U.S. Tax Court Case Summaries: April 4, 2008

Daily Record (Rochester, NY), Apr 4, 2008

U.S. Tax Court

Depreciation

"Human Capital" --

Frivolous Arguments

Boggs v. Commissioner of

Internal Revenue

T.C. Memo 2008-81

Judge Chiechi

Background: The petitioning husband and wife had a tax year 2003 deficiency asserted against them by the IRS in the amount of $30,937 and an accuracy-related penalty of $5,041. In their 2003 return, the petitioners reported wages of $253,979 but attempted to deduct $75,000 for the depreciation of human life. The petitioner opines in a protesting memo attached to the tax return that the "human machine" should be depreciable. The petitioner argued that "the government is imposing a tax upon 'my loss of life,' and the greater my loss of life, the greater the tax imposed."

Ruling: The court notes that the petitioners proffered no evidence and advanced no argument establishing that the IRS determination in the 2003 notice was wrong. Because the petitioners continued to advance frivolous arguments despite admonishment from the court, the court imposes a $10,000 penalty on petitioners under section 6673(a)(1).

Gary Boggs and Karen Boggs, petitioners pro se, and Louis H. Hill for the respondent