- 4 - allege a payment to the party identified as the ‘RECIPIENT’ of ‘gains, profit or income’ made in the course of a ‘trade or business’” and that he had “rebutted both of these documents in attachments” to his amended 2003 return. OPINION Section 61 provides that “gross income means all income from whatever source derived.” Gross income is an inclusive term with broad scope, designed by Congress to “exert * * * ‘the full measure of its taxing power’”. Commissioner v. Glenshaw Glass Co., 348 U.S. 426, 429 (1955) (quoting Helvering v. Clifford, 309 U.S. 331, 334 (1940)). Compensation for services is enumerated among the items of income included under section 61. Sec. 61(a)(1). Petitioner agrees that he has in fact received the amounts reportedly paid to him; he simply argues that the amounts are not taxable. Petitioner’s argument is clearly without merit, and we hold that the amounts of nonemployee compensation received by petitioner are includible in his taxable income for 2003. Respondent also determined that petitioner is liable for an accuracy-related penalty under section 6662(a). In relevant part, section 6662(a) and (b) imposes an accuracy-related penalty if any portion of an underpayment is attributable to either (1) negligence or disregard of rules or regulations or (2) any substantial understatement of income tax. “Negligence” includesPage: Previous 1 2 3 4 5 6 Next
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