                         T.C. Memo. 2005-278



                       UNITED STATES TAX COURT



              RONALD LEE BONACCORSO, Petitioner v.
          COMMISSIONER OF INTERNAL REVENUE, Respondent



     Docket No. 8003-04.               Filed December 1, 2005.



     Ronald Lee Bonaccorso, pro se.

     Anne D. Melzer, for respondent.



                         MEMORANDUM OPINION


     COHEN, Judge:    Respondent determined deficiencies of $22,988

and $23,825 in petitioner’s Federal income taxes for 1999 and

2000, respectively.   Respondent also determined additions to tax

of $1,987 and $5,527.25 under section 6651(a)(1) and $303.52 and

$1,170.76 under section 6654 for those years, respectively.      At

the time of trial, respondent filed a motion for sanctions under
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section 6673.    Unless otherwise indicated, all section references

are to the Internal Revenue Code in effect for the years in

issue.

                             Background

     All of the facts have been stipulated, and the stipulated

facts are incorporated as our findings by this reference.

Petitioner resided in New York at the time that he filed his

petition.

     During 1999 and 2000, Frontier Telephone of Rochester paid

petitioner compensation of $90,319 and $91,192, respectively.

HSBC Bank, USA, paid petitioner $34 of interest income in each

year.    Level County Bank of Boston paid petitioner $17 of

dividends in 1999, and Equiserve paid petitioner $18 of dividends

in 2000.

     During 1999, Level County Bank of Boston paid petitioner

$2,970 of gross proceeds from the sale of stocks and bonds.

Petitioner has offered no proof of any basis in the stocks and

bonds sold.

     During 2000, Equiserve paid petitioner $1,942 of gross

proceeds from the sale of stocks and bonds.    Petitioner has

offered no proof of any basis in the stocks and bonds sold.

     During 2000, Western Regional OTB Corp. paid petitioner

$3,009 of gross proceeds from gambling.    Petitioner has offered
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no proof of any gambling losses incurred in the same taxable

year.

     Petitioner filed Forms 1040, U.S. Individual Income Tax

Return, for 1999 and 2000 showing “0" on every line except the

line for withholding credits (line 58), the line showing total

payments (line 65), and the lines showing refunds due (lines 66

and 67a).    To each Form 1040, he attached a copy of his Form W-2,

Wage and Tax Statement, for the year and a letter summarizing his

legal arguments.    The arguments included that no sections of the

Internal Revenue Code established an income tax liability,

required him to file a return, or authorized the procedures

followed by the Internal Revenue Service.    Petitioner did not

make any estimated tax payments for 1999 or 2000.

                              Discussion

     In the petition in this case, petitioner did not state any

facts or assign any errors in respondent’s determination of

taxable income and tax.    The petition merely repeated

petitioner’s claim that “I found no code section that made me

liable for any income tax.”

     The arguments that petitioner attached to his Forms 1040 for

1999 and 2000 have been long recognized as stale, groundless, and

frivolous.   Section 1 imposes an income tax on petitioner’s

taxable income.    Section 63 defines taxable income as gross

income minus deductions.    All of the categories of income
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received by petitioner during the years in issue are specified in

section 61, which provides in relevant part:

     SEC. 61.   GROSS INCOME DEFINED.

          (a) General Definition.–-Except as otherwise
     provided in this subtitle, gross income means all
     income from whatever source derived, including (but not
     limited to) the following items:

               (1) Compensation for services, including
          fees, commissions, fringe benefits, and similar
          items;

           *       *      *       *       *      *        *

                (3) Gains derived from dealings in property;

                (4) Interest;

           *       *      *       *       *      *        *

                (7) Dividends;

Petitioner’s arguments to the contrary have been consistently

rejected and characterized as frivolous in innumerable cases.     No

further discussion of them is merited.     See Crain v.

Commissioner, 737 F.2d 1417, 1418 (5th Cir. 1984); Cabirac v.

Commissioner, 120 T.C. 163, 167 (2003).

     Petitioner stipulated that he had presented no evidence of

basis that would reduce the proceeds he received from the sale of

stock and that he offered no proof of any gambling losses that

would offset his gambling winnings.      He has not suggested that he

had any deductions beyond the standard deduction allowed by

respondent in the statutory notice of deficiency.
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     The stipulated facts also satisfy respondent’s burden of

going forward with respect to additions to tax.    See Cabirac v.

Commissioner, supra at 168; Higbee v. Commissioner, 116 T.C. 438,

447 (2001).

     Petitioner was allowed time after the case was submitted to

respond to respondent’s motion for sanctions under section 6673,

which provides:

          SEC. 6673(a).    Tax Court Proceedings.--

               (1) Procedures instituted primarily for
          delay, etc.–-Whenever it appears to the Tax Court
          that--

                       (A) proceedings before it have been
                  instituted or maintained by the taxpayer
                  primarily for delay,

                       (B) the taxpayer’s position in such
                  proceeding is frivolous or groundless, or

                       (C) the taxpayer unreasonably failed to
                  pursue available administrative remedies,

          the Tax Court, in its decision, may require the
          taxpayer to pay to the United States a penalty not
          in excess of $25,000.

Petitioner did not file a response to the motion.     Because

petitioner’s arguments are frivolous and groundless and because

the record compels the conclusion that this proceeding was

instituted and maintained primarily for delay, respondent’s

motion will be granted, and a penalty will be awarded to the

United States in the amount of $10,000.
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     Petitioner is also advised that appellate courts have

ordered sanctions for frivolous appeals in similar cases.       See

Coleman v. Commissioner, 791 F.2d 68, 72-73 (7th Cir. 1986);

Connor v. Commissioner, 770 F.2d 17, 20 (2d Cir. 1985); Schiff v.

Commissioner, 751 F.2d 116, 117 (2d Cir. 1984), affg. T.C. Memo.

1984-223.

     To reflect the foregoing,


                                         An appropriate order and

                                 decision for respondent will be

                                 entered.
