-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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