- 28 - taxable years 1994, 1995, and 1996. In that notice, respondent determined, inter alia, that for each of the years 1995 and 1996 petitioner has unreported income of $9,925 from Polaris. Respon- dent further determined in the notice that for 1996 petitioner has unreported income of $16,450 from the sale of vending ma- chines9 and $122,391 of unreported “EMBEZZELMENT [sic] FORM 1099” income. Respondent further determined in the notice that peti- tioner is liable for 1996 for an addition to tax under section 6651(a)(1). OPINION Petitioner bears the burden of showing error in the determi- nations in the notice that remain at issue.10 See Rule 142(a); Welch v. Helvering, 290 U.S. 111, 115 (1933). The only issues that remain for decision relate to (1) certain alleged unreported income for each of the taxable 9In the notice, respondent erroneously referred to the arcade games that petitioner sold to Reality Entertainment around May 1, 1996, as vending machines. Petitioner does not dispute that respondent’s determination in the notice with respect to the $16,450 of unreported income for 1996 relates to the sale of the arcade games. 10Petitioner does not contend that sec. 7491 is applicable in this case. Even if petitioner had advanced such a contention, he has not established that he has complied with the applicable requirements of sec. 7491(a)(2). Under the circumstances pre- sented in this case, we conclude (1) that the burden of proof does not shift to respondent under sec. 7491(a)(1) with respect to the deficiency determinations and (2) that respondent does not have the burden of production under sec. 7491(c) with respect to the addition to tax under sec. 6651(a)(1).Page: Previous 18 19 20 21 22 23 24 25 26 27 28 29 30 31 32 33 34 35 36 37 Next
Last modified: May 25, 2011