- 3 - 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.Page: Previous 1 2 3 4 5 6 7 8 9 Next
Last modified: May 25, 2011