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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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Last modified: May 25, 2011