Custer’s Last Stand

No, not that Custer.

Earlier this month the Tax Court looked at the case of Richard Custer. Mr. Custer, a pilot, hadn’t filed his 2004 tax return. The IRS sent him a notice of deficiency. Mr. Custer then filed a petition with the Tax Court, “…containing numerous frivolous and groundless “tax defier” arguments.” And this wasn’t Mr. Custer’s first appearance before the Tax Court. As the IRS noted, “Petitioner has made frivolous arguments in a past Tax Court case and continues to maintain these arguments in the current case. In his previous Tax Court Case, Docket No. 21335-05L, the Court imposed a § 6673 penalty in the amount of $5,000.”

The Tax Court doesn’t look kindly at “…shopworn arguments characteristic of tax-protester/tax defier rhetoric that has been universally rejected by this and other courts.” And the court has a stick they can use against petitioners who make such arguments. “Section 6673(a)(1) authorizes this Court to penalize up to $25,000 a taxpayer who institutes or maintains a proceeding primarily for delay or pursues a position in this Court which is frivolous or groundless.” Mr. Custer was penalized $10,000 for his frivolity.

So if you think that you don’t have to pay the income tax it’s time to change your view. Those frivolous arguments aren’t worth the paper they’re printed on.

Case: Custer v. Commissioner, T.C. Memo 2008-266

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