Harry Allen and Evelyn Scott Hall - Page 7

                                        - 6 -                                         

          proceeding, asserts a reasonable dispute with respect to income             
          reported on an information return and fully cooperates with the             
          Commissioner, the Commissioner has the burden of producing                  
          reasonable and probative information in addition to the                     
          information return.  Hardy v. Commissioner, T.C. Memo. 1997-97,             
          affd. 181 F.3d 1002 (9th Cir. 1999).  The Court is satisfied that           
          the requirements of section 6201(d) have been met, and the burden           
          of going forward is on respondent with respect to this additional           
          income.                                                                     
               The Court concludes that respondent has met the burden of              
          producing reasonable and probative information with respect to              
          the deficiency.  In the audit of petitioners’ return,                       
          respondent’s revenue agent, Elizabeth Isgett, obtained from ARL a           
          summary of the checks issued to Mr. Hall in 2000 (check summary).           
          The check summary was a complete record of ARL’s payments and               
          deductions with respect to Mr. Hall for the year at issue.  It              
          contained a column labeled “1099 Amount”.  Ms. Isgett determined            
          that the income and expense items on the check summary, when                
          combined, produced the net figure of $95,455 reported to the                
          Internal Revenue Service by ARL.4  This information was                     


               4    Ms. Isgett compared the check summary with the                    
          available weekly settlement statements and determined that the              
          “1099 YTD” total on the Dec. 21 settlement statement ($43,984.72)           
          did not represent the net effect of Mr. Hall’s income and                   
          expenses as reflected in his check summaries.  In fact, this                
          “1099 YTD” total did not correspond to any of the records she               
                                                             (continued...)           




Page:  Previous  1  2  3  4  5  6  7  8  9  Next

Last modified: May 25, 2011