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respondent, citing section 86(a)(2) and 86(c)(2), asserts that
because petitioner’s gross income for 2002 exceeded the statutory
adjusted base amount, 85 percent of petitioner’s Social Security
benefits for 2002, or $8,119, must be included in petitioner’s
2002 income. Because petitioner did not file an income tax
return for 2002, respondent asserts that petitioner is liable for
an addition to tax under section 6651(a)(1). Next, respondent
asserts that because petitioner failed to file a 2002 tax return,
the Secretary filed one on petitioner’s behalf pursuant to
section 6020(b); that a return filed pursuant to section 6020(b)
is treated as a return filed by the taxpayer for the purpose of
determining whether an addition to tax for failure to pay is
warranted under section 6651(a)(2); and that petitioner is liable
for an addition to tax under section 6651(a)(2). Finally,
respondent contends that petitioner is liable for an addition to
tax under section 6654(a) for failing to pay estimated tax in
2002.
II. Taxability of the Pension Distribution
As a general rule, the Commissioner’s determination of a
taxpayer’s liability for an income tax deficiency is presumed
correct, and the taxpayer bears the burden of proving that the
determination is improper. See Rule 142(a); Welch v. Helvering,
290 U.S. 111, 115 (1933).
Section 61(a) specifies that, “Except as otherwise
provided”, gross income includes “all income from whatever source
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