-6-
petitioner that reported the payment of income in the amount of
$11,500.4
Petitioners did not report the $11,500 payment as income on
their Form 1040, U.S. Individual Income Tax Return, for 2002.
Discussion
The Commissioner’s deficiency determinations are presumed
correct, and taxpayers generally have the burden of proving these
determinations are incorrect. Rule 142(a); Welch v. Helvering,
290 U.S. 111, 115 (1933). Under certain circumstances, section
7491(a) may shift the burden to the Commissioner. This shifting
of the burden, however, applies only where the taxpayer has
introduced such “credible evidence” regarding their liability
that, if unopposed, would show by a preponderance of the evidence
that respondent’s determination is erroneous. Petitioners have
not introduced such evidence. The Court decides this case on the
record before it and without regard to the burden of proof.
Taxpayers are required, under section 61(a), to include “all
income from whatever source derived” unless such income has been
specifically excepted from inclusion. See Commissioner v.
Glenshaw Glass Co., 348 U.S. 426, 430 (1955) (Congress’s intent
under section 61(a) was to tax unless specifically excluded).
Exclusions to section 61(a) must be narrowly construed.
4A copy of the Form 1099-MISC issued to petitioner by
Daimler-Chrysler was not provided to the Court.
Page: Previous 1 2 3 4 5 6 7 8 9 10 11 12 13 14 15 16 Next
Last modified: May 25, 2011