- 7 -
and $1,781 were not taxable income because petitioner had written
checks to herself in those amounts, and he wanted to eliminate
any possibility of double counting any deposits. Thus, he
concluded that $5,486.47 was unreported income for 1994.
OPINION
A. Whether Petitioner Is Liable for Income Tax on Her Salary of
$13,000 Per Year in 1993 and 1994
Petitioner contends that she is not liable for income tax on
the $13,000 salary that she received in 1993. We disagree.
Petitioner bears the burden of proof. Rule 142(a); Welch v.
Helvering, 290 U.S. 111, 115 (1933).2 Petitioner stipulated and
testified that she received a salary of $13,000 per year in 1993
and 1994. In her posttrial brief, she asks us to disregard the
stipulation and her testimony. A stipulation of fact is
generally binding on the parties. Rule 91(e). We may modify or
set aside a stipulation if it is contrary to the record. Cal-
Maine Foods, Inc. v. Commissioner, 93 T.C. 181, 195 (1989). We
do not set aside the stipulation here because there is no
evidence contrary to petitioner’s stipulation and testimony that
she received a salary of $13,000 per year in 1993 and 1994.
2 Respondent does not bear the burden of proof under sec.
7491 because the examination in this case began on Apr. 23, 1997.
Sec. 7491 applies to examinations commenced after July 22, 1998.
Internal Revenue Service Restructuring and Reform Act of 1998,
Pub. L. 105-206, sec. 3001(c), 112 Stat. 727.
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