T.C. Memo. 1998-76
UNITED STATES TAX COURT
DWAYNE WORTH CHAMP, Petitioner v.
COMMISSIONER OF INTERNAL REVENUE, Respondent
Docket No. 18866-96. Filed February 23, 1998.
Dwayne Worth Champ, pro se.
Cheryl M. D. Rees, for respondent.
MEMORANDUM OPINION
DINAN, Special Trial Judge: This case was heard pursuant
to the provisions of section 7443A(b)(3) and Rules 180, 181, and
182.1
1
Unless otherwise indicated, all section references are
to the Internal Revenue Code in effect for the taxable year in
issue. All Rule references are to the Tax Court Rules of
Practice and Procedure.
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Respondent determined a deficiency in petitioner's Federal
income tax for 1993 in the amount of $1,416.
The issue for decision is whether petitioner received and
failed to report income during 1993.
Some of the facts have been stipulated and are so found.
The stipulations of fact and attached exhibits are incorporated
herein by this reference. Petitioner resided in Charlottesville,
Virginia, on the date the petition was filed in this case.
Petitioner's occupation was not revealed in his petition or
by the evidence presented at trial. From the limited record in
this case, we have gleaned that petitioner worked as a
construction laborer. On his 1993 return, petitioner reported
receiving the following amounts during 1993:
S. Di Gregorio & Son, Inc. $7,692
L. F. Jennings, Inc. 1,587
Dulles Drywall, Inc. 870
Charles Town Races, Inc. 684
In the statutory notice of deficiency, respondent determined
that petitioner received and failed to report: (1) Employee
wages in the amount of $300 from American Property Construction
Company (American); (2) nonemployee compensation in the amount of
$2,099 from D&B Associates, Inc. (D&B); and (3) nonemployee
compensation in the amount of $2,025 from Bryant Dickinson
Drywall (Bryant).
Respondent's determinations in the statutory notice of
deficiency are presumed to be correct, and petitioner bears the
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burden of proving otherwise. Rule 142(a); Welch v. Helvering,
290 U.S. 111, 115 (1933). Section 61(a) includes in gross income
all income from whatever source derived including, but not
limited to, compensation for services. Sec. 61(a)(1).
American
Petitioner concedes that he received $300 for services
performed as American's employee. We hold that such amount is
includable in his gross income. Sec. 61(a)(1).
D&B
Petitioner concedes that he received nonemployee
compensation from D&B for services performed during 1993. He
disputes, however, respondent's determination that he received a
total of $2,099 from D&B. Respondent submitted photocopies of 10
of D&B's canceled checks made out to petitioner in the total
amount of $2,099. At trial, petitioner verified his signature on
photocopies of the back of each of the 10 checks. Based on this
evidence and petitioner's concession, we find that he received
nonemployee compensation from D&B in the amount of $2,099 during
1993 and hold that such amount is includable in his gross income
and is subject to self-employment taxes.
Bryant
Petitioner concedes that he received $2,025 for services
performed for Bryant. He does not concede, however, that he is
subject to self-employment taxes for such amount.
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Section 1401(a) imposes a tax on self-employment income for
old-age, survivors, and disability insurance. An additional tax
for hospital insurance is imposed on self-employment income
pursuant to section 1401(b). Self-employment income is defined
as the net earnings from self-employment derived by an individual
during any taxable year. Sec. 1402(b). The phrase "net earnings
from self-employment" is in turn defined as the gross income
derived by an individual from any trade or business carried on by
such individual, less any attributable deductions. Sec. 1402(a).
Petitioner presented no evidence or testimony which supports
a finding contrary to respondent's determination, and we
accordingly sustain such determination.
To reflect the foregoing,
Decision will be entered
for respondent.