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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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Last modified: May 25, 2011