                  T.C. Summary Opinion 2001-167



                     UNITED STATES TAX COURT



                 LISA A. FERREIRA, Petitioner v.
          COMMISSIONER OF INTERNAL REVENUE, Respondent



     Docket No. 4340-00S.                   Filed October 17, 2001.


     Lisa A. Ferreira, pro se.

     Louise R. Forbes, for respondent.



     DEAN, Special Trial Judge:     This case was heard pursuant to

the provisions of section 7463 of the Internal Revenue Code in

effect at the time the petition was filed.    Unless otherwise

indicated, subsequent section references are to the Internal

Revenue Code in effect for the year in issue.    The decision to be

entered is not reviewable by any other court, and this opinion

should not be cited as authority.
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     Respondent determined a deficiency of $720 in petitioner’s

Federal income tax for 1997.   The sole issue for decision is

whether $4,809 of unemployment compensation petitioner received

during 1997 is includable in her gross income.

     Some of the facts have been stipulated and are so found.

The stipulation of facts and the accompanying exhibits are

incorporated herein by reference.   Petitioner resided in Lowell,

Massachusetts, at the time the petition in this case was filed.

                            Background

     Petitioner timely filed her 1997 Federal income tax return

upon which she reported wages of $11,370 and Social Security

benefits in the amount of $4,809.

     During 1997 petitioner received $4,809 of unemployment

compensation from the Commonwealth of Massachusetts.   Petitioner,

however, reported the unemployment compensation on her 1997 Form

1040, U.S. Individual Income Tax Return, as Social Security

benefits.   She elected to have the entire amount of her Federal

income tax refund directly deposited into her bank account.

     Petitioner later called the Internal Revenue Service (IRS)

to check on the status of her $486 refund.   An IRS employee

informed her that her refund was in the amount of $1,206, $720

more than she claimed on her return.

     Petitioner was confused so she remained on the phone to

determine why the IRS had increased her refund.   The IRS employee
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informed her that she made a mistake on her return and that the

Social Security benefits, as reported, were not taxable.

Petitioner then explained the amounts and sources of her income

for 1997, including the unemployment compensation.   The IRS

employee said that the refund was a final determination and it

was hers to enjoy.

     Petitioner was uneasy with the IRS’s oral confirmation of

her right to the refund in the higher amount so she called a

second time to inquire about the appropriate amount of her

refund.   In response, another IRS employee said the IRS would

send petitioner a letter regarding the taxation of Social

Security benefits.   After receiving the letter, petitioner called

the IRS a third time and repeated that she did not receive Social

Security benefits.   Rather, petitioner stated, she received only

unemployment compensation and she could provide the IRS written

proof of its receipt.

     After the tax refund of $1,206 was deposited in petitioner’s

bank account, petitioner did not spend the money for 7 or 8

months because she feared the IRS would ask for the money to be

returned.   After IRS employees repeatedly confirmed that the

refund belonged to petitioner, she spent the money only when she

encountered severe financial difficulties.

     Two years later, the IRS determined a deficiency of $720 in

petitioner’s 1997 Federal income tax.   The deficiency is
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attributable solely to petitioner’s mistake in reporting

unemployment compensation of $4,809 as Social Security benefits.

Petitioner does not dispute that she received $4,809 of

unemployment compensation during 1997.

                             Discussion

     Section 61 provides that all income, from whatever source

derived, is includable in gross income unless specifically

excluded by another provision.    See Commissioner v. Glenshaw

Glass Co., 348 U.S. 426, 431 (1955).      “In the case of an

individual, gross income includes unemployment compensation.”

Sec. 85(a).    “[T]he term ‘unemployment compensation’ means any

amount received under a law of the United States or of a State

which is in the nature of unemployment compensation.”      Sec.

85(b).   Petitioner has not stated any disagreement with these

basic rules.

     Petitioner testified that she received unemployment

compensation and that she was aware it was includable in income

when she filed her 1997 income tax return.      Petitioner, however,

claims that she relied on erroneous tax advice she received from

IRS employees.

     In sum, petitioner argues that the deficiency notice issued

by the IRS in this case is invalid because she made a good faith

effort to correctly report her income on her Federal income tax

return for 1997 and relied on the advice of IRS employees.
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     This Court has held that the authoritative sources of

Federal tax law are statutes, regulations, and published court

opinions, not informal IRS sources such as telephone

conversations with IRS employees.   See Zimmerman v. Commissioner,

71 T.C. 367, 371 (1978), affd. without published opinion 614 F.2d

1294 (2d Cir. 1979); Green v. Commissioner, 59 T.C. 456, 458

(1972).   Furthermore, to promote uniform application of the tax

law, “the Commissioner must follow authoritative sources of

Federal tax law and may correct mistakes of law made by IRS

agents or employees.”   Deal v. Commissioner, T.C. Memo. 1999-352

(citing Dixon v. United States, 381 U.S. 68, 72 (1965); Massaglia

v. Commissioner, 286 F.2d 258, 262 (10th Cir. 1961), affg. 33

T.C. 379 (1959)).

     Petitioner testified that IRS employees have threatened

“that they could come take my vehicle.”   Petitioner maintains

that the treatment afforded her by the IRS is unacceptable and

inexcusable.   Furthermore, she maintains that she doesn’t “think

it's right that * * * a person honestly trying to pay their taxes

should go through something like this with the IRS.”   Petitioner

also maintains that if the outcome of this proceeding is not in

her favor she is unable to “pay this money back right now.”

     While we are sympathetic to petitioner’s plight, the record

indicates that she was aware of potential problems with her tax

return, so much so that she was hesitant to rely on the
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assurances of IRS employees the first few times she called.

Though it is unfortunate that petitioner received unhelpful or

incorrect tax advice from IRS employees, that advice does not

have the force of law.

     Accordingly, we conclude that petitioner failed to report

$4,809 of unemployment compensation that should have been

included in her gross income for 1997.    Thus, petitioner is

liable for the deficiency determined by respondent.

     Reviewed and adopted as the report of the Small Tax Case

Division.

     To reflect the foregoing,



                                           Decision will be entered

                                      for respondent.
