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Discussion
I. Burden of Proof
Generally, the burden of proof is on the taxpayer. Rule
142(a)(1). Under section 7491, the burden of proof shifts from
the taxpayer to the Commissioner if the taxpayer produces
credible evidence with respect to any factual issue relevant to
ascertaining the taxpayer’s liability. Sec. 7491(a)(1).
However, where the Commissioner raises a new matter or claims an
increase in the deficiency, the burden of proof is on the
Commissioner. Rule 142(a)(1); Achiro v. Commissioner, 77 T.C.
881, 889-890 (1981); Burris v. Commissioner, T.C. Memo. 2001-49;
Jamerson v. Commissioner, T.C. Memo. 1986-302.
As to the adjustments set forth in the notice of deficiency,
petitioner has neither argued that the burden of proof should
shift nor satisfied the criteria that would cause the burden of
proof to shift. Given the lack of documentation and information
provided by petitioner, we conclude that the burden of proof
remains with him as to all adjustments determined in the notice
of deficiency. We further hold that the burden of proof is on
respondent with respect to the adjustments claimed in the answer
filed with the Court.
II. Petitioner’s Employment Status
A. Income--Employee Versus Independent Contractor
As indicated previously, this is a new issue first raised by
respondent in his answer, and accordingly the burden of proof is
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Last modified: May 25, 2011