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the accuracy-related penalty. Sec. 7491(c); Higbee v.
Commissioner, 116 T.C. 438, 446-447 (2001).
1. Unreported Income
As previously stated, respondent contends that petitioner
had unreported tip income for taxable year 2000 of $14,057. It
is respondent’s contention that the $14,057 figure is a
reasonable estimation of petitioner’s tips during the year 2000,
especially in light of petitioner’s failure to keep a tip diary.
However, petitioner contends that he is not liable for the
alleged unreported income because he believes he was a
participant in the Tax Compliance Program during taxable year
2000, and therefore his tips were included in the $19,497
reported on the W-2 issued by Hilton.
Section 61(a) defines gross income as “all income from
whatever source derived,” unless otherwise provided. The Supreme
Court has consistently given this definition of gross income a
liberal construction “in recognition of the intention of Congress
to tax all gains except those specifically exempted.”
Commissioner v. Glenshaw Glass Co., 348 U.S. 426, 430 (1955); see
also Roemer v. Commissioner, 716 F.2d 693, 696 (9th Cir. 1983)
(all realized accessions to wealth are presumed taxable income,
unless the taxpayer can demonstrate that an acquisition is
specifically exempted from taxation), revg. 79 T.C. 398 (1982).
It is beyond contention that tips are included within the
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