James and Terri Carskadon - Page 8

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          are without merit and are groundless.  Petitioners’ contentions             
          are patently absurd, based on mere semantics, and are unsupported           
          by the law.  Petitioners’ assertions have been considered and               
          consistently rejected by this and other courts.  See Eisner v.              
          Macomber, 252 U.S. 189, 207-208 (1920); United States v. Romero,            
          640 F.2d 1014, 1016 (9th Cir. 1981); Abrams v. Commissioner, 82             
          T.C. 403, 407-408 (1984), and cases cited therein; Rowlee v.                
          Commissioner, 80 T.C. 1111, 1119-1122 (1983); Bumgarner v.                  
          Commissioner, T.C. Memo. 1997-48.                                           
               Gross income means all income from whatever source derived,            
          including (but not limited to) compensation for services.  Sec.             
          61(a).  Gross income includes income realized in any form,                  
          whether in money, property, or services.  Sec. 1.61-1(a), Income            
          Tax Regs.  Income as defined under the 16th Amendment is “gain              
          derived from capital, from labor, or from both combined”.  Eisner           
          v. Macomber, supra at 207.  Even if wages could be characterized            
          as the product of an exchange, the amount received in the                   
          exchange is still income within the Code.  Rice v. Commissioner,            
          T.C. Memo. 1982-129.  Although the wages received by petitioner             
          “may represent no more than the time-value of his work, they are            
          nonetheless the fruit of his labor, and therefore represent gain            
          derived from labor which may be taxed as income.”  Id.  Clearly,            
          the $50,847 petitioner received as compensation from his                    
          employers during 1997 is taxable income.                                    






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