Terry I. and Louise Major - Page 18

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          the Secretary for witnesses, information, documents, meetings,              
          and interviews.  Sec. 7491(a)(2).  Petitioners 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), as to which respondent bears the burden of              
          production, petitioners bear 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.9  Sec. 6012(a)(1)(A).  Petitioners had aggregate gross              
          income totaling at least $44,971.74, and each individually had              
          gross income totaling at least $18,381.08 for taxable year 2001.            
          Both petitioners’ gross incomes exceeded the filing threshold for           
          the 2001 taxable year, and petitioners were, therefore, required            
          to file an income tax return.10                                             

               9 Terry denied he was a “U.S. person”; however, at trial, he           
          asserted that he was a “citizen of the United States”.  Section             
          7701(a)(30) defines the term “United States person” as, inter               
          alia, a “citizen or resident of the United States”.                         
               10 In petitioners’ letter, contained in the record, Terry              
          makes reference to the validity of the filing requirement.  Our             

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