- 4 -
received from his employment with AquaProof. Petitioner did not
report any income derived from his employment with Mr. McMickle.
Mr. McMickle reported to the Internal Revenue Service on a
Form 1099-MISC, Miscellaneous Income, that petitioner received
nonemployee compensation in 2003 of $3,497. For the 2003 taxable
year, Nationwide Life Insurance Company (Nationwide) also
reported on a Form 1099-INT, Interest Income, that petitioner
received interest of $16 and $11. Petitioner did not report
these amounts on his Form 1040EZ for 2003.
Discussion
1. Income from Nationwide Life Insurance Co.
Gross income includes all income from whatever source
derived unless excluded by a specific provision of section 61(a).
Notably, gross income includes interest and dividends. Sec.
61(a)(4).
Generally, the taxpayer bears the burden of proving the
Commissioner’s determination is erroneous. Sec. 7491(a); Rule
142(a); Welch v. Helvering, 290 U.S. 111 (1933). The issue we
must resolve in this case is whether respondent may rely solely
upon information provided by a third-party payer in making a
determination.
Respondent determined that petitioner received interest of
$16 and $11 in taxable year 2003 from two separate insurance
policies based solely on the information contained on Forms 1099-
Page: Previous 1 2 3 4 5 6 7 8 9 10 11 12 13 Next
Last modified: May 25, 2011