Alex B. Rhodes, Jr. - Page 9

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          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,                 
               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             

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