                          T.C. Memo. 1998-237



                        UNITED STATES TAX COURT



                       JOHN MINOR, Petitioner v.
             COMMISSIONER OF INTERNAL REVENUE, Respondent



        Docket No. 12653-96.                Filed July 2, 1998.



        John Minor, pro se.

        John J. Boyle, for respondent.



                          MEMORANDUM OPINION


        DINAN, Special Trial Judge:      This case was heard pursuant

to the provisions of section 7443A(b)(3) and Rules 180, 181, and

182.1


        1
          Unless otherwise indicated, all section references are
to the Internal Revenue Code in effect for the taxable years in
issue. All Rule references are to the Tax Court Rules of
Practice and Procedure.
                                     - 2 -

     Respondent determined deficiencies in petitioner's Federal

income taxes and additions to tax for the years indicated:

                                             Addition to Tax
          Year          Deficiency           Sec. 6651(a)(1)

          1990              $739                  $101
          1991               949                   100
          1992             1,174                   118
          1993             1,391                   114

     The issues for decision are:        (1) Whether petitioner

received and failed to report income for the taxable years in

issue; and (2) whether petitioner is liable for the section

6651(a)(1) additions to tax for the taxable years in issue.

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

The stipulations of fact and attached exhibits are incorporated

herein by this reference.     Petitioner resided in Indianola,

Mississippi, on the date the petition was filed in this case.

     Petitioner worked for Gresham Service Stations, Inc. (GSS)

in Indianola during 1990, 1991, and 1992.              He also worked for

Double Quick, Inc. (DQ) in Indianola during 1992 and 1993.              The

corporations reported on Forms W-2 and later verified in letters

to respondent that petitioner earned wages in the following

amounts during the taxable years in issue:

                 Year          GSS                DQ

                 1990      $ 9,684                 -
                 1991       11,344                 -
                 1992        5,062             $ 8,075
                 1993          -                14,748
                               - 3 -

     The first issue for decision is whether petitioner received

and failed to report income during the taxable years in issue.

Respondent's determinations in the statutory notice of deficiency

are presumed to be correct, and petitioner bears the burden of

proving otherwise.   Rule 142(a); Welch v. Helvering, 290 U.S.

111, 115 (1933).

     Section 61(a) includes in gross income all income from

whatever source derived including, but not limited to,

compensation for services.   Sec. 61(a)(1).    At trial, petitioner

admitted that he earned the amounts reported on the Forms W-2 and

determined by respondent in the statutory notice of deficiency to

be includable in his gross income.     Petitioner claims, however,

that he is entitled to a deduction for the amounts of his wages

which were allegedly garnished by order of a Mississippi State

court.

     Based on the record, we find that petitioner has failed to

prove any error in respondent's determinations.     According to his

testimony, his wages were garnished to repay loan proceeds which

he obtained by forging the signature of another person.     We find

his claim to a deduction for amounts which he is required to pay

to such person to be without merit.    An employer's payment of an

obligation of the taxpayer is equivalent to the taxpayer's

receipt of income in the amount so paid.      Old Colony Trust Co. v.
                                 - 4 -

Commissioner, 279 U.S. 716 (1929).       Respondent's determinations

on this issue are sustained.

     The second issue for decision is whether petitioner is

liable for the section 6651(a)(1) additions to tax for the

taxable years in issue.

     Section 6651(a)(1) imposes an addition to tax for failure to

timely file a return, unless the taxpayer establishes that such

failure is due to reasonable cause and not due to willful

neglect.   "Reasonable cause" requires the taxpayer to demonstrate

that he exercised ordinary business care and prudence and was

nonetheless unable to file a return within the prescribed time.

United States v. Boyle, 469 U.S. 241, 245-246 (1985).       "[W]illful

neglect" means a conscious, intentional failure or reckless

indifference.   Id. at 246.    The addition to tax equals 5 percent

of the tax required to be shown on the return if the failure to

file is for not more than 1 month, with an additional 5 percent

for each additional month or fraction of a month during which the

failure to file continues, not to exceed a maximum of 25 percent.

Sec. 6651(a)(1).

     Petitioner did not address at trial respondent's

determinations that he is liable for the section 6651(a)(1)

additions to tax.   We therefore find that he has failed to prove

that his failure to file his returns was not due to willful

neglect or that such failure was due to reasonable cause.
                                 - 5 -

Accordingly, we hold that petitioner is liable for the section

6651(a)(1) additions to tax for the taxable years in issue.

     To reflect the foregoing,



                                              Decision will be entered

                                         for respondent.
