Barry and Penny Knelman - Page 4




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                                        OPINION                                         
          Gross Income                                                                  
               Under section 61, Congress defined gross income as all                   
          income from whatever source derived.  See Commissioner v.                     
          Glenshaw Glass Co., 348 U.S. 426, 430 (1955); Abrams v.                       
          Commissioner, 82 T.C. 403, 407 (1984).  This includes income from             
          a business.  See sec. 61(a)(2).  Petitioners do not challenge                 
          respondent’s calculation of petitioners’ income.  Petitioners, in             
          fact, stipulate that during 1994, Mr. Knelman received, but                   
          failed to report, $14,555 of income from the landscaping                      
          business.                                                                     
               Notwithstanding the express language of section 61,                      
          petitioners contend that they are not required to pay any Federal             
          income tax on this income.  Petitioners advance shopworn                      
          arguments characteristic of tax-protester rhetoric that has been              
          universally rejected by the courts.  See Williams v.                          
          Commissioner, 114 T.C. 136, 138-139 (2000); Boyce v.                          
          Commissioner, T.C. Memo. 1996-439, affd. without published                    
          opinion 122 F.3d 1069 (9th Cir. 1997); Fair v. Commissioner, T.C.             
          Memo. 1994-276, affd. without published opinion 60 F.3d 833 (9th              
          Cir. 1995).  Petitioners allege:  (1) There are no provisions in              
          the Internal Revenue Code requiring U.S. citizens to pay Federal              
          income tax on income earned in the United States; (2) the income              
          which the landscaping business earned was not gross income and                






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