpublished

This text of 1983 T.C. Memo. 220 (Germain 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
Germain v. Commissioner, 1983 T.C. Memo. 220, 45 T.C.M. 1374, 1983 Tax Ct. Memo LEXIS 564 (tax 1983).

Opinion

JOHN GERMAIN, Petitioner v. COMMISSIONER OF INTERNAL REVENUE, Respondent
Germain v. Commissioner
Docket No. 23382-81
United States Tax Court
T.C. Memo 1983-220; 1983 Tax Ct. Memo LEXIS 564; 45 T.C.M. (CCH) 1374; T.C.M. (RIA) 83220;
April 25, 1983.
John Germain, pro se.
Mark E. Rizik, for the respondent.

COHEN

MEMORANDUM OPINION

COHEN, Judge: Petitioner's brief in this case states:

The controversy to be decided is rooted in the area of a taxpayer who chooses to stand on his Constitutional Rights and a governmental agency who believes collecting taxes is above all rights of the taxpayers.

We see this case, however, as an example of how some taxpayers would abuse principles set forth in the Constitution to "draw a conjurer's circle around the whole matter" as a subterfuge to avoid paying taxes. See United States v. Sullivan,274 U.S. 259 (1927),*565 one of the cases purportedly relied on by petitioner; Lukovsky v. Commissioner,692 F.2d 527 (8th Cir. 1982), affg. an Order of this Court.

Certain of the facts have been stipulated and are found accordingly. At the time he filed his petition herein, petitioner was a resident of Lexington, Michigan. In April 1977, petitioner submitted to the Internal Revenue Service a U.S. Individual Income Tax Return, Form 1040, for the year 1976. On that form, petitioner listed his name and address, his occupation as "self-employed," his filing status as married filing separately, and his total exemptions as 1. On the lines provided on the form for information as to income and other information necessary for computation of tax due, asterisks were inserted. In all four margins of the form were preprinted statements concerning "filed under protest;" "petition for redress of grievances;" confusion as to the meaning of "dollars," etc.; desire not to waive constitutional rights; and request for immunity. For the taxable year 1977, petitioner submitted a similar form to the Internal Revenue Service. The forms submitted by petitioner for the years 1976 and 1977 were rejected by*566 respondent as not acceptable Federal income tax returns. No other forms were filed by petitioner for either year.

Using the bank deposits method of reconstructing income, respondent determined deficiencies and additions to tax as follows:

YearDeficiency inAdditions to Tax
EndedIncome TaxSec. 6651(a)Sec. 6653(a)Sec. 6654 1
1976$2,152.77$538.19$107.64$ 80.50
1977$3,281.39$820.35$164.07$117.00

The bank deposits method of reconstructing a taxpayer's income is an appropriate basis for respondent's determination when a taxpayer has failed to provide information necessary to compute that income, and the taxpayer has the burden of showing that respondent's determination is wrong. Hoefle v. Commissioner,114 F.2d 713 (6th Cir. 1940); Harper v. Commissioner,54 T.C. 1121, 1129 (1970); Jones v. Commissioner,29 T.C. 601, 613-614 (1957); Rule 142(a), Tax Court Rules of Practice and Procedure.Failure to produce evidence*567 in support of an issue of fact as to which a party has the burden of proof is a ground for dismissal or for determination of the affected issue against that party. Rule 149(b), Tax Court Rules of Practice and Procedure. See Lukovsky v. Commissioner,supra.

At the time of trial, petitioner made an opening statement in which he cited United States v. Sullivan,supra

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Related

United States v. Sullivan
274 U.S. 259 (Supreme Court, 1927)
Edward M. Heligman v. United States
407 F.2d 448 (Eighth Circuit, 1969)
United States v. Arthur J. Porth
426 F.2d 519 (Tenth Circuit, 1970)
United States v. Jerome Daly
481 F.2d 28 (Eighth Circuit, 1973)
United States v. Robert Neff
615 F.2d 1235 (Ninth Circuit, 1980)
Hoefle v. Commissioner of Internal Revenue
114 F.2d 713 (Sixth Circuit, 1940)
Jones v. Commissioner
29 T.C. 601 (U.S. Tax Court, 1957)
Ruben v. Commissioner
33 T.C. 1071 (U.S. Tax Court, 1960)
Harper v. Commissioner
54 T.C. 1121 (U.S. Tax Court, 1970)
Hartman v. Commissioner
65 T.C. 542 (U.S. Tax Court, 1975)
Hatfield v. Commissioner
68 T.C. 895 (U.S. Tax Court, 1977)
Grosshandler v. Commissioner
75 T.C. 1 (U.S. Tax Court, 1980)
McCoy v. Commissioner
76 T.C. 1027 (U.S. Tax Court, 1981)
Reiff v. Commissioner
77 T.C. 1169 (U.S. Tax Court, 1981)
Thompson v. Commissioner
78 T.C. No. 38 (U.S. Tax Court, 1982)
Rechtzigel v. Commissioner
79 T.C. No. 8 (U.S. Tax Court, 1982)
United States v. Johnson
577 F.2d 1304 (Fifth Circuit, 1978)

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Bluebook (online)
1983 T.C. Memo. 220, 45 T.C.M. 1374, 1983 Tax Ct. Memo LEXIS 564, Counsel Stack Legal Research, https://law.counselstack.com/opinion/germain-v-commissioner-tax-1983.