Melinda D. Rivera - Page 7

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          requirement in section 6214(a) that the Commissioner make a claim           
          for the increased deficiency is satisfied.  See McGee v.                    
          Commissioner, supra (citing Woods v. Commissioner, 91 T.C. 88, 93           
          (1988)); see also Pallottini v. Commissioner, 90 T.C. 498, 500              
               Taxpayers generally bear the burden of proving that the                
          Commissioner's determinations are incorrect.  Rule 142(a); Welch            
          v. Helvering, 290 U.S. 111, 115 (1933).  However, the                       
          Commissioner bears the burden of proof in respect of any new                
          matter or increases in deficiency.  Rule 142(a); Powerstein v.              
          Commissioner, 99 T.C. 466, 473 n.4 (1992).  The resolution of the           
          remaining issues does not depend on which party has the burden of           
          proof.  The Court resolves those issues on the preponderance of             
          the evidence in the record; therefore section 7491 does not apply           
          I.   Petitioner's Employment Status and Liability for Self-                 
               Employment Tax                                                         
               Adjusted gross income generally consists of gross income               
          less trade or business expenses, except in the case of the                  
          performance of services by an employee.  Sec. 62.  With                     
          exceptions not relevant here, an individual performing services             
          as an employee may deduct expenses incurred in the performance of           
          services as an employee only as miscellaneous itemized deductions           
          on Schedule A and then only to the extent such expenses exceed 2            
          percent of the individual's adjusted gross income.  Secs. 63(a),            

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