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438, 442 (2001)). Section 7491(a)(1) applies only if the
taxpayer complies with substantiation requirements, maintains all
required records, and cooperates with reasonable requests by the
Commissioner for witnesses, information, documents, meetings, and
interviews. Sec. 7491(a)(2). Although neither party alleges the
applicability of section 7491(a), we conclude that the burden of
proof has not shifted to respondent with respect to any of the
issues in the present case.
1. Pension Plan Payments
Section 61(a) specifies that, “Except as otherwise
provided”, gross income includes “all income from whatever source
derived”. The construction of section 61 is broad, and any
“‘exclusions to income must be narrowly construed.’”
Commissioner v. Schleier, 515 U.S. 323, 328 (1995)(quoting United
States v. Burke, 504 U.S. 229, 248 (1992)(Souter, J., concurring
in judgment)). Taxpayers seeking an exclusion from gross income
must demonstrate that they are eligible for the exclusion and
bring themselves “within the clear scope of the exclusion”.
Dobra v. Commissioner, 111 T.C. 339, 349 n.16 (1998).
Section 61(a)(9) and (11) provides that annuities and
pensions are among the forms of income within the purview of
section 61(a). Section 72 pertaining to annuities and pensions
(section 61(a)(9) and (11)) sets forth specific rules applicable
to taxation of, inter alia, annuities and distributions from
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