Greg Olson - Page 7

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          Commissioner, supra, which explicitly addresses petitioner’s                
          contentions by pointing out, inter alia, that section 61                    
          “prefaces its use of the word ‘source’ by the word ‘whatever’,              
          thereby making the particular source of a U.S. taxpayer’s income            
          (and the income sourcing rules of sections 861-865) irrelevant              
          for purposes of the definition of income under section 61.”                 
               Accordingly, the contentions raised in petitioner’s motion             
          do not provide a basis upon which summary judgment may be granted           
          in his favor.  We also caution petitioner that similar arguments            
          have led to the imposition of penalties under section 6673 for              
          maintaining frivolous positions.  E.g., Takaba v. Commissioner,             
          supra at 295-296; Williams v. Commissioner, supra at 144;                   
          Corcoran v. Commissioner, supra.  Petitioner is hereby forewarned           
          that any arguments pressed in the future should be carefully                
          tailored and limited to nonfrivolous matters.                               
          II.  Respondent’s Motion for Summary Judgment                               
               A.  Deficiencies                                                       
               Respondent determined that petitioner was liable for                   
          deficiencies generated by his failure to report and pay taxes on            
          income earned in 1999 and 2000.  As a general rule, the Internal            
          Revenue Code imposes a Federal tax on the taxable income of every           
          individual.  Sec. 1.  Section 61(a) specifies that “Except as               
          otherwise provided”, gross income for purposes of calculating               
          taxable income means “all income from whatever source derived”.             






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