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he contacted MetLife to question the accuracy of the $6,005
figure. Petitioner spoke to a number of MetLife employees, but
MetLife did not provide a copy of the Form 1099-MISC or other
relevant information until respondent served MetLife with a
subpoena before trial.
Discussion
1. Income From Farmers
Gross income includes all income from whatever source
derived unless excluded by a specific provision of the Internal
Revenue Code. Sec. 61(a). A taxpayer generally must report
income for the taxable year when actually or constructively
received. Sec. 1.451-1(a), Income Tax Regs.
In general, the taxpayer bears the burden of proving the
Commissioner’s determination is erroneous. See sec. 7491(a);2
Rule 142(a). When the Commissioner determines that a taxpayer
received unreported income, however, the Commissioner must
establish “‘some evidentiary foundation linking the taxpayer’” to
the income-producing activity or introduce substantive evidence
“‘demonstrating that the taxpayer received unreported income’”.
Krohn v. Commissioner, T.C. Memo. 2005-145 (quoting Weimerskirch
2 Sec. 7491 does not shift the burden of proof to respondent
because petitioners have neither alleged that sec. 7491 is
applicable nor established that they complied with the
requirements of sec. 7491(a)(2)(A) and (B) to substantiate items,
maintain required records, and fully cooperate with respondent’s
reasonable requests.
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