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understatement because she suffers from physical, emotional, and
financial difficulties.
Respondent's determination in the notice of deficiency is
presumptively correct, and petitioner bears the burden of proving
error. Rule 142(a); INDOPCO, Inc. v. Commissioner, 503 U.S. 79
(1992); Welch v. Helvering, 290 U.S. 111 (1933).
There is no question that commissions are includable as
taxable income. Sec. 61(a). Petitioner does not seriously
dispute that the advance was erroneously deducted from commission
income received. Respondent is thus sustained on this issue.
Section 1401 imposes a tax on self-employment income.
Section 1402 defines net earnings from self-employment as gross
income derived from a trade or business less certain deductions.
Commission income from Kemp was reported on a Schedule C.
Petitioner does not seriously dispute that the commission income
is not subject to self-employment tax. Respondent is sustained
on this issue.
Petitioner makes a vague reference to the statute of
limitations suggesting that the time has expired for assessment
of the tax. The short answer to petitioner's argument is that
the 1990 return was filed on August 16, 1991. The notice of
deficiency was mailed on September 24, 1993. A timely petition
was filed with this Court. The period of limitations has not
run. Secs. 6501(a), 6503(a)(1), 6213.
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Last modified: May 25, 2011