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the taxpayer has fully cooperated with the Secretary, the
Secretary shall have the burden of producing reasonable and
probative information concerning that deficiency in addition to
the information return.
Petitioner has asserted a reasonable dispute with respect to
the income reported by NACOLAH on the Form 1099-MISC and has
cooperated with the Secretary. Petitioner asserts that he is not
liable for the deficiency and the section 6662(a) accuracy-
related penalty because he did not receive the commissions
reported on the Form 1099-MISC in 2003. Petitioner offered his
oral testimony as evidence. Petitioner’s testimony was
corroborated by Donlon’s admission at trial and by canceled
checks from NACOLAH that were deposited into an account
maintained by Investments in 2003.
There is no suggestion that petitioner failed to cooperate
fully with respondent. The Court concludes that respondent has
the burden of producing reasonable and probative information
concerning the deficiency and the Form 1099-MISC.
Respondent concedes that petitioner did not receive the
checks from NACOLAH. Respondent nevertheless determined that
petitioner had unreported income, around $2,000 to $3,000, which
respondent asserts was the amount petitioner received from
Investments for the use of his license in selling the insurance
policies that generated the commissions reported by NACOLAH.
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Last modified: November 10, 2007