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determined that petitioner had unreported wage income for each of
the years at issue. For the taxable years 1998 and 1999,
respondent also determined additions to tax under sections
6651(a)(1) and 6654(a).
A. Unreported Income
Gross income includes all income from whatever source
derived, including compensation for services. Sec. 61(a)(1). In
general, the Commissioner’s determinations set forth in a notice
of deficiency are presumed correct, and the taxpayer bears the
burden of showing that the determinations are in error. Rule
142(a); Welch v. Helvering, 290 U.S. 111, 115 (1933). Under
certain circumstances, the burden of proof as to factual matters
shifts to the Commissioner. Sec. 7491(a). However, petitioner
has neither alleged that section 7491(a) applies nor established
his compliance with the requirements of section 7491(a)(2)(A) and
(B) to substantiate items, maintain records, and cooperate fully
with respondent’s reasonable requests. Petitioner therefore
bears the burden of proof.7
7 But for the provisions of sec. 7463(b), this case would be
appealable to the Court of Appeals for the Ninth Circuit (Court
of Appeals). See sec. 7482(b)(1)(A). We therefore follow the
law of that court. Golsen v. Commissioner, 54 T.C. 742, 757
(1970), affd. 445 F.2d 985 (10th Cir. 1971). In order for the
presumption of correctness to apply in a case involving
unreported income, the Court of Appeals has held that the
Commissioner “must show some minimal evidence linking the
taxpayer to the source of that income”. Palmer v. IRS, 116 F.3d
1309, 1312-1313 (9th Cir. 1997). Although it is unclear whether
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