- 6 -
conceded these issues.
We must decide whether petitioner had unreported gross
income in 1996. Respondent’s determinations in the notice of
deficiency are presumptively correct. Rule 142(a); Welch v.
Helvering, 290 U.S. 111, 115 (1933). Respondent has the burden
of proof for the increased deficiency and penalty asserted in the
amendment to answer. Rule 142(a). Because petitioner failed to
comply with the requirements to substantiate any item, section
7491 is not applicable except that under section 7491(c),
respondent has the burden of production with respect to
petitioner’s liability for a penalty.
In his petition and memorandum, petitioner makes tax
protester arguments that have been repeatedly rejected by this
Court and others, including the Court of Appeals for the Ninth
Circuit (to which this case may be appealed), as inapplicable or
without merit. Rowlee v. Commissioner, 80 T.C. 1111 (1983);
McCoy v. Commissioner, 76 T.C. 1027 (1981), affd. 696 F.2d 1234
(9th Cir. 1983). We see no need to repeat these discussions
here.
Section 1 imposes a tax on the taxable income of
individuals. Section 63(b) defines “taxable income”, as
applicable to petitioner, as gross income less the standard
deduction and one personal exemption. Section 61(a) defines
gross income to mean “all income from whatever source derived,
Page: Previous 1 2 3 4 5 6 7 8 9 Next
Last modified: May 25, 2011