- 3 -
petitioner has maintained this proceeding for delay and/or that
petitioner's position is frivolous.
There is no question or dispute about the material facts in
these cases. Petitioner does not dispute that she received
$86,408 and $92,274 in compensation or wages from her employer
for the taxable years 1993 and 1994, respectively. Petitioner
resided in Mission Viejo, California, at the time her petitions
were filed. Petitioner filed her 1993 and 1994 Federal income
tax returns on June 5, 1996, and December 5, 1995, respectively.
On those returns, petitioner reported the amount of wages she
received and then, as an adjustment, claimed it was "Nontaxable
compensation * * * [Eisner v. Macomber, 252 U.S. 189 (1920)]”.
As a result, petitioner reported zero taxable income and
requested a refund of any withholding tax withheld by her
employer. Attached to petitioner's returns are explanations
that, in essence, propose the following reasons why the
compensation she received was not taxable: (1) There is no
statutory requirement to file a return of income; (2) she is a
resident and citizen of California and a nonresident for Federal
purposes; and/or (3) her wages were not a gain or profit in
accord with her reading of Eisner v. Macomber, supra.
Petitioner, by selectively analyzing statutes, regulations,
and case precedent out of context, has reached the conclusion
that amounts she received do not constitute taxable income.
Page: Previous 1 2 3 4 5 6 7 Next
Last modified: May 25, 2011