In Re: Stern v. ( 1997 )


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  •                             UNPUBLISHED
    UNITED STATES COURT OF APPEALS
    FOR THE FOURTH CIRCUIT
    No. 97-1415
    In Re:   PETER KAY STERN,
    Petitioner.
    On Petition for Writ of Mandamus.
    Submitted:   May 15, 1997                  Decided:   June 16, 1997
    Before RUSSELL, HALL, and HAMILTON, Circuit Judges.
    Petition denied by unpublished per curiam opinion.
    Peter Kay Stern, Petitioner Pro Se.
    Unpublished opinions are not binding precedent in this circuit.
    See Local Rule 36(c).
    PER CURIAM:
    Peter Stern petitions this court to enjoin the Internal
    Revenue Service (IRS) from collecting unpaid taxes, penalties, and
    interest from him. Additionally, he seeks compensatory damages for
    the IRS's actions in attempting to collect the debt and for alleged
    violations of the Freedom of Information Act (FOIA).1 Finding
    Stern's allegations and arguments devoid of merit, we deny the
    petition.
    Stern, who has not paid nor filed income tax returns since
    1984, maintains that federal case law and other materials provide
    that he is not required to file federal income tax returns. He
    claims that from the Constitution, Supreme Court cases, and other
    documents, he learned that the income tax was an excise tax for
    which he as a citizen of the state of North Carolina could not be
    held liable. Stern's position is absolutely devoid of merit.
    Congress has expressly removed or excluded jurisdiction of the
    court in tax cases to grant injunctions or declaratory judgments to
    prevent the assessment and collection of taxes.2 Moreover, the
    United States Supreme Court has consistently interpreted the fed-
    eral income tax for eighty years. Since 1916, the Court has con-
    strued the tax as an indirect tax authorized under Article I,
    1
    
    5 U.S.C. § 552
     (1994).
    2
    
    26 U.S.C. § 7421
    (a) (1994) (commonly called the "Anti-
    Injunction Act").
    2
    Section 8, Clause I of the U.S. Constitution, as amended by the
    Sixteenth Amendment.3 Federal courts have all agreed that wages or
    compensation for services constitute income and that individuals
    receiving income are subject to the federal income tax—regardless
    of its nature.4 In short, the debate over whether the income tax is
    an excise tax or a direct tax is irrelevant to the obligation of
    citizens to pay taxes and file returns.5
    Furthermore, the duty to file returns and pay income taxes is
    clear. Section 1 of the Internal Revenue Code imposes a federal tax
    on the taxable income of every individual.6 Section 63 defines
    "taxable income" as gross income minus allowable deductions.7
    Section 61 states that "gross income means all income from whatever
    source derived," including compensation for services.8 Sections
    6001 and 6011 provide that a person must keep records and file a
    tax return for any tax for which he is liable.9 Finally, § 6012
    3
    See Brushaber v. Union Pac. R.R., 
    240 U.S. 1
    , 11, 16-19
    (1916).
    4
    See, e.g., Brushaber, 
    240 U.S. at 17
    ; United States v.
    Sloan, 
    939 F.2d 499
    , 500-01 (7th Cir. 1991); Simmons v. United
    States, 
    308 F.2d 160
    , 167-68 (4th Cir. 1962).
    5
    Simmons, 
    308 F.2d at
    166 n.21 (stating that "it has been
    clearly established that the labels used do not determine the
    extent of the taxing power").
    6
    
    26 U.S.C. § 1
     (1994).
    7
    
    26 U.S.C. § 63
     (1994).
    8
    
    26 U.S.C. § 61
     (1994).
    9
    
    26 U.S.C. §§ 6001
    , 6011 (1994).
    3
    provides that every individual having gross income that equals or
    exceeds the exemption amount in a taxable year shall file an income
    tax return.10 The duty to pay federal income taxes therefore is
    "manifest on the face of the statutes, without any resort to IRS
    rules, forms or regulations."11
    Finally, it is clear from the evidence that Stern submitted,
    that the IRS complied with the FOIA. All the identifiable documents
    within the IRS's control were either produced or subject to with-
    holding under an exemption.12 The FOIA only requires that an agency
    release existing documents, not that it create new ones.13
    Accordingly, we deny Stern's petition for relief. Additional-
    ly, we deny Stern's request for subpoena duces tecum. We dispense
    with oral argument because the facts and legal contentions are
    adequately presented in the materials before the court and argument
    would not aid the decisional process.
    PETITION DENIED
    10
    
    26 U.S.C. § 6012
     (1994).
    11
    United States v. Bowers, 
    920 F.2d 220
    , 222 (4th Cir. 1990).
    12
    Goldgar v. Office of Admin., Executive Office of the Presi-
    dent, 
    26 F.3d 32
    , 34 (5th Cir. 1994).
    13
    Rushforth v. Council of Economic Advisors, 
    762 F.2d 1038
    ,
    1039 n.3 (D.C. Cir. 1985).
    4