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According to petitioners, respondent must “make, execute, and
file an involuntary return before there is a deficiency as
defined by Congress”. Here, petitioners allege, respondent has
prepared only “dummy” returns as to the subject years.
We disagree with petitioners’ allegation that the notices of
deficiency are invalid for lack of a section 6020(b) “return”.
In accordance with firmly established law, respondent need not
actually prepare a return in order to determine a deficiency in
the tax of a taxpayer who has never filed a return for that year.
Roat v. Commissioner, 847 F.2d 1379, 1381 (9th Cir. 1988);
Hartman v. Commissioner, 65 T.C. 542, 545 (1975); see also Schott
v. Commissioner, T.C. Memo. 1991-457. The mere fact that
respondent may not have based petitioners’ deficiency notices
upon a return within the meaning of section 6020(b) does not for
any year invalidate any of those notices.
II. Deficiency Determination
Respondent determined that petitioners were liable for taxes
on the amount of income reconstructed by the agent. Petitioners
argue that respondent’s determination is arbitrary and erroneous.
As to the wage income, petitioners argue, respondent failed to
establish the correct amount of wages that Mr. Burnett received
7(...continued)
(2) Status of returns.--Any return so made and
subscribed by the Secretary shall be prima facie good
and sufficient for all legal purposes.
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