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expenses during 2002. Petitioner submitted to respondent’s
counsel on the morning of trial a Form 1040, U.S. Individual
Income Tax Return, for 2002, with an attached Schedule C, Profit
or Loss From Business, under the name KD Fabricating. The
Schedule C reported gross receipts of $53,826, total expenses of
$49,418 and a net profit of $4,408. Petitioner included in the
gross income reported on Schedule C the recovery from his lawsuit
against Welding, the proceeds from the sale of a vehicle, and
other items. Similarly, the expenses reported on Schedule C
include items from various sources.
Discussion
The Commissioner’s deficiency determinations are presumed
correct, and taxpayers generally have the burden of proving that
the determinations are incorrect. Rule 142(a); Welch v.
Helvering, 290 U.S. 111, 115 (1933). Under certain
circumstances, however, section 7491(a) may shift the burden to
the Commissioner with respect to a factual issue affecting
liability for tax. Petitioner did not present evidence or
argument that he satisfied the requirements of section 7491(a),
and therefore, the burden of proof does not shift to respondent.
Taxpayers are required, under section 61(a), to include in
gross income “all income from whatever source derived” unless
such income has been specifically excepted from inclusion. See
Commissioner v. Glenshaw Glass Co., 348 U.S. 426, 430 (1955)
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