Shannon D. Mullins - Page 7

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          of his stock in Edgington Mullins.  Petitioner’s return was                 
          prepared by a professional tax return preparer, but petitioner              
          acknowledged that he did not inform his tax return preparer that            
          he sold his stock in Edgington Mullins.  The return was signed by           
          the tax return preparer on August 5, 2002, and by petitioner on             
          August 10, 2002, but was not received by the Internal Revenue               
          Service until November 2, 2002.                                             
               By notice of deficiency dated December 22, 2003, respondent            
          determined a deficiency of $6,532, as well as an addition to tax            
          for filing a delinquent return under section 6651(a)(1) and an              
          accuracy-related penalty under section 6662(a).  Respondent                 
          determined the deficiency based upon petitioner’s receiving                 
          unreported income reflected on the Schedule K-1.  At trial,                 
          respondent conceded that petitioner sold his stock in Edgington             
          Mullins during 2001 and is responsible for only a pro rata share            
          of the items of income and deductions reported on the Schedule K-           
          1.  Respondent, however, asserts that petitioner received                   
          unreported capital gains from the sale of his Edgington Mullins             
          stock, and this new issue was tried by the consent of the                   
          parties.  See Rule 41(b).                                                   
               In general, the Commissioner’s determinations set forth in a           
          notice of deficiency are presumed correct, and the taxpayer bears           
          the burden of showing that the determinations are in error.  Rule           

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