- 17 - determined that the $45,615 was not excludable under section 104. Petitioners have cooperated with all respondent’s requests for meetings, interviews, witnesses, information, and documents, including providing, within a reasonable time, access to and inspection of witnesses, information, documents within petitioners’ control, and assistance in obtaining access to such items not within petitioners’ control. OPINION Gross income includes all income from whatever source derived, including pensions and compensation for services. Sec. 61(a). However, section 104 provides for certain specific exclusions from gross income. The issue in this case is whether petitioners are entitled to exclude all or a part of the $45,615 that Mr. Forste received in 1996 pursuant to a structured settlement agreement. Petitioners excluded the entire amount on their joint Federal income tax return for 1996. Respondent determined that no part of that amount is excludable from gross income. I. Burden of Proof--Section 7491 It is well established that statutory exclusions are to be construed narrowly, see Commissioner v. Schleier, 515 U.S. 323, 328 (1995), and the taxpayer bears the burden of showing that he falls squarely within the requirements for the exclusion. However, under section 7491(a)(1), if, in any court proceeding, aPage: Previous 7 8 9 10 11 12 13 14 15 16 17 18 19 20 21 22 23 24 25 26 Next
Last modified: May 25, 2011