- 5 - “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, a return has been filed, no statute authorizes IRS personnel to “change” that 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 11, 2000, respondent (acting through Deborah Decker, Director of the Service Center in Ogden, Utah) issued a notice of deficiency to petitioner for the taxable year 1998. In the notice, respondent determined a deficiency in petitioner’s Federal income tax in the amount of $36,178 and an accuracy- related penalty under section 6662(a) and (b)(1) for negligence or disregard of rules or regulations in the amount of $6,945.51.2 The deficiency in income tax was based on respondent’s determination that petitioner failed to report income in the aggregate amount of $139,183, determined as follows: Income Amount Wages (Lakeview Co.) $17,401 Unemployment compensation 6,708 Capital gain 115,000 Interest income 74 139,183 2 Insofar as his ultimate tax liability was concerned, respondent gave petitioner credit for the amount withheld from his wages. However, we note that the determination of a statutory deficiency does not take such withheld amounts into account. See sec. 6211(b)(1).Page: Previous 1 2 3 4 5 6 7 8 9 10 11 12 13 14 15 16 17 18 Next
Last modified: May 25, 2011