Christopher Clifford Roiland - Page 4

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                                     Discussion                                       
               In general, the Commissioner’s determinations set forth in a           
          notice of deficiency are presumed correct, and the taxpayer bears           
          the burden of showing the determinations are in error.  Rule                
          142(a); Welch v. Helvering, 290 U.S. 111, 115 (1933).  Pursuant             
          to section 7491, the burden of proof as to factual matters shifts           
          to the Commissioner under certain circumstances.  Because the               
          facts are not in dispute, we decide this case without regard to             
          the burden of proof.                                                        
          1.   Unreported Income                                                      
               Section 61(a) provides that gross income means all income              
          from whatever source derived.  At trial, petitioner acknowledged            
          that he had received $12,613 of wage income from the company in             
          2002.  Accordingly, respondent’s determination on this issue is             
          sustained.                                                                  
          2.   Addition to Tax Under Section 6651(a)(1)                               
               If a tax return is not timely filed, an addition to tax will           
          be assessed “unless it is shown that such failure is due to                 
          reasonable cause and not due to willful neglect”.  Sec.                     
          6651(a)(1).  The Commissioner has the burden of production with             
          respect to the liability of any individual for an addition to tax           
          under section 6651(a)(1).  Sec. 7491(c).  The burden of showing             
          reasonable cause under section 6651(a) remains on the taxpayer.             
          Higbee v. Commissioner, 116 T.C. 438, 446-448 (2001).                       






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