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7491(a)(2)(A) and (B) to substantiate items, maintain required
records, and fully cooperate with the Commissioner’s reasonable
requests. Section 7491 does not require the burden of proof to
be placed on respondent in the present case.1 Petitioner has
neither taken a position as to whether the burden of proof should
be placed on respondent nor established that he complied with the
requirements of section 7491(a). We therefore conclude that the
burden remains on petitioner to prove that respondent’s
determination that petitioner received unreported nonemployee
compensation of $21,552 for the 2000 taxable year is erroneous.
Gross income includes “Compensation for services, including
fees, commissions, fringe benefits, and similar items”. Sec.
61(a)(1). In the present case, petitioner performed automobile
bodywork at the Automotive Emporium. Gross income includes the
$21,552 paid by Automotive Emporium to petitioner. The record
includes 48 checks totaling $20,167.55 that were issued by
Automotive Emporium, made payable to petitioner, and dated from
February 3 to October 5, 2000. Petitioner has not presented any
credible evidence that the $21,552 reported on Form 1099-MISC
does not represent income for services performed. We do not
accept petitioner’s testimony that he cashed checks and
1 Sec. 7491 is effective with respect to court proceedings
arising in connection with examinations by the Commissioner
commencing after July 22, 1998, the date of enactment by the
Internal Revenue Service Restructuring and Reform Act of 1998,
Pub. L. 105-206, sec. 3001(a), 112 Stat. 726.
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Last modified: May 25, 2011