                         T.C. Memo. 1998-120



                       UNITED STATES TAX COURT



                   JAMES W. VONDYL, Petitioner v.
            COMMISSIONER OF INTERNAL REVENUE, Respondent



     Docket No. 12774-97.                      Filed March 26, 1998.




     James W. VonDyl, pro se.

     Milton B. Blouke, for respondent.



                         MEMORANDUM OPINION

     GERBER, Judge:    Respondent determined income tax

deficiencies for petitioner’s 1991 and 1992 taxable years in the

amounts of $13,775 and $8,176, respectively, and additions to tax

as follows:    Section 6651(a),1 $3,443.75 for 1991 and $2,044.00

     1
         Section references are to the Internal Revenue Code in
                                                     (continued...)
                                - 2 -


for 1992; section 6654(a), $787.23 for 1991 and $356.58 for 1992.

Petitioner has conceded that he received all of the wages and

other items that respondent determined were income.   His position

is that he did not earn a profit from any of the sources

determined to be income.   More particularly, the questions for

our consideration are:   (l) Whether petitioner’s wages or

compensation from services, interest, dividends, gambling

winnings, and proceeds from the sale of stock are income, and (2)

whether petitioner is liable for the additions to tax under

sections 6651(a) and 6654(a) for each of the taxable years 1991

and 1992.

     Petitioner resided at Las Vegas, Nevada, at the time his

petition was filed in this case.   At trial, petitioner appeared,

but did not wish to testify or offer evidence.   He requested that

we decide his case based on a document presenting his position

with respect to respondent’s determination.   Petitioner’s

argument as to why the determined items were not income to him

may be summarized as follows:   (1) The section 61 definition of

income is inconsistent with Supreme Court opinions that contain

the statement that income equates with the concept of profit, and

petitioner contends that his exchange of services for wages or

compensation is not a profit situation.   (2) The right to receive

     1
      (...continued)
effect for the years in issue, and Rule references are to this
Court's Rules of Practice and Procedure.
                               - 3 -


earnings is “not a privilege that can be taxed.”    (3) Only income

earned outside of the 50 United States is subject to Federal tax.

(4) Section 6211 “presupposes that an original assessment has

been made.”

     Petitioner, by selectively analyzing statutes, regulations,

and case precedent out of context, has reached the conclusion

that amounts he received from any and all sources do not

constitute income.   Petitioner, following in the footsteps of

numerous others who have unsuccessfully attempted to rationalize

a way to avoid paying Federal income tax, must also fail.    We

find petitioner’s arguments to be either wholly without merit and

not worthy of further analysis and/or previously addressed by

this and other courts.   See, for example, opinions addressing the

question of whether compensation for labor is not subject to tax,

such as Funk v. Commissioner, 687 F.2d 264 (8th Cir. 1982), affg.

T.C. Memo. 1981-506; Broughton v. United States, 632 F.2d 706,

707 (8th Cir. 1980); Hayward v. Day, 619 F.2d 716, 717 (8th Cir.

1980); Rowlee v. Commissioner, 80 T.C. 1111, 1120 (1983).

Further, we are not obligated to exhaustively review and/or rebut

petitioner’s misguided contentions.     Crain v. Commissioner, 737

F.2d 1417 (5th Cir. 1984).

     Accordingly, we sustain respondent’s determination that

certain items set forth in the notice of deficiency are income

for petitioner’s 1991 and 1992 years.    We note that respondent
                                 - 4 -


determined the amount of each income adjustment from information

provided by reporting third parties, and the amounts were

established by means of deemed admissions under Rule 90.        One of

the items of income may be the gross proceeds of a security sale;

however, petitioner did not wish to provide any evidence,

including whether he had any basis in the security sold so as to

reduce the amount of tax liability.

     Respondent also determined additions to tax in each year

under sections 6651(a) (failure to file) and 6654(a) (failure to

pay estimated tax).   It is clear from the information available

in this case that petitioner failed to file a return.      In

addition, petitioner has offered no evidence or sound

explanations as to why these additions to tax should not be

imposed.   In view of the foregoing, we hold that the additions to

tax under sections 6651(a) and 6654(a) are sustained for the

taxable years 1991 and 1992.   Rule 142(a); New Colonial Ice Co.

v. Helvering, 292 U.S. 435 (1934); Welch v. Helvering, 290 U.S.

111 (1933).

     To reflect the foregoing,


                                         Decision will be entered for

                                  respondent.
