-34-
concession.6 Petitioners argue that respondent already included
living expenses in respondent's determination. We disagree.
Respondent did not include petitioners' living expenses in the
original net worth calculation. We conclude that those expenses
offset respondent's $25,060 concession and that respondent did
not overstate petitioners' 1985 personal expenditures.
6. Petitioners' Unreported Taxable Income
Respondent determined that petitioners had unreported income
of $221,961 in 1983, $45,598 in 1984, $8,608 in 1985, $69,788 in
1986, and 29,872 in 1987. Based on respondent's concessions and
the foregoing, we conclude that petitioners had unreported
taxable income of $82,961 in 1983, $45,598 in 1984, $8,608 in
1985, $60,788 in 1986, and $29,822 in 1987.
6 Respondent does not contend that petitioners are liable
for larger deficiencies than respondent determined in the notice
of deficiency for any of the years in issue due to the omission
of petitioners' personal living expenses from respondent's net
worth calculation. Respondent bears the burden of proof under
Rule 142(a) if respondent raises new matter which either alters
the original deficiency or requires the taxpayers to present
different evidence. Seagate Tech. Inc. v. Commissioner, 102 T.C.
149, 169 (1994); Vetco, Inc. v. Commissioner, 95 T.C. 579, 588
(1990); Achiro v. Commissioner, 77 T.C. 881, 890 (1981). We
conclude, and petitioners do not contend otherwise, that this is
not new matter under Rule 142(a) for which respondent bears the
burden of proof because raising those expenses as offsets does
not require petitioners to offer any different evidence and does
not increase the original deficiency.
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