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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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