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“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).
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