Robert Henry Lehmuth - Page 8

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          in lieu of compensation for services and therefore constitute               
          gross income to petitioner.                                                 
               Petitioner states in the petition:  “I was NEVER a 1099                
          employee (independent contractor); wages earned were earned as a            
          W2 employee.  * * * These wages-–as an employee–-should have had            
          all taxes withheld.”  Petitioner also argues that because he                
          allegedly did not receive a Form W-2 or a Form 1099 with respect            
          to the settlement proceeds, the proceeds are exempt from Federal            
          income tax.                                                                 
              Petitioner’s initial argument, presented in general form in             
         the petition, was that his former employer should have paid him              
         overtime compensation timely and should have withheld Federal                
         income tax from the timely payment.  Petitioner argued that,                 
         consequently, his former employer is responsible for any Federal             
         income tax now due on the settlement payment in lieu of overtime             
         compensation.  Since petitioner did not pursue this argument at              
         trial, we conclude that petitioner has abandoned it.  See                    
         Zimmerman v. Commissioner, 67 T.C. 94, 104 n.7 (1976).  In any               
         event, we reject the argument as without merit.  As for                      
         petitioner’s alleged nonreceipt of a Form W-2 or a Form 1099, the            
         law is well settled that the nonreceipt of either form does not              
         excuse a taxpayer from the duty to report income, Deas v.                    
         Commissioner, T.C. Memo. 2000-204 (and cases cited therein), and             
         that failure to receive either form does not justify a taxpayer              

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