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* * * * * * *
10) In addition, don’t notify me that the IRS is
“changing” my return, since there is no statute that
allows the IRS to do that. You might prepare a return
(pursuant to Code Section 6020(b)), where no return is
filed, but as in this case, where a return has been
filed, no statute authorizes IRS personnel to “change”
such a return.
* * * * * * *
The word “income” is not defined in the Internal
Revenue Code. * * * But, as stated above, it can only
be a derivative of corporate activity. * * *
B. Respondent’s Deficiency Notice and Petitioner’s Response
On August 20, 1999, respondent issued a joint notice of
deficiency to petitioner and his wife for the taxable year 1997.
In the notice, respondent determined a deficiency in Federal
income tax in the amount of $4,031, an addition to tax under
section 6651(a)(1) for failure to timely file in the amount of
$72.40, and an accuracy-related penalty under section 6662(a) and
(b)(1) for negligence or disregard of rules or regulations in the
amount of $289.60.3 The deficiency in income tax was based on
respondent’s determination that petitioner and his wife failed to
report their wage income.
By letter dated September 29, 1999, petitioner wrote to the
Director of respondent’s Service Center in Ogden, Utah,
3 Insofar as their ultimate tax liability was concerned,
respondent gave petitioner and his wife credit for the amounts
withheld from their wages. However, we note that the
determination of a statutory deficiency does not take such
withheld amounts into account. See sec. 6211(b)(1).
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