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attributable solely to petitioner’s mistake in reporting
unemployment compensation of $4,809 as Social Security benefits.
Petitioner does not dispute that she received $4,809 of
unemployment compensation during 1997.
Discussion
Section 61 provides that all income, from whatever source
derived, is includable in gross income unless specifically
excluded by another provision. See Commissioner v. Glenshaw
Glass Co., 348 U.S. 426, 431 (1955). “In the case of an
individual, gross income includes unemployment compensation.”
Sec. 85(a). “[T]he term ‘unemployment compensation’ means any
amount received under a law of the United States or of a State
which is in the nature of unemployment compensation.” Sec.
85(b). Petitioner has not stated any disagreement with these
basic rules.
Petitioner testified that she received unemployment
compensation and that she was aware it was includable in income
when she filed her 1997 income tax return. Petitioner, however,
claims that she relied on erroneous tax advice she received from
IRS employees.
In sum, petitioner argues that the deficiency notice issued
by the IRS in this case is invalid because she made a good faith
effort to correctly report her income on her Federal income tax
return for 1997 and relied on the advice of IRS employees.
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