Stephen J. Major - Page 6

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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                

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