                          T.C. Memo. 1999-217



                        UNITED STATES TAX COURT



                     SALLY-ANN NASH, Petitioner v.
             COMMISSIONER OF INTERNAL REVENUE, Respondent



        Docket No. 19286-97.              Filed July 2, 1999.



        Sally-Ann Nash, pro se.

        Fred E. Green, Jr., for respondent.



                          MEMORANDUM OPINION

        DINAN, Special Trial Judge:   This case was heard pursuant to

the provisions of section 7443A(b)(3) and Rules 180, 181, and

182.1



        1
          Unless otherwise indicated, all section references are
to the Internal Revenue Code in effect for the taxable year in
issue. All Rule references are to the Tax Court Rules of
Practice and Procedure.
                               - 2 -

     Respondent determined a deficiency in petitioner's Federal

income tax for 1994 in the amount of $2,872, an addition to tax

pursuant to section 6651(a)(1) in the amount of $718, and an

addition to tax pursuant to section 6654(a) in the amount of

$147.99.

     The issues for decision are:   (1) Whether petitioner has

proved any error in respondent's determinations in the statutory

notice of deficiency, and (2) whether we should, sua sponte,

impose a penalty on petitioner pursuant to section 6673(a).

     No stipulations of fact were filed in this case.    Petitioner

resided in Carson City, Nevada, on the date the petition was

filed.

     Petitioner worked as an appraiser during 1994.    Respondent

determined that the following entities paid petitioner the

following amounts for her appraisal services during 1994:

           Real Estate Appraisers Office      $2,310
           First Nationwide Mortgage Corp.       500
           Coast Federal Bank                  4,175
           First Nationwide Bank               6,575
              Total                           13,560

Petitioner does not deny having received moneys from the above-

mentioned entities for services performed during 1994.

     Petitioner did not file a Federal income tax return for her

1994 taxable year.   In a statutory notice of deficiency,

respondent determined that petitioner received and failed to

report nonemployee compensation during 1994 in the amount of
                               - 3 -

$13,560 which is includable in her gross income and subject to

self-employment taxes.   Respondent also determined that

petitioner is liable for the section 6651(a)(1) addition to tax

for failing to file her 1994 return and the section 6654(a)

addition to tax for failing to make estimated tax payments during

1994.

     Based on the record, we find that petitioner has failed to

prove any error in respondent's determinations.   See Rule 142(a).

Petitioner submitted no evidence of the allegedly deductible

items which she contends respondent failed to take into account

in determining her tax liability.   In addition, her selective

research of the tax laws failed to reveal that her alleged lack

of "taxable income" does not relieve her from filing a return.

Petitioner was required to file a return for 1994 because her

"gross income" exceeded the section 6012(a)(1)(A)(i) threshold.

     We will not address any of petitioner's other objections to

her liability for Federal income taxes as they consist primarily

of classic discredited and rejected tax protester arguments.     As

was stated by the Court of Appeals for the Fifth Circuit:   "We

perceive no need to refute these arguments with somber reasoning

and copious citation of precedent; to do so might suggest that

these arguments have some colorable merit."   Crain v.

Commissioner, 737 F.2d 1417, 1417 (5th Cir. 1984).
                               - 4 -

     We hold that respondent's determinations of a deficiency in

petitioner's Federal income tax for 1994 and additions to tax for

1994 pursuant to sections 6651(a)(1) and 6654(a) are sustained.

     The second issue for decision is whether we should, sua

sponte, impose a penalty on petitioner pursuant to section

6673(a).

     Whenever it appears to this Court that proceedings before it

have been instituted or maintained by the taxpayer primarily for

delay or that the taxpayer's position in such proceeding is

frivolous or groundless, the Court, in its discretion, may

require the taxpayer to pay to the United States a penalty not in

excess of $25,000.   See sec. 6673(a)(1)(A) and (B).   A position

maintained by a taxpayer in the Tax Court is frivolous "if it is

contrary to established law and unsupported by a reasoned,

colorable argument for change in the law."   Coleman v.

Commissioner, 791 F.2d 68, 71 (7th Cir. 1986).

     Petitioner made numerous frivolous arguments in her trial

memorandum and at trial.   She has caused this Court to waste its

limited resources on her erroneous views of the tax law while the

resolution of other taxpayers' bona fide controversies with

respondent were delayed.   On the other hand, despite the lack of

any merit in petitioner's arguments, respondent failed to make a

motion to dismiss this case and proceeded to trial.    Respondent

also failed to make any motion for a penalty under section 6673.
                                 - 5 -

     We will impose a section 6673 penalty on petitioner in the

amount of $750.

     To reflect the foregoing,

                                              Decision will be entered

                                         for respondent.
