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employment income tax are the correct amounts imposed by section
1 and section 1401, respectively, on this income.
Respondent seeks to increase the deficiency above which was
determined in the notice of deficiency. Respondent bears the
burden of proof with respect to an increased deficiency. Rule
142(a). However, due to petitioner’s admissions concerning his
receipt of the income, there are no factual issues remaining with
respect to which respondent must meet this burden.
Respondent explains the increased deficiency as follows:
Prior to the issuance of the notice of deficiency, respondent
assessed taxes of $7,398 against petitioner for 1999. This
assessment was made in the form of an assessment due to a
“mathematical or clerical error” under the authority of section
6213(b)(1). The amount of the assessment was based upon the
amounts of income shown on the Forms W-2 and Form 1099-R attached
to petitioner’s Form 1040A. After this assessment, respondent
issued petitioner the notice of deficiency underlying this case,
with respect to the additional income which had not been
reflected in the initial assessment. The total of the amounts of
the initial assessment, $7,398, and the deficiency in the notice,
$1,665, is $9,063. The total deficiency now sought by respondent
is $8,950. The discrepancy results from respondent’s erroneous
classification of $1,000 of income as self-employment income in
the notice of deficiency. This error, which reduces the
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Last modified: May 25, 2011