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6651(a)(1)1 for failure to file a return and under section 6654
for failure to pay estimated tax, of $8,635 and $1,447,
respectively.
We must decide whether petitioner’s gross income includes
certain payments made during 1993 for services performed by
petitioner. Petitioner claims these payments are not his income,
because he did not personally receive them. Instead, petitioner
directed the recipients of his services to pay an entity known as
“Universal Trust” (Universal). Petitioner asserts that Universal
should be recognized as a separate taxable entity and that the
payments made by the service recipients should be treated as
Universal’s income. In the alternative, petitioner asserts he is
entitled to business deductions that offset the services income.
Petitioner has also filed a “Motion for Summary Disposition
and/or Judgment” and a Motion in Limine, which challenge the
validity of the statutory notice, question respondent’s ability
to make certain arguments or introduce certain evidence, and urge
a reallocation of the burden of proof.
In addition to rebutting petitioner’s procedural challenges,
respondent advances three arguments for including in petitioner’s
income the payments made to Universal. First, respondent claims
1 All section references are to the Internal Revenue Code in
effect for 1993, and all Rule references are to the Tax Court
Rules of Practice and Procedure, unless otherwise specified.
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