Horace M. Chambers - Page 4




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                                       OPINION                                        
               We must decide (1) whether petitioner must include in his              
          income wages of $53,153 and $54,112 for the 1995 and 1996 tax               
          years, respectively, and whether petitioner may exclude from his            
          income amounts that were garnished from his wages during 1995 and           
          1996 to pay court ordered alimony and child support; (2) whether            
          petitioner is entitled to deduct amounts that he paid in alimony            
          in 1995 and 1996; and (3) whether petitioner is liable for any              
          additions to tax under sections 6651(a)(1), 6651(a)(2), or 6654.            
          I.  Income                                                                  
               Section 61 provides that gross income includes all income              
          from whatever source derived.  Subsection (a)(1) specifically               
          provides that compensation for services is included in income.              
          See also Commissioner v. Glenshaw Glass Co., 348 U.S. 426, 430              
          (1955); sec. 1.61-2, Income Tax Regs.  Petitioner was a civilian            
          employee of the Department of Defense and earned gross wages of             
          $53,153 in 1995 and $54,112 in 1996.  Accordingly, petitioner is            
          required to include these amounts in his taxable income for the             
          1995 and 1996 tax years, respectively.                                      
               Petitioner argues that he should not be required to include            
          in his taxable income amounts that were garnished from his wages.           
          Petitioner contends that (1) he is a cash basis taxpayer and                
          never had control of the amounts that were garnished and (2) his            
          civil rights were violated during his divorce proceedings.                  
               It is well established that income from personal services              




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