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petitioner apparently is arguing that because her employer failed
to withhold she should not be held liable for Federal income tax
on income received from that employer.
The fact that petitioner’s employer did not withhold taxes
from her income is irrelevant to petitioner’s tax liability.
Income derived from compensation for services is clearly gross
income subject to taxation. See sec. 61(a). Furthermore, the
burden of paying tax on this income ultimately falls on each
individual liable for the tax, not on her employer. See Edwards
v. Commissioner, 39 T.C. 78, 83-84 (1962), affd. on this issue,
revd. on another issue, and remanded, 323 F.2d 751 (9th Cir.
1963); Harper v. Commissioner, T.C. Memo. 1990-239. Petitioner
is now liable for the same amount of tax as she would have been
had her employer withheld any amounts; the date of the payment of
such tax merely was delayed.
Petitioner also disputes the interest which respondent
asserts is due on the deficiency. This Court does not have
jurisdiction to redetermine interest in this case prior to the
entry of a decision redetermining the deficiency. See sec.
7481(c); Rule 261; Pen Coal Corp. v. Commissioner, 107 T.C. 249,
255 (1996).
To reflect the foregoing,
Decision will be entered
for respondent.
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Last modified: May 25, 2011