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Furthermore, at trial he no longer had any records pertaining to
these securities.
The law is clear. Gross income includes all income from
whatever source derived. Sec. 61(a). Section 61(a)(4)
specifically includes income derived from interest. It is
required under Federal law that taxpayers maintain adequate and
accurate tax records. Sec. 6001.
Under the Tax Court Rules of Practice and Procedure,
petitioner generally bears the burden of proof. Rule 142.
However, section 6201(d) provides that where a taxpayer asserts a
reasonable dispute in any Court proceeding with respect to any
item of income reported on Form W-2, Wage and Tax Statement, or
Form 1099 by a third party and the taxpayer has fully cooperated
with the Secretary, then the Secretary shall have the burden of
producing reasonable probative information to support the
deficiency. Assuming petitioner has asserted a reasonable
dispute over the accuracy of the information return (e.g., Form
1099) and has fully cooperated, respondent has met the burden of
producing probative evidence which was received in the record
(e.g., Bureau of Public Debt information). Furthermore,
petitioner failed to introduce any credible evidence; thus, he
failed to meet the requirements of section 7491(a), as amended,
so as to place the burden of proof on respondent with respect to
any factual issue relevant in ascertaining liability for the tax
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