- 3 - Hearth Home or Guardian on their 1997 tax return or attach the Form W-2 from Hearth Home to their 1997 return. OPINION Petitioners contend that Guardian’s payments to petitioner of $7,618 were nontaxable disability benefits.1 Gross income includes all income from whatever source derived. Sec. 61(a). Exclusions from income are a matter of legislative grace and are construed narrowly. Commissioner v. Schleier, 515 U.S. 323, 328 (1995). Taxpayers bear the burden of proving that they are entitled to exclude the amounts claimed.2 Rule 142(a)(1). 1 Respondent determined that petitioner received unreported income of $9,149, the amount that Hearth Home reported on the Form W-2 that it issued to petitioner for 1997. Of that amount, $7,618 was disability income and $1,531 was compensation that petitioner received from Hearth Home for the 15 days he worked in January 1997. Petitioners do not contend that the compensation for the 15 days is excludable from income. 2 Petitioners do not contend that the burden of proof is on respondent under sec. 7491, nor have petitioners established that they complied with the requirements of sec. 7491(a)(2)(A) and (B) to substantiate items, maintain required records, and fully cooperate with respondent's reasonable requests.Page: Previous 1 2 3 4 5 6 7 Next
Last modified: May 25, 2011