Daniel C. McManus - Page 5

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          2005.  Although petitioner did not appear, petitioner’s counsel             
          did.  Petitioner’s counsel did not introduce witnesses or provide           
          documentary evidence in support of petitioner’s position.                   
                                       OPINION                                        
               Petitioner asserts he is not liable for the deficiency and             
          additions to tax respondent determined because:  (1) Petitioner             
          did not receive income in the years at issue because he assigned            
          the income to a trust; (2) respondent failed to meet the burden             
          of producing evidence that the income earned during the years at            
          issue was attributable to petitioner; (3) respondent failed to              
          meet the burden of producing evidence that petitioner is liable             
          for additions to tax; and (4) the person who issued the notices             
          of deficiency lacked delegated authority.                                   
          A.   Assignment of Income                                                   
               Petitioner asserts he did not earn the commissions paid by             
          Bankers United for the years at issue because he assigned all his           
          commissions to Salt Creek Services.  Section 61(a) defines gross            
          income for purposes of calculating taxable income as “all income            
          from whatever source derived”.  This broad definition includes              
          “Compensation for services, including fees, commissions, fringe             
          benefits, and similar items”.  Sec. 61(a)(1); sec. 1.61-2(a)(1),            
          Income Tax Regs.  One of the fundamental principles of the                  
          Federal income tax is that income must be taxed to the one who              
          earns it.  Lucas v. Earl, 281 U.S. 111 (1930).  Attempts to                 






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