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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” includes
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