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petitioner was liable for an accuracy-related penalty due to a
substantial understatement of tax under section 6662(a) and
(d)(1). Petitioner contends that he should not have to pay self-
employment tax since the $24,000 received was not commission
income, but rather reimbursements of other business expenses.
We note that petitioner incorrectly reported the $4,800 car
allowance as gross receipts on his Schedule C. Similarly,
petitioner deducted car/truck expenses of $10,395 on his Schedule
C, resulting in a net loss from business of $5,595. We find that
these amounts should be reported on petitioner’s Schedule A,
Itemized Deductions, as an unreimbursed job expense subject to
the 2-percent floor of section 67. By use of Form 2106, Employee
Business Expenses, we recharacterize the correct amount reported
on line 20 of petitioner’s Schedule A as follows:
Vehicle Expenses $10,395
Less: Reimbursements received
from employer 4,800
Net unreimbursed employee expenses $5,595
Respondent’s determination is presumed correct, and
petitioner bears the burden of proving that respondent’s
determination is erroneous. Rule 142(a); Welch v. Helvering, 290
U.S. 111, 115 (1933).2
2 Because petitioner failed to introduce any credible
evidence, he failed to meet the requirements of sec. 7491(a), as
amended, so as to place the burden of proof on respondent with
respect to any factual issue relevant to ascertaining liability
for the tax deficiency in issue. As to the accuracy-related
(continued...)
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