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State of Maryland paid to petitioner, wages totaling $6,227 that
Sportland Properties paid to her, and interest totaling $140 that
Ocean City Bank paid to her. In the notice, respondent also
determined that petitioner is liable for 1994 for additions to
tax under, inter alia, sections 6651(a)(1) and 6654(a), respec-
tively.4
OPINION
Petitioner bears the burden of proving that the determina-
tions in the notice are erroneous.5 Rule 142(a); Welch v.
Helvering, 290 U.S. 111, 115 (1933).
$170,000 Settlement
It is not clear whether it is petitioner’s position that
none of the $170,000 settlement is includible in her gross income
or that only the $84,500 contingency fee paid to Mr. Ober, her
attorney, is not includible in her gross income. On brief,
petitioner argues:
Petitioner clearly did not gain anything from these
funds; they were simply paid to the attorney, Mr. Ober,
4Respondent also determined in the notice that petitioner is
liable for 1994 for the addition to tax under sec. 6651(a)(2).
See supra note 2.
5Petitioner makes no argument under sec. 7491(a) or (c).
Respondent’s records show that on June 29, 1998, a substitute for
return was posted to the account that respondent maintained with
respect to petitioner for her taxable year 1994. We find that
respondent’s examination of petitioner’s taxable year 1994 began
before July 23, 1998, and that sec. 7491 is not applicable in the
instant case. See Internal Revenue Service Restructuring and
Reform Act of 1998, Pub. L. 105-206, sec. 3001(c), 112 Stat. 727.
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