- 3 -
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).
Page: Previous 1 2 3 4 5 6 Next
Last modified: May 25, 2011