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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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