-15-
Petitioner's primary argument3 is that section 83, Property
Transferred in Connection with Performance of Services, has the
effect of exempting his wages from income tax because it requires
us to apply section 1012, which specifies that cost should be
used to determine the basis of property (unless the Code provides
otherwise) to determine the extent to which wages constitute
taxable income. Petitioner asserts that he "paid" for his wages
with his labor and that section 83 allows the value of his labor
as a cost to be offset against his wages, thereby exempting them
from tax. Section 83 provides that property received for
services is taxable to the recipient of the property to the
3Petitioner advances some other frivolous arguments. He
claims that sec. 3121(e) ("An individual who is a citizen of the
Commonwealth of Puerto Rico (but not otherwise a citizen of the
United States) shall be considered, for purposes of this section,
as a citizen of the United States") implies that he is not a
citizen of the United States for the purposes of the income tax.
Obviously, that subsection includes citizens of Puerto Rico among
people considered citizens of the United States for the purposes
of sec. 3121, which has to do with the FICA tax, but it does not
exclude other citizens of the United States from that class. In
any case, the words "for purposes of this section" (which
petitioner significantly omits) mean that the provision has no
effect on the income tax, which is what is at issue in the case
at hand. Attempting to reach the same result, he similarly
misuses secs. 1402(b) and 7655. Petitioner also claims that sec.
6201, Assessment Authority, limits respondent's authority to
assess taxes to taxes paid by stamp. Sec. 6201 does grant
respondent assessment authority, and other authority, with
respect to taxes payable by stamp, but it also grants such
authority with respect to all taxes as to which returns or lists
are made under the Code, and this clearly includes the income
tax.
Significantly, these same subsidiary arguments, as well as
petitioner's main argument, were made in precisely the same
words, and rejected by us, in Santangelo v. Commissioner, T.C.
Memo. 1995-468.
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