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applying specified percentages to an individual’s wages.7 Secs.
3101(a); 3111(a); 3301(a); 3402(a). Thus, in order to compute
the proper amount of employment taxes it is necessary to
determine the total amount of each individual’s wages.
Therefore, it follows that the Court’s jurisdiction includes
determining the amount of wages paid to individuals that the
Commissioner determined, or alleged in the answer, to be
employees of the taxpayer.
Additionally, section 6214(a) further supports this
conclusion. See sec. 7436(d). Section 6214(a) provides that the
Tax Court has jurisdiction to redetermine the correct amount of
the deficiency even if the amount so determined is greater than
the amount of the deficiency, notice of which has been mailed to
the taxpayer, and to determine whether any additional amount
should be assessed if claim therefor is asserted by the
Commissioner at or before the hearing or a rehearing. In
applying section 6214(a) in the deficiency context, we do not
merely review whether respondent correctly calculated the amount
of tax due. We review the determinations (e.g., understated
income, overstated deductions, etc.) underlying the deficiency.
We conclude that, in order to determine the proper amount of
employment taxes, pursuant to section 7436 we have jurisdiction
7 “Wages”, for purposes of employment taxes, are defined in
secs. 3121(a), 3306(b), and 3401(a).
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Last modified: May 25, 2011