I am not a Tax Lawyer, Nor do I play Dan Evans on the internet.
I am not a Certified Public Accountant, Nor do I play Paul Thomas on the internet.
I am not an Enrolled Agent, Nor do I play Richard Macdonald on the internet.
DO NOT TAKE MY WORD FOR ANYTHING ON THIS PAGE.
Go look it up for yourself.
Unpaid Stamp Taxes and Taxes shown on a return. That's it. There are no other sections that authorize an assessment of taxes. If you think I am wrong, and know of any other section of the IRC that authorizes assessment of tax that applies to Subtitle A - "income" taxes, please contact me with that information.
This is not to be confused with an assessment of a deficiency which is briefly covered in this new window.
If a Citizen has determined a tax amount on their domestic compensation for labor and shows it on their Form 1040, that is the amount that the Secretary is authorized to assess.
If the Citizen does not show an amount of compensation for labor, or a tax thereupon, on a return or does not make a return, This statute does not allow the Secretary to assess a tax on the Citizen's domestic compensation for labor.
Unless there is authority for the Secretary to make a return when an alleged taxpayer fails to do so, the Secretary CAN NOT ASSESS a tax on a Citizen's domestic compensation for labor.
The root word of includes means to enclose. Much like the fence of a corral includes (encloses) the herd of horses, the authority to make assessments includes (encloses) the herd of taxes shown on a return and taxes payable by stamp. Unless used with supporting words such as includes but is not limited to, or also includes, Includes is a word of limitation, contrary to what most of you believe it means by common usage. Elsewhere on this web site is an expansive examination of the words includes and including.
The Secretary has delegated authority to assess taxes shown on a return and unpaid taxes payable by stamp. I do NOT see any authority to assess income taxes not shown on a return. Do you?
If the Citizen does not show an amount of compensation for labor, or a tax thereupon, on a return or does not make a return, This regulation does not allow the delegate to assess a tax on the Citizen's domestic compensation for labor.
Unless there is authority delegated to make a return when an alleged taxpayer fails to do so, the delegate CAN NOT ASSESS a tax on a Citizen's domestic compensation for labor.
In this next segment we will examine the text under the unpaid taxes payable by stamp heading. But first, a quick review of a portion of the IRC section shown above.
The general almost always precedes the specifics. While the requirement and authorization to make inquiries and determinations looks like it covers a broad range, the specifics explain the actual limits. The part of subsection (a) that precedes paragraph (2) is the general. Paragraph (2) explains the specifics.
"Upon such information as he can obtain" ONLY applies to taxes payable by stamp. I see NO authority to estimate income taxes "upon such information as the delegates can obtain". Do you?
I see NO authority for the assessment of taxes based upon W-2 or 1099 information. Do you? Remember, the IRC is the skeleton, and the Treasury Regulations are the muscle on the skeleton.
This closes the door to assessment of income taxes not shown on a return by a taxpayer as suggested by this part of the regulation shown on the last page:
There is no authority for a tax liability to be created by putting some number on some form that is not a tax return form. It is quite clear to me, based upon proper understanding of context, that the supporting list or record applies to stamp taxes.
The "list" refers to lists of taxable items. This "list" of taxable items deals with the taxes upon imported goods. This "list" is the "return" in the case of taxable items imported. (Note to self, cover this in the appendix.)
This leaves income taxes shown on a return (Form 1040) as the ONLY source for the amount of "income" tax that can legally be accessed.
Unless specific authority can be found for the IRS to fill out a missing Form 1040, the only way an "income" tax can be assessed upon an American Citizen's compensation for labor is if the Citizen fills out a Form 1040 and affirms under penalties of perjury that the Citizen owes the tax.