Aric Manley Allman - Page 7

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          and not as a beneficiary or owner.  Accordingly, we hold for                
          petitioner with respect to this issue.                                      
          2.  Reported NonEmployee Compensation                                       
               Petitioner does not dispute that he received compensation              
          from Mr. McMickle for 2003.  Petitioner, however, disputes the              
          total amount of $3,497 reported by Mr. McMickle as nonemployee              
          compensation.  He disagrees with the Commissioner’s determination           
          that he failed to report $3,497 in 2003, and argues that the                
          determination is based solely on information erroneously filed by           
          a third-party payor.                                                        
               Under section 7491(a), the burden of proof with respect to             
          any factual issue shifts to the respondent if the petitioner                
          introduces credible evidence with respect to that issue.                    
          Moreover, under section 6201(d), if a taxpayer asserts a                    
          “reasonable dispute” with regard to income reported by a third              
          party, respondent must produce reasonable and probative                     
          information regarding the source of income derived.  See Gussie             
          v. Commissioner, T.C. Memo. 2001-302.                                       
               At trial, petitioner testified that he worked only from                
          November 18, 2003, through the end of December for Mr. McMickle             
          (27 days), taking into account the Thanksgiving and Christmas               
          holidays.  Petitioner stated that he earned roughly $1,800 during           
          that period.  Petitioner’s estimate is based on his belief that             
          he worked between 30 to 35 hours per week at $12.50 per hour.               

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