Alejandrina De Aycardi - Page 5

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          are incorrect.  Rule 142(a); Welch v. Helvering, 290 U.S. 111,              
          115 (1933).                                                                 
               Respondent, however, bears the burden of proof with regard             
          to new issues and increases in the deficiency.  Rule 142(a).  The           
          question of what constitutes a new issue depends, among other               
          things, on whether different evidence must be presented than that           
          relating to the issues raised in the original notice of                     
          deficiency.  Achiro v. Commissioner, 77 T.C. 881 (1981).                    
               Petitioner argues that the mutual fund misclassified her               
          status as a U.S. resident for Federal income tax purposes and               
          incorrectly invested her $1,015,489 in a mutual fund on which               
          both interest and dividends were earned.  Petitioner argues that            
          (due to this alleged misclassification and incorrect mutual fund            
          into which her funds were invested) she received from the mutual            
          fund dividend income of $8,414 and $106,682 in 1988 and 1989,               
          respectively, instead of interest.  Petitioner emphasizes that              
          had the dividends been received as interest, the interest would             
          have been treated as nontaxable under section 871(h).  Petitioner           
          therefore argues that the dividend income that she did receive              
          should now be reclassified as interest and treated as nontaxable            
          for Federal income tax purposes under section 871(h).                       
               As explained, respondent concedes that the actual interest             
          that petitioner received on her mutual fund investment qualifies            
          as nontaxable under section 871(h).                                         

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