- 10 -
Year Commissions Expenses
1991 $163,912 $89,775
1992 157,399 86,208
1993 230,581 126,289
1994 215,378 117,962
1995 221,021 121,053
1996 261,240 143,081
1997 342,891 187,801
Petitioner did not challenge Revenue Agent Dugger’s
reconstruction of his income.
OPINION
A. Validity of Notice of Deficiency
Petitioner’s primary contention is that the notice of
deficiency is invalid because respondent did not prepare a
substitute for return for each of the years at issue. We
disagree.
If the Secretary determines a deficiency in income tax, he
is authorized to send to the taxpayer a notice of deficiency by
certified or registered mail before assessing the deficiency.
Secs. 6212(a), 6201(a). Under section 6211(a), the term
“deficiency” is generally defined as the amount of tax imposed
less the amount shown as the tax by the taxpayer upon his return.
See Laing v. United States, 423 U.S. 161 (1976).
Where a taxpayer fails to file a return, section 6020(b)
allows the Secretary (or the District Director or other
authorized internal revenue officer or employee, sec.
301.6020-1(b)(1), Proced. & Admin. Regs.) to prepare a substitute
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Last modified: May 25, 2011