- 5 - Rule 142(a); Welch v. Helvering, 290 U.S. 111, 115 (1933). The “presumption of correctness” is appropriate where respondent has furnished evidence linking the taxpayer to the “tax generating activity.” Gold Emporium, Inc. v. Commissioner, 910 F.2d 1374, 1378 (7th Cir. 1990), affg. Malicki v. Commissioner, T.C. Memo. 1988-559. The Court is satisfied that respondent has provided sufficient evidence linking petitioner to the income underlying the statutory notice of deficiency.6 Although section 7491 may shift the burden to respondent in specified circumstances, petitioner here did not satisfy the prerequisites under section 7491(a)(1) and (2) for such a shift. Consequently, except for additions to tax subject to section 7491(c), petitioner bears the burden of persuasion and the burden of production in this case. B. Filing Requirement The Code imposes a Federal tax on the taxable income of every individual. Sec. 1. Gross income for the purposes of calculating taxable income is defined as “all income from whatever source derived”. Sec. 61(a). Every U.S. resident individual whose gross income for the taxable year equals or exceeds the exemption amount is required to make an income tax return. Sec. 6012(a)(1)(A). Petitioner had gross income totaling $117,307 from wages and at least $60,745 from 6 As previously mentioned, respondent provided petitioner’s Form W-2 and electronic representations of checks from Unisys showing amounts paid to petitioner.Page: Previous 1 2 3 4 5 6 7 8 9 10 11 Next
Last modified: May 25, 2011