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distributions from the stock fund in the amount of $2,457.46 and
reinvested this amount in the stock fund. In 1989, petitioners
received distributions from the stock fund in the amount of
$2,104.66. Petitioners did not report the receipt of the
$2,104.66 on their 1989 income tax return. In 1989, petitioners
sold the stock fund and received $27,205.57. On their 1989 tax
return, petitioners did not report the sale of the stock fund.
For taxable year 1989, petitioners received a $573
distribution from a trust which they did not include in income.
For taxable year 1990, petitioners requested and were
granted an extension to file their individual income tax return
until August 15, 1991. Petitioners jointly filed their 1990
individual income tax return on October 14, 1991.
OPINION
As a preliminary matter, we must resolve which party bears
the burden of proof with respect to the issues presented.
Generally, the taxpayer bears the burden of proof. Rule 142(a);
INDOPCO, Inc. v. Commissioner, 503 U.S. 79, 84 (1992). However,
the Commissioner bears the burden of proof with respect to,
inter alia, any new matter. Rule 142(a); Wayne Bolt & Nut Co. v.
Commissioner, 93 T.C. 500, 507 (1989). "A new theory that is
presented to sustain a deficiency is treated as a new matter when
it either alters the original deficiency or requires the
presentation of different evidence." Wayne Bolt & Nut Co. v.
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