James R. Ciciora - Page 4

                                        - 4 -                                         
          employment income tax are the correct amounts imposed by section            
          1 and section 1401, respectively, on this income.                           
               Respondent seeks to increase the deficiency above which was            
          determined in the notice of deficiency.  Respondent bears the               
          burden of proof with respect to an increased deficiency.  Rule              
          142(a).  However, due to petitioner’s admissions concerning his             
          receipt of the income, there are no factual issues remaining with           
          respect to which respondent must meet this burden.                          
               Respondent explains the increased deficiency as follows:               
          Prior to the issuance of the notice of deficiency, respondent               
          assessed taxes of $7,398 against petitioner for 1999.  This                 
          assessment was made in the form of an assessment due to a                   
          “mathematical or clerical error” under the authority of section             
          6213(b)(1).  The amount of the assessment was based upon the                
          amounts of income shown on the Forms W-2 and Form 1099-R attached           
          to petitioner’s Form 1040A.  After this assessment, respondent              
          issued petitioner the notice of deficiency underlying this case,            
          with respect to the additional income which had not been                    
          reflected in the initial assessment.  The total of the amounts of           
          the initial assessment, $7,398, and the deficiency in the notice,           
          $1,665, is $9,063.  The total deficiency now sought by respondent           
          is $8,950.  The discrepancy results from respondent’s erroneous             
          classification of $1,000 of income as self-employment income in             
          the notice of deficiency.  This error, which reduces the                    






Page:  Previous  1  2  3  4  5  6  7  Next

Last modified: May 25, 2011