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records, and cooperates with reasonable requests by the
Commissioner for witnesses, information, documents, meetings, and
interviews. Sec. 7491(a)(2).
In this case, section 7491 is inapplicable because
petitioner did not introduce any credible evidence with respect
to the origination of his disability and failed to comply with
the substantiation, cooperation, and record-keeping requirements.
The burden of proof remains on petitioner to show that
respondent’s determination is in error.
Disability Pension Income
As previously stated, the issue for decision is whether
under section 104(b)(2)(C) petitioner is entitled to exclude from
gross income $3,468 of pension income because he claims it was
received on account of a combat-related injury. Respondent
argues that petitioner has not introduced credible evidence as to
the origination of his disability; thus the disability pension
income is not excluded from gross income under section
104(b)(2)(C). On the record, we agree with respondent.
As a general rule, the Internal Revenue Code imposes a tax
on the taxable income of every individual. Sec. 1. Section
61(a) specifies that, “Except as otherwise provided”, gross
income for purposes of calculating taxable income means “all
income from whatever source derived”. The Supreme Court has long
reiterated the sweeping scope of section 61. Commissioner v.
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Last modified: May 25, 2011