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Court of Appeals for the Fifth Circuit has remarked: "We perceive
no need to refute these arguments with somber reasoning and
copious citation of precedent; to do so might suggest that these
arguments have some colorable merit." Crain v. Commissioner, 737
F.2d 1417, 1417 (5th Cir. 1984); see Tolotti v. Commissioner,
T.C. Memo. 2002-86. Suffice it to say:
(1) Petitioners are taxpayers subject to the Federal income
tax; see secs. 1(a)(1), 7701(a)(1), (14);
(2) compensation for labor or services rendered constitutes
income subject to the Federal income tax; sec. 61(a)(1); United
States v. Romero, 640 F.2d 1014, 1016 (9th Cir. 1981);
(3) gains derived from dealings in property, interest, and
unemployment compensation also constitute income subject to the
Federal income tax; secs. 61(a)(3), (4), 85(a);
(4) petitioners are required to file an income tax return;
sec. 6012(a)(1); and
(5) a taxpayer’s failure to report tax on a return does not
prevent the Commissioner from determining a deficiency in that
taxpayer’s income tax; secs. 6211(a), 6212(a); see Monaco v.
Commissioner, T.C. Memo. 1998-284.
We likewise reject petitioners’ argument that the Appeals
officer failed to obtain verification from the Secretary that the
requirements of all applicable laws and administrative procedures
were met as required by section 6330(c)(1). The record shows
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