Skelton v. Commissioner

1977 T.C. Memo. 311, 36 T.C.M. 1228, 1977 Tax Ct. Memo LEXIS 130
CourtUnited States Tax Court
DecidedSeptember 14, 1977
DocketDocket No. 4191-76.
StatusUnpublished

This text of 1977 T.C. Memo. 311 (Skelton 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
Skelton v. Commissioner, 1977 T.C. Memo. 311, 36 T.C.M. 1228, 1977 Tax Ct. Memo LEXIS 130 (tax 1977).

Opinion

BILLY JACK SKELTON, Petitioner v. COMMISSIONER OF INTERNAL REVENUE, Respondent
Skelton v. Commissioner
Docket No. 4191-76.
United States Tax Court
T.C. Memo 1977-311; 1977 Tax Ct. Memo LEXIS 130; 36 T.C.M. (CCH) 1228; T.C.M. (RIA) 770311;
September 14, 1977, Filed

*130 P filed a Form 1040 for 1974 which disclosed no information regarding his income or tax liability. Held: (1) Such document does not constitute a "return," and the Commissioner properly imposed the addition to tax under sec. 6651(a)(1), I.R.C. 1954; and (2) some part of P's underpayment was due to negligence or intentional disregard of rules and regulations so that the addition to tax under sec. 6653(a), I.R.C. 1954, was properly imposed.

Billy Jack Skelton, pro se.
John F. Dean, for the respondent.

SIMPSON

MEMORANDUM FINDINGS OF FACT AND OPINION

SIMPSON, Judge: The Commissioner determined a deficiency of $1,966.71 in the petitioner's 1974 Federal income tax, an addition to tax of $36.91 under section 6651(a)(1) of the Internal Revenue Code*131 of 1954, 1 and an addition to tax of $98.34 under section 6653(a). The petitioner concedes his liability for the deficiency; thus, the only issues remaining for decision are: (1) Whether the Form 1040 filed by the petitioner constituted a tax "return"; if not, (2) whether his failure to file a return was due to reasonable cause and not due to willful neglect within the meaning of section 6651(a)(1); and (3) whether any part of the petitioner's underpayment was due to negligence or intentional disregard of rules or regulations within the meaning of section 6653(a).

FINDINGS OF FACT

Some of the facts have been stipulated, and those facts are so found.

At the time the petitioner, Billy Jack Skelton, filed the petition herein, he resided in Dallas, Tex. On March 14, 1975, the Internal Revenue Service Center, Austin, Tex., received a Form 1040 from the petitioner for 1974, which set forth his name, address, social security number, occupation, filing status, and number of exemptions. However, in response to every question dealing with the amount of his gross income, *132 or the amount of taxes owed, he wrote: "Object 5th Amend.: Self-incrimination." He did specify the amount of the Federal income tax withheld from his wages and sought a complete refund of such amount.

The Commissioner determined that in 1974 the petitioner received gross community income of $10,952.55, and the petitioner now agrees that he received such income. He knew that he was required to file a tax return for 1974 and to pay a tax on such income. However, he attended a seminar conducted by the Tax Strike Protest Movement, for which he paid a fee. At that meeting, he was advised to claim the privilege against self-incrimination and not to answer the questions on the return concerning his income and tax liability. He was told that the returns are processed by computers and that he was likely to receive automatically a refund of the tax withheld on his wages. Based on what he was told at the seminar, the petitioner concluded that securing a refund in such manner "was a loophole for the working man." The petitioner did not withhold the information called for on the return because he thought it would be incriminatory but because of the advice he had received at the seminar.

*133 In his notice of deficiency, the Commissioner computed the petitioner's income tax liability to be $1,966.71 based upon the wages he earned. After giving him credit for withheld taxes, the Commissioner determined a net tax owing of $147.65. He also determined that the petitioner failed to file a "return" and was therefore liable for an addition to tax under section 6651(a)(1). Finally, he determined that some part of the underpayment was due to negligence or intentional disregard of rules and regulations and imposed the addition to tax under section 6653(a).

OPINION

The petitioner agrees that his income tax liability for 1974 was $1,966.71 and that his net tax liability is $147.65 after credit is given for his withheld taxes. However, he contests the imposition of the additions to the tax under

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Bluebook (online)
1977 T.C. Memo. 311, 36 T.C.M. 1228, 1977 Tax Ct. Memo LEXIS 130, Counsel Stack Legal Research, https://law.counselstack.com/opinion/skelton-v-commissioner-tax-1977.