Muste v. Comm'r of Internal Revenue, Docket No. 66835.
| Decision Date | 13 March 1961 |
| Docket Number | Docket No. 66835. |
| Citation | 35 T.C. 913 |
| Parties | ABRAHAM J. MUSTE AND ESTATE OF ANNE MUSTE, DECEASED, PETITIONERS, v. COMMISSIONER OF INTERNAL REVENUE, RESPONDENT. |
| Court | U.S. Tax Court |
OPINION TEXT STARTS HERE
The petitioner for each of the years 1948 through 1952 failed to file income tax returns and pay income taxes, but at each time for filing advised the respondent of his decision to refuse to file and pay on the ground that it was contrary to the dictates of his conscience and religion to pay taxes which were to be used in part for war purposes or preparation for war. Held, that the Internal Revenue Code of 1939, in imposing the tax upon the petitioner and requiring him to file returns and pay the tax is not contrary to the first amendment to the Constitution, which provides that Congress shall make no law prohibiting the free exercise of religion. Held, accordingly that the respondent properly determined deficiencies in tax against the petitioner. Held, further, that the petitioner's failure to file returns and declarations of estimated tax was not due to reasonable cause, but was due to willful neglect, and that the respondent properly determined additions to the tax for failure to file. Held, further, that no part of the deficiencies for any year was due to fraud with intent to evade tax, and that the respondent erred in determining additions to tax on account of fraud. Harrop A. Freeman, Esq., for the petitioners.
Victor H. Frank, Jr., Esq., for the respondent.
The respondent determined deficiencies in income tax and additions thereto under the Internal Revenue Code of 1939 for the years and in the amounts as follows:
+------------------------------------------------------+
¦ ¦ ¦Additions to tax ¦
+----+------+------------------------------------------¦
¦Year¦Income¦ ¦ ¦ ¦ ¦
+----+------+-----------+-----------+---------+--------¦
¦ ¦tax ¦Sec. 293(b)¦Sec. 291(a)¦Sec. 294 ¦Sec. 294¦
+----+------+-----------+-----------+---------+--------¦
¦ ¦ ¦ ¦ ¦(d)(1)(A)¦(d)(2) ¦
+----+------+-----------+-----------+---------+--------¦
¦1948¦$357 ¦$178.50 ¦$89.25 ¦$35.70 ¦$21.42 ¦
+----+------+-----------+-----------+---------+--------¦
¦1949¦283 ¦141.50 ¦70.75 ¦28.30 ¦16.98 ¦
+----+------+-----------+-----------+---------+--------¦
¦1950¦176 ¦88.00 ¦44.00 ¦17.60 ¦10.56 ¦
+----+------+-----------+-----------+---------+--------¦
¦1951¦197 ¦98.50 ¦49.25 ¦19.70 ¦11.82 ¦
+----+------+-----------+-----------+---------+--------¦
¦1952¦152 ¦76.00 ¦38.00 ¦15.20 ¦9.12 ¦
+------------------------------------------------------+
In the petition it is alleged that because of the petitioner's religious beliefs ‘the assertion of taxes and penalties herein (is) in violation of the Constitution of the United States and the Amendments thereto, and the laws of the United States.’ At the hearing the respondent conceded error in determining additions to tax under section 294(d)(2).
Some of the facts are stipulated and are incorporated herein by this reference. The petitioner Abraham J. Muste will hereinafter be referred to as the petitioner.
During the years 1948 through 1952 the petitioner was married and resided in New York, New York. Neither he nor his wife filed Federal income tax returns for those years and neither paid any income taxes to the United States Government.
The petitioner is an ordained Presbyterian minister and is also a member of the Society of Friends (Quakers). He is a graduate of Hope College in Holland, Michigan, where he received a bachelor of arts degree. He also received a master of arts degree from the New Brunswick Theological Seminary and a bachelor of divinity degree from the Union Theological Seminary in New York City.
The petitioner is a pacifist. Since 1916 he has been a member, and frequently an officer, in the Fellowship of Reconciliation, which is an organization located in New York City, which is opposed to the participation in, or preparation for, war. In 1940 he became its national executive secretary and held this position until 1953 when he reached the age of retirement and became secretary emeritus.
