- 15 - 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.Page: Previous 5 6 7 8 9 10 11 12 13 14 15 16 17 18 19 20 21 22 23 24 Next
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