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Commissioner’s burden of production is to produce evidence that
it is appropriate to impose the relevant penalty, addition to
tax, or additional amount. Higbee v. Commissioner, 116 T.C. 438,
446 (2001). The Commissioner, however, does not have the
obligation to introduce evidence regarding reasonable cause. Id.
at 446-447.
Gross income means income from whatever source derived
including compensation for services and unemployment
compensation. Sec. 61(a)(1); George v. Commissioner, T.C. Memo.
2006-121. At trial, petitioner’s contentions consisted of
nothing but frivolous tax protester arguments. Petitioner
repeatedly asked what section of the Internal Revenue Code
required him to pay tax. Petitioner testified that he worked for
Sprint, Janus, and Merrill Lynch, that he earned wages from each
of those employers, and that he applied for unemployment
compensation. Petitioner further testified: “I’m assuming, in
hindsight, that I must have been paid.” Petitioner disputed,
however, that he ever received income. When respondent asked
petitioner how he supported himself, petitioner testified: “I
worked for a company that paid me wages that were not part of any
income as I know income.” Petitioner’s argument that there is no
Code section requiring him to pay tax has been rejected by every
court that has addressed the issue and is the type of frivolous
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Last modified: May 25, 2011