Rutherford v. Commissioner

1981 T.C. Memo. 518, 42 T.C.M. 1103, 1981 Tax Ct. Memo LEXIS 216
CourtUnited States Tax Court
DecidedSeptember 21, 1981
DocketDocket No. 186-81.
StatusUnpublished

This text of 1981 T.C. Memo. 518 (Rutherford 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
Rutherford v. Commissioner, 1981 T.C. Memo. 518, 42 T.C.M. 1103, 1981 Tax Ct. Memo LEXIS 216 (tax 1981).

Opinion

ROY W. RUTHERFORD AND BETTY LOU RUTHERFORD, Petitioners v. COMMISSIONER OF INTERNAL REVENUE, Respondent
Rutherford v. Commissioner
Docket No. 186-81.
United States Tax Court
T.C. Memo 1981-518; 1981 Tax Ct. Memo LEXIS 216; 42 T.C.M. (CCH) 1103; T.C.M. (RIA) 81518;
September 21, 1981.
Roy W. Rutherford and Betty Lou Rutherford, pro se.
Eileen Kato Player, for the respondent.

DAWSON

MEMORANDUM OPINION

DAWSON, Judge: This case was assigned to Special Trial Judge Francis J. Cantrel by Court order dated September 2, 1981, for the purpose of ruling on respondent's motion for judgment on the pleadings. 1

*217 After a review of the record, we agree with and adopt his opinion which is set forth below. 2

OPINION OF THE SPECIAL TRIAL JUDGE

CANTREL, Special Trial Judge: This case is before the Court on respondent's motion for judgment on the pleadings filed on July 20, 1981, pursuant to Rule 120, Tax Court Rules of Practice and Procedure.3

Respondent, in his notice of deficiency issued to petitioners on October 3, 1980, determined deficiencies in petitioners' Federal income taxes and in additions to the tax for the taxable calendar years 1976 and 1977 in the following respective amounts:

Additions to Tax, 1954 Code 4
YearIncome TaxSection 6653(a)
1976$ 7,541.26$ 377.06
19778,070.50403.53

*218 Petitioners resided at 12380 Polaris Drive, Grass Valley, California, on the date they filed their petition. They filed joint 1976 and 1977 Federal income tax returns with the Internal Revenue Service.

The adjustments to income as determined by respondent in his notice of deficiency are as follows: 5

19761977
Personal Service Income$ 27,027.91$ 32,930.00
Interest Income2,638.24841.53
Capital Gains294.970
Rental Income2,207.000
$ 32,168.22$ 33,771.53

In making his determinations respondent excluded from gross income the following amounts, which were reported by petitioners on their 1976 and 1977 returns:

19761977
Income from Roy W. Rutherford Trust$ 5,679.34$ 5,636.93
Consulting Fees from Roy W.
Rutherford Trust0800.00
$ 5,679.34$ 6,436.93

On January 5, 1981, petitioners filed their petition wherein at paragraph 4 thereof they allege:

Petitioners deny that the*219 Federal Government has jurisdiction (which must be proved by government) over petitioners for the following reasons:

1. Petitioners have the "unalienable right" of "persuit [sic] of happiness" which includes the right to exchange labors for the necessities of life and use the legal tender designated by the government as an aid in doing so 6, and

2.The Income Tax is an excise tax and therefore cannot be applicable to petitioners (see Congressional Record for Senate June 1909; pages 3976, 3977, 4031, 4032, 4033 and others), and

3. If affirmed, the present assessment would be a direct tax against Petitioner's labors, which is allowed only if apportioned, and

4. The Secretary of Treasury & Commissioner of Internal Revenue have failed to exhaust all Administrative remedies, and finally

5. Secretary of Treasury and Commissioner of Internal Revenue have failed to affirmatively and positively plead and prove primary jurisdiction over Petitioners, which Petitioners, as a matter of common law, are immune to state and Federal revenue and taxation laws, rules, regulations, obligations, liabilities, *220 and sanctions as have been applied in this case.

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Bluebook (online)
1981 T.C. Memo. 518, 42 T.C.M. 1103, 1981 Tax Ct. Memo LEXIS 216, Counsel Stack Legal Research, https://law.counselstack.com/opinion/rutherford-v-commissioner-tax-1981.