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deficiency and the additions to tax. In his pretrial memorandum
and during trial, respondent also argued that petitioner should
be subject to a penalty under section 6673 for raising frivolous
arguments.
II. Burden of Proof
Petitioner stipulated the receipt of the income underlying
the notices of deficiency for all the taxable years. We do not
discuss the burden of proof because the outcome of this case
turns on the preponderance of the evidence and is unaffected by
section 7491. See Estate of Bongard v. Commissioner, 124 T.C.
95, 111 (2005) (citing Blodgett v. Commissioner, 394 F.3d 1030,
1035 (8th Cir. 2005), affg. T.C. Memo. 2003-212); Estate of Stone
v. Commissioner, T.C. Memo. 2003-309).
III. Filing Requirement
The Code imposes a Federal tax on the taxable income of
every individual. Sec. 1. Gross income for the purposes of
calculating taxable income is defined as “all income from
whatever source derived”. Sec. 61(a). Thus, the definition of
gross income under section 61(a) broadly encompasses any
accession to a taxpayer’s wealth.
Every U.S. resident individual whose gross income for the
taxable year equals or exceeds the exemption amount, subject to
exceptions not applicable here, is required to make an income tax
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