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Petitioner's 1994 income tax return reported total income of
$21,575.12, consisting of wages, $21,515.13, and interest income,
$59.99.4 However, under Adjustments to Income on page 1 of Form
1040, petitioner made a material alteration to the form by
listing his salary and wage income of $21,515.13 as a deduction,
resulting in reported adjusted gross income of $59.99. Adjacent
to his improvised adjustment, petitioner whited out the
preprinted line descriptions and typed in "Compensation
exclusion, 26 CFR ('39)9.22(b) Knowlton vs Moore 178 U.S. 41
Right to Labor is nontaxable Murdoch vs Penn. 319 U.S. 105
Coppage vs. Kan. 236 U.S. 1". Petitioner also claimed the
standard deduction of $3,800 and one personal exemption of
$2,450. The return shows a zero total tax liability, Federal
income tax withheld of $1,006.70, and an overpayment of
$1,006.70. Petitioner signed his 1994 Federal income tax return
and stamped above his signature "Without Prejudice UCC 1-207".5
4
Attached to petitioner's 1994 return were three Forms W-2,
from the following employers reporting the following wages:
(1) Clark Refining and Marketing, Inc., $18,764.34;
(2) Prudential Ins. Co. of America, $609.85; and (3) Staffing
Solutions, Inc., $2,140.94. Also attached to the return was a
Form 1099-R, Distributions From Pensions, Annuities, Retirement
or Profit-Sharing Plans, IRAs, Insurance Contracts, etc., from
Prudential Ins. Co. of America reporting a gross distribution of
$84.43 from petitioner's retirement plan, with $4.33 being
taxable.
5
At trial, counsel for respondent stated "Respondent did not
accept this form for filing due to the qualification beneath his
signature and due to the material alterations." In Sloan v.
(continued...)
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