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compensation.11 The total payment reported on the Form 1099 is
identical to the amount of gross receipts reported by petitioner
on her 1993 Schedule C for her trucking business. Petitioner
also testified that Cappy's paid her by check, that Cappy's was
her only client, and that she had no other earnings from the
operation of her trucking business during 1993.
Petitioner's presentation of the Form 1099 together with
her testimony does not effectively rebut the presumption of
correctness attached to respondent's reconstruction of income.
First, the Form 1099, in and of itself, does not prove that
petitioner did not have other customers in her trucking business
and does not prove that she did not have any other income from
the use and ownership of the two trucks. Second, although
petitioner's testimony that she did not perform services for
clients other than Cappy's and that she had reported all her
earnings from her trucking business in 1993 on her return seems
credible, nevertheless her testimony does not rebut respondent's
determination, insofar as she might have had unreported rental
11 Respondent objected to the admission into evidence of
the Form 1099, and the parties did argue the question of its
admissibility in their initial briefs. Although at trial
petitioner did pull out of her purse a copy of the Form 1099
(introduced into evidence at trial as Exhibit 19), a copy of
the same Form 1099 was attached to Exhibit 2-B, a copy of
petitioner's 1993 income tax return that was part of the
stipulation of facts, which states that all evidentiary
objections to stipulated exhibits are waived unless specifically
expressed therein. Respondent did not raise any evidentiary
objections to Exhibit 2-B in the stipulation of facts.
Therefore, the Form 1099 was properly admitted into evidence.
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