- 4 -- 4 -
2001. Changes on the Form 1040X reflect an "Addition of IRA
distributions not previously reported", and an "Addition of
medical expenses incurred for care of Ian L. Potter and Susan
Potter".
In the statutory notice of deficiency, respondent determined
a deficiency in petitioners' 1999 Federal income tax of $7,884
for 1999 and an accuracy-related penalty of $1,577.
Discussion
Taxpayers generally bear the burden of proving that the
Commissioner's determination is incorrect. Rule 142(a); Welch v.
Helvering, 290 U.S. 111 (1933). Under section 7491(a)(1),
however, the burden of proof shifts to the Commissioner if, among
other requirements, the taxpayers introduce "credible evidence
with respect to any factual issue relevant to ascertaining" their
tax liability. We find that the burden of proof does not shift
to respondent because petitioners have failed to comply with the
requirements of section 7491(a)(1).
Section 61 provides that all income, from whatever source
derived, is includable in gross income unless specifically
excluded by another provision. See Commissioner v. Glenshaw
Glass Co., 348 U.S. 426, 431 (1955). Section 61(a)(1)
specifically includes in gross income amounts received as
compensation for services, including fees, commissions, fringe
benefits, and similar items.
Page: Previous 1 2 3 4 5 6 7 8 9 10 11 12 13 Next
Last modified: May 25, 2011