Daniel C. McManus - Page 7

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          petitioner.  The total amount paid to Salt Creek Services in                
          consideration for petitioner’s personal services is includable in           
          his gross income.                                                           
          B.   Burdens of Production and Proof                                        
               1.   Section 6201(d)                                                   
               If a taxpayer asserts a reasonable dispute with respect to             
          any item of income reported on a third-party information return             
          and the taxpayer has fully cooperated with the Secretary, the               
          Secretary has the burden of producing reasonable and probative              
          information concerning that deficiency in addition to the                   
          information return.  Sec. 6201(d).                                          
               Petitioner did not assert any reasonable dispute with                  
          respect to income reported by the third-party payors.  Petitioner           
          did not testify at trial, called no witnesses, and produced no              
          relevant evidence.  Therefore, the Court concludes respondent               
          does not have the burden of production under section 6201(d).               
               2.   Determination in Unreported Income Cases                          
               The Court of Appeals for the Ninth Circuit has determined              
          that in order for the presumption of correctness to attach to the           
          deficiency determination in unreported income cases, the                    
          Commissioner must establish “some evidentiary foundation”                   
          connecting the taxpayer with the income-producing activity,                 
          Weimerskirch v. Commissioner, 596 F.2d 358, 361-362 (9th Cir.               
          1979), revg. 67 T.C. 672 (1977), or demonstrate the taxpayer                






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