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return “‘which does not contain any information relating to the
taxpayer’s income from which the tax may be computed is not a
return within the meaning of the Internal Revenue Code.’” United
States v. Moore, 627 F.2d 830, 834 (7th Cir. 1980) (quoting
United States v. Porth, 426 F.2d 519, 523 (10th Cir. 1970));
Sloan v. Commissioner, 102 T.C. 137, 142 (1994). The taxpayer
must have an honest and reasonable intent to supply the
information required by the tax code for a form to constitute a
return. United States v. Moore, supra at 835.
Petitioner, by entering zeros on all lines on the income
portion of his returns, did not have an honest and reasonable
intent to supply the information required. Therefore, the forms
submitted by petitioner for 1999 and 2002 do not constitute
Federal income tax returns.
Section 61(a)(1) provides that “gross income means all
income from whatever source derived”, including “Compensation for
services”. See Cent. Ill. Pub. Serv. Co. v. United States, 435
U.S. 21, 25 (1978); United States v. Basye, 410 U.S. 441, 449
(1973). Petitioner does not dispute that he earned wages for
1999 and 2002 and that the wages represented compensation for
services rendered. See Cabirac v. Commissioner, supra at 167
(“It is beyond contention that wages represent taxable income”).
It is a general tax law principle that “full compensation for
services rendered--no matter to whom paid, or when--is income
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Last modified: May 25, 2011