- 4 - year as follows: Date Amount Fee Received 1/8/03 $4,123 $25 1/23/03 1,435 25 1/30/03 1,400 25 1/31/03 948 25 3/23/03 604 25 4/6/03 1,191 25 4/13/03 719 25 4/19/03 920 25 Total 11,340 200 Respondent issued a notice of deficiency for petitioner’s 2003 taxable year. Respondent determined a $1,364 deficiency, arising from $12,258 in unreported gambling income and $6,974 as compensation for services. Discussion The Commissioner’s determinations in a notice of deficiency are presumed correct, and the burden is on the taxpayer to prove that the determinations are in error. Rule 142(a); Welch v. Helvering, 290 U.S. 111, 115 (1933). However, pursuant to section 7491(a)(1), the burden of proof on factual issues that affect the taxpayer’s tax liability may be shifted to the Commissioner where the “taxpayer introduces credible evidence with respect to * * * such issue.” The burden will shift only if the taxpayer has complied with the substantiation requirements and “has cooperated with reasonable requests by the Secretary for witnesses, information, documents, meetings, and interviews”. Sec. 7491(a)(2). Petitioner has not alleged or proven thatPage: Previous 1 2 3 4 5 6 7 8 9 NextLast modified: November 10, 2007