Ernest Colton v. Lawrence B. Gibbs, Commissioner of Internal Revenue, and Unknown Government Officials

Appellant Ernest Colton appeals the district court’s dismissal of this action, in which Colton is seeking the return of a penalty assessed by the Internal Revenue' Service (IRS) under 26 U.S.C. section 6702 . Since the IRS was acting within its statutory authority when it imposed the penalty, Colton is entitled to none of the relief sought. The district court correctly dismissed the complaint and we affirm.

I.Facts

Ernest Colton filed a Form 1040X (Amended U.S. Individual Income Tax Return) with the IRS on April 11, 1986. The form was filed as an amendment to Col-ton’s original 1984 tax return, which had shown a total tax liability of $2,206.90. On the amended return, Colton changed this amount to zero and demanded a refund of all taxes paid in 1984. In a statement attached to the form, he cited “crimes” allegedly committed by the government and claimed a right not to become an accomplice in those crimes by paying taxes.

The IRS denied Colton’s refund and assessed a $500 penalty against him for filing a frivolous income tax return in violation of 26 U.S.C. section 6702 . Colton paid $75 toward the penalty and then filed a claim for a refund of the $75. The IRS denied this…