Raymond E. Vogt, Jr. - Page 8




                                         -8-                                          
          petitioner’s capital gain by $1,928.  Respondent also disallowed            
          certain itemized deductions totaling $604.10                                
               Petitioner did not file a return for 2003.  He did not make            
          estimated tax payments for 2003.  Respondent determined that                
          during 2003 petitioner received the following specific items of             
          income totaling $47,092:  (1) A partnership distribution from               
          Cetus Healthcare Limited Partnership II of $242; (2) a                      
          distribution from a Schwab Individual Retirement Account of                 
          $3,092; (3) wages from Linotext America, Inc. of $19,970; (4)               
          Social Security benefits of $19,248; (5) nonemployee compensation           
          from Linotext America, Inc., and Applied Materials of $1,722 and            
          $1,933, respectively; and (6) capital gain from the sale of Cisco           
          stock of $885.  Respondent’s bank deposits analysis showed that             
          petitioner received $54,832 of additional unreported income.                
                                       OPINION                                        
          A.   Unreported Income                                                      
               Generally, a taxpayer bears the burden of proving the                  
          Commissioner’s determinations incorrect.  Rule 142(a); Welch v.             
          Helvering, 290 U.S. 111, 115 (1933).  However, the U.S. Court of            
          Appeals for the Ninth Circuit, the court to which appeal in this            
          case would lie, has held that the Commissioner must establish               


               9(...continued)                                                        
          Master Printers Credit Union.                                               
               10The disallowed deductions included charitable                        
          contributions and miscellaneous employee business expenses.                 





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