Gloria J. Spurlock - Page 16

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          admit the alleged fact.”  She has offered no testimony or                   
          documents that bear on her income for the years in issue.  In our           
          discretion, we shall not exclude the affidavits and the                     
          underlying records that respondent introduced for any                       
          noncompliance with respect to the notice requirement or our                 
          standing order.14                                                           
          B.  Whether Petitioner Received Unreported Income as Determined             
               Gross income includes “all income from whatever source                 
          derived” including compensation for services.  Sec. 61(a); Grimes           
          v. Commissioner, 82 T.C. 235, 237 (1984).  Gross income also                
          includes any amount paid or distributed out of an individual                
          retirement plan.  Sec. 408(d)(1).  Respondent determined that               
          petitioner received wages, nonemployee compensation, and taxable            
          distributions from an individual retirement plan.  Petitioner               
          disputes that she had taxable income for the tax years in issue             
          and that she was required to file a Federal income tax return for           
          those years.  Petitioner argues that the determinations                     
          respondent made are arbitrary and erroneous, since they are based           

               14Petitioner also seeks to exclude the affidavit of George             
          Patenode on the grounds that respondent failed to name Mr.                  
          Patenode as a witness in his trial memorandum.  We cannot agree             
          that this failure is a basis for exclusion.  The choice of                  
          affiants and the identity of the custodian of records are matters           
          peculiar to the particular business.  It is sufficient that                 
          respondent stated his intention to subpoena the affidavit and               
          records from the custodian of records for Pioneer.                          

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