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The scope of this definition is broad, typically reaching any
accretions to wealth. Commissioner v. Schleier, 515 U.S. 323,
327 (1995); Commissioner v. Glenshaw Glass Co., 348 U.S. 426,
429-431 (1955). Among the items expressly classified as income
under section 61(a) is “Compensation for services, including
fees, commissions, fringe benefits, and similar items”. Sec.
61(a)(1).
Petitioner conceded in signed stipulations that he received
wage income during 1999 and 2000 in the amounts of $18,521, and
$16,719, respectively. He similarly admitted that he received
nonemployee compensation of $8,122 in 1999 and $17,181 in 2000.
As previously indicated, petitioner’s arguments as to why this
income is nontaxable are meritless. The Court concludes that
petitioner is liable for income tax deficiencies on the above
compensation. Similarly, given petitioner’s concession that the
$8,122 and $17,181 amounts constitute nonemployee compensations,
these amounts are subject to self-employment tax under section
1401.
B. Additions to Tax
Section 7491(c) places on the Commissioner the burden of
production regarding additions to tax. The burden with respect
to “reasonable cause, substantial authority, or similar
provisions” then shifts to the taxpayer. Higbee v. Commissioner,
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Last modified: May 25, 2011