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H. Self-Employment Tax
Section 1401 imposes, in addition to other taxes, a tax on
the self-employment income of every individual. Subject to
exclusions not applicable in the instant case, “self-employment
income” refers to the “net earnings from self-employment derived
by an individual”. Sec. 1402(b). Section 1402(a) defines “net
earnings from self-employment” as “the gross income derived by an
individual from any trade or business carried on by such
individual, less the [claimed] deductions [in 1999] allowed by
this subtitle which are attributable to such trade or business”.
The burden of proof to show that respondent’s determination
was in error remains with petitioner. She offered no evidence
and advanced no arguments with respect to liability for self-
employment taxes. The burden did not shift to respondent under
section 7491.
Petitioner’s income from real estate services and rental
payments is documented by her receipt of several checks. By
filing her Form 1040 for 1999, petitioner admitted her Schedule C
Nature’s Herb & Tea Garden business income was subject to self-
employment tax. Petitioner is liable for the self-employment
taxes in the amounts of $4,743 and $7,738 for 1999 and 2000,
respectively.17
17 For 1999, the notice of deficiency reported that
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