Pete says IRS friv pen notice proves he's right

[Quixote]

The second reason is that when knowledgeably examined, these scary notices are actually great demonstrations of the facts that CtC is the complete and accurate truth about the tax; that the IRS knows it full well; and that the one play the bad guys have in response to that truth and the grown-up men and women who stand up for it and act on it is bluff, bluster and lawlessness deployed in an effort to exploit ignorance, doubt and fear.

Parsing "Frivolous" Fictions, Lost Horizons Forum

[Imalawman]

The second reason is that when knowledgeably examined, these scary notices are actually great demonstrations of the facts that CtC is the complete and accurate truth about the tax; that the IRS knows it full well; and that the one play the bad guys have in response to that truth and the grown-up men and women who stand up for it and act on it is bluff, bluster and lawlessness deployed in an effort to exploit ignorance, doubt and fear.

Parsing "Frivolous" Fictions, Lost Horizons Forum

Tis just scratch - I have you now!!!

[Famspear]

Yep, Blowhard Hendrickson must be feelin' pret-ty dog-gone cocky after having spent nearly two years in federal prison for using his CtC scam on his own tax returns -- why that in and of itself is a monumental victory that proves he's right.

(...sigh.....)

The old "losthorizons" web site ain't whut it yoostah-be. Even Prevaricatin' Pete's Remaining Minions seem to lack the uuuummmph of former days. The Glory Days for His Haughty-ness, for His Pontificatin' Preposterousness, seem to have passed.

Can the Fabulous Felon whip up his troops into Scintillating Scads of Silly Sophistry that will match the Yammering of Yesteryears??? How, oh how, will he reclaim His Former Glory?

[Famspear]

The second reason is that when knowledgeably examined, these scary notices are actually great demonstrations of the facts that CtC is the complete and accurate truth about the tax; that the IRS knows it full well; and that the one play the bad guys have in response to that truth and the grown-up men and women who stand up for it and act on it is bluff, bluster and lawlessness deployed in an effort to exploit ignorance, doubt and fear.

I notice that Blowhard Hendrickson posted this at losthorizons on Friday. Here it is Monday, and not one person yet has posted a response. In the olden days, the John J. Bulten - Patrick Michael Mooney types would have almost immediately posted joyous, responsive hosannas and hallelujahs, as though Preposterous Pete's words had come directly from The Throne of God.

For example:

viewtopic.php?t=2959

[webhick]

I notice that Blowhard Hendrickson posted this at losthorizons on Friday. Here it is Monday, and not one person yet has posted a response. In the olden days, the John J. Bulten - Patrick Michael Mooney types would have almost immediately posted joyous, responsive hosannas and hallelujahs, as though Preposterous Pete's words had come directly from The Throne of God.

Let's face facts, there's only so far you can shove your head up someone else's ass before you realize that you're out of oxygen and it's too late to turn back. The interesting news about that is that Darth Hendrickson's head will no longer be lonely.

[Pottapaug1938]

The second reason is that when knowledgeably examined, these scary notices are actually great demonstrations of the facts that CtC is the complete and accurate truth about the tax; that the IRS knows it full well; and that the one play the bad guys have in response to that truth and the grown-up men and women who stand up for it and act on it is bluff, bluster and lawlessness deployed in an effort to exploit ignorance, doubt and fear.

Parsing "Frivolous" Fictions, Lost Horizons Forum

The words that jumped out at me, when I read this, were "when knowledgeably examined".

Pete knows as much about how to "knowledgeably examine" the tax laws as Lindsay Lohan knows about leading a stable, sober, upright, inspirational life.

[jkeeb]

Today's tax court has another CTCer proven right.

[Famspear]

Today's tax court has another CTCer proven right.

Oh, yeah.... David Loven Nelson, T.C. Memo 2012-232, docket # 21102-10 (Aug. 13, 2012).

Pilot for Northwest Airlines.

And, not his first rodeo when it comes to losing (oops, I mean "winning") using Blowhard Hendrickson's "Cracking the Code" scam. See also:

http://scholar.google.ca/scholar_case?q ... 16&scilh=0

EDIT: In the Tax Court decision rendered today, the Court imposed a $2,000 penalty for frivolous litigation, even though the IRS attorney did not specifically ask for imposition of the penalty. The Court also upheld over $36,000 in penalties for late filing, late payment, etc. The tax deficiency upheld by the Court was over $126,000.

[Famspear]

I should clarify; the penalty for failure to timely file was of course the penalty for failure to timely file a valid income tax return. The Tax Court concluded that Nelson's Cracking the Code return did not constitute a valid return.

This excerpt provides some flavor of the case:

On September 22, 2010, petitioner filed a petition with this Court contesting respondent’s determinations in the notices of deficiency. This Court set this case for trial at the Mobile, Alabama, trial session beginning April 26, 2011. At trial this Court warned petitioner that if he continued to assert frivolous or groundless positions, this Court would consider imposing a penalty under section 6673. In addition, this Court repeatedly told petitioner that any testimony must be directed to relevant factual issues and that this Court would give him an opportunity to make his arguments after the testimony was completed and the evidentiary record was closed. Despite the Court’s warnings, petitioner continued to ignore the Court’s instructions and assert arguments in lieu of proper testimony. Specifically, he argued that he did not receive wages in 2005 and 2008 because his activities during those years did not satisfy the definition of “employment” in the Code. He also referenced during his testimony various Code sections and regulations that purportedly support his argument. Because he repeatedly violated this Court’s express instructions and ignored those instructions after repeated warnings, this Court closed the evidentiary record and removed petitioner from the courtroom.....

---from p. 5 of the text.

[Famspear]

More from the Court's opinion:

Throughout these proceedings, petitioner repeatedly argued that he was not an “employee” and that he did not receive “wages” as those terms are defined by the Code. As noted supra pp. 9-10, these arguments are contrary to well-established law and are frivolous. At trial petitioner did not testify regarding any disputed factual matters, and he persisted in asserting his frivolous and groundless arguments. Although this Court provided ample warning of the potential implications of continuing to assert those frivolous and groundless arguments, petitioner did not abandon his arguments or acknowledge his liability for income tax on the income he received during 2005 and 2008. Instead, petitioner continued to assert these arguments at trial and in his posttrial memorandum.

Although respondent did not move for the Court to impose a penalty pursuant to section 6673, this Court believes that petitioner’s conduct deserves an appropriate sanction under section 6673. Accordingly, we shall require petitioner to pay to the United States a penalty under section 6673(a)(1) of $2,000....

[LPC]

Today's tax court has another CTCer proven right.

Oh, yeah.... David Loven Nelson, T.C. Memo 2012-232, docket # 21102-10 (Aug. 13, 2012).

One of the years at issue was 2005, which is interesting because Nelson actually got a refund for that year (search for "Nelson" on the page and you'll see Hendrickson's regurgitation of the refund and resulting correspondence).

So the IRS issued an erroneous refund and, instead of suing for the return of the erroneous refund (as was done for Hendrickson), they decided to follow the notice of deficiency procedure (followed, we assume, by the collection procedure).