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not pursue any criminal action against Rodman concern-
ing the Incident, that he will not cooperate should any
such action or investigation ensue, and that he will
not encourage, incite or solicit others to pursue a
criminal investigation or charge against Rodman con-
cerning the Incident.
Petitioner filed a tax return (return) for his taxable year
1997. In that return, petitioner excluded from his gross income
the $200,000 that he received from Mr. Rodman under the settle-
ment agreement.
In the notice that respondent issued to petitioner with
respect to 1997, respondent determined that petitioner is not
entitled to exclude from his gross income the settlement amount
at issue.
OPINION
We must determine whether the settlement amount at issue may
be excluded from petitioner’s gross income for 1997. Petitioner
bears the burden of proving that the determination in the notice
to include the settlement amount at issue in petitioner’s gross
income is erroneous.3 See Rule 142(a); Welch v. Helvering, 290
U.S. 111, 115 (1933).
Section 61(a) provides the following sweeping definition of
the term "gross income": "Except as otherwise provided in this
3Petitioner does not contend that sec. 7491(a) is applicable
in this case. Even if petitioner had advanced such a contention,
he has not established that he has complied with the applicable
requirements of sec. 7491(a)(2). Under the circumstances pre-
sented in this case, we conclude that the burden of proof does
not shift to respondent under sec. 7491(a).
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