Robert D. Hill - Page 6

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          Commissioner the burden of proof as to determined deficiencies              
          when the taxpayer establishes that he or she met certain                    
          requirements.  Petitioner has not established that he has met               
          those requirements.                                                         
               Section 7491(c) requires that the Commissioner bear the                
          burden of production as to the additions to tax and penalties.              
          In order to meet this burden, the Commissioner must present                 
          evidence indicating that it is appropriate to impose an addition            
          to tax or a penalty.  See Higbee v. Commissioner, 116 T.C. 438,             
          446 (2001).  Once the Commissioner meets his burden of                      
          production, the taxpayer must come forward with evidence                    
          sufficient to persuade a Court that the Commissioner’s                      
          determination is incorrect.  Id.                                            
          B.   Whether Petitioner Had Unreported Income                               
               In his petition, petitioner asserted that respondent erred             
          in attributing income to petitioner which he did not receive “for           
          any taxable source within or without the United States”.  We                
          disagree that respondent erred as asserted.  First, petitioner              
          received $106,077 from LLC during 1999.  Under section 61(a),               
          this amount, which is an accession to petitioner’s wealth, is               
          includable in his gross income absent a determination that it               
          falls within a statutory exclusion.  Sec. 61(a); United States v.           
          Burke, 504 U.S. 229, 233 (1992); Commissioner v. Glenshaw Glass             
          Co., 348 U.S. 426, 431 (1955).  Petitioner has failed to present            






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