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Discussion
Unreported Income
The parties agree that petitioner earned income in 1997 for
work performed for JWH and Sal Parziale that was not reported on
petitioners’ Federal income tax return. We must decide the
proper amount.
Generally, the burden of proof is on the taxpayer. Rule
142(a)(1). Under section 6201(d), if a taxpayer, in a court
proceeding, asserts a reasonable dispute with respect to the
income reported on an information return and fully cooperates
with the Secretary (including providing access to an inspection
of all witnesses, information, and documents within the control
of the taxpayer as reasonably requested by the Secretary), then
the Secretary shall have the burden of producing reasonable and
probative information in addition to such information return.
See Tanner v. Commissioner, 117 T.C. 237 (2001); McQuatters v.
Commissioner, T.C. Memo. 1998-88.
Petitioner challenged the accuracy of the information
provided to the Commissioner in the Form 1099-MISC. It appears
that petitioner has reasonably cooperated with the Commissioner.
As discussed in greater detail below, at trial, respondent
introduced evidence in the form of testimony of and business
records from Joseph Parziale in response to petitioners’
allegation that the Form 1099-MISC was inaccurate. Although we
find that the evidence in the record is not fully credible, we
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Last modified: May 25, 2011