- 9 - not accurate. However, the limited amount of petitioner's testimony that did not consist of shopworn tax protester arguments supports respondent's determination that petitioner did in fact receive nonemployee income from Masterguard in 1988. In his testimony, petitioner admitted that he purchased merchandise from Masterguard in 1988 and that he might have resold this merchandise to others. Petitioner acknowledged at trial that Masterguard may pay rebates and overrides to individuals who purchase merchandise from it. Petitioner admitted that he is not an employee of Masterguard, so it would have been appropriate for Masterguard to characterize the payments it made to petitioner as nonemployee compensation. Even if this Court were to find petitioner's dispute reasonable, section 6201(d) clearly requires that in addition to asserting a reasonable dispute with respect to any item of income reported on an information return, the taxpayer must have fully cooperated with the Commissioner before the burden of production will shift to the Commissioner. The evidence in this case is unequivocal that petitioner did not fully cooperate with respondent as required by section 6201(d). First, we note that petitioner failed to file an income tax return for 1988. As a nonfiler, petitioner plainly did not bring his dispute over any item of income to the attention of the IRS within a reasonable period of time as contemplated by the terms and legislative history of section 6201(d). Additionally, petitioner's behaviorPage: Previous 1 2 3 4 5 6 7 8 9 10 11 12 13 14 15 Next
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