Andrew S. Cirbo - Page 7

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          Petitioner claims that he “did not receive a dime of commission”,           
          from Investments or Donlon, in connection with the policies.                
               At trial, respondent called Donlon as a witness.  Other than           
          Donlon’s belief that petitioner would not have agreed to                    
          Investments’ using his insurance license for free, there is no              
          evidence that petitioner actually received a fee from Investments           
          for the use of his license in the sale of policies for NACOLAH.             
               Even if petitioner did receive a fee from Investments, the             
          amount that was actually paid is unknown because Investments did            
          not issue to petitioner a Form 1099 for 2003.  Donlon testified             
          that he did not remember how petitioner was paid, and he                    
          “estimated” that petitioner was paid a fee between $2,000 to                
          $3,000 for the use of his insurance license.  Donlon’s testimony,           
          however, was not supported by any documentation.                            
               Accordingly, the Court finds that petitioner is not liable             
          for the 2003 deficiency and section 6662(a) accuracy-related                
          penalty because respondent has failed to satisfy his burden of              
          production with respect to the deficiency and the Form 1099-MISC            
          under section 6201(d).                                                      
               To reflect the foregoing,                                              

                                                  Decision will be entered            
                                             for petitioner.                          

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Last modified: November 10, 2007