- 5 -
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).
Page: Previous 1 2 3 4 5 6 7 8 9 10 11 12 13 14 Next
Last modified: November 10, 2007