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taxable years 1994, 1995, and 1996. In that notice, respondent
determined, inter alia, that for each of the years 1995 and 1996
petitioner has unreported income of $9,925 from Polaris. Respon-
dent further determined in the notice that for 1996 petitioner
has unreported income of $16,450 from the sale of vending ma-
chines9 and $122,391 of unreported “EMBEZZELMENT [sic] FORM 1099”
income. Respondent further determined in the notice that peti-
tioner is liable for 1996 for an addition to tax under section
6651(a)(1).
OPINION
Petitioner bears the burden of showing error in the determi-
nations in the notice that remain at issue.10 See Rule 142(a);
Welch v. Helvering, 290 U.S. 111, 115 (1933).
The only issues that remain for decision relate to
(1) certain alleged unreported income for each of the taxable
9In the notice, respondent erroneously referred to the
arcade games that petitioner sold to Reality Entertainment around
May 1, 1996, as vending machines. Petitioner does not dispute
that respondent’s determination in the notice with respect to the
$16,450 of unreported income for 1996 relates to the sale of the
arcade games.
10Petitioner does not contend that sec. 7491 is applicable
in this case. Even if petitioner had advanced such a contention,
he has not established that he has complied with the applicable
requirements of sec. 7491(a)(2). Under the circumstances pre-
sented in this case, we conclude (1) that the burden of proof
does not shift to respondent under sec. 7491(a)(1) with respect
to the deficiency determinations and (2) that respondent does not
have the burden of production under sec. 7491(c) with respect to
the addition to tax under sec. 6651(a)(1).
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