Rose M. Munoz - Page 4

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               Petitioner filed a 2003 Form 1040, U.S. Individual Income              
          Tax Return, on which she reported wages of $0, business income of           
          $4,964 from STC, and adjusted gross income of $4,613. Respondent            
          received a Form 1099-MISC, Miscellaneous Income, from Advance               
          Cargo Corporation (ACC), reporting that $14,300 in nonemployee              
          compensation was paid to petitioner.  The Form 1099-MISC bears              
          petitioner’s correct Social Security number but the wrong middle            
          initial.                                                                    
               On March 31, 2005, respondent issued to petitioner a                   
          statutory notice of deficiency determining that petitioner had              
          unreported nonemployee compensation of $14,300 for services                 
          rendered to ACC.                                                            
                                     Discussion                                       
               The Commissioner’s determinations are presumed correct, and            
          generally taxpayers bear the burden of proving otherwise.2  Rule            
          142(a)(1); Welch v. Helvering, 290 U.S. 111, 115 (1933).                    
               Petitioner contends that she did not receive any unreported            
          nonemployee compensation, because she has never worked for ACC in           
          any capacity.  She testified that the only job she held in 2003             
          was with STC.                                                               

               2Petitioner has not raised the issue of sec. 7491(a), which            
          shifts the burden of proof to the Commissioner in certain                   
          situations.  This Court concludes that sec. 7491 does not apply             
          because petitioner has not produced any evidence that establishes           
          the preconditions for its application.                                      




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