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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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