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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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