Thomas G. Brenner - Page 10

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                          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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