Lisa Beth Levine - Page 2

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          petitioner’s employment relationship with the U.S. Department of            
          State (the State Department) from January 1 until November 19,              
          1999, under two personal service contracts covering that period,            
          was that of a common law employee of the State Department, as               
          respondent asserts, or an independent contractor, as petitioner             
          asserts.  We hold that petitioner’s relationship with the State             
          Department was that of an independent contractor.1                          

               1Unless otherwise indicated, section references are to the             
          Internal Revenue Code Rule, and Rule references are to the Tax              
          Court Rules of Practice and Procedure.                                      
               In her opening brief, petitioner asserted that the burden of           
          proof should be shifted to respondent because the notice of                 
          deficiency failed to adequately describe the basis for the tax              
          deficiency as required by sec. 7522(a).  In response to an                  
          inquiry of the Court, respondent concedes that sec. 7491(a)                 
          applies in the present case because the examination of                      
          petitioner’s 1999 return began after July 22, 1998, the effective           
          date of the statute.  Respondent also concedes that petitioner              
          has complied with the substantiation and cooperation requirements           
          of sec. 7491(a)(2).                                                         
               The burden of proof consists of two burdens--the burden of             
          production (the duty of bringing forward evidence) and the burden           
          of persuasion (the risk of nonpersuasion).  Gerling Intl. Ins.              
          Co. v. Commissioner, 86 T.C. 468, 476 n.5 (1986).  The initial              
          burden of production requires the taxpayer to introduce evidence            
          sufficient to establish his/her claim by a preponderance of the             
          evidence.  Helvering v. Taylor, 293 U.S. 507, 514-515 (1935); see           
          also Pittman v. Commissioner, 100 F.3d 1308, 1317 (7th Cir.                 
          1996), affg. T.C. Memo. 1995-243; Page v. Commissioner, 58 F.3d             
          1342, 1347-1348 (8th Cir. 1995), affg. T.C. Memo. 1993- 398.                
          Without regard to any burden-shifting provisions, if the taxpayer           
          successfully carries the initial burden of production as to a               
          particular adjustment, the burden of production (but not the                
          ultimate burden of persuasion) shifts to the Commissioner; i.e.,            
          the burden of introducing evidence showing an adjustment is                 
          warranted shifts to the Commissioner.  Helvering v. Taylor, supra           
          at 514-515; Berkery v. Commissioner, 91 T.C. 179, 186 (1988),               

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