Brian and Tina Nicklaus - Page 8

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               2.   Whether Respondent May Prepare Substitutes for                    
                    Individual Income Tax Returns                                     
               Petitioners contend that respondent may not prepare                    
          substitutes for returns for them because part of the            
          Internal Revenue Manual (IRM) (May 27, 1999) lists seven returns2           
          that may be prepared under the authority of section 6020(b) and             
          does not mention Form 1040.                                                 
               We disagree.  The Internal Revenue Service may prepare                 
          substitute returns for taxpayers who fail to do so themselves.              
          Sec. 6020(b)(1);3 Cabirac v. Commissioner, 120 T.C. 163, 171-172            

               2  The seven returns are: Form 940, Employer’s Annual                  
          Federal Unemployment Tax Return; Form 941, Employer’s Quarterly             
          Federal Tax Return; Form 943, Employer’s Annual Tax Return for              
          Agricultural Employees; Form 720, Quarterly Federal Excise Tax              
          Return; Form 2290, Heavy Vehicle Use Tax Return; Form CT-1,                 
          Employer’s Annual Railroad Retirement Tax Return; and Form 1065,            
          U.S. Partnership Return of Income.                                          
               3   Sec. 6020 provides:                                                
               SEC. 6020. RETURNS PREPARED FOR OR EXECUTED BY                         
                    (a) Preparation of return by Secretary.--If any                   
               person shall fail to make a return required by this                    
               title or by regulations prescribed thereunder, but                     
               shall consent to disclose all information necessary for                
               the preparation thereof, then, and in that case, the                   
               Secretary may prepare such return, which, being signed                 
               by such person, may be received by the Secretary as the                
               return of such person.                                                 
                    (b) Execution of Return by Secretary.--                           
                    (1) Authority of Secretary to execute return.--If                 
               any person fails to make any return required by any                    
               internal revenue law or regulation made thereunder at                  
               the time prescribed therefor, or makes, willfully or                   

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