- 9 -
income tax returns for the years at issue and make estimated tax
payments, other than the tax withheld.
Generally, the taxpayer has the burden of proving the
Commissioner’s determinations are in error. Rule 142(a). The
Court of Appeals for the Fifth Circuit, the Circuit in which
appeal in this case would lie, has held that in unreported income
cases “The Commissioner has no duty to investigate a third-party
payment report that is not disputed by the taxpayer.” Parker v.
Commissioner, 117 F.3d 785, 787 (5th Cir. 1997); Andrews v.
Commissioner, T.C. Memo. 1998-316. Generally, a third-party
payment report is not in dispute unless the taxpayer files a Form
1040 or other sworn document denying receipt of unreported
income. Parker v. Commissioner, supra at 787; Spurlock v.
Commissioner, T.C. Memo. 2003-248; Andrews v. Commissioner,
supra.
Petitioner received from third-party payors: (1) In 2000,
wage income of $12,733, $10,595, $44,250, $14,271, and $9,279,
from Metro Information Services, Ajilon LLC, MBNA, SCB Computer
Technology, Inc., and CCC, Inc., respectively, capital gain
income of $412 and $164 from AXP and American Express,
respectively, and a taxable distribution of $295 from Federal
Savings Bank; (2) in 2001, wage income of $99,949 from MBNA and
capital gain income of $73 from AXP; (3) in 2002, wage income of
$99,771 from MBNA Technology, Inc., capital gain income of $456
Page: Previous 1 2 3 4 5 6 7 8 9 10 11 12 13 14 Next
Last modified: November 10, 2007