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Hradesky v. Commissioner, 65 T.C. 87, 90 (1975), affd. per curiam
540 F.2d 821 (5th Cir. 1976).
The burden of proof may shift to the Commissioner under
section 7491(a). Because petitioner failed to comply with the
requirements of section 7491(a)(2), however, section 7491 is
inapplicable. Under section 7491(c), respondent retains the
burden of production only with respect to petitioner's liability
for any additions to tax.
1. Petitioner's Income
Pursuant to section 61(a), gross income includes "all income
from whatever source derived" unless excludable by a specific
provision of the Code. Petitioner does not dispute that during
1998, he received a reward from the IRS of $7,138.20. He
testified that this amount was shared with several of his
coworkers. The letter the IRS issued to petitioner identifying
the reward was addressed solely to petitioner and did not
indicate that he had an obligation to share the reward with
anyone else.
Petitioner did not present any argument that this amount is
not includable in income. The Court therefore concludes that
petitioner is required to include this amount in gross income.
2. Petitioner's Deductions
Section 162(a) allows a taxpayer deductions for ordinary and
necessary business expenses incurred during the taxable year in
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