Gregory Dean Owens - Page 5




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                                       OPINION                                        
          Unreported Gross Income                                                     
               Respondent determined that petitioner had unreported gross             
          income from his dental practice, based on the excess of the                 
          amounts petitioner reported on his applications for the subject             
          years over the amounts he reported on his delinquent Federal                
          income tax returns.  Petitioner’s admissions on the applications            
          provide at least a minimal evidentiary foundation, if any be                
          required, supporting respondent’s determinations of unreported              
          income.  Cf. Williams v. Commissioner, 999 F.2d 760, 764 (4th               
          Cir. 1993), affg. T.C. Memo. 1992-153.  The burden of proof is on           
          petitioner to show that respondent’s determinations are                     
          incorrect.  See Rule 142(a);  Welch v. Helvering, 290 U.S. 111,             
          115 (1933); Williams v. Commissioner, supra.3                               
               In his petition, petitioner states that respondent’s                   
          determinations are in error because the “Gross receipts reported            
          to Town of Abingdon have been determined to be incorrect.”                  
          Petitioner has offered no testimony or other evidence to support            


               3 In certain circumstances, if the taxpayer introduces                 
          credible evidence with respect to any factual issue relevant to             
          ascertaining the proper tax liability, sec. 7491 places the                 
          burden of proof on respondent.  See sec. 7491(a); Rule 142(a)(2).           
          Sec. 7491 is effective with respect to court proceedings arising            
          in connection with examinations commencing after July 22, 1998.             
          See Internal Revenue Service Restructuring and Reform Act of                
          1998, Pub. L. 105-206, sec. 3001(c)(2), 112 Stat. 726.                      
          Petitioner does not contend, nor is there evidence, that his                
          examination commenced after July 22, 1998, or that sec. 7491                
          applies in this case.                                                       





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