Robert J. Bivolcic - Page 4




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            regardless of whether petitioner pays Social Security and                                  
            medicare tax under section 3101.                                                           
                  Petitioner’s argument is completely without merit.  It is                            
            well established that income tax laws are constitutional.  Connor                          
            v. Commissioner, 770 F.2d 17 (2d Cir. 1985), affg. an unreported                           
            Order of this Court; Abrams v. Commissioner, 82 T.C. 403, 406-407                          
            (1984).  Section 1(d) imposes a tax on the taxable income of                               
            married individuals who do not file jointly.  Section 3101 also                            
            imposes a tax on the income of every individual under the Federal                          
            Insurance Contributions Act.  Section 3101 specifically states                             
            that this tax is imposed “in addition to other taxes”.  The                                
            imposition of this tax does not mean that other taxes may not be                           
            exacted.  Under section 61(a)(1), compensation for services is                             
            unequivocally included in gross income.  Nowhere is it stated                              
            that wages taxed under section 3101 should be exempt from being                            
            included in gross income under section 61(a)(1).  Because                                  
            petitioner is not exempt from Federal income tax, we sustain                               
            respondent’s determination as to the deficiency in income tax.                             
                  Respondent has moved for a penalty under section 6673.                               
            Under the applicable provisions of that section, this Court may                            
            award a penalty to the United States of up to $25,000 when the                             
            proceeding has been instituted or maintained by the taxpayer                               
            primarily for delay or if the taxpayer’s position in such                                  
            proceeding is frivolous or groundless.  Sec. 6673.  Based on the                           





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