Case: Taxpayer’s Earnings Were “Wages"; Penalties For Meritless Position Upheld (10th Cir.) (IRC §3401)

Taxpayer’s arguments against paying federal income tax on his earnings were meritless, the U.S. Court of Appeals for the Tenth Circuit held, affirming the Tax Court’s deficiency determination and related penalties. Taxpayer, an individual, worked for a company in 2018 and earned income but filed a zero-income tax return, claiming he had not received “wages” and was not an “employee” under I.R.C. §3401. The IRS sent Taxpayer a notice of deficiency for unpaid taxes and assessed an accuracy-related penalty under §6662. The Tax Court sustained the deficiency determination and penalties, and imposed an additional penalty for frivolous arguments. The Court ...