- 5 - 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. Discussion 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.Page: Previous 1 2 3 4 5 6 7 8 9 NextLast modified: November 10, 2007