-4-
2000, and he reported his compensation from the tribe for serving
on the tribal council and the Simpson board on his return for
2001. Petitioner reported tax due of $11,392 for 1999, $13,101
for 2000 and $8,643 for 2001.
Respondent’s Examination and the Petition
Respondent examined petitioner’s returns for the years at
issue and issued petitioner a notice of deficiency (deficiency
notice) dated September 18, 2003. In the deficiency notice,
respondent determined that the compensation petitioner received
from the tribe for serving as an elected tribal council member
was taxable income for 1999 and 2000, that the IRA distributions
were includable in gross income for 1999 and 2001, that
petitioner was not entitled to a $69,916 adjustment in 2001, and
that petitioner was liable for the accuracy-related penalty.
Petitioner timely filed a petition for review with this
Court.
OPINION
Petitioner asserts that the income he received from both
GLITC and the tribe during the years at issue is exempt from
taxation,3 that he is entitled to deductions beyond those claimed
on his returns for the years at issue, and that he is not liable
3Although petitioner reported his compensation from GLITC
for all the years at issue and for serving on the Simpson board
and the tribal council in 2001 on his returns for the relevant
years, petitioner now contends that these items are exempt from
taxation. A taxpayer’s characterization of an item on his or her
income tax return may be considered an admission against the
taxpayer’s interest. Times Tribune Co. v. Commissioner, 20 T.C.
449, 452 (1953); Doll v. Commissioner, T.C. Memo. 2005-269.
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