Cindee J. Conner - Page 6




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               During the taxable year in issue, petitioner worked as a               
          dance instructor at her sister’s dance studio and earned wage               
          income in the amount of $33,711.  Petitioner did not file a                 
          separate Federal income tax return for 1997, reporting her wage             
          income or her share of long-term capital gain.                              
               On March 8, 2005, respondent sent petitioner a notice of               
          deficiency for the 1997 taxable year.  In the notice, respondent            
          determined a deficiency in the amount of $11,344 together with              
          additions to tax pursuant to sections 6651(a)(1) and 6654 in the            
          amounts of $2,552 and $599, respectively.                                   
                                     Discussion                                       
               As a general rule, the determinations of the Commissioner in           
          a notice of deficiency are presumed correct, and the taxpayer               
          bears the burden of proving them to be in error.  Rule 142(a);              
          Welch v. Helvering, 290 U.S. 111, 115 (1933).  As an exception to           
          this rule, section 7491(a) places upon the Commissioner the                 
          burden of proof with respect to any factual issue relating to               
          liability for tax if the taxpayer maintained adequate records,              
          satisfied the substantiation requirements, cooperated with the              
          Commissioner, and introduced during the Court proceeding credible           
          evidence with respect to the factual issue.  Based on the                   
          following, because petitioner has not satisfied the requirements            
          of section 7491, section 7491(a) is inapplicable.  See Higbee v.            
          Commissioner, 116 T.C. 438 (2001).                                          







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