Shawn Jeffrey Hintz - Page 5

                                        - 4 -                                         
          was discovered he had scarlet fever.  At this hospital, it was              
          determined that his psychiatric symptomology was due to delirium.           
               During 2001, petitioner received disability pension income             
          of $3,468 from the Defense Finance and Accounting Service.                  
               By notice of deficiency, respondent determined that                    
          petitioner’s disability pension income of $3,468 from the Defense           
          Finance and Accounting Service in tax year 2001 is not excludable           
          from gross income under section 104(b)(2)(C).                               
                                     Discussion                                       
               In general, the Commissioner’s determination set forth in a            
          notice of deficiency is presumed correct, and the taxpayer bears            
          the burden of showing that the determination is in error.  Rule             
          142(a); Welch v. Helvering, 290 U.S. 111, 115 (1933).  In certain           
          circumstances, however, if the taxpayer introduces credible                 
          evidence with respect to any factual issue relevant to                      
          ascertaining the proper tax liability, section 7491 places the              
          burden of proof on the Commissioner.  Sec. 7491(a)(1).  Credible            
          evidence is “‘the quality of evidence which, after critical                 
          analysis, * * * [a] court would find sufficient * * * to base a             
          decision on the issue if no contrary evidence were submitted’”.             
          Higbee v. Commissioner, 116 T.C. 438, 442 (2001) (quoting H.                
          Conf. Rept. 105-599, at 240-241 (1998), 1998-3 C.B. 747, 994-               
          995).  Section 7491(a)(1) applies only if an individual taxpayer            
          complies with substantiation requirements, maintains all required           






Page:  Previous  1  2  3  4  5  6  7  8  9  10  11  Next

Last modified: May 25, 2011