- 7 - 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”.Page: Previous 1 2 3 4 5 6 7 8 9 10 Next
Last modified: May 25, 2011