- 5 - filed, no statute authorizes IRS personnel to “change” that return. * * * * * * * NOTE: 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 December 3, 1999, respondent issued a joint notice of deficiency to the Davidsons. In the notice, respondent determined a deficiency in the amount of $32,278 in the Davidsons’ Federal income tax for 1997 and an accuracy-related penalty under section 6662(a) for negligence or disregard of rules or regulations in the amount of $6,448.66. The deficiency was based on respondent’s determination that the Davidsons failed to report: (1) Wage income (as set forth in the Forms W-2 mentioned above), and (2) a distribution from an ESOP (as reported to respondent by Northern Trust Co. on Form 1099-R). By registered letter dated January 26, 2000, petitioner wrote to the Director of respondent’s Service Center in Ogden, Utah, acknowledging receipt of the notice of deficiency dated December 3, 1999, but challenging the Director’s authority “to send me the Notice in the first place.”2 Petitioner sent copies of this letter by registered mail to Robert Rubin, Secretary of 2 Petitioner’s letter dated Jan. 26, 2000, stated in part: “This letter is being submitted on my behalf only and exclusive of my now ex-wife Dawn F. Davidson.”Page: Previous 1 2 3 4 5 6 7 8 9 10 11 12 13 14 15 16 Next
Last modified: May 25, 2011