Harry Allen and Evelyn Scott Hall - Page 8

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          reasonable, probative, and supportive of the allegation of                  
          additional income.  Respondent satisfies the requirements of                
          section 6201(d).                                                            
               Although respondent bore the burden of proof with respect to           
          the issue of unreported income, nonetheless, the ultimate burden            
          of persuasion, or risk of nonpersuasion, remains on petitioners.            
          Senter v. Commissioner, T.C. Memo. 1995-311 (citing Higginbotham            
          v. United States, 556 F.2d 1173, 1176 (4th Cir. 1977)).5  For the           
          following reasons, the Court holds that petitioners have not met            
          their ultimate burden of persuasion that they did not receive the           
          $51,470 in gross income at issue.                                           
               Gross income includes all income from whatever source                  
          derived.  Sec. 61(a).  Despite the error in the running totals              
          columns, the available weekly statements do corroborate the                 
          income and expense entries contained on the check summary.  The             
          Court thus concludes that the check summary is reliable evidence            
          of ARL’s payments and deductions with respect to Mr. Hall.                  


               4(...continued)                                                        
          reviewed.  As the Court was also not able to determine the origin           
          of that figure, the Court disregards the significance of the                
          “1099 YTD” amount as reflected on the Dec. 21 settlement                    
          statement.                                                                  
               5    Because any appeal in this case, if it were                       
          permissible, would lie to the Court of Appeals for the Fourth               
          Circuit, the Court follows the precedent established in that                
          Circuit.  Golsen v. Commissioner, 54 T.C. 742, 756-757 (1970),              
          affd. 445 F.2d 985 (10th Cir. 1971).                                        





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