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Commissioner, T.C. Memo. 1998-16; Minguske v. Commissioner, T.C.
Memo. 1997-573; Frami v. Commissioner, T.C. Memo. 1997-509;
Fisher v. Commissioner, T.C. Memo. 1996-277.
As a general rule, sections 1 and 3 impose a Federal tax on
the taxable income of every individual. Section 61(a) defines
gross income for purposes of calculating such taxable income as
“all income from whatever source derived” and specifies that
compensation for services, gains from dealings in property,
interest, and dividends are included within this broad
definition. See sec. 61(a)(1), (3), (4), (7).
Section 1401 then imposes an additional tax on the self-
employment income of every individual, both for old age,
survivors, and disability insurance and for hospital insurance.
The term “self-employment income” denotes “net earnings from
self-employment”. Sec. 1402(b). “Net earnings from self-
employment”, in turn, means “the gross income derived by an
individual from any trade or business carried on by such
individual, less the deductions allowed by this subtitle which
are attributable to such trade or business”. Sec. 1402(a).
Petitioner contends that private independent contractors and
citizens are not properly included within the meaning of
“individual” or “person” as used in the tax code and that to
treat them as such contravenes the principles of due process. In
petitioner’s view, only employees of Government-created or
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