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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 5.1.11.6.10 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
SECRETARY.--
(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
(continued...)
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