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You correctly point out that IRC �61 defines income.
More precisely, �61 defines Gross Income. * * *
Sec. 61. Gross Income defined.
(a) General definition.
Except as otherwise provided in this subtitle,
gross income means all income from whatever
source derived, including (but not limited to)
the following items:
(1) Compensation for service, including
fees, commissions, fringe benefits, and
similar items;
Wages are considered to be compensation for services.
The U.S. Tax Court has recently ruled on documents and
positions that are substantially identical to the ones
you have put forward. (See Christopher Kiley v. Com-
missioner, T.C. Memo 2002-315; No. 6676-02L (27 Dec.
2002)) A copy of this case was provided to you at the
hearing. In Kiley v. Commissioner, the U.S. Tax Court
ruled that the return filed with all -0-‘s and using
substantially identical language in the attachments was
clearly frivolous. The Court went further and assessed
a substantial penalty under IRC �6673 for taking the
Court’s time with arguments that have been long settled
as a matter of law.
A copy of the Court’s warning as provided for in
Pierson v. Commissioner was also given to you at the
Hearing and explained.
No spousal defenses were raised. The only challenges
you raised as to the appropriateness of the collection
actions were couched in terms of arguments that have
previously been identified as frivolous.
You offered no alternatives to the proposed enforced
collection actions.
BALANCING EFFICIENT COLLECTION AND INTRUSIVENESS:
The determination of Appeals is that the proposed
collection action balances the need for efficient
collection of taxes with the intrusiveness of the
action since the liabilities are due and owing and the
notices of proposed enforced collection action were
legally proper. You were notified that the documents
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Last modified: May 25, 2011