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You have not nor will you ever see a tax dollar from
this property without my information. Therefore, if
you are willing [to] forgive my tax liability for 1997
(I did not benefit from this debt) I will provide you
with her name (only one like it) and the address of the
rental property that you are not collecting tax dollars
on (a lot of tax dollars). To acknowledge your
acceptance of my request, please send me a form 201 (to
pay a commission) and I will then send you her name and
address.
Discussion
A. Applicable Principles
Respondent’s determination in the notice of deficiency is
presumed correct, and petitioner must prove such determination
incorrect in order to prevail.2 Rule 142(a); INDOPCO, Inc. v.
Commissioner, 503 U.S. 79, 84 (1992); Welch v. Helvering, 290
U.S. 111, 115 (1933).
Section 61(a) provides that “gross income means all income
from whatever source derived” except as otherwise provided. The
definition of gross income is broad in scope, Commissioner v.
Glenshaw Glass Co., 348 U.S. 426, 429-430 (1955), and exclusions
from gross income are narrowly construed, United States v. Burke,
504 U.S. 229, 248 (1992); United States v. Centennial Sav. Bank
FSB, 499 U.S. 573, 583 (1991).
It is beyond dispute that gross income includes income from
the discharge of indebtedness. Sec. 61(a)(12); sec. 1.61-12(a),
Income Tax Regs. As explained by the United States Supreme
2 Petitioner does not contend that sec. 7491(a) is
applicable to this case, nor is it.
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