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established.6 As noted supra note 1, we granted respondent’s
motion and further ordered petitioner to file a response in
compliance with Rule 91(f)(2) or respondent’s proposed
stipulations would be deemed established. Petitioner failed to
file a response. Consequently, we ordered the facts deemed
stipulated pursuant to Rule 91(f)(3).
On January 9, 2006, the parties appeared at trial, and
respondent filed a motion for penalty pursuant to section 6673.
Discussion
Section 61(a) provides that gross income includes all income
from whatever source derived except as otherwise provided.
Specifically, gross income includes compensation for services.
Sec. 61(a)(1). Section 6012(a) generally requires the filing of
a tax return by every individual with gross income equal to or
exceeding the exemption amount.
Petitioner contends that he had no taxable income in 1998
and, consequently, that he was not required to file an income tax
return or pay income tax. However, petitioner concedes that he
received $27,011.27 of compensation from FN Manufacturing and
$323 of compensation from the State Board during 1998.
Petitioner has not made any viable contention or offered any
evidence as to why that compensation should not be included in
6The proposed facts referenced in respondent’s motion to
show cause are nearly identical to the revised stipulation of
facts.
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