McNeil v. C.I.R., 2012 U.S. App. LEXIS 4956 (10th Cir. 2012)
McNeil appealed from the U.S. Tax Court's order authorizing respondent Commissioner of the Internal Revenue Service to collect income taxes from him.
McNeil argued that his Civil Service Retirement System annuity was exempt from taxation. The court held that the annuity income was subject to income taxes. Pursuant to 26 U.S.C. 63(a), taxable income was gross income less allowable deductions, and "gross income" included income from annuities and pensions. Although certain property, including specified annuity and pension payments, was exempt from levy, Civil Service Retirement System annuity payments were not specified as exempt.
Because Civil Service Retirement System annuity payments were not specifically listed in 26 U.S.C.6334(a)(6), they were not exempt from levy. Petitioner's tax-protester arguments (that payment of income taxes was voluntary, that the tax code had not been enacted into "positive law," and that there was no statutory authority for the imposition of income taxes or penalties) had long been held to be frivolous.
The judgment of the Tax Court was affirmed.
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