- 12 - are attributable to such trade or business". Section 1.1402(a)- 2(b), Income Tax Regs., provides that "The trade or business must be carried on by the individual, either personally, or through agents or employees." See also S. Rept. 1669, 81st Cong., 2d Sess. (1950), 1950-2 C.B. 302, 354. These provisions are to be broadly construed to favor treatment of income as earnings from self-employment. Hornaday v. Commissioner, 81 T.C. 830, 834 (1983). Respondent's determination that petitioner is liable for self-employment tax is presumed to be correct, and petitioner bears the burden of proving it is erroneous. Rule 142(a); Kasey v. Commissioner, 33 T.C. 656, 660 (1960); Ahmad v. Commissioner, T.C. Memo. 1997-85. At trial, petitioner testified that he was "self-supporting" and that he was not an employee of Masterguard. Petitioner offered no other evidence as to how he supported himself during 1988, the year in issue. Therefore, we hold that petitioner has not met his burden of proving that respondent's determination is incorrect and hold petitioner liable for self-employment tax on the unreported income as determined by respondent for 1988. Section 6651(a) imposes an addition to tax for a taxpayer's failure to file a required return on or before the specified filing date, including extensions. The addition to tax is inapplicable, however, if the taxpayer shows that the failure to file the return was due to reasonable cause and not willful neglect. Sec. 6651(a)(1).Page: Previous 1 2 3 4 5 6 7 8 9 10 11 12 13 14 15 Next
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