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The Fifth Circuit Court of Appeals has spanked Dr. John Trowbridge, a tax-protesting physician, with a $6,000 penalty for filing a "frivolous" appeal. The appeal, which asserted that the taxpayer wasn't a "taxpayer" and which “objects to the use of Federal Reserve Notes to discharge debts,” was an attempt to overturn a Tax Court decision imposing a $25,000 fine for similar foolish arguments.
We can look forward to seeing more litigation from Dr. Trowbridge; he may well be planning further futile litigation to keep the IRS from collecting the $31,000 in fines and the $989,877 in back taxes, interest and penalties imposed by the Tax Court in two separate decisions.
Dr. Trowbridge was one of the first taxpayers ever to get the full $25,000 penalty for frivolity from the Tax Court. Now that he has also been penalized by the Fifth Circuit, he probably has done about all he can to annoy the courts, at least for these tax years.
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Joe Kristan writes the Tax Update items, and any opinions expressed or implied are not neccesarily shared by anyone else at Roth & Company, P.C. Address questions or comments on Tax Updates to