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include the $13,524 of Social Security benefits that petitioner
received. Respondent issued petitioners a notice of deficiency
in August 2005. Respondent determined that $11,495 of the
benefits was taxable, representing 85 percent of the amount
received.2
Discussion
In general, the Commissioner’s determinations set forth in a
notice of deficiency are presumed correct, and the taxpayer bears
the burden of showing that the determinations are in error. Rule
142(a); Welch v. Helvering, 290 U.S. 111, 115 (1933). Pursuant
to section 7491(a), the burden of proof as to factual matters
shifts to the Commissioner under certain circumstances. Because
we decide this case without regard to the burden of proof, we
need not decide whether section 7491(a) applies.
1. Social Security Benefits
Section 86 requires the inclusion in gross income of up to
85 percent of Social Security benefits received. Reimels v.
Commissioner, 123 T.C. 245, 247-248 (2004), affd. 436 F.3d 344
(2d Cir. 2006); Green v. Commissioner, T.C. Memo. 2006-39. In
contrast, “amounts received under workmen’s compensation acts as
2 The notice of deficiency indicates the taxable amount was
$11,495. The stipulation of facts, however, states that
respondent determined $11,485 of the disability benefits to be
taxable. Although the discrepancy has not been explained, we
assume the figure used in the notice of deficiency is correct.
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