-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.Page: Previous 1 2 3 4 5 6 7 8 9 10 11 12 13 14 15 NextLast modified: November 10, 2007