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The facts deemed established are: (1) At the time he filed
his petition, petitioner resided in Grapevine, Texas; (2) in
1996, petitioner received $80,621 as compensation for services
from his employer, Gulf Lake Contracting, $3,865 of taxable
income from the sale of stocks and bonds, and $125 as dividend
income; and (3) petitioner did not file a tax return for 1996.
Discussion
I. Taxability of Amount Received
Section 61 defines gross income as all income from whatever
source derived. Gross income includes compensation for services.
Sec. 61(a)(1).
Petitioner does not challenge whether he received the
amounts nor the calculation of the amounts received by him.
Petitioner contends: (1) His wages are not taxable income
because he did not perform services within the “United States” as
defined by section 31.3121(e)-1, Employment Tax Regs.;2 and (2)
the reported wages are based on an erroneously submitted Form
W-2, Wage and Tax Statement, because petitioner did not
voluntarily submit his Social Security number and sign a Form
W-4, Employee’s Withholding Allowance Certificate, which resulted
in the issuance of the Form W-2.
2 This regulation applies to employment taxes and has no
effect on the income taxes that are at issue in this case.
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