During the years 1948 through 1952 the petitioner received from the Fellowship of Reconciliation the following amounts as compensation for services:
+---------------+
¦1948¦$3,720.00 ¦
+----+----------¦
¦1949¦3,204.44 ¦
+----+----------¦
¦1950¦3,115.00 ¦
+----+----------¦
¦1951¦3,092.88 ¦
+----+----------¦
¦1952¦3,411.60 ¦
+---------------+
The Fellowship of Reconciliation did not deduct and withhold any Federal income taxes from the above compensation during the years 1948 through 1952. This was in accord with the petitioner's request made to the organization based on the ground that the remuneration of an ordained minister is not subject to withholding.
The petitioner has written articles on the policy of the United States concerning thermonuclear warfare which have appeared in pacifist publications such as The Fellowship, which is published by the Fellowship of Reconciliation, a magazine known as Peacemakers, and bulletins of an organization known as the ‘War Resitors League.’ It was the petitioner's opinion, after examining the Federal budget and obtaining advice of others, that during the years 1948 through 1952 approximately 60 percent of the Federal budget was to be used for war purposes or for preparation for war.
Prior to 1948 the petitioner had filed income tax returns regularly, although he had qualms of conscience because he felt that he was contributing to war purposes. In 1948 he reached the conclusion that since the Federal Government had decided to produce hydrogen bombs and other weapons, it would be irrational for him, and against his conscience, to pay money to the Government for the production and use of such weapons. He accordingly at that time reached the decision to refuse to file income tax returns and pay any income tax.
Prior to the date for filing Federal income tax returns for each of the taxable years 1948 through 1952, the petitioner wrote letters with accompanying statements to the Internal Revenue Service stating that he did not intend to file income tax returns and pay income taxes, and stating his reasons therefor. Typical of the letters is one dated March 1, 1951, which he sent concerning the taxable year 1950 in which he stated in part as follows:
For the third successive year I must refuse to file an income tax return or to pay the Federal income tax. In lieu of the official report which I am unable and unwilling to file it seems appropriate that I should make a personal statement, to you, a fellow-citizen who also has responsibilities to face in this matter.
I am impelled to take the course which I am following by my Christian convictions, by conscience, and by my love for my country.
I would * * * have to reject war as a means even if the end seemed saner and worthier than that with which the world is today confronted. I am unable to regard participation in war— least of all in its utterly indiscriminate and unrestrained modern form— as compatible with the teaching and spirit of Christ to whom and whose church I owe an allegiance prior to my allegiance to any early (sic) state. Taking any voluntary part in war violates my conscience as a man, to whom all persons on both sides of the battle lines are equally sacred.
The budget and the energies and policies of the Federal government are today being rapidly sucked into a total commitment to war preparation. I fear that as the drive toward war gathers momentum, less and less weight attaches to the verbal (sic) or other protests of those who nevertheless submit to conscription of their person or substance. I consider, therefore, that I am obligated to withdraw as completely as possible from association with the war-making aspect of the State, to make as nearly total a protest as possible. * * *
A pacifist could not consistently make atomic bombs for others to use. About two years ago, I became convinced that I could no longer recognize the right of this or any other government to tax me in order to obtain the money to produce atomic or other weapons. In partial discharge of the obligation which accordingly rests upon me as a Christian, a member of the human family and a loyal citizen, I decline to file a Federal income tax return or to pay the tax.
* * * While I am in conscience bound to withhold cooperation from the process of raising funds for war, it would be a privilege to me to talk with you and others on a personal basis and to strive to explain why I on my part also ‘have no choice.’
In a statement which petitioner submitted to the Internal Revenue Service with respect to his refusal to pay taxes for the year 1948, he stated in part as follows:
The two decisive powers of government, especially with respect to war, are the power to conscript and the power to tax.
Pacifists recognize that to be consistent they must refuse to be conscripted for military service or training. I have come as the result of long reflection and prayer to the conviction that I at least am in conscience bound, in the present period, under the conditions above set forth, to challenge the right of the government to tax me for waging war, * * *
I recognize that as a citizen it is my duty to strive by ‘democratic’ means to change laws and policies with which I disagree and that ordinarily, where no serious issue of conscience is involved, one obeys laws until they are changed. The fact that a conscription law has been enacted does not, however, lead the pacifist to the conclusion that he must conform to it until it is repealed.
A consistent pacifist would unquestionably also be opposed in principle to paying taxes which went directly and solely to war purposes. The same reasoning that would prevent him from firing...
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