Michael Alan Jackson and Mary Joy Jackson, et al. - Page 5

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          Qualified State Tuition Program Payments.  Ms. Jackson did not              
          file a Federal income tax return for 2003.  Respondent issued a             
          notice of deficiency on the basis of a substitute for return that           
          respondent prepared.                                                        
          A.  Taxable Income Determinations                                           
               Petitioners bear the burden of proving that respondent’s               
          determinations are erroneous.  See Rule 142(a).3  Petitioners do            
          not dispute that they received the aforesaid items of                       
          compensation, pension distribution, State income tax refunds, and           
          payment from the S.C. Employment Security Commission.                       
          Petitioners have advanced no cognizable reason these amounts are            
          not properly included in their taxable income, as respondent has            
          determined.  See secs. 61, 111.                                             
               In their petitions, petitioners broadly deny the figures and           
          contents of the notices of deficiency but, contrary to Rule                 

               3 If a taxpayer introduces credible evidence and meets                 
          certain other prerequisites, the Commissioner bears the burden of           
          proof with respect to factual issues relating to the taxpayer’s             
          liability for a tax imposed under subtit. A or B of the Code.               
          Sec. 7491(a).  In addition, if a taxpayer asserts a reasonable              
          dispute with respect to any item of income reported on an                   
          information return filed with the Secretary by a third party and            
          the taxpayer has fully cooperated with the Secretary, the                   
          Secretary has the burden of producing reasonable and probative              
          information, in addition to the information return, concerning a            
          deficiency.  Sec. 6201(d).  Petitioners do not dispute the                  
          relevant facts, have failed to introduce credible evidence, and             
          have not asserted a reasonable dispute regarding the items                  
          reported on the information returns.  Accordingly, secs. 6201(d)            
          and 7491(a) are inapplicable.                                               

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