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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.
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Last modified: May 25, 2011