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him. He was informed that the transcript indicates
that such notices were issued. These notices are
issued within (10) days from assessment. Mr. Dunbar
wanted to know if IRS personnel have the authority to
issue notices and adjust income tax returns? He wanted
copies of delegation orders and authorization from the
Secretary.
Our system of taxation is dependent on taxpayers’
belief that the laws they follow apply to everyone.
The courts have consistently upheld the constitutional-
ity of the federal income tax. See Schiff v. Commis-
sioner, T.C.M. 1984-223, aff’d, 751 F.2d 116(2nd Cir.
1984).
Appeals cannot consider arguments dealing with the
legality of the federal tax law.
Whether an individual is liable for income tax is
determined under Subtitle A of the Internal Revenue
Code (the Code), Chapter 1, Subchapter A- Determination
of Tax Liability. Part I, Section 1, imposes a tax on
the taxable income of every individual. Whether an
individual has taxable income is determined under
Chapter 1, Subchapter B- Computation of Taxable Income.
Part I, Section 63, defines “taxable income”, gener-
ally, as gross income minus the deductions allowed by
Chapter 1.
The current federal tax law enacted by Congress is the
Code. Section 6001 and 6011 of the Code provide, in
pertinent part, that every person liable for any tax
imposed by the Code shall make a return. Section 6012
of the Code provides that a federal income tax return
shall be made by every individual whose gross income
equals or exceeds certain amounts. “Shall” as used in
Sections 6001, 6011 and 6012 means “must”; “must” means
to be required to. Who is required by the Code to file
a return is explained in the instructions for Form 1040
under the heading “Filing Requirements”.
Section 6001 of the Code states that every person
liable for a tax imposed by the Code shall make returns
and comply with such rules and regulations as the
Secretary of the Treasury may from time to time pre-
scribe. Section 1.6012(a)(6) of the Income Tax Regula-
tions states that Form 1040 is prescribed for general
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