- 8 - Although the examination of petitioner’s 1998 individual return commenced after July 22, 1998, respondent contends petitioner does not meet the requirements of section 7491(a). Petitioner does not contend otherwise. The Court concludes that section 7491(a) is inapplicable. However, the resolution of the issues in this case does not depend on which party has the burden of proof. We resolve these issues on the preponderance of the evidence in the record. 1. Nonemployee Compensation and Self-Employment Tax Petitioner cashed checks for Mr. Fullen and transferred the proceeds to him. She identified her signature on only three of the checks in issue. Petitioner contends the signatures on the remaining 19 checks are not hers. At trial, Mr. Fullen admitted he had signed petitioner’s name to many of the checks himself. The Court has examined the signatures on all of the checks in issue. Having compared those signatures to the signatures on the various documents petitioner has filed with the Court, the Court finds that only three of the signatures are petitioner’s. “It is well settled that the mere receipt and possession of money does not by itself constitute taxable income.” Liddy v. Commissioner, T.C. Memo. 1985-107, affd. 808 F.2d 312 (4th Cir. 1986). This Court stated in Diamond v. Commissioner, 56 T.C. 530, 541 (1971), affd. 492 F.2d 286 (7th Cir. 1974): “We accept asPage: Previous 1 2 3 4 5 6 7 8 9 10 11 12 Next
Last modified: May 25, 2011