James Edward and Brenda Dianne Starkovich - Page 4

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          2001, petitioner received and cashed 13 checks from Golden Leaf.            
          The checks totaled $85,097.                                                 
               During 2001, respondent received a Form W-2, Wage and Tax              
          Statement, from Labor Ready Central III LP reporting that $52 in            
          wages was paid to petitioner.  Respondent also received a Form              
          1099-MISC, Miscellaneous Income, from Metroplex Design Builders             
          reporting that $1,450 in nonemployee compensation had been paid             
          to petitioner during 2001.                                                  
               Respondent issued a notice of deficiency for 2001                      
          determining that petitioners had unreported income of $52,697               
          from services rendered, and determining an accuracy-related                 
          penalty under section 6662(a) of $3,082.                                    
               Generally, the Commissioner's determinations of unreported             
          income in a notice of deficiency are presumed correct, and the              
          taxpayer has the burden of proving that those determinations are            
          erroneous.  See Rule 142(a); Welch v. Helvering, 290 U.S. 111,              
          115 (1933).  In some cases the burden of proof with respect to              
          relevant factual issues may shift to the Commissioner under                 
          section 7491(a).  Petitioners did not present evidence or                   
          argument that they satisfied the requirements of section 7491(a),           
          and, therefore, the burden of proof does not shift to respondent.           

